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Widepoint Corp. (WYY)
:WYY
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Widepoint
(NYSE MKT:WYY)
Rating:54Neutral
Price Target:
$4.00
▲(2.56% Upside)
Positive Factors
New Business Opportunities
The company continues to be awarded new business and position itself to be awarded additional opportunities.
Revenue Growth
The company announced $51.2M of contract awards, which should drive revenue growth in 2025 and beyond.
Negative Factors
Earnings Miss
Second quarter revenue of $37.9M compared to our $39.4M estimate, with gross margin down both sequentially and year over year.
Government Uncertainty
With a change in administration and ongoing government headcount reductions, the level of uncertainty for all businesses with meaningful government exposure has increased.
Widepoint (WYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.10M
Dividend YieldN/A
Average Volume (3M)78.13K
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue Growth16.25%
EPS Growth41.38%
CountryUS
Employees240
SectorTechnology
Sector Strength89
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.06
Shares Outstanding9,776,906
10 Day Avg. Volume114,309
30 Day Avg. Volume78,127
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.22
Enterprise Value/Gross Profit1.61
Enterprise Value/Ebitda42.21
Forecast
1Y Price Target
$5.00Price Target Upside28.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Widepoint Business Overview & Revenue Model
Company DescriptionWidePoint 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.
How the Company Makes MoneyWidepoint generates revenue through a combination of service contracts, software licenses, and managed service agreements. The company's primary revenue streams include fees from its mobile device management solutions, cybersecurity services, and consulting services geared towards compliance and security management. Additionally, Widepoint has established partnerships with key government agencies and commercial enterprises, which contribute significantly to its earnings. The company's ability to secure long-term contracts with government clients is a crucial factor in its revenue stability and growth.
Widepoint Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q2-2025)
| % Change Since: 13.37%|
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
WidePoint is positioned for significant future opportunities, particularly with the DHS CWMS 3.0 recompete and expanding partnerships. Despite some timing delays and a net loss, the company's strategic initiatives and growing federal backlog indicate potential for long-term growth.Q2-2025 Updates
Positive Updates
DHS CWMS 3.0 Contract Opportunity
WidePoint is strategically positioned for the upcoming recompete of the Department of Homeland Security CWMS 3.0 contract, with a substantial increase in the contract ceiling to $3 billion from the original $500 million ceiling under CWMS 2.0. The company is a two-time incumbent, with FedRAMP authorized status and a strong track record, aligning closely with DHS requirements.
Federal Backlog and Revenue Growth
WidePoint starts the second half of the year with a strong federal backlog of $265 million as of June 30, 2025. Total revenue for the second quarter was $38 million, an increase from $36 million in the same period last year.
Strategic Partnerships and Expanding Services
WidePoint is expanding strategic partnerships, including with CDW and BroadSat, and advancing its Device-as-a-Service (DaaS) and MobileAnchor initiatives, which are expected to contribute significantly to future growth.
Spiral 4 Contract Developments
WidePoint has secured four task orders under the Spiral 4 contract, which has a total potential value of $2.6 billion over a contract period of 10 years.
Negative Updates
Net Loss and Timing Shifts
WidePoint reported a net loss for the second quarter of $618,000, an increase from a net loss of $500,000 in the same period last year. Some key opportunities, particularly within the DaaS program, have experienced timing shifts, impacting first-half results.
Reselling and Other Services Revenue Decline
Reselling and other services revenue for the six months ended June 30, 2025, was $6 million, compared to $10.2 million in the same period last year, primarily due to an out-of-period adjustment and changes in revenue recognition for SaaS agreements.
Company Guidance
During WidePoint's Second Quarter 2025 Earnings Conference Call, CEO Jin Kang provided guidance for the company's ongoing strategic initiatives and financial outlook. Key highlights included the upcoming recompete for the Department of Homeland Security's (DHS) CWMS 3.0 contract, which has seen its ceiling increase to $3 billion from $500 million, with WidePoint positioning itself strongly due to its FedRAMP authorized status and small business classification. The company is also actively pursuing opportunities under the Spiral 4 contract, having secured four task orders to date. Despite some delays in their Device-as-a-Service (DaaS) program, WidePoint remains confident in its potential for future growth, particularly within the commercial sector. Financially, while revenue guidance is expected to be met, adjusted EBITDA and free cash flow guidance may require adjustments due to the timing of pipeline opportunities. The company reported a backlog of $265 million as of June 30, 2025, with $47 million anticipated in the remaining months of the year. WidePoint continues to focus on strategic investments and partnerships to drive long-term growth, with an emphasis on maintaining positive EBITDA and free cash flow.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.45
Neutral
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.55
Neutral
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.50
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 142.57M | 106.03M | 94.10M | 87.34M | 180.34M |
| Gross Profit | 19.00M | 15.65M | 14.58M | 16.37M | 20.46M |
| EBITDA | 1.57M | -302.84K | -15.72M | 2.91M | 4.85M |
| Net Income | -1.93M | -4.05M | -23.59M | 341.10K | 10.32M |
Balance Sheet | |||||
| Total Assets | 71.58M | 51.30M | 49.01M | 75.49M | 101.32M |
| Cash, Cash Equivalents and Short-Term Investments | 6.78M | 6.92M | 7.53M | 6.48M | 16.00M |
| Total Debt | 4.94M | 4.75M | 5.34M | 6.82M | 6.51M |
| Total Liabilities | 58.00M | 36.62M | 31.26M | 33.81M | 60.77M |
| Stockholders Equity | 13.58M | 14.68M | 17.75M | 41.68M | 40.55M |
Cash Flow | |||||
| Free Cash Flow | 1.56M | -464.84K | 2.66M | -3.98M | 5.23M |
| Operating Cash Flow | 1.68M | 625.25K | 6.07M | -1.22M | 6.39M |
| Investing Cash Flow | 141.19K | -620.99K | -3.41M | -7.44M | -1.16M |
| Financing Cash Flow | -894.84K | -590.15K | -1.47M | -705.70K | 3.73M |
Widepoint Technical Analysis
Positive
3.90
Price Trends
3.24
Positive
3.46
Positive
3.83
Negative
Market Momentum
0.08
Negative
58.88
Neutral
69.36
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 3.9 is above the 20-day moving average (MA) of 3.23, above the 50-day MA of 3.24, and above the 200-day MA of 3.83, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 69.36 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $32.61M | 180.23 | -1.42% | ― | 0.53% | -233.01% | |
61 Neutral | $40.27M | 14.50 | 16.71% | ― | 4.44% | ― | |
61 Neutral | $36.03B | 6.77 | -7.27% | 2.00% | 8.65% | -7.61% | |
54 Neutral | $35.10M | ― | -15.98% | ― | 16.25% | 41.38% | |
52 Neutral | $14.16M | 33.15 | -208.80% | ― | ― | -133.65% | |
49 Neutral | $26.03M | ― | -1.97% | ― | 5.81% | 55.03% | |
45 Neutral | $68.13M | ― | ― | ― | ― |
* Technology Sector Average
Performance Comparison
WYY
Widepoint
3.90
0.17
4.56%
USIO
Usio
1.52
0.06
4.11%
CLPS
Clps
0.91
0.15
19.74%
DTST
Data Storage
4.54
0.64
16.41%
CYCU
Cycurion
0.31
-10.37
-97.10%
TDTH
Trident Digital Tech Holdings Ltd Unsponsored ADR
0.87
-3.11
-78.14%
Widepoint Corporate Events
Executive/Board ChangesShareholder Meetings
WidePoint Stockholders Approve Key Proposals at Annual Meeting
Neutral
Jul 21, 2025
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.
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.