Widepoint (WYY)
XASE:WYY
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Widepoint
(NYSE MKT:WYY)
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Rating:53Neutral
Price Target:
$5.50
▼(-4.51% Downside)
Action:ReiteratedDate:03/26/26
The score is held back primarily by weak profitability and an eroding equity base despite revenue growth and improved recent cash generation. The earnings call adds support due to positive adjusted EBITDA/free-cash-flow streaks and expected 2026 SaaS ramp, but timing uncertainty and wider net losses temper the outlook. Technicals are mixed and valuation is constrained by losses (negative P/E) with no dividend yield provided.
Positive Factors
Recurring, contract-based services
WidePoint’s core business is recurring managed mobility, telecom expense management and identity/security services sold via multi-year contracts to enterprises and government. That contract model produces durable revenue visibility, higher customer stickiness and predictable service revenue to support scaling and margin improvement over time.
Negative Factors
Sustained net losses and eroding equity
Recurring GAAP losses and a declining equity base erode the company’s capital cushion and limit flexibility to fund strategic investments or absorb shocks. Continued negative returns on equity reduce ability to attract capital on favorable terms and increase the likelihood management must prioritize cash conservation or equity/debt raises that dilute long-term shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, contract-based services
WidePoint’s core business is recurring managed mobility, telecom expense management and identity/security services sold via multi-year contracts to enterprises and government. That contract model produces durable revenue visibility, higher customer stickiness and predictable service revenue to support scaling and margin improvement over time.
Read all positive factors
Widepoint (WYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$48.38M
Dividend YieldN/A
Average Volume (3M)34.93K
Price to Earnings (P/E)―
Beta (1Y)1.76
Revenue Growth9.62%
EPS Growth26.59%
CountryUS
Employees240
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.09
Shares Outstanding9,872,661
10 Day Avg. Volume41,227
30 Day Avg. Volume34,926
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 Cap0.90
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit2.13
Enterprise Value/Ebitda390.03
Forecast
1Y Price Target
$9.00Price Target Upside56.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.07
Revenue Forecast (FY)$171.35M
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:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 18, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook. Key positives include YoY revenue growth (Q4 +12%, FY +6%), margin expansion in non-carrier services, major commercial SaaS win ($40–45M) with revenue expected to start in 2026, an operational DaaS facility and strong identity-management pipeline (Mobile Anchor pilots), a solid cash position ($9.8M) and long-running streaks of positive adjusted EBITDA (34 quarters) and free cash flow (9 quarters). Offsetting these positives are meaningful year-over-year declines in adjusted EBITDA and free cash flow, larger net losses, a one-time depreciation catch-up that inflated Q4 expense, and continued timing uncertainty around CWMS 3.0 and several SaaS/DaaS opportunities that pushed revenue recognition into 2026. Management frames these as timing-related headwinds rather than loss of contract competitiveness and highlights sequential improvement and H2 momentum. Overall, the operational and contract wins, balance sheet strength, and margin improvements in non-carrier business are judged to outweigh the reported near-term profitability headwinds and timing risks.Positive Updates
Quarterly and Annual Revenue Growth
Q4 revenue of $42.3M, up $4.6M or +12% year-over-year (from $37.7M). Full year revenue of $150.5M, up $8.0M or +6% year-over-year (from $142.6M).
Negative Updates
Declines in Adjusted EBITDA and Free Cash Flow Year-over-Year
Adjusted EBITDA for Q4 was $460k versus $631k in Q4 2024 (down ~27% YoY). Full year adjusted EBITDA was $1.1M versus $2.6M in 2024 (down ~58% YoY). Free cash flow for Q4 was $335k versus $593k in Q4 2024 (down ~44% YoY). Full year free cash flow was $814k versus $2.5M in 2024 (down ~67% YoY). Company attributes much of the decline to sales pipeline timing shifts.
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Q4-2025 Updates
Positive
Negative
Quarterly and Annual Revenue Growth
Q4 revenue of $42.3M, up $4.6M or +12% year-over-year (from $37.7M). Full year revenue of $150.5M, up $8.0M or +6% year-over-year (from $142.6M).
Read all positive updates
Company Guidance
The company guided that it expects an update from DHS by mid‑Q2 (either the CWMS 3.0 award or another extension of CWMS 2.0), noting CWMS 3.0 carries a $3.0 billion ceiling over 10 years while approximately $80 million remains available under CWMS 2.0 (following a six‑month extension: a two‑month base plus four one‑month options); management reiterated confidence in winning CWMS 3.0 and said an extension would not materially affect day‑to‑day operations. They expect to begin recognizing margin‑accretive SaaS revenue from the November carrier ITMS award (contract value $40–45 million) starting in 2026 and to be fully scaled on that engagement in 2026, highlighted CBP task order performance (30,000 lines; task order ceiling >$27.5 million through Dec 2026), and cited Spiral 4 IDIQ opportunity upside (approx. $3.031 billion ceiling). Near‑term financial context and targets included Q4 revenue of $42.3 million, Q4 adjusted EBITDA ≈ $460,000 (34th consecutive quarter positive), Q4 free cash flow $335,000 (9th consecutive quarter positive), FY revenue $150.5 million (+6% YoY), FY adjusted EBITDA $1.1 million, FY free cash flow $814,000, Q4 gross profit $5.8 million (14% of revenue) with gross profit excluding carrier services 38% (vs. 36% prior), FY gross profit $21.0 million (14%; excl. carrier 36% vs. 34% prior), Q4 net loss $849,000 (‑$0.09/sh) and FY net loss $2.8 million (‑$0.28/sh), year‑end unrestricted cash $9.8 million plus $4.0 million revolver availability, and plans to establish an ATM (with no current intent to sell at prevailing valuations); management said it will aim to provide clearer full‑year guidance on the Q1 call (May) once DHS funding/award clarity exists and emphasized SaaS/DaaS and as‑a‑service conversions as the primary levers to improve margins toward their long‑term targets.Widepoint Financial Statement Overview
Summary
Income Statement
36
Negative
Balance Sheet
60
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 150.55M | 142.57M | 106.03M | 94.10M | 87.34M |
| Gross Profit | 21.01M | 19.00M | 15.65M | 14.58M | 16.37M |
| EBITDA | 308.70K | 1.57M | -302.84K | -15.71M | 2.91M |
| Net Income | -2.75M | -1.93M | -4.05M | -23.59M | 341.10K |
Balance Sheet | |||||
| Total Assets | 79.81M | 71.58M | 51.30M | 51.20M | 80.58M |
| Cash, Cash Equivalents and Short-Term Investments | 9.82M | 6.78M | 6.92M | 7.53M | 6.48M |
| Total Debt | 4.68M | 4.94M | 4.75M | 5.34M | 6.82M |
| Total Liabilities | 68.28M | 58.00M | 36.62M | 33.45M | 38.91M |
| Stockholders Equity | 11.53M | 13.58M | 14.68M | 17.75M | 41.68M |
Cash Flow | |||||
| Free Cash Flow | 5.44M | 1.56M | 417.05K | 5.82M | -1.48M |
| Operating Cash Flow | 5.71M | 1.68M | 625.25K | 6.07M | -1.22M |
| Investing Cash Flow | -265.47K | 141.19K | -620.99K | -3.41M | -7.44M |
| Financing Cash Flow | -719.91K | -894.84K | -590.15K | -1.47M | -705.70K |
Widepoint Technical Analysis
Negative
5.76
Price Trends
5.14
Negative
5.77
Negative
5.19
Negative
Market Momentum
-0.02
Negative
49.08
Neutral
35.27
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 5.76 is above the 20-day moving average (MA) of 4.87, above the 50-day MA of 5.14, and above the 200-day MA of 5.19, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 35.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $69.40M | -1.64 | -34.66% | ― | 41.74% | -75.97% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $48.38M | -18.87 | -22.36% | ― | 9.62% | 26.59% | |
51 Neutral | $32.74M | -14.58 | -13.52% | ― | 3.24% | -115.15% | |
47 Neutral | $84.76M | 324.24 | -1.02% | 0.95% | 6.36% | 73.88% | |
42 Neutral | $5.02M | -0.32 | -64.09% | ― | -17.90% | -67.81% |
* Technology Sector Average
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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.