PresentationJin KangCEO & Director Great. Thank you, operator. Thank you, and good morning to everyone. Thank you very much for your time today. Many thanks to IAccess Alpha for hosting this virtual conference, and for giving us the opportunity to showcase our company. Today, I'll be telling you a little bit about WidePoint Corporation, who we are, what we do and why we are unique. But first, an administrative item. This is our safe harbor statement. I know that you have seen this before and that you're all ...

FAIRFAX, VA / ACCESS Newswire / December 1, 2025 / WidePoint Corporation ( NYSE American:WYY ), an innovative leader in enterprise cybersecurity and mobile technology, today announced that its management will be participating in the iAccess Alpha Virtual Best Ideas Winter Investment Conference 2025 on December 9 and 10, 2025. WidePoint's CEO Jin Kang and CRO Jason Holloway will deliver a company presentation at 11:30 a.m. ...

Financial Performance - Revenues for Q3 2025 were $36.1 million, a 4% increase from $34.6 million in Q3 2024[36] - Adjusted EBITDA for the quarter was $344,000, representing an 88% sequential increase[9] - Free cash flow for Q3 2025 was $324,000, marking a 260% sequential increase[9] - Q3 gross profit was $5.3 million, representing 15% of revenues, compared to $4.7 million or 14% in the same period last year[41] - Net loss for Q3 was $559,000 or a loss of $0.06 per share, compared to a net loss of $425,000 or a loss of $0.04 per share last year[45] - Adjusted EBITDA for Q3 was $344,000, down from $574,000 in the same period last year, but represented an 88% increase from the previous quarter[46] Revenue Streams - Carrier services revenue for Q3 2025 was $20.4 million, a decrease from $22.4 million in the same period last year[37] - Managed services fees for Q3 2025 were $10.1 million, an increase of $1.6 million compared to Q3 2024[37] - Reselling and other services revenue in Q3 2025 was $4.3 million, an increase of $2.3 million from the same period last year[39] - A new multiyear SaaS contract with a major U.S. telecommunications carrier is expected to generate $40 million to $45 million in revenue over three years[12] - A recent telecommunications carrier contract is valued at approximately $40 million to $45 million in SaaS revenue over three years, expected to begin recognition in the second half of 2026[47] Expenses and Financial Health - Sales and marketing expenses in Q3 were $700,000 or 2% of revenues, up from $500,000 or 2% in the same period last year[43] - General and administrative expenses in Q3 were $4.8 million or 13% of revenues, compared to $4.4 million or 13% last year[44] - The company ended the quarter with $12.1 million in cash, up from $6.8 million at the end of the second quarter, with no bank debt[49] - The current cash balance is sufficient to sustain operations even if the government shutdown extends longer than anticipated[22] Future Opportunities and Contracts - The company has a federal contract backlog of approximately $269 million, providing solid revenue visibility for the coming year[48] - The company is pursuing larger-scale opportunities with a potential $2.7 billion ceiling in the Spiral 4 contract[18] - The company anticipates a decision on the DHS CWMS 3.0 contract by late Q1 or early Q2 2026[15] Strategic Partnerships and Initiatives - WidePoint Corporation is collaborating with CDW to provide Device as a Service (DaaS) for the LA '28 Olympics, managing an estimated 95,000 to 135,000 devices[78] - The partnership with CDW is seen as a significant opportunity, similar to the company's involvement in the Census 2020[78] - The company is optimistic about scaling its solutions in support of the upcoming Olympics and Paralympics[79] - The company is exploring acquisition opportunities but has not found any material targets yet, citing high valuations in the market[60] Market Sentiment - There was a positive sentiment regarding the company's performance despite concerns about federal shutdowns[83] - The company expects sales and marketing expenses to increase in dollar amounts, but remain constant as a percentage of revenue[81]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $36.1 million, a 4% increase from $34.6 million in Q3 2024 [22] - Adjusted EBITDA for Q3 was $344,000, with a sequential increase of 88% [28] - Free cash flow for Q3 was $324,000, representing a 260% sequential increase [28] - Net loss for Q3 was $559,000, compared to a net loss of $425,000 in the same period last year [27] Business Line Data and Key Metrics Changes - Carrier services revenue for Q3 was $20.4 million, a decrease from $22.4 million in Q3 2024 [23] - Managed services fees for Q3 were $10.1 million, an increase from $8.5 million in the same period last year [23] - Billable services fees for Q3 were $1.3 million, down from $1.7 million in Q3 2024 [24] - Reselling and other services in Q3 were $4.3 million, an increase from $2 million in the same period last year [24] Market Data and Key Metrics Changes - The company ended Q3 with a federal contract backlog of approximately $269 million, providing solid revenue visibility for the coming year [29] - The recent contract with a major telecommunications carrier is expected to generate $40-$45 million in SaaS revenue over three years, starting in the second half of 2026 [29] Company Strategy and Development Direction - The company is focused on margin-accretive contracts through its FedRAMP-authorized ITMS platform and aims to capture significant opportunities in the government sector [31] - The company is strategically positioning itself for the upcoming CWMS 3.0 contract and has received a six-month extension on its CWMS 2.0 contract [8][9] - The company is also investing in its Device-as-a-Service (DAS) solution and pursuing larger-scale opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to a growth trajectory and anticipates that delayed opportunities will materialize in the coming year [13] - The company has no immediate material impact from the government shutdown but acknowledges potential slowdowns in activities if it persists [12] - Management remains optimistic about the financial results for Q4 and 2026, expecting continued growth in adjusted EBITDA and free cash flow [28] Other Important Information - The company ended Q3 with $12.1 million in cash, compared to $6.8 million at the end of Q2 [30] - The company is exploring potential acquisition opportunities but is cautious due to high valuations in the market [39] Q&A Session Summary Question: Details on the $40-$45 million contract - The $45 million contract is not included in the $269 million backlog and is expected to be implemented starting in Q3 2026 [35] Question: Exclusivity with the telecommunications carrier - The company does not have exclusivity with the carrier and is hopeful to engage with other major carriers in the future [36] Question: Cash balance and M&A opportunities - The company is maintaining a strong cash position for operations and is quietly looking for acquisition targets, though no material opportunities have been found yet [39] Question: MobileAnchor implementation and its impact - Implementation typically takes about 60 days, and the project is progressing well despite delays due to the government shutdown [52] Question: Opportunities with the Olympics - The company will support CDW in managing devices for the Los Angeles 2028 Olympics, estimating the need for managing between 95,000-135,000 devices [65]

Revenue Performance - Revenues for Q3 2025 were $36.1 million, an increase of $1.5 million (4%) compared to $34.6 million in Q3 2024[105] - Managed services revenue increased to $15.7 million, up approximately $3.5 million from $12.2 million in the same period last year[105] - For the nine-month period ended September 30, 2025, total revenues were $108.2 million, an increase of $3.4 million (or 3.2%) compared to $104.9 million in the same period in 2024[119] - Carrier services revenue increased by $2.8 million to $65.0 million, attributed to growth in the number of phone lines under management for federal government customers[120] Profitability - Gross profit for Q3 2025 was $5.3 million (15% of revenues), compared to $4.7 million (14% of revenues) in Q3 2024[111] - Gross profit for the nine-month period ended September 30, 2025, increased by $0.9 million to $15.2 million, maintaining a gross margin of 14%[123][125] Expenses - Cost of revenues for Q3 2025 was $30.8 million (85% of revenues), an increase from $29.9 million (86% of revenues) in Q3 2024[110] - General and administrative expenses were $4.8 million (13% of revenues), compared to $4.4 million (13% of revenues) in Q3 2024, primarily due to inflationary pressures and additional headcount[114] - General and administrative expenses were $14.5 million (or 13% of revenues), up from $13.3 million (or 13% of revenues) in the same period in 2024, primarily due to inflationary pressures and additional headcount[126] Net Loss - Net loss for the nine-month period ended September 30, 2025, was $1.9 million, consistent with a net loss of $1.6 million for the same period in 2024[130] Cash Flow - Cash provided by operations for the nine months ended September 30, 2025, was approximately $5.8 million, a significant increase from a net cash used in operations of $0.8 million in the same period in 2024[134] - Cash used in investing activities was approximately $0.1 million for the nine months ended September 30, 2025, primarily for purchases of property and equipment[137] - Cash used in financing activities was approximately $0.5 million, reflecting line of credit advances and payments of $2.8 million[138] Strategic Focus - The company is focusing on expanding its marketplace share and improving sustainability through technology investments and new sales initiatives[101] - The company plans to explore integration of artificial intelligence into its solutions to enhance information security and service delivery[107] Contractual Obligations - The DHS CWMS 2.0 ID/IQ contract is up for renewal in November 2025, with a potential six-month extension announced[96] Working Capital - At September 30, 2025, net working capital was approximately $2.2 million, slightly down from $2.4 million at December 31, 2024[133]

Core Insights - WidePoint Corporation reported its third quarter results for 2025, marking the 33rd consecutive quarter of positive Adjusted EBITDA and the 8th consecutive quarter of positive free cash flow [1] Operational Highlights - The company received 8 Spiral 4 task orders year-to-date, including 4 task orders awarded in Q3 2025, notably with the Defense Counterintelligence and Security Agency and the U.S. Army [1] - A secured estimated SaaS contract valued between $40 million to $45 million was awarded to deliver a FedRAMP-authorized ITMS platform for a major telecommunications carrier [1] - A new CWMS 2.0 task order was awarded by U.S. Customs & Border Protection, valued up to $27.5 million [1] - The subsidiary Soft-Ex announced a strategic alliance with Ingram Micro to optimize Microsoft license management [1] - New contracts were awarded for Identity & Access Management in support of the U.S. Department of Education and a MobileAnchor contract by an agency under the U.S. Department of Energy [1] Financial Highlights for Q3 2025 - Revenues reached $36.1 million, an increase from the same quarter last year [1] - Gross margin was reported at 15%, with a gross margin of 34% excluding carrier services revenue [1] - The net loss was $559,000, translating to a loss of $(0.06) per share [1] - Adjusted EBITDA was $344,000, reflecting an 88% increase from Q2 2025 [1] - Free cash flow was $324,000, a significant 260% increase from Q2 2025 [1] - As of September 30, 2025, unrestricted cash stood at $12.1 million with no bank debt [1] - The contract backlog was approximately $269 million [1] Financial Highlights for Nine Months 2025 - Total revenues amounted to $108.2 million, an increase from the same period last year [1] - Gross margin was 14%, with a gross margin of 35% excluding carrier services revenue [1] - The net loss for the nine months was $1.9 million, or a loss of $(0.20) per share [1]

Core Points - WidePoint Corporation has been awarded a five-year contract by the U.S. Army under the Navy Spiral 4 Contract vehicle, with a total value exceeding $1.25 million if all options are exercised [2][3] - This contract marks WidePoint's eighth award under the Spiral 4 initiative and is the company's first contract for paging solution management [3] Company Overview - WidePoint Corporation is a federally certified provider of Trusted Mobility Management (TM2) solutions, focusing on securing and protecting the mobile workforce and enterprise landscape [4] - The company offers a range of technology solutions, including Identity & Access Management (IAM), Mobility Managed Services (MMS), Telecom Management, IT as a Service, Cloud Security, and Analytics & Billing as a Service (ABaaS) [4] Contract Details - The new contract includes a one-year base period and four one-year option periods, indicating a long-term partnership with the U.S. Army [2] - WidePoint will provide a comprehensive and secure alpha-numeric paging system along with managed mobility services, addressing the unique mobility and security challenges faced by the federal government [3][5]

Core Insights - WidePoint Corporation has secured a multi-year Software as a Service (SaaS) contract with a major telecommunications carrier to deploy its FedRAMP Authorized ITMS™ Command Center Platform, which is expected to manage 2 million to 2.5 million units across government telecom operations [1][2][3] Company Overview - WidePoint is a federally certified provider of Trusted Mobility Management (TM2) solutions, recognized for its innovative technology solutions including Identity & Access Management (IAM), Mobility Managed Services (MMS), Telecom Management, and Cloud Security [1][7] - The company estimates that the new contract will generate revenues of $40-45 million over the initial three-year term based on the expected number of managed units [2] Strategic Importance - This partnership will serve over 50 government clients, reinforcing WidePoint's position as a premier SaaS FedRAMP solution provider for complex mobility and telecom management in the federal sector [4] - The FedRAMP Authorized status of WidePoint's ITMS™ platform positions the company as a leader in a market where competitors struggle to meet stringent federal security requirements [3][6] Leadership and Commitment - The CEO of WidePoint emphasized the importance of this partnership in reinforcing the company's leadership in FedRAMP-Authorized solutions and its commitment to providing secure technology for government operations [5] - The Chief Revenue Officer highlighted the transformative nature of the engagement and the trust placed in WidePoint's platform by the major carrier [6] Market Position - WidePoint stands out as the only FedRAMP Authorized SaaS Managed Mobility Platform, with a proven track record serving agencies such as the Department of Homeland Security, which underscores its reputation and expertise in government mobility management [6]

Core Insights - WidePoint Corporation has secured a multi-year Software as a Service (SaaS) contract with a major telecommunications carrier [1] - The contract involves deploying the FedRAMP Authorized ITMS™ Command Center Platform [1] - The SaaS solution is expected to manage between 2 million to 2.5 million units across government telecom operations [1] Company Overview - WidePoint Corporation is a federally certified provider of Trusted Mobility Management (TM2) solutions [1] - The company focuses on transforming how federal, state, local, and education agencies oversee their telecommunications assets [1] Industry Impact - The deployment of the ITMS™ Command Center Platform is set to enhance the management of telecommunications assets within government agencies [1] - This initiative reflects a growing trend towards the adoption of SaaS solutions in the telecommunications sector, particularly for government operations [1]

Company Overview - WidePoint (WYY) shares increased by 12% in the last trading session, closing at $6.36, with trading volume significantly higher than usual [1] - The stock has gained 6% over the past four weeks, indicating a positive trend [1] - WidePoint's strong position is attributed to its status as a 2-time incumbent, FedRAMP authorized status, and strategic investments in initiatives like CWMS 3.0, DaaS, and MobileAnchor [1] Financial Performance - WidePoint is expected to report a quarterly loss of $0.05 per share, reflecting a year-over-year decline of 25% [2] - Revenue projections for the upcoming quarter are $39.47 million, which represents a 14% increase compared to the same quarter last year [2] - The consensus EPS estimate for WidePoint has remained unchanged over the last 30 days, suggesting stability in earnings expectations [3] Industry Context - WidePoint is categorized under the Zacks Computer - Services industry, which includes other companies like PDF Solutions (PDFS) [3] - PDF Solutions has a consensus EPS estimate of $0.25 for its upcoming report, unchanged from the previous year, and also holds a Zacks Rank of 3 (Hold) [4] - PDF Solutions has seen a 25.5% return over the past month, indicating strong performance within the same industry [3]