WidePoint (NYSEAMERICAN:WYY) Issues Earnings Results

WidePoint (NYSEAMERICAN:WYY - Get Free Report) posted its quarterly earnings results on Wednesday, March 25th. The technology company reported ($0.09) EPS for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.08), FiscalAI reports. WidePoint had a negative return on equity of 22.35% and a negative net margin of 1.83%.The business had revenue of $42.32 million for the quarter, compared to the consensus estimate of $40.28 million.

Here are the key takeaways from WidePoint's conference call:

• CWMS 3.0 award remains delayed due to government funding and DHS leadership issues, but WidePoint says these are external delays, highlights its FedRAMP status, past performance, small‑business classification and a CWMS 2.0 extension through May 24, 2026 with roughly $80M of contract ceiling remaining; management expects an update by mid‑Q2.
• Q4 revenue was $42.3M with Adjusted EBITDA of ~$460k and free cash flow of $335k, marking the 34th consecutive quarter of positive Adjusted EBITDA and ninth consecutive quarter of positive free cash flow, and management expects sequential growth to continue.
• Won a $40–45M SaaS contract with a major carrier; implementation is progressing, revenue recognition is expected to start in H2 2026, and management expects this contract to be margin‑accretive as device scale increases.
• Opened a DaaS facility in Columbus and is migrating select IT MSP clients to a Device as a Service model while pursuing large pipeline opportunities (including potential LA28 support via CDW) and MobileAnchor pilots with DOJ, Treasury and FAA that could scale to tens of thousands of credentials.
• Full‑year net loss widened to $2.8M (−$0.28/share) and Adjusted EBITDA declined to $1.1M as several SaaS/DaaS opportunities were pushed later in 2025; unrestricted cash stands at $9.8M with a $4M revolver and an ATM program planned for optionality but not intended for near‑term use at current valuations.

WidePoint Stock Up 7.3%

WYY stock opened at $4.99 on Wednesday. The firm has a market cap of $49.25 million, a price-to-earnings ratio of -17.21 and a beta of 1.46. The company's fifty day simple moving average is $5.27 and its 200 day simple moving average is $5.83. WidePoint has a 12-month low of $2.19 and a 12-month high of $7.55.

Hedge Funds Weigh In On WidePoint

Several institutional investors have recently made changes to their positions in WYY. XTX Topco Ltd acquired a new position in shares of WidePoint during the second quarter worth approximately $58,000. NewEdge Advisors LLC acquired a new position in WidePoint during the second quarter worth $74,000. Jane Street Group LLC acquired a new position in shares of WidePoint during the second quarter valued at about $87,000. State Street Corp increased its position in shares of WidePoint by 9.7% during the fourth quarter. State Street Corp now owns 27,153 shares of the technology company's stock worth $146,000 after acquiring an additional 2,400 shares in the last quarter. Finally, O Shaughnessy Asset Management LLC bought a new stake in shares of WidePoint during the fourth quarter worth about $152,000. Institutional investors and hedge funds own 22.60% of the company's stock.

Analyst Ratings Changes

Several analysts recently weighed in on the company. HC Wainwright reissued a "buy" rating and set a $9.00 price target on shares of WidePoint in a report on Monday. Zacks Research cut shares of WidePoint from a "hold" rating to a "strong sell" rating in a research report on Monday. Three analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $8.67.

About WidePoint

WidePoint Corporation (NYSE American: WYY) is a provider of secure mobility management and identity management solutions. Headquartered in Reston, Virginia, the company delivers a range of managed services designed to help organizations control and secure their telecommunications and IT environments. Since its inception in the late 1990s, WidePoint has focused on helping businesses and government agencies optimize their mobile device portfolios and ensure regulatory compliance.

WidePoint's core offerings include mobile device management, telecom expense management, and unified endpoint security.