Widepoint (WYY) AI Stock Analysis

• Market Cap: $29.83M
• Dividend Yield: N/A
• Average Volume (3M): 67.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: 24.03%
• EPS Growth: 49.96%
• Country: US
• Employees: 240
• Sector: Technology
• Sector Strength: 92
• Industry: Information Technology Services
• EPS (TTM): -0.08
• Shares Outstanding: 9,780,587
• 10 Day Avg. Volume: 57,443
• 30 Day Avg. Volume: 67,722
• PEG Ratio: 3.12
• Price to Book (P/B): 2.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -237.98
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 1.68
• Enterprise Value/Ebitda: 8.62
• 1Y Price Target: $7.00
• Price Target Upside: 124.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $3.50 ▲(12.18%Upside)

Widepoint's overall score reflects significant financial challenges, particularly in profitability, and weak technical indicators. The negative P/E ratio and absence of dividends further weigh on the valuation. The earnings call provided some positive strategic direction and growth potential, yet financial and operational difficulties remain the predominant concerns.

Positive Factors

Contract Awards

The company announced $51.2M of contract awards, which should drive revenue growth in 2025 and beyond.

Partnerships and Product Traction

The company continues to see positive traction across multiple products and interest in potential partnerships to leverage shared client networks and expand the customer base.

Regulatory Certification

The company has achieved FedRAMP Authorized status for its Intelligent Technology Management System, which should serve as a revenue accelerant as early as 2025.

Negative Factors

Accounting Adjustments

First quarter revenue was below the estimate, impacted by a one-time out-of-period accounting adjustment.

Government Exposure

With a change in administration and ongoing government headcount reductions, the level of uncertainty for all businesses with meaningful government exposure has increased.

Widepoint Business Overview & Revenue Model

Company Description

WidePoint Corporation (WYY) is a leading provider of technology-based products and services, specializing in secure and wireless technology solutions. The company operates primarily in the fields of cybersecurity, telecommunications, and consulting services, offering a range of managed mobility services, identity management, and secure communications solutions to both government and commercial clients.

How the Company Makes Money

WidePoint generates revenue through its diverse suite of technology solutions and services. The company's key revenue streams include managed mobility services, comprehensive identity management solutions, and cyber security services. WidePoint earns money by providing these services on a contractual basis, often through long-term agreements with government agencies and commercial enterprises. Additionally, the company may benefit from strategic partnerships and contracts that enhance its service offerings and expand its client base, thereby driving its overall business growth.

Widepoint Financial Statement Overview

Summary

Widepoint faces several financial challenges. Revenue growth is positive, but profitability remains a significant issue with negative EBIT and net income margins. The balance sheet shows manageable leverage but declining equity and total assets, indicating potential financial instability. Cash flow challenges persist with fluctuations in operating cash flow and negative free cash flow recently.

Income Statement

Widepoint's revenue has shown growth over the years, although it remains below the highs of 2020. The company has consistently struggled with profitability, as indicated by negative EBIT and net income margins in recent periods. The gross profit margin is fairly stable, but overall profitability is a concern with negative net profit margins.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, declining stockholders' equity and a decrease in total assets over recent years reflect potential financial instability. The equity ratio is lower than optimum, suggesting limited asset backing by equity.

Cash Flow

Widepoint's cash flow situation is challenging, with fluctuations in operating cash flow and negative free cash flow in the most recent TTM period. The operating cash flow to net income ratio is weak, highlighting operational difficulties. However, the company has managed some positive free cash flow growth in previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	142.58M	142.57M	106.03M	94.10M	87.34M	180.34M
Gross Profit	19.12M	19.00M	15.65M	14.58M	16.37M	20.46M
EBITDA	727.19K	1.57M	-302.84K	-15.72M	2.91M	4.85M
Net Income	-2.01M	-1.93M	-4.05M	-23.59M	341.10K	10.32M
Balance Sheet
Total Assets	71.36M	71.58M	51.30M	49.01M	75.49M	101.32M
Cash, Cash Equivalents and Short-Term Investments	3.70M	6.78M	6.92M	7.53M	6.48M	16.00M
Total Debt	5.31M	4.94M	4.75M	5.34M	6.82M	6.51M
Total Liabilities	58.40M	58.00M	36.62M	31.26M	33.81M	60.77M
Stockholders Equity	12.97M	13.58M	14.68M	17.75M	41.68M	40.55M
Cash Flow
Free Cash Flow	-128.23K	1.56M	-464.84K	2.66M	-3.98M	5.23M
Operating Cash Flow	10.85K	1.68M	625.25K	6.07M	-1.22M	6.39M
Investing Cash Flow	-139.08K	141.19K	-620.99K	-3.41M	-7.44M	-1.16M
Financing Cash Flow	-773.56K	-894.84K	-590.15K	-1.47M	-705.70K	3.73M

Widepoint Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WYY, the sentiment is Negative. The current price of 3.12 is below the 20-day moving average (MA) of 3.20, below the 50-day MA of 3.31, and below the 200-day MA of 3.85, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 23.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WYY.

Widepoint Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USIO	64 Neutral	$47.89M	14.81	19.38%	―	3.07%	―
DTST	63 Neutral	$33.41M	181.40	0.90%	―	-4.17%	-72.98%
CYCU	56 Neutral	$12.36M	33.15	-144.50%	―	―	-416.57%
Sector *	51 Neutral	AU$1.67B	2.26	-31.66%	3.53%	16.55%	-7.79%
WYY	49 Neutral	$29.83M	―	-14.76%	―	24.03%	49.96%
CLPS	49 Neutral	$26.17M	―	-1.97%	―	5.81%	55.03%
TDTH	48 Neutral	$94.70M	―		―	―	―

Widepoint Corporate Events

WidePoint Stockholders Approve Key Proposals at Annual Meeting

On July 18, 2025, WidePoint Corporation’s stockholders approved several proposals during their annual meeting. These included the election of a Class I director, the ratification of Baker Tilly as independent accountants, an increase in authorized shares by 1.1 million, and an advisory resolution on executive compensation. The stockholders also recommended that advisory votes on executive compensation occur every three years.

The most recent analyst rating on (WYY) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Widepoint stock, see the WYY Stock Forecast page.