Widepoint Corp. (WYY)
:WYY
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Widepoint
(WYY)
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Rating:61Neutral
Price Target:
$11.00
▲(109.52% Upside)
Action:Reiterated
Date:05/16/26
The score is driven primarily by solid cash-flow performance and constructive technical momentum, supported by an earnings call that showed improving profitability and clear growth catalysts. These positives are materially offset by weak/pressured margins and an expensive valuation (very high P/E), with additional execution and timing risk tied to CWMS 3.0 and the carrier SaaS ramp.
Positive Factors
Cash Generation
WidePoint’s improved trailing‑12‑month operating and free cash flow indicate durable cash conversion that funds operations, implementation costs and working capital without relying solely on equity raises. Strong cash flow enhances flexibility for reinvestment, acquisitions, and steadier execution of multi‑year contracts, though historical unevenness warrants monitoring.
Negative Factors
Profitability Weakness
Despite revenue growth, trailing profitability remains weak with operating losses and slim or negative net margins. Persistent losses limit retained earnings and ROE, constraining the company’s capacity to self‑fund larger investments, build reserves, or absorb shocks, making sustained margin recovery essential for durable financial health.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
WidePoint’s improved trailing‑12‑month operating and free cash flow indicate durable cash conversion that funds operations, implementation costs and working capital without relying solely on equity raises. Strong cash flow enhances flexibility for reinvestment, acquisitions, and steadier execution of multi‑year contracts, though historical unevenness warrants monitoring.
Read all positive factors
Widepoint (WYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$107.77M
Dividend YieldN/A
Average Volume (3M)29.09K
Price to Earnings (P/E)160.0
Beta (1Y)1.64
Revenue Growth10.04%
EPS Growth4.16%
CountryUS
Employees240
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.20
Shares Outstanding9,887,181
10 Day Avg. Volume20,085
30 Day Avg. Volume29,091
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)4.50
Price to Sales (P/S)0.34
P/FCF Ratio9.54
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit4.77
Enterprise Value/Ebitda163.29
Forecast
1Y Price Target
$9.00Price Target Upside71.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)$171.24M
Widepoint Business Overview & Revenue Model
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, analyz...
How the Company Makes Money
WidePoint makes money primarily by selling recurring and project-based services that help customers manage and secure mobile/telecom environments. Key revenue streams typically include: (1) managed mobility and telecom lifecycle services—ongoing f...
Widepoint Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 17, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial momentum: revenue grew 21% YoY, adjusted EBITDA and free cash flow improved materially and the company reported its first net income quarter since 2021. Management highlighted meaningful near-term catalysts (CWMS 3.0 and a major carrier SaaS implementation) and a healthy federal backlog ($218M). However, several material uncertainties remain — most notably the timing and recognition of the CWMS 3.0 award, DHS funding impacts on billable services, margin pressure from revenue-mix shifts, and some ambiguity on the carrier ramp timing and revenue recognition. On balance, the positive financial trends, backlog, cash position and visible catalysts outweigh the execution and timing risks discussed on the call.Positive Updates
Revenue Growth
Total revenue of $40.6M for Q1 2026, up $7.1M or 21% year-over-year versus $33.5M in Q1 2025.
Negative Updates
Dependence on CWMS 3.0 Timing
Outlook and formal guidance are being withheld pending timing of the CWMS 3.0 award; DHS funding gaps (CBP/ICE) and award timing remain material uncertainties that could delay revenue recognition or new task orders.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $40.6M for Q1 2026, up $7.1M or 21% year-over-year versus $33.5M in Q1 2025.
Read all positive updates
Company Guidance
WidePoint said it is withholding formal full‑year guidance until two near‑term catalysts — the CWMS 3.0 award and the carrier SaaS implementation — are resolved, but provided directional metrics: Q1 revenue $40.6M, adjusted EBITDA $752K, free cash flow $674K, net income $77K (EPS $0.01) on a 21% YoY revenue increase ($7.1M); sequentially adjusted EBITDA rose 64% and free cash flow 101% from Q4; gross profit was $5.6M (14% of revenue) with non‑carrier gross margin ~34% (vs. 37% prior); carrier services $25.8M, managed services $9.3M, reselling/other $4.2M and billable services $1.3M; federal backlog $218M, unrestricted cash $10.9M, $4M revolver capacity and CWMS 2.0 has ~$100M ceiling remaining. Management expects the carrier SaaS contract (announced at roughly $40–45M over five years, ~ $10M/yr, with ~ $1.9–2M of implementation enhancements) to begin recognizing revenue in H2 2026 with ITMS managing roughly one‑third of devices by year‑end, believes it is well positioned to win CWMS 3.0 (award could come any time, possibly before June 24, 2026), anticipates double‑digit percentage growth versus 2025 and to remain positive on adjusted EBITDA and free cash flow through 2026, and sees DaaS and SaaS ramps as key drivers of future margin expansion.Widepoint Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 156.90M | 150.55M | 142.57M | 106.03M | 94.10M | 87.34M |
| Gross Profit | 21.18M | 21.01M | 19.00M | 15.65M | 14.58M | 16.37M |
| EBITDA | 618.28K | 308.70K | 1.57M | -302.84K | -15.71M | 2.91M |
| Net Income | -1.95M | -2.75M | -1.93M | -4.05M | -23.59M | 341.10K |
Balance Sheet | ||||||
| Total Assets | 85.98M | 79.81M | 71.58M | 51.30M | 51.20M | 80.58M |
| Cash, Cash Equivalents and Short-Term Investments | 11.28M | 9.82M | 6.78M | 6.92M | 7.53M | 6.48M |
| Total Debt | 4.47M | 4.68M | 4.94M | 4.75M | 5.34M | 6.82M |
| Total Liabilities | 74.23M | 68.28M | 58.00M | 36.62M | 33.45M | 38.91M |
| Stockholders Equity | 11.75M | 11.53M | 13.58M | 14.68M | 17.75M | 41.68M |
Cash Flow | ||||||
| Free Cash Flow | 7.70M | 5.44M | 1.56M | 417.05K | 5.82M | -1.48M |
| Operating Cash Flow | 8.01M | 5.71M | 1.68M | 625.25K | 6.07M | -1.22M |
| Investing Cash Flow | -266.63K | -265.47K | 141.19K | -620.99K | -3.41M | -7.44M |
| Financing Cash Flow | -723.40K | -719.91K | -894.84K | -590.15K | -1.47M | -705.70K |
Widepoint Technical Analysis
Positive
5.25
Price Trends
6.35
Positive
6.01
Positive
5.83
Positive
Market Momentum
1.20
Negative
70.32
Negative
76.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WYY, the sentiment is Positive. The current price of 5.25 is below the 20-day moving average (MA) of 8.47, below the 50-day MA of 6.35, and below the 200-day MA of 5.83, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 70.32 is Negative, neither overbought nor oversold. The STOCH value of 76.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WYY.
Widepoint Risk Analysis
Widepoint disclosed 39 risk factors in its most recent earnings report. Widepoint reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Widepoint Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $42.22M | 64.56 | -11.73% | ― | 5.81% | -165.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $107.77M | 160.03 | -16.25% | ― | 10.04% | 4.16% | |
56 Neutral | $13.44M | -0.59 | -34.66% | ― | 35.25% | -94.18% | |
52 Neutral | $98.50M | 77.50 | -0.22% | 0.95% | 5.47% | 92.26% | |
40 Underperform | $4.40M | -0.03 | -64.09% | ― | -23.99% | -65.39% |
* Technology Sector Average
WYY
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260.93%
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Widepoint Corporate Events
Business Operations and StrategyPrivate Placements and Financing
WidePoint Establishes At-The-Market Equity Offering Program
Neutral
Apr 10, 2026
On April 10, 2026, WidePoint Corporation entered into an At The Market Offering Agreement with H.C. Wainwright Co. to potentially issue and sell up to $15.5 million of its common stock from time to time, either through the sales agent or to it as...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.