WidePoint (NYSEAMERICAN:WYY) Announces Earnings Results

WidePoint (NYSEAMERICAN:WYY) released its quarterly earnings results on Thursday. The technology company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.04 by ($0.03), FiscalAI reports. WidePoint had a negative net margin of 0.81% and a negative return on equity of 10.71%. The company had revenue of $38.00 million during the quarter, compared to analyst estimates of $41.83 million.

Here are the key takeaways from WidePoint’s conference call:

• CWMS 3.0 remains the key growth catalyst: WidePoint expects to retain the 10-year, $3.1 billion DHS contract, pending a GAO protest decision due by October 7, 2026. A $113 million CWMS 2.5 bridge contract is intended to preserve business continuity during the protest period.
• Management estimates CWMS 3.0 could generate approximately $300 million in annual revenue at full scale, including about $150 million of incremental, primarily solutions-based opportunity with an expected 8%-10% net profit margin. The company anticipates a meaningful ramp beginning in 2027 and reaching contemplated scale by the end of 2028.
• Q2 revenue rose to $38.0 million from $37.3 million, while adjusted EBITDA increased to $635,000 from $183,000 and net income improved to $66,000 from a $618,000 loss. Six-month revenue, adjusted EBITDA, and free cash flow also improved year over year, although management expects higher compliance, labor, insurance, and technology investment costs in the second half.
• The ATV telecommunications-carrier SaaS implementation has expanded, with go-live still targeted by year-end and a three-to-six-month deployment ramp thereafter. The existing engagement covers approximately 2 million to 2.5 million federal devices and could potentially expand into state and local government and commercial customers; management cites an estimated 70% gross margin profile.
• WidePoint was named a prime awardee on the 10-year, $60 billion SEWP VI vehicle, with ordering expected to begin November 1 and activity potentially ramping in early 2027. The company also reported progress in its DaaS and MobileAnchor pipelines, but several opportunities—including LA28 and potential additional carrier engagements—remain prospective rather than contracted.

WidePoint Stock Down 18.7%

NYSEAMERICAN:WYY traded down $2.18 on Friday, hitting $9.45. 491,465 shares of the company’s stock were exchanged, compared to its average volume of 140,758. The firm has a 50-day moving average price of $12.73 and a 200-day moving average price of $8.60. WidePoint has a 52 week low of $3.25 and a 52 week high of $24.30. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.04 and a quick ratio of 1.04. The company has a market cap of $93.46 million, a P/E ratio of -72.69 and a beta of 1.77.

Insider Activity

In related news, COO Todd Dzyak sold 10,000 shares of WidePoint stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $24.00, for a total value of $240,000.00. Following the sale, the chief operating officer owned 115,436 shares of the company’s stock, valued at approximately $2,770,464. The trade was a 7.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John J. Fitzgerald sold 15,000 shares of the company’s stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $15.63, for a total value of $234,450.00. Following the sale, the director owned 90,414 shares in the company, valued at $1,413,170.82. The trade was a 14.23% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 82,745 shares of company stock worth $1,355,144 in the last quarter. Corporate insiders own 16.10% of the company’s stock.

Institutional Investors Weigh In On WidePoint

A number of institutional investors and hedge funds have recently made changes to their positions in WYY. XTX Topco Ltd acquired a new stake in shares of WidePoint in the 2nd quarter valued at approximately $58,000. NewEdge Advisors LLC acquired a new position in WidePoint during the second quarter worth $74,000. Jane Street Group LLC acquired a new position in WidePoint during the second quarter worth $87,000. State Street Corp raised its position in WidePoint by 9.7% during the fourth quarter. State Street Corp now owns 27,153 shares of the technology company’s stock worth $146,000 after acquiring an additional 2,400 shares in the last quarter. Finally, O Shaughnessy Asset Management LLC bought a new stake in WidePoint during the fourth quarter worth $152,000. Institutional investors own 22.60% of the company’s stock.

Analysts Set New Price Targets

Separately, Zacks Research cut shares of WidePoint from a “strong-buy” rating to a “hold” rating in a research report on Thursday. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $9.00.

About WidePoint

WidePoint Corporation (NYSE American: WYY) is a provider of secure mobility management and identity management solutions. Headquartered in Reston, Virginia, the company delivers a range of managed services designed to help organizations control and secure their telecommunications and IT environments. Since its inception in the late 1990s, WidePoint has focused on helping businesses and government agencies optimize their mobile device portfolios and ensure regulatory compliance.

WidePoint’s core offerings include mobile device management, telecom expense management, and unified endpoint security.