WidePoint(US:WYY)2025-11-13 21:08Revenue 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]