[Part I. FINANCIAL INFORMATION](index=2&type=section&id=Part%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (Unaudited)](index=2&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Q1 2025 reflect stable revenues, an increased net loss, a slight decrease in total assets, and a significant increase in cash used in operations [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Revenues remained flat in Q1 2025, while increased operating expenses led to a wider net loss of $724,063 compared to the prior year Condensed Consolidated Statements of Operations (Unaudited) | Financial Metric | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--- | :--- | :--- | | **Revenues** | $34,217,739 | $34,207,279 | | **Gross Profit** | $4,778,521 | $4,665,891 | | **Loss from Operations** | ($816,431) | ($651,019) | | **Net Loss** | ($724,063) | ($653,110) | | **Earnings Per Share (Basic and Diluted)** | ($0.08) | ($0.07) | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets slightly decreased to $71.36 million, while total liabilities increased, leading to a decline in stockholders' equity Condensed Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | March 31, 2025 (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | **Total Current Assets** | $55,307,506 | $55,317,773 | | **Total Assets** | $71,363,856 | $71,580,516 | | **Total Current Liabilities** | $53,139,267 | $52,881,953 | | **Total Liabilities** | $58,398,197 | $58,000,547 | | **Total Stockholders' Equity** | $12,965,659 | $13,579,969 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly increased to $3.23 million in Q1 2025, resulting in a net decrease in cash and equivalents Cash Flow Summary (Unaudited) | Cash Flow Activity | Three Months Ended March 31, 2025 (USD) | Three Months Ended March 31, 2024 (USD) | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | ($3,227,591) | ($1,556,669) | | **Net Cash (Used in) Provided by Investing Activities** | ($27,632) | $252,631 | | **Net Cash Used in Financing Activities** | ($234,977) | ($356,252) | | **Net Decrease in Cash** | ($3,517,753) | ($1,653,226) | | **Cash, Cash Equivalents, and Restricted Cash, End of Period** | $4,299,642 | $5,267,934 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's TMaaS operations, an out-of-period revenue adjustment, significant U.S. Federal Government concentration, and an unused $4 million revolving credit facility * The company is a leading provider of **Technology Management as a Service (TMaaS)** through its federally compliant Intelligent Technology Management System (ITMS™) platform[20](index=20&type=chunk) * An out-of-period adjustment in Q1 2025 decreased revenues by **$2,695,148** and cost of revenues by **$2,461,832** to correct a revenue recognition error, which was deemed immaterial to prior periods[31](index=31&type=chunk) * The U.S. Federal Government accounts for **85% of revenue** in Q1 2025 and **83% of net accounts receivable** as of March 31, 2025, indicating significant concentration[36](index=36&type=chunk) * The company renewed its **$4 million revolving line of credit facility** with Old Dominion National Bank until February 28, 2026, with no outstanding balance as of March 31, 2025, and covenant compliance[51](index=51&type=chunk)[53](index=53&type=chunk) * The company operates as a **single reportable segment**, providing managed services including Identity Management (IdM), Mobility Managed Services (MMS), and Telecom Lifecycle Management[71](index=71&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses flat Q1 2025 revenues, a shift in service mix improving managed services gross margin, an increased net loss due to G&A, and higher cash used in operations from delayed federal government collections * Key strategic goals for 2025 include winning the DHS CWHS 3.0 re-compete, growing recurring managed services revenues, leveraging FedRAMP authorization, and expanding the commercial customer base[89](index=89&type=chunk) Revenue by Service Type (Q1 2025 vs Q1 2024) | Service Type | Q1 2025 Revenue (USD) | Q1 2024 Revenue (USD) | Dollar Variance (USD) | | :--- | :--- | :--- | :--- | | Carrier Services | $22,401,299 | $19,382,669 | $3,018,630 | | Managed Services | $11,816,440 | $14,824,608 | ($3,008,168) | | **Total Revenues** | **$34,217,739** | **$34,207,279** | **$10,460** | * The decrease in Managed Services revenue was primarily due to a **$4.2 million decline** in reselling and other services, partly caused by a **$2.7 million out-of-period adjustment** and changes in revenue recognition for SaaS agreements[94](index=94&type=chunk) * Gross profit margin for Managed Services (excluding carrier services) improved to **40.4%** in Q1 2025 from **31.5%** in Q1 2024, driven by a lower mix of low-margin reselling revenues[93](index=93&type=chunk)[95](index=95&type=chunk) * Net cash used in operations increased to **$3.2 million** in Q1 2025 from **$1.6 million** in Q1 2024, primarily due to delayed billing and collections of accounts receivables with a federal government customer[103](index=103&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, WidePoint Corporation is exempt from providing these market risk disclosures * Disclosure is not required for smaller reporting companies[114](index=114&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of March 31, 2025, due to a material weakness in revenue recognition for government contracts, with remediation ongoing * Disclosure controls and procedures were concluded to be **not effective** as of March 31, 2025[115](index=115&type=chunk) * The ineffectiveness stems from a **material weakness** in internal control over financial reporting related to revenue recognition for government contracts, specifically concerning the estimation of unbilled amounts for a large government agency[115](index=115&type=chunk) * Management is executing a remediation plan, but the material weakness cannot be considered remediated until the new controls have operated effectively for a sufficient period[117](index=117&type=chunk) [Part II. OTHER INFORMATION](index=21&type=section&id=Part%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceeding * The Company is not currently involved in any **material legal proceeding**[119](index=119&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the Annual Report on Form 10-K for the year ended December 31, 2024 * Risk factors have not changed materially from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[120](index=120&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=21&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **24,614 shares** of common stock in Q1 2025 at an average price of **$4.68 per share** for employee tax withholding related to stock-based compensation Repurchase of Securities for Tax Withholding - Q1 2025 | Period | Total Number of Shares Purchased | Average Price Paid Per Share (USD) | | :--- | :--- | :--- | | January 2025 | 21,610 | $4.84 | | March 2025 | 3,004 | $3.53 | | **Total** | **24,614** | **$4.68** | [Other Information](index=21&type=section&id=Item%205.%20Other%20Information) No directors or officers modified, adopted, or terminated any Rule 10b5-1 trading plans during Q1 2025 * During Q1 2025, there were no modifications, adoptions, or terminations by directors or officers to any Rule 10b5-1 trading plans[122](index=122&type=chunk) [Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and Interactive Data Files (XBRL)

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I focus on producing objective, data-driven research, mostly about small- to mid-cap companies, as these tend to be overlooked by many investors. From time to time, though, I also look at large-cap names, just to give a fuller sense of the broader equity markets.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ...

Financial Data and Key Metrics Changes - Prologis reported a core FFO of $1.42 per share, including net promotes, and $1.43 per share excluding net promotes, both exceeding forecasts [15] - Occupancy at the end of the quarter was 95.2%, a decrease of 70 basis points from year-end, attributed to strong retention [15] - Net effective rent change during the quarter was 54%, with cash basis at 32%, leading to same-store growth of 5.9% and 6.2% respectively [16][17] - The company raised approximately $400 million in new capital for its flagship open-ended funds, with a similar amount in redemptions, resulting in a near-neutral capital raise [20] Business Line Data and Key Metrics Changes - Prologis leased 58 million square feet, nearing record levels, and broke ground on several build-to-suit developments [10] - The data center business saw an increase of 400 megawatts in power capacity, totaling 2 gigawatts in advanced stages [19] - The company started approximately $650 million in new developments, with nearly 80% in built-to-suits averaging 16-year lease terms [17] Market Data and Key Metrics Changes - The operating environment showed a post-election uptick in leasing, with increased proposal volumes and conversions, particularly in transport, food and beverage, consumer products, and electronics [22] - Net absorption for the quarter was 21 million square feet, with global rents declining by 1.5%, primarily in Southern California [88] Company Strategy and Development Direction - Prologis aims to leverage its global footprint and diversified rent roll to navigate market disruptions and capitalize on emerging opportunities [12][14] - The company plans to reduce development start guidance to $1.5 billion to $2 billion, reflecting uncertainty in the capital markets [33] - The strategy emphasizes investing in markets where goods are consumed rather than produced, aligning with long-term growth prospects [14] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential recession and inflation, noting that decision-making among customers is slowing due to tariff uncertainties [11][12] - The company remains confident in its ability to weather economic fluctuations, citing a fortress balance sheet and contractual revenue streams [13] - Management anticipates increased inventory levels as businesses stockpile, with e-commerce expected to gain market share [30] Other Important Information - Prologis received a credit rating upgrade to A2 from Moody's, making it one of only two public REITs with an A-flat rating from both agencies [21] - The company is advancing towards its goal of one gigawatt of solar and storage capacity, with over 900 megawatts either in operation or under development [20] Q&A Session Summary Question: Insights on customer interactions and demand - Management noted that consumption is closely tied to GDP growth, and while a recession would impact consumption, long-term trends remain positive [44] Question: Clarification on leasing and occupancy - The occupancy drop was attributed to a high volume of leases rolling in the first quarter, with retention at 73% [51] Question: Impact of Amazon's market presence - Prologis has signed significant deals with Amazon, with the e-commerce segment showing strong leasing activity [65] Question: Opportunities in the current environment - Management indicated that it is too early to identify specific opportunities, as the market is currently in a wait-and-see mode [69] Question: Demand for smaller spaces - Smaller spaces typically have lower occupancy due to shorter lease terms, but replacement costs are rising, providing some protection against supply issues [124][126]

WidePoint Corporation (WYY) Q4 2024 Earnings Conference Call April 16, 2025 04:30 PM ET Company Participants Conference Call Moderator - ModeratorJustin Meng - Senior Vice President and Head of Investor RelationsTim March - Chief Financial OfficerAmit Moghadam - Chief Executive OfficerOperator - Conference Call OperatorChris Keaton - Managing DirectorDan Letter - President Conference Call Participants Tom Catherwood - Analyst, BTIGSteve Sacqua - Analyst, Evercore ISIRonald Camden - Analyst, Morgan StanleyMi ...

Revenue Growth - Revenues for the year ended December 31, 2024, were $142.6 million, an increase of $36.5 million (or 34%) compared to approximately $106.0 million in 2023[199] - Carrier services revenues increased by $28.5 million to $86.8 million from $58.2 million last year, primarily due to increased contracting activity with federal customers[199] - Managed service fees increased by $4.5 million to $35.8 million from $31.3 million last year, attributed to a new commercial contract for a US government end customer[199] - U.S. Federal Government revenues increased by $34.4 million to $118.9 million in 2024 compared to $84.5 million in 2023[200] - Total revenue for the year ended December 31, 2024, was $142.6 million, representing a 34% increase from $106.0 million in 2023[208] - Sales to federal government customers increased significantly, totaling $20 million in 2024 compared to $1.3 million in 2023[207] Profitability - Gross profit for Carrier services was $86.8 million, a 49% increase from the previous year, while Managed services gross profit was $55.8 million, a 17% increase[205] - Gross profit for 2024 was $19.0 million, or 13% of revenues, down from $15.6 million, or 15% of revenues in 2023[208] - Net loss for 2024 was $1.9 million, or $0.21 loss per share, an improvement from a net loss of $4.0 million, or $0.46 loss per share in 2023[220] Operating Expenses - Cost of revenues for the year ended December 31, 2024, was $123.5 million (or 87% of revenues) compared to $90.4 million (or 85% of revenues) in 2023[203] - General and administrative expenses for 2024 were $17.6 million, or 12% of revenues, compared to $15.9 million, or 15% of revenues in 2023[213] Cash Flow and Financing - Cash provided by operating activities for 2024 was approximately $1.6 million, up from $0.6 million in 2023[224] - Cash used in financing activities for 2024 was approximately $0.9 million, reflecting line of credit advances and payments[230] - The company’s net working capital increased to approximately $2.4 million in 2024 from $1.4 million in 2023[221] - The company sold a total of $2.9 million of receivables for $2.8 million in proceeds net of fees in 2024[234] - The company entered into a $4 million revolving line of credit facility on February 29, 2024, renewed through February 28, 2026[236] Strategic Initiatives - The company aims to grow recurring managed services revenues and leverage its FedRAMP Authorized status to capture government business[176] - The company plans to explore integration of artificial intelligence into its solutions to enhance information security and service delivery[186] - The company completed the integration of acquired assets from ITA and is focused on expanding its customer base and sales pipeline[176] Tax and Valuation - The company recorded a valuation allowance against a portion of domestic deferred tax assets due to the likelihood of not earning sufficient income to realize these assets[196]

Financial Outlook - WidePoint Corporation issued a press release summarizing its unaudited fiscal 2024 financial outlook and operational highlights on February 18, 2025[5]. - The press release is furnished as Exhibit 99.1 to the Current Report on Form 8-K, providing detailed financial information[5]. Strategic Priorities - The company outlined its strategic priorities for fiscal 2025, indicating a focus on growth and operational efficiency[5].

Financial Performance - Revenues for Q3 2024 were $34.6 million, representing a 35% increase compared to $25.7 million in Q3 2023[5] - Adjusted EBITDA for Q3 2024 was $574,000, a 149% improvement from $230,000 in Q3 2023[5] - Free cash flow for Q3 2024 was $511,000, reflecting a 120% increase from a negative $590,000 in Q3 2023[5] - For the nine months ended September 30, 2024, revenues were $104.9 million, a 35% increase from $77.8 million in the same period last year[6] - Total revenues for the three months ended September 30, 2024, were $34,620,433, an increase from $25,733,657 in the same period of 2023, representing a growth of approximately 34.8%[22] - Gross profit for the nine months ended September 30, 2024, was $14,251,479, compared to $11,614,398 for the same period in 2023, indicating a year-over-year increase of about 22.4%[22] - The net loss for the nine months ended September 30, 2024, was $1,577,873, a decrease from a net loss of $2,714,686 in the same period of 2023, reflecting an improvement of approximately 41.8%[22] Contract Awards and Renewals - The company won $15.2 million in contract awards and renewals during Q3 2024, including $1.4 million in IT as a Service contracts[4] Cash and Assets - As of September 30, 2024, the company had cash of $5.6 million with no bank debt[5] - Cash and cash equivalents at the end of the period were $5,636,057, down from $6,921,160 at the beginning of the period, showing a decrease of about 18.5%[24] - Unbilled accounts receivable increased significantly to $24,784,036 as of September 30, 2024, compared to $16,618,639 at the end of 2023, marking a growth of approximately 49.0%[21] - Total current assets rose to $40,938,795 as of September 30, 2024, up from $32,843,263 at the end of 2023, representing an increase of about 24.6%[21] Operating Expenses and Cash Flow - Operating expenses for the nine months ended September 30, 2024, totaled $15,815,068, compared to $14,062,260 for the same period in 2023, indicating an increase of approximately 12.5%[22] - The company experienced a net cash used in operating activities of $752,978 for the nine months ended September 30, 2024, compared to net cash provided of $1,835,176 in the same period of 2023, showing a significant change in cash flow dynamics[25] Technological Advancements - The company successfully deployed its proprietary MobileAnchor Digital Credential solution into two Federal Agencies, enhancing its technological capabilities[4] Future Outlook - The company is trending towards the higher end of its annual guidance and is optimistic about maintaining growth momentum into 2025[7] Shareholder Information - The weighted-average shares outstanding for the nine months ended September 30, 2024, were 9,263,492, compared to 8,809,644 for the same period in 2023, indicating an increase of approximately 5.1%[22] Interest Income - The company reported interest income of $161,033 for the nine months ended September 30, 2024, compared to $39,122 in the same period of 2023, reflecting a significant increase of about 311.5%[22] Gross Margin - Gross margin for Q3 2024 was 14%, with gross margin excluding carrier services revenue increasing to 38% from 35% in the same period last year[5] Net Loss - Net loss for Q3 2024 improved to $425,200, compared to a net loss of $921,100 in Q3 2023[5]

Financial Data and Key Metrics Changes - The company reported revenues of $34.6 million for Q3 2024, reflecting a 35% increase year-over-year, with nine-month revenues reaching $104.9 million, also up 35% from the previous year [6][27]. - Adjusted EBITDA for Q3 was $574,000, a 149% increase from last year, while the nine-month figure rose to $1.9 million, significantly up from $387,000 in the same period last year [7][8]. - Free cash flow grew by 120% to $511,000 for the quarter, compared to a negative $391,000 in the same quarter last year, with nine-month free cash flow improving 394% to $1.9 million from negative $590,000 [7][8]. Business Line Data and Key Metrics Changes - Carrier services revenue for Q3 was $22.4 million, an increase of $7.8 million compared to the same period in 2023, while nine-month carrier services revenue was $62.2 million, up $19.7 million [28][29]. - Managed services fees for Q3 were $8.5 million, an increase of $400,000 year-over-year, with nine-month managed services fees at $26.4 million, up $4.5 million [29]. - Billable service fees for Q3 were $1.7 million, an increase of $114,000, while the nine-month figure decreased to $4.1 million, down $564,000 [30]. Market Data and Key Metrics Changes - The company saw strong demand for its MobileAnchor product, signing two new contracts in Q3, primarily contributing to high-margin SaaS revenue [10]. - The contract backlog stood at $300 million as of September 30, 2024, with a healthy sales pipeline across all sectors [19]. Company Strategy and Development Direction - The company is focused on capturing high-margin contracts and differentiating its offerings to take business away from competitors, with a strategic emphasis on technological innovations like MobileAnchor [10][15]. - The company is preparing for significant contracts, including the $1.5 billion CWMS 3.0 recompete and the $60 billion NASA SEWP VI contract, with expectations of being granted FedRAMP authorization soon [12][13]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of the recent presidential election on government contracts, anticipating minimal operational impact and potential additional funding for agencies like DHS [45][46]. - The company expects revenues to range between $120 million and $133 million for the year, with adjusted EBITDA between $2.1 million and $2.4 million, trending toward the higher end of the guidance [47][48]. Other Important Information - The company ended the quarter with $5.6 million in cash, an increase from $4 million at the end of the previous quarter, primarily due to reduced unbilled receivables [41]. - The company has a revolving line of credit facility with $4 million of potential borrowing capacity, although it does not anticipate needing to rely on it [42]. Q&A Session Summary Question: Impact of the election on operations and marketing message - Management noted that the census project is generating some activity, and the hybrid working environment may lead to an increase in the number of devices logging into customer infrastructure [51][52]. - The focus on efficiency resonates with customers, as the company claims to save them 15% to 35% on telecom costs, which could provide tailwinds for the business [54]. Question: Status of FedRAMP authorization - The company is monitoring the FedRAMP certification process, having submitted the final package about six weeks ago, and is in the finalization phase [59][60]. Question: Opportunities outside federal government - Management indicated that over 90% of the Device as a Service program is focused on commercial clients in highly regulated industries, suggesting a robust pipeline outside of federal opportunities [61][62].

Group 1: Earnings Performance - WidePoint reported a quarterly loss of $0.04 per share, better than the Zacks Consensus Estimate of a loss of $0.07, and an improvement from a loss of $0.10 per share a year ago, representing an earnings surprise of 42.86% [1] - The company posted revenues of $34.62 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 13.86%, compared to year-ago revenues of $25.73 million [2] - Over the last four quarters, WidePoint has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - WidePoint shares have increased approximately 76.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 25.5% [3] - The current consensus EPS estimate for the coming quarter is -$0.09 on revenues of $31.55 million, and -$0.28 on revenues of $132.21 million for the current fiscal year [7] - The estimate revisions trend for WidePoint is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Computer - Services industry, to which WidePoint belongs, is currently in the bottom 44% of over 250 Zacks industries, suggesting that the outlook for the industry can materially impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]