Summary of WidePoint Corporation Conference Call (October 20, 2025) Company Overview - **Company Name**: WidePoint Corporation (NYSEAM: WYY) - **Founded**: 1997 - **Business Model**: Mobility as a Service (MaaS) with a focus on cybersecurity solutions delivered via a SaaS model - **Management**: Current management team in place since 2017, stabilizing the company for growth and profitability [5][6] Financial Performance - **Top Line Revenue**: Closed 2024 with $142 million, a 35% increase compared to 2023 [7][32] - **Market Capitalization**: Approximately $56 million [7] - **Recurring Revenue**: 95% recurring revenues with a contract backlog of $265 million [6] - **Cash Position**: $6.8 million in cash at the end of Q2 2025 [6][32] - **EBITDA**: Positive for 32 consecutive quarters; free cash flow positive for 7 consecutive quarters [7][32] - **Growth Strategy**: Focus on enhancing competitive advantage through investments in solution sets and pursuing higher-margin contracts [24][25] Market Opportunity - **Addressable Market Size**: Approximately $36 billion, including federal, state, and local governments, as well as large enterprises [6][8] - **Cybersecurity Demand**: Increased due to rising cybersecurity threats and the need for secure remote work solutions [8][9] Key Solutions and Differentiators - **Core Offerings**: - Identity Management - Managed Mobility - Data Analytics - IT as a Service [9][12] - **Unique Selling Proposition**: - Most secure multi-factor authentication solution, quantum computing resistant, and has never been hacked [10][11][17] - FedRAMP authorized, allowing the company to store, process, and transmit federal government data in the cloud [14][31] - **Device as a Service (DaaS)**: New business model offering bundled hardware, software, and services for predictable pricing [20] Contract Wins and Government Relationships - **Significant Contracts**: - $500 million DHS CWMS 2.0 contract with an additional $250 million ceiling increase [22][30] - Pursuing NASA SEWP contracts and recompeting for CWMS 3.0 with a ceiling of $3 billion [23][31] - **Long-term Relationships**: Established presence with the Department of Homeland Security, having worked on contracts for approximately 20 years [22][30] Competitive Landscape - **FedRAMP Authorization**: A significant differentiator that few competitors possess, providing a competitive edge in securing government contracts [14][31] - **Market Position**: Positioned as a vendor of choice for mobility and cybersecurity solutions due to certifications and accreditations [26][27] Future Outlook - **Growth Projections**: Continued focus on organic and inorganic growth strategies, with expectations for improved profitability in 2025 and beyond [34] - **Financial Targets**: Aiming for 50% gross margins by 2026, excluding carrier services revenue [39][40] Additional Insights - **Customer Base**: Includes large, stable enterprises requiring extensive mobile workforces [29] - **Cost Savings**: Demonstrated ability to save clients 15-40% on telecom costs, enhancing value proposition [30] This summary encapsulates the key points discussed during the WidePoint Corporation conference call, highlighting the company's financial performance, market opportunities, unique solutions, significant contracts, competitive advantages, and future growth strategies.

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]