WidePoint Reports First Quarter 2026 Financial Results
Rhea-AI Summary
WidePoint (NYSE American: WYY) reported Q1 2026 revenue of $40.6 million, up $7.1 million year over year. Gross margin was 14% (34% excluding carrier services). Net income was $77,000, or $0.01 per share, versus a prior-year loss.
Adjusted EBITDA reached $752,000 and free cash flow $674,000, marking the 35th and 10th consecutive positive quarters, respectively. WidePoint ended the quarter with $10.9 million in unrestricted cash, no bank debt, and about $218 million in federal contract backlog.
AI-generated analysis. Not financial advice.
Positive
- Revenue increased to $40.6 million, up $7.1 million year over year
- Net income of $77,000 or $0.01 EPS versus prior-year net loss
- Adjusted EBITDA of $752,000, up 714% year over year and 64% vs Q4 2025
- Free cash flow of $674,000, up 941% year over year and 102% vs Q4 2025
- 35th consecutive quarter of positive Adjusted EBITDA and 10th of positive free cash flow
- Unrestricted cash of $10.9 million with no bank debt at March 31, 2026
- Federal contract backlog of approximately $218 million as of March 31, 2026
- Awarded $1.5 million in IT Managed Services contracts during Q1 2026
Negative
- Gross margin remained at 14%, unchanged from the same quarter last year
- Operating expenses were $5.7 million, slightly above $5.6 million a year ago
- Income from operations was a small loss of approximately $0.06 million
- Management noted some impact on billable services from the record-long DHS shutdown
Key Figures
Market Reality Check
Peers on Argus
Pre-earnings, WYY was modestly down 0.48% with light volume while peers were mixed: BTCM (-3.19%), TDTH (-3.01%), CTM (-0.86% spot but +1.16% in momentum scan), GMM (+13.04%), and NOTE (0%). Only one peer appeared in the momentum scanner, supporting a stock-specific setup.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 25 | Q4/FY 2025 earnings | Neutral | -11.5% | Q4 and 2025 results with higher revenue, modest EBITDA and ongoing net loss. |
| Nov 13 | Q3 2025 earnings | Positive | -1.7% | Q3 2025 revenue growth, backlog strength and major federal contract wins. |
| Aug 14 | Q2 2025 earnings | Neutral | +4.4% | Q2 2025 revenue growth with positive Adjusted EBITDA but continued net loss. |
| May 15 | Q1 2025 earnings | Positive | -20.4% | Q1 2025 results, strong backlog, guidance targeting positive EPS for FY2025. |
| Apr 16 | Q4/FY 2024 earnings | Positive | +9.1% | FY 2024 revenue up 35%, EBITDA up 229%, and larger federal contract backlog. |
Earnings releases have produced mixed reactions, often skewing negative despite generally improving revenue and consistent positive Adjusted EBITDA.
Recent history shows WidePoint steadily growing revenue and maintaining long streaks of positive Adjusted EBITDA. Prior earnings on Mar 25, 2026 highlighted Q4 2025 revenue of $42.3M but drew a -11.5% reaction. Earlier results in 2025–2024 emphasized expanding contract backlog (up to $290M) and improving Adjusted EBITDA, yet share moves were often volatile. Today’s Q1 2026 report extends the profitability narrative with positive EPS and stronger cash flow.
Historical Comparison
Across the last 5 earnings-related releases, WYY’s average 1-day move was -4.03%, showing that earnings have often been followed by downside volatility.
Same-tag earnings history shows rising revenues, sustained positive Adjusted EBITDA, and shrinking net losses from 2024 into 2025. Backlog remained high, supported by FedRAMP SaaS and CWMS-related awards, setting the stage for Q1 2026’s shift to positive EPS and stronger free cash flow.
Market Pulse Summary
This announcement highlights WidePoint’s progress to positive EPS of $0.01, revenue growth to $40.6M, and stronger free cash flow of $674,000 for Q1 2026. The company reported $10.9M in unrestricted cash, no bank debt, and about $218M in federal backlog. Investors may watch execution on CWMS 3.0, the carrier SaaS rollout, and whether margin and cash flow improvements persist over coming quarters.
Key Terms
adjusted EBITDA financial
free cash flow financial
non-GAAP financial measures financial
fedramp authorized regulatory
AI-generated analysis. Not financial advice.
FAIRFAX, Va., May 14, 2026 (GLOBE NEWSWIRE) -- WidePoint Corporation (NYSE American: WYY), a leading provider of Secure Mobile Management Solutions, reported results for the first quarter ended March 31, 2026.
First Quarter 2026 and Recent Operational Highlights:
- 35th consecutive quarter of positive Adjusted EBITDA
- 10th consecutive quarter of positive Free Cash Flow
- Achieved positive EPS for Q1 2026
- Granted authorized exclusive access to one of the Leading National Bottler’s procurement and inventory systems
- Awarded
$1.5 million in total contract value in Q1 2026 under its IT Managed Services division
First Quarter 2026 Financial Highlights:
- Revenues were
$40.6 million , an increase of$7.1 million from the same quarter last year - Gross margin was
14% , and gross margin excluding carrier services revenue was34% - Net income improved to
$77,000 or$0.01 per share, compared to a net loss of$(724,000) or a loss of$(0.08) per share in the same quarter last year - Adjusted EBITDA1 was
$752,000 , a714% increase from the same quarter last year and a64% increase from Q4 2025 - Free cash flow1 was
$674,000 , a941% increase from the same quarter last year and a102% increase from Q4 2025 - As of March 31, 2026, unrestricted cash was
$10.9 million with no bank debt - As of March 31, 2026, Federal contract backlog was approximately
$218 million
1 Free cash flow and Adjusted EBITDA are non-GAAP financial measures. See below for the definition of such measures and a reconciliation to GAAP.
Management Commentary
WidePoint CEO Jin Kang commented: “Despite the record-long DHS shutdown, we were able to navigate the prolonged period of uncertainty with minimal impact. We continued to experience year-over-year revenue growth and along with our cost management efforts, we have yielded an EPS positive quarter. While billable services fees were slightly impacted in the quarter due to the shutdown, we expect these results to normalize in the second half of 2026 and foresee minimal impact to our overall top-line results for Q2.
“We are pleased to see the shutdown and extended period of uncertainty at DHS nearing full resolution. The majority of DHS agencies have now received funding, and budget momentum for ICE and CBP is also progressing, which we view as a meaningful tailwind ahead of the anticipated CWMS 3.0 award announcement. Recently, we received a contract modification that extended the ordering period under the CWMS 2.0 to June 24, 2026. We are particularly encouraged that the extension was for a one-month period, which leads us to believe that there will be a material update provided by DHS by the new contract end date. Our competitive positioning remains unchanged, and we are prepared to adapt to either a formal CMWS 3.0 award or an additional extension period under the 2.0 contract.
“Under our carrier SaaS contract, we continue to advance through the implementation phase and functionality testing. Given that the carrier’s existing platform is expected to become nonviable by the end of the second quarter, the absence of WidePoint’s ITMS platform would leave the carrier without a FedRAMP Authorized system. We believe this is a clear indicator that the functionality testing will be finished within this timeframe, and as a result, we expect to commence platform service delivery and begin to ramp up revenue recognition by the second half of 2026, consistent with prior guidance.
“CWMS 3.0 and the carrier SaaS contract represent two of the most significant drivers of our growth trajectory in 2026. The increasing momentum and urgency behind both opportunities reinforce our confidence in maintaining our current expected trajectory. We will continue to monitor developments at DHS and look forward to the anticipated announcement.”
First Quarter 2026 Financial Summary
| THREE MONTHS ENDED MARCH 31, | |||||||
| (in millions, except per share data) | 2026 | 2025 | |||||
| (Unaudited) | |||||||
| REVENUES | $ | 40.6 | $ | 33.5 | |||
| GROSS PROFIT | 5.6 | 4.8 | |||||
| GROSS PROFIT % | 14 | % | 14 | % | |||
| OPERATING EXPENSES | 5.7 | 5.6 | |||||
| INCOME (LOSS) FROM OPERATIONS | (0.06 | ) | (0.82 | ) | |||
| INCOME (LOSS) PER SHARE, BASIC | $ | 0.01 | $ | (0.08 | ) | ||
| INCOME (LOSS) PER SHARE, DILUTED | $ | 0.01 | $ | (0.08 | ) | ||
| EBITDA | 0.50 | (0.11 | ) | ||||
| ADJUSTED EBITDA | 0.75 | 0.09 | |||||
| FREE CASHFLOW | $ | 0.67 | $ | 0.06 | |||
Conference Call
WidePoint’s management will host the conference call today (May 14, 2026) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.
U.S. dial-in number: 888-506-0062
International number: 973-528-0011
Access Code: 321002
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at (949) 574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website.
A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through Thursday, May 28, 2026.
Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 53882
About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading technology Managed Solution Provider (MSP) dedicated to securing and protecting the mobile workforce and enterprise landscape. WidePoint is recognized for pioneering technology solutions that include Identity & Access Management (IAM), Mobility Managed Services (MMS), Telecom Management, Information Technology as a Service, Cloud Security, and Analytics & Billing as a Service (ABaaS). To learn more, visit https://www.widepoint.com.
Non-GAAP Financial Measures
WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as EBITDA, Adjusted EBITDA, and Free cashflow, to enable it to analyze its performance and financial condition. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. A reconciliation of GAAP Net income to EBITDA and Adjusted EBITDA and Free cash flow is provided below:
| THREE MONTHS ENDED | |||||||
| MARCH 31, | |||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| NET INCOME (LOSS) | $ | 77,000 | $ | (724,100 | ) | ||
| Adjustments to reconcile net income to EBITDA: | |||||||
| Depreciation and amortization | 512,400 | 709,900 | |||||
| Income tax provision (benefit) | (43,700 | ) | (94,000 | ) | |||
| Interest income | (87,400 | ) | (53,400 | ) | |||
| Interest expense | 45,000 | 55,100 | |||||
| $ | 503,300 | $ | (106,500 | ) | |||
| Other adjustments to reconcile net (loss) income to Adjusted EBITDA: | |||||||
| Stock-based compensation expense | 248,800 | 198,900 | |||||
| Adjusted EBITDA | $ | 752,100 | $ | 92,400 | |||
| Capital expenditures | (77,832 | ) | (27,632 | ) | |||
| Free cash flow | $ | 674,268 | $ | 64,768 | |||
WidePoint uses EBITDA, Adjusted EBITDA and Free cashflow as supplemental non-GAAP measures of performance. WidePoint defines EBITDA as net income excluding (i) interest expense, (ii) provision for or benefit from income taxes, (iii) depreciation and amortization, and (iv) Impairment charges. Adjusted EBITDA excludes certain amounts included in EBITDA such as stock-based compensation expense. WidePoint defined Free cashflow as Adjusted EBITDA less capital expenditures. Management believes that adjustments for certain non-cash or other items and the exclusion of certain pass-through revenue and expenses should enhance stockholders' ability to evaluate the Company’s performance, as such measures provide additional insights into the factors and trends affecting its business. Therefore, the Company excludes these items from its GAAP financial measures to calculate these unaudited non-GAAP measures. These unaudited non-GAAP measures may not be comparable to similarly titled measures reported by other companies and should be considered in addition to, and not as a substitute for GAAP.
Safe Harbor Statement
This press release contains forward-looking statements concerning our business, operations and financial performance and condition as well as our plans, objectives and expectations for our business operations and financial performance and condition that are subject to risks and uncertainties. All statements other than statements of historical fact included herein are forward-looking statements. You can identify these statements by words such as "aim," "anticipate," "assume," "believe," "could," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "potential," "positioned," "predict," "should," "target," "will," "would" and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and our management's beliefs and assumptions. These statements are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including, the impact of supply chain issues; our ability to successfully execute our strategy; our ability to sustain profitability and positive cash flows; our ability to access sufficient financing on acceptable terms given the tightening credit markets due to the current banking environment; our ability to gain market acceptance for our products; our ability to win new contracts, execute contract extensions and expand scope of services on existing contracts; our ability to compete with companies that have greater resources than us; our ability to penetrate the commercial sector to expand our business; our ability to identify potential acquisition targets and close such acquisitions; our ability to successfully integrate acquired businesses with our existing operations; our ability to maintain a sufficient level of inventory necessary to meet our customers demand due to supply shortage and pricing; our ability to retain key personnel; our ability to mitigate the impact of increases in interest rates; the impact of increasingly volatile public equity markets on our market capitalization; the impact and outcome of negotiations around the Federal debt ceiling; our ability to mitigate the impact of inflation; and the risk factors set forth in our Form 10-Q for the quarter ended September 30, 2025 filed with the SEC on November 13, 2025.
The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
WidePoint Investor Relations:
Gateway Group, Inc.
Matt Glover or John Yi
949-574-3860
WWW@gateway-grp.com
| WIDEPOINT CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS | |||||||
| MARCH 31, | DECEMBER 31, | ||||||
| 2026 | 2025 | ||||||
| ASSETS | (Unaudited) | ||||||
| CURRENT ASSETS | |||||||
| Cash and cash equivalents | $ | 10,927,910 | $ | 9,818,503 | |||
| Restricted cash | 354,678 | 2,647,990 | |||||
| Accounts receivable, net of allowance for credit losses | |||||||
| of | 19,194,132 | 15,002,571 | |||||
| Unbilled accounts receivable | 37,711,894 | 33,548,228 | |||||
| Other current assets | 4,688,348 | 5,196,613 | |||||
| Total current assets | 72,876,962 | 66,213,905 | |||||
| NONCURRENT ASSETS | |||||||
| Property and equipment, net | 468,644 | 480,082 | |||||
| Lease right of use asset | 3,695,969 | 3,904,479 | |||||
| Intangible assets, net | 3,073,788 | 3,352,296 | |||||
| Goodwill | 5,811,578 | 5,811,578 | |||||
| Deferred tax assets, net | 2,312 | 1,123 | |||||
| Other long-term assets | 48,822 | 48,822 | |||||
| Total assets | $ | 85,978,075 | $ | 79,812,285 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| CURRENT LIABILITIES | |||||||
| Accounts payable | $ | 29,625,712 | $ | 25,891,150 | |||
| Accrued expenses | 34,974,561 | 31,159,173 | |||||
| Current portion of deferred revenue | 4,726,949 | 6,114,402 | |||||
| Current portion of lease liabilities | 704,394 | 751,233 | |||||
| Total current liabilities | 70,031,616 | 63,915,958 | |||||
| NONCURRENT LIABILITIES | |||||||
| Lease liabilities, net of current portion | 3,766,448 | 3,930,495 | |||||
| Deferred revenue, net of current portion | 429,825 | 435,151 | |||||
| Total liabilities | 74,227,889 | 68,281,604 | |||||
| Commitments and contingencies (Note 16) | - | - | |||||
| STOCKHOLDERS' EQUITY | |||||||
| Preferred stock, | |||||||
| authorized; 2,045,714 shares issued and none outstanding | - | - | |||||
| Common stock, | |||||||
| authorized; 9,872,662 and 9,892,565 shares | |||||||
| issued and outstanding, respectively | 9,874 | 9,894 | |||||
| Additional paid-in capital | 103,875,748 | 103,733,790 | |||||
| Accumulated other comprehensive loss | (379,058 | ) | (379,665 | ) | |||
| Accumulated deficit | (91,756,378 | ) | (91,833,338 | ) | |||
| Total stockholders’ equity | 11,750,186 | 11,530,681 | |||||
| Total liabilities and stockholders’ equity | $ | 85,978,075 | $ | 79,812,285 | |||
| WIDEPOINT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| THREE MONTHS ENDED | |||||||
| MARCH 31, | |||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| REVENUES | $ | 40,576,030 | $ | 33,510,039 | |||
| COST OF REVENUES (including amortization and depreciation of | |||||||
| 34,978,404 | 28,731,518 | ||||||
| GROSS PROFIT | 5,597,626 | 4,778,521 | |||||
| OPERATING EXPENSES | |||||||
| Sales and marketing | 595,997 | 639,482 | |||||
| General and administrative expenses (including share-based | |||||||
| compensation of | 4,832,023 | 4,731,782 | |||||
| Depreciation and amortization | 227,972 | 223,688 | |||||
| Total operating expenses | 5,655,992 | 5,594,952 | |||||
| LOSS FROM OPERATIONS | (58,366 | ) | (816,431 | ) | |||
| OTHER INCOME (EXPENSE) | |||||||
| Interest income | 87,403 | 53,430 | |||||
| Interest expense | (44,993 | ) | (55,073 | ) | |||
| Other income (expense), net | 49,240 | - | |||||
| Total other income (expense), net | 91,650 | (1,643 | ) | ||||
| INCOME (LOSS) BEFORE INCOME TAX BENEFIT | 33,284 | (818,074 | ) | ||||
| INCOME TAX BENEFIT | (43,676 | ) | (94,011 | ) | |||
| NET INCOME (LOSS) | $ | 76,960 | $ | (724,063 | ) | ||
| EARNINGS PER SHARE, BASIC AND DILUTED | $ | 0.01 | $ | (0.08 | ) | ||
| WEIGHTED-AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED | 9,872,662 | 9,552,971 | |||||
| DILUTED EARNINGS PER SHARE | $ | 0.01 | $ | (0.08 | ) | ||
| DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING | 10,073,810 | 9,552,971 | |||||
| WIDEPOINT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| THREE MONTHS ENDED | |||||||
| MARCH 31, | |||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net income (loss) | $ | 76,960 | $ | (724,063 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) operating activities: | |||||||
| Deferred income tax benefit | (5,000 | ) | (36,400 | ) | |||
| Depreciation expense | 233,931 | 229,330 | |||||
| Provision for credit losses | 7,823 | 6,776 | |||||
| Amortization of intangibles | 278,509 | 480,552 | |||||
| Share-based compensation expense | 248,817 | 198,859 | |||||
| Non-cash lease expense | 61,766 | 46,444 | |||||
| Loss (gain) on disposal of fixed assets | (49,043 | ) | - | ||||
| Changes in assets and liabilities: | |||||||
| Accounts receivable and unbilled receivables | (8,374,552 | ) | (1,990,901 | ) | |||
| Inventories | 259,115 | (240,208 | ) | ||||
| Other current assets | 246,757 | (1,190,283 | ) | ||||
| Other assets | - | 53,717 | |||||
| Accounts payable and accrued expenses | 7,527,183 | (1,072,599 | ) | ||||
| Income tax payable | 7,444 | 9,543 | |||||
| Deferred revenue and other liabilities | (1,382,923 | ) | 1,044,877 | ||||
| Other liabilities | (59,274 | ) | (43,235 | ) | |||
| Net cash used in operating activities | (922,487 | ) | (3,227,591 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchases of property and equipment | (77,832 | ) | (27,632 | ) | |||
| Proceeds from disposal of property and equipment | 49,043 | - | |||||
| Net cash provided by (used in) investing activities | 20,255 | (27,632 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Advances on bank line of credit | - | 2,800,000 | |||||
| Repayments of bank line of credit advances | - | (2,800,000 | ) | ||||
| Principal repayments under finance lease obligations | (131,595 | ) | (119,766 | ) | |||
| Withholding taxes paid on behalf of employees on net settled restricted stock awards | (106,879 | ) | (115,211 | ) | |||
| Net cash used in financing activities | (238,474 | ) | (234,977 | ) | |||
| Net effect of exchange rate on cash | (43,199 | ) | (27,553 | ) | |||
| NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (1,183,905 | ) | (3,517,753 | ) | |||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period | 12,466,493 | 7,817,395 | |||||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period | $ | 11,282,588 | $ | 4,299,642 | |||
| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH CONSISTED OF THE FOLLOWING: | |||||||
| Cash and cash equivalents | $ | 10,927,910 | $ | 3,703,169 | |||
| Restricted cash | 354,678 | 596,473 | |||||
| $ | 11,282,588 | $ | 4,299,642 | ||||
