WidePoint(WYY) - 2025 Q3 - Quarterly Results

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]