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1. Company Snapshot

1.a. Company Description

WidePoint Corporation provides technology management as a service (TMaaS) to the government and business enterprises in North America and Europe.It offers TMaaS solutions through a federal government certified proprietary portal to manage, analyze, and protect communications assets, as well as deploy identity management solutions that provide secured virtual and physical access to restricted environments.The company provides telecom lifecycle management, mobile and identity management, and digital billing and analytics solutions.


It also offers information technology as a service, including cybersecurity, cloud, network operation, and professional services.WidePoint Corporation was founded in 1991 and is headquartered in Fairfax, Virginia.

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1.b. Last Insights on WYY

WidePoint Corporation's recent performance was driven by strong momentum, with the company exceeding its full-year 2024 revenue guidance and meeting or surpassing its adjusted EBITDA and free cash flow guidance. The company's strategic positioning in high-trust federal contracts, such as DHS CWMS 3.0 and NASA SEWP VI, offers significant growth opportunities. WidePoint's revenue increased by 35% to $142.6 million in 2024, with positive free cash flow for five consecutive quarters. The company's recent earnings call transcript highlighted its improving cash flows and deep federal contract visibility. Additionally, WidePoint's inclusion in the Zacks Computer-Services industry, which is poised to benefit from digital transformation, is a positive driver.

1.c. Company Highlights

2. WidePoint's Resilient Growth Amid Contract Headwinds

WidePoint Corporation closed Q4 on a solid 12% revenue uptick, reaching $42.3 million, while its adjusted EBITDA edged up to $460,000 and free cash flow climbed to $335,000. The company’s gross margin held at 14% of revenue, and year‑to‑date adjusted EBITDA settled at $1.1 million, with free cash flow at $814,000. Earnings slipped into a small loss of $0.09 per share versus an estimate of $0.01, underscoring a near‑zero profitability profile that is reflected in a negative P/E of –18.43.

Publication Date: Apr -20

📋 Highlights
  • CWMS 3.0 Delay & Contract Ceiling: Delay attributed to federal headwinds, not competitive issues, with $3.0 billion 10-year contract ceiling and $80 million remaining in CWMS 2.0.
  • Q4 Financial Performance: Revenues $42.3 million (+12% YoY), adjusted EBITDA $460,000, free cash flow $335,000; 34th consecutive positive EBITDA quarter.
  • SaaS & DaaS Growth Drivers: $40–45 million telecom SaaS contract (2026 start), two IT MSP clients transitioning to DaaS, and $3.03 billion Navy Spiral 4 contract with 8 task orders secured.
  • Commercial Revenue Expansion: 6% YoY growth in commercial segment, $9.8 million unrestricted cash, and $4.0 million credit facility, targeting 50% gross margins for non-carrier services.
  • 2026 Outlook & Margin Improvements: Expected revenue boost from SaaS/DaaS, $3.03 billion Navy contract, and $3.0 billion CWMS 3.0 potential, with focus on margin expansion and capital readiness for acquisitions.

Revenue Growth & Margin

Year‑over‑year revenue grew 12% to $42.3 million, a 6% lift in commercial revenues that signals steady demand across the company’s service lines. Gross profit of $5.8 million—14% of sales—remains a key lever for margin improvement, especially with the anticipated SaaS contract with a major mobile carrier slated to start in 2026.

Cash Position & Capital Strategy

WidePoint’s balance sheet is described as “fortress” with $9.8 million in unrestricted cash and a $4 million borrowing capacity under its revolving line of credit. The firm plans an at‑the‑market offering (ATM) to bolster liquidity but has no immediate deployment plans, keeping capital dry for opportunistic acquisitions or to weather potential government shutdowns.

Contract Wins & Pipeline

The company secured a $3.031 billion Spiral 4 Navy contract, adding eight new task orders and positioning it to capture further orders in 2026. The CWMS 2.0 contract extension provides $80 million of ceiling, while a six‑month extension keeps the door open for the $3 billion CWMS 3.0 award, reinforcing WidePoint’s federal foothold.

Service Transition & DaaS

Chief Revenue Officer Jason Holloway highlighted Device as a Service (DaaS) rollouts with two IT MSP clients, which should enhance revenue predictability. The firm also secured a one‑year managed services contract with a bottler, expanding its as‑a‑service delivery beyond mobile devices.

Government & Commercial Outlook

WidePoint aims for a 50% gross margin on non‑carrier services and anticipates a robust commercial revenue surge in 2026, contingent on carrier contracts and CWMS 3.0. The company’s management remains optimistic, projecting positive guidance by Q1–Q2 once the government shutdown normalizes.

Valuation Snapshot

With a P/S ratio of 0.34 and an EV/EBITDA of 420.32, the stock trades at a steep discount to earnings, reflecting its current loss. The free‑cash‑flow yield of 10.5% and a negative ROIC of –16.73 indicate room for upside as margins improve and the company capitalizes on its SaaS and DaaS pipeline.

3. NewsRoom

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WidePoint Sets First Quarter 2026 Conference Call for Thursday, May 14, 2026, at 4:30 p.m. ET

13:00

Source: globenewswire.com

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WidePoint Corporation (WYY) Q4 2025 Earnings Call Transcript

Mar -26

Source: seekingalpha.com

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WidePoint (WYY) Reports Q4 Loss, Tops Revenue Estimates

Mar -25

Source: zacks.com

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WidePoint Reports Fourth Quarter and Full Year 2025 Financial Results

Mar -25

Source: globenewswire.com

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WidePoint (NYSEAMERICAN:WYY) Stock Crosses Below Fifty Day Moving Average – Here’s Why

Feb -07

Source: defenseworld.net

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3 Stocks to Buy From the Thriving Computer-Services Industry

Jan -15

Source: zacks.com

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WidePoint Corporation (WYY) Presents at IAccess Alpha Virtual Best Ideas Winter Investment Conference 2025 Transcript

Dec -09

Source: seekingalpha.com

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WidePoint to Participate in the iAccess Alpha Virtual Best Ideas Winter Investment Conference 2025 on December 9-10, 2025

Dec -01

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.13%)

6. Segments

Carrier Services

Expected Growth: 12%

WidePoint Corporation's Carrier Services segment growth is driven by increasing demand for secure and managed mobility services, expansion into new markets, and strategic partnerships. Additionally, the growing need for IoT and 5G network infrastructure, as well as the increasing adoption of cloud-based services, contribute to the 12% growth rate.

Managed Service Fess and Billable Fees

Expected Growth: 13%

WidePoint Corporation's 13% growth in Managed Service Fees and Billable Fees is driven by increasing demand for cybersecurity and IT consulting services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on cloud-based solutions and digital transformation initiatives has contributed to the growth, as clients seek to optimize their IT infrastructure and reduce costs.

Reselling and Other Services

Expected Growth: 11%

WidePoint Corporation's Reselling and Other Services segment growth of 11% is driven by increasing demand for IT consulting and managed services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on cloud-based solutions, cybersecurity, and digital transformation services has contributed to the growth. Furthermore, the segment's ability to provide customized solutions to government and commercial clients has also fueled the growth.

7. Detailed Products

Identity Management

WidePoint's Identity Management solutions provide secure and efficient identity verification, authentication, and authorization services to government agencies and commercial organizations.

Telecom Expense Management

WidePoint's Telecom Expense Management solutions help organizations manage their telecom expenses, optimize their telecom infrastructure, and improve their overall telecom operations.

Cybersecurity Services

WidePoint's Cybersecurity Services provide comprehensive cybersecurity solutions, including risk assessments, penetration testing, and incident response, to protect organizations from cyber threats.

Consulting Services

WidePoint's Consulting Services provide strategic guidance and support to organizations in the areas of IT, cybersecurity, and telecom management.

IT Services

WidePoint's IT Services provide a range of IT solutions, including help desk support, network management, and cloud services, to support organizations' IT needs.

8. WidePoint Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

WidePoint Corporation's services are specialized, but there are some substitutes available in the market, which may pose a moderate threat to the company.

Bargaining Power Of Customers

WidePoint Corporation's customers have limited bargaining power due to the company's specialized services and lack of alternative options.

Bargaining Power Of Suppliers

WidePoint Corporation's suppliers have some bargaining power due to the company's dependence on them for certain components and services.

Threat Of New Entrants

The threat of new entrants is high in the industry, as the barriers to entry are relatively low, and new companies can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry is high in the industry, as there are many competitors, and the market is highly competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 24.46%
Debt Cost 4.87%
Equity Weight 75.54%
Equity Cost 10.89%
WACC 9.42%
Leverage 32.38%

11. Quality Control: WidePoint Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
IBEX

A-Score: 5.1/10

Value: 5.6

Growth: 5.7

Quality: 6.1

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Usio

A-Score: 4.4/10

Value: 6.6

Growth: 4.7

Quality: 5.8

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
WidePoint

A-Score: 4.2/10

Value: 5.4

Growth: 4.6

Quality: 4.3

Yield: 0.0

Momentum: 8.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Conduent

A-Score: 3.5/10

Value: 8.9

Growth: 3.7

Quality: 4.3

Yield: 0.0

Momentum: 0.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
TTEC

A-Score: 2.8/10

Value: 9.5

Growth: 1.3

Quality: 2.8

Yield: 1.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Grid Dynamics

A-Score: 2.6/10

Value: 2.6

Growth: 4.3

Quality: 5.5

Yield: 0.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.25$

Current Price

6.25$

Potential

-0.00%

Expected Cash-Flows