Summary of WidePoint (WYY) Conference Call - August 19, 2025 Company Overview - **Company**: WidePoint Corporation (Ticker: WYY) - **Industry**: Managed service provider, focusing on mobility management, cybersecurity, and data analytics for the US federal government and commercial customers [1][3] Core Services - **Mobility as a Service (MaaS)**: A SaaS model providing integrated services including: - **Identity Management**: Secure multifactor authentication, certified for federal zero trust architecture [5][6] - **Managed Mobility Solutions**: Comprehensive support for mobile technology assets throughout their lifecycle [6] - **Data Analytics**: Visibility into asset usage, location, and costs [6] - **IT as a Service**: Outsourced management of IT infrastructure, including cybersecurity [7] Key Business Opportunities - **CWMS 3.0 Contract**: - Represents approximately **60% of revenues** and is the largest contract for WidePoint [10] - The company has a strong position due to facility security clearance and FedRAMP authorization, which competitors lack [11][12] - The final RFP is expected soon, with contract award anticipated by September [14][15] - Current CWMS 2.0 contract expires in November 2025, with task orders extending to November 2026 [15] - **Mobile Anchor Product**: - Enhances identity and access management by placing digital certificates on mobile devices [18][20] - Recent contract wins include the Department of Energy and a Fortune 100 defense contractor [21][22] - **Navy Spiral 4 Contract**: - Total contract value is **$2.7 billion**, with WidePoint positioned as a non-carrier provider [28][30] - Revenue from this contract is expected to ramp up in Q3 2025 [29] - **Device as a Service (DaaS)**: - Significant opportunities in the commercial sector, with a focus on Fortune 100 companies [34][37] - The company is exploring large SaaS deals and partnerships, including with CDW for the LA Olympics [38][39] Financial Insights - **Contract Backlog**: Approximately **$260 million**, expected to decrease as CWMS 2.0 concludes, but will build again with CWMS 3.0 [44] - **Revenue Growth**: - Current CWMS 2.0 contract is valued at **$750 million**; CWMS 3.0 is projected at **$3 billion** over ten years [46] - Gross margins for non-carrier revenue are around **33-34%**, with a goal to reach **50%** by 2027 [63] Operational Efficiency - **Staffing and Operating Leverage**: - New contracts will not require proportional staffing increases, allowing for improved operating leverage [78] - The company has sufficient cash reserves (approximately **$7 million** as of June) and no debt, with a projected cash balance of over **$10 million** by year-end [80][82] M&A Strategy - **Acquisition Criteria**: - Focus on established companies in mobility, cybersecurity, and data analytics that are EBITDA positive [90][92] - The company is not actively seeking acquisitions but remains open to opportunities that align with its operations [89] Conclusion - WidePoint is well-positioned for growth with significant contracts in the pipeline, a strong service offering in mobility management, and a focus on operational efficiency and strategic partnerships. The company aims to enhance its market position while maintaining a healthy financial outlook.

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $38 million, an increase from $36 million in the same period last year [35] - Total revenue for the six months ended June 30, 2025, was $72.1 million, up from $70.2 million in the same period last year [35] - Net loss for Q2 2025 was $618,000, or a loss of $0.06 per share, compared to a net loss of $500,000, or a loss of $0.05 per share for the same period last year [42] - Adjusted EBITDA for Q2 2025 was $183,000, marking the thirty-second consecutive quarter of adjusted EBITDA [42] Business Line Data and Key Metrics Changes - Carrier services revenue for Q2 2025 was $22.2 million, an increase of $1.8 million compared to the same period in 2024 [36] - Managed services fees for Q2 2025 were $9.2 million, consistent with the same period in 2024 [36] - Billable services fees for Q2 2025 were $1.3 million, also consistent with the same period in 2024 [36] - Reselling and other services for Q2 2025 were $5.1 million, a slight increase compared to the same period last year [37] Market Data and Key Metrics Changes - The federal backlog stood at $265 million as of June 30, 2025 [35] - The CWMS 3.0 contract ceiling increased to $3 billion from the previous $500 million, indicating growing demand from DHS [8] - The Spiral 4 contract has a total value of $2.6 billion, with WidePoint winning four task orders to date [54] Company Strategy and Development Direction - The company is focused on securing the CWMS 3.0 recompete, leveraging its status as a two-time incumbent and FedRAMP authorized status [10][45] - Investments are being made in high-impact initiatives, including the CWMS 3.0 preparation and the Device as a Service (DAS) program [22][45] - The company aims to diversify its revenue streams by expanding into large commercial DAS deals and deepening partnerships with firms like CDW [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the CWMS 3.0 opportunity, viewing it as a critical pillar for long-term growth [11][21] - The company anticipates that the final RFQ for CWMS 3.0 could be released soon, with contract awards expected by September 2025 [10] - Management acknowledged that while some opportunities have shifted in timing, the underlying strength of the business remains intact [21][22] Other Important Information - The company has achieved FedRAMP authorized status, enhancing its competitive advantage in securing government contracts [16][17] - The investment in DAS infrastructure is seen as foundational for long-term growth, despite delays in closing some key deals [13][14] Q&A Session Summary Question: What is the timeframe for the $3 billion DHS contract? - The CWMS 3.0 contract will extend from a five-year to a ten-year contract [49] Question: How do the requirements for the contract differ from five years ago? - FedRAMP authorization is now a requirement, which was not the case previously [51][52] Question: Update on Spiral 4 contract awards? - WidePoint has won four contracts under the Spiral 4 contract, which has a total value of $2.6 billion [54][55] Question: What is the current backlog and its components? - The backlog is $265 million, with $47 million expected to be received in the rest of the year [67][69]