WidePoint Reports Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

WidePoint (NYSE American:WYY) reported its Q4 and full year 2024 results, marking significant improvements in financial performance. Full-year 2024 revenues reached $142.6 million, up 35% from 2023, while Q4 revenues were $37.7 million, a 33% increase year-over-year.

The company achieved its 30th consecutive quarter of positive Adjusted EBITDA, which grew to $2.6 million for the full year, a 229% increase. Net loss improved to $1.9 million ($0.21 per share) from $4.0 million ($0.46 per share) in 2023. The company maintained a strong financial position with $6.8 million in unrestricted cash and no bank debt.

Notable achievements include obtaining FedRAMP Authorized Status for its Intelligent Technology Management System, launching M365 Analyzer, and securing $51.2 million in contract awards. The company reported a substantial $290 million contract backlog as of December 31, 2024.

Positive

• Revenue growth of 35% year-over-year to $142.6 million
• Adjusted EBITDA increased 229% to $2.6 million
• Free cash flow improved to $2.5 million from -$0.3 million
• Contract backlog of $290 million
• $51.2 million in new contract awards
• FedRAMP Authorization Status achieved

Negative

• Net loss of $1.9 million for full year 2024
• Gross margin declined to 13% from 15% year-over-year
• Operating expenses increased to $20.9 million from $19.3 million

Insights

Financial Analyst

WidePoint shows strong financial improvement with 35% revenue growth, positive free cash flow, and shrinking losses, positioning for profitability in 2025.

WidePoint's Q4 and full-year 2024 results demonstrate a company at a crucial inflection point in its financial trajectory. The 35% revenue growth to $142.6 million is impressive for a small-cap tech company, but what's truly noteworthy is the dramatic improvement in bottom-line metrics. The company has achieved a 229% increase in Adjusted EBITDA to $2.6 million and generated positive free cash flow of $2.5 million compared to negative $300,000 last year.

This free cash flow generation represents approximately 9% of WidePoint's $27.3 million market cap - an exceptional FCF yield that suggests potential undervaluation. The reduction in net loss from $4.0 million to $1.9 million ($0.21 per share) shows clear progress toward breakeven, making management's goal of positive EPS in 2025 appear achievable.

The $290 million contract backlog provides roughly two years of revenue visibility at current run rates. While the gross margin compression from 15% to 13% warrants monitoring, the company clarifies that margins excluding carrier services revenue remain healthy at 34%, indicating this is primarily a revenue mix issue rather than pricing pressure.

With $6.8 million in cash and no debt, WidePoint has sufficient liquidity to fund operations while pursuing growth initiatives. The company's 30 consecutive quarters of positive Adjusted EBITDA demonstrates consistent operational execution despite its small size. If they maintain this trajectory of improving profitability metrics, the goal of positive earnings in 2025 appears well within reach.

Technology Industry Analyst

WidePoint's FedRAMP authorization and new product launches strategically position the company for expanded government contract opportunities and commercial growth.

WidePoint's achievement of FedRAMP Authorized Status for its Intelligent Technology Management System represents a significant competitive advantage in the government cybersecurity and mobile technology market. FedRAMP authorization serves as a crucial differentiator when competing for federal contracts, as it validates that WidePoint's solutions meet rigorous security standards required for government cloud deployments. This certification removes a major barrier to entry for many federal opportunities that were previously inaccessible.

The company's development of new solutions like MobileAnchor and M365 Analyzer demonstrates a strategic pivot toward higher-margin software offerings that complement their existing services. The M365 Analyzer specifically targets cost optimization for Microsoft licenses, addressing a pain point for both government and commercial clients managing complex software assets. This positions WidePoint to capture additional revenue streams beyond their core mobility management services.

The upcoming DHS CWMS 3.0 contract recompete represents a critical opportunity. Management's confidence in their competitive positioning stems from their established integration with DHS infrastructure and newly obtained FedRAMP status. Their $51.2 million in new contract awards during 2024, with 89% coming from federal agencies, confirms their strong government sector presence.

The partnership with 22Vets Technologies for Smart City Internet of Things programs indicates WidePoint is expanding beyond traditional mobility management into emerging IoT applications. This diversification strategy could open new revenue channels while leveraging their existing security and device management expertise. The combination of these technical achievements positions WidePoint to accelerate their transition toward profitability in 2025.

FAIRFAX, VIRGINIA / ACCESS Newswire / April 16, 2025 / WidePoint Corporation (NYSE American:WYY), the innovative enterprise cyber security and mobile technology provider, reported results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 and Recent Operational Highlights:

• Exceeded revenue, adjusted EBITDA, and free cashflow guidance

• 30^th consecutive quarter of positive Adjusted EBITDA

• 5^th consecutive quarter of positive free cash flow

• Awarded $2.5 million Task Order under the Spiral 4 Contract Vehicle

• Achieved FedRAMP Authorized Status for its Intelligent Technology Management System

• Launched M365 Analyzer that identifies actionable savings for Microsoft software license inventory

• Partnered with 22Vets Technologies for Smart City Internet of Things Program

• $51.2 million contract awards in 2024, of which $45.6 million was from Federal agencies and $5.6 million from commercial organizations

• $290 million contract backlog as of December 31, 2024

Fourth Quarter 2024 Financial Highlights:

• Revenues were $37.7 million, a 33% increase from the same quarter last year

• Gross margin was 13%, and gross margin excluding carrier services revenue was 36%

• Adjusted EBITDA¹, a non-GAAP financial measure, was $631,000, a 49% improvement from the same quarter last year

• Net loss improved to $356,000 or a loss of $(0.04) per share, compared to $1.3 million or a loss of $(0.15) per share from the same period last year,

• Free cash flow¹, a non-GAAP financial measure, was $593,000 or an improvement of 92% compared to the same period last year

Full Year 2024 Financial Highlights:

• Revenues were $142.6 million, a 35% increase from last year

• Gross margin was 13%, and gross margin excluding carrier services revenue was 34%

• Adjusted EBITDA, a non-GAAP financial measure, was $2.6 million, a 229% increase from last year

• Net loss improved to $1.9 million or a loss of $(0.21) per share, from a loss of $4.0 million or a loss of $(0.46) per share last year

• Free cash flow, a non-GAAP financial measure, was $2.5 million compared to $(300,000) last year

• As of December 31, 2024, our unrestricted cash was $6.8 million with no bank debt

^{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: "Our 2024 results were a byproduct of surpassing the three key goals we set for the year: continued investments in sales and marketing, operational execution, and technical advancements. We continue to execute across all facets of our business lines, as demonstrated not only by exceeding all three of our guidance metrics of (revenue, adjusted EBITDA and free cashflow), but also by the notable improvements in our bottom line from 2022 to 2024. The positive trend in our financial performance has positioned us well to achieve our goal of positive earnings per share for the full year 2025. A major highlight of the year was our technical advancements. We successfully developed our MobileAnchor and M365 Analyzer solution sets and, most notably, achieved the long-awaited FedRAMP Authorization Status. This milestone will be pivotal in unlocking new opportunities that were previously beyond our reach, in addition to positioning us for future growth and outpacing our competitors."

"Four months into 2025, we have set the following goals to drive further improvements in WidePoint's financial performance and enhance returns for our valued shareholders. First, we aim to establish strategic partnerships to leverage shared client networks, expand our customer base, and grow our contract backlog. While still in the early stages, we are actively engaged in serious discussions with multiple parties regarding MobileAnchor, our Device-as-a-Service program, and offering solutions for cost savings to the new presidential administration. Second, we continue to prepare for the upcoming DHS CWMS 3.0 recompete, where we believe we are in a strong position to succeed. Our authorization to operate from DHS and now our FedRAMP Authorized status, proven track record working with the agency, seamless system integration with DHS infrastructure, and industry certifications and accreditations all places us ahead of our competition for this opportunity. Third, we are focused on the commercialization of our newly developed MobileAnchor and M365 Analyzer. Through our upcoming partnership program and additional investments, we believe these solutions will gain significant traction throughout 2025. Lastly, our goal is to achieve positive earnings per share for the year, an important milestone for our company. We look forward to continued growth and successful execution across all areas of our business throughout 2025."

Fourth Quarter 2024 Financial Summary

		DECEMBER 31,
(In millions except per share amounts)		2024				2023
		(Unaudited)
REVENUES		$	37.7			$	28.3
GROSS PROFIT			4.8				4.0
GROSS PROFIT %			13	%			14	%
OPERATING EXPENSES			5.1				5.3
LOSS FROM OPERATIONS			(0.3	)			(1.3	)
LOSS PER SHARE, BASIC AND DILUTED		$	(0.04	)		$	(0.15	)
EBITDA			0.4				(0.2	)
ADJUSTED EBITDA			0.6				0.4
FREE CASHFLOW			0.6				0.3

Full Year 2024 Financial Summary

		DECEMBER 31,
(In millions except per share amounts)		2024				2023
		(Unaudited)
REVENUES		$	142.6			$	106.0
GROSS PROFIT			19.0				15.6
GROSS PROFIT %			13	%			15	%
OPERATING EXPENSES			20.9				19.3
LOSS FROM OPERATIONS			(1.9	)			(4.0	)
LOSS PER SHARE, BASIC AND DILUTED		$	(0.21	)		$	(0.46	)
EBITDA			1.4				(0.4	)
ADJUSTED EBITDA			2.6				0.8
FREE CASHFLOW			2.5				(0.3	)

Conference Call

WidePoint's management will host the conference call today (April 16, 2025) 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: 333097

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 Wednesday, April 30, 2025.

Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 52176

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 and Access Management (IAM), Mobility Managed Services (MMS), Telecom Management, Information Technology as a Service (ITaaS), Cloud Security, and Analytics & Billing as a Service (ABaaS). For more information, visit 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 cashflow is provided below:

WidePoint uses EBITDA, Adjusted EBITDA and Free cashflow as supplemental non-GAAP measure 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 Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 26, 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
WYY@gateway-grp.com

WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

		DECEMBER 31,				DECEMBER 31,
		2024				2023
ASSETS		(Unaudited)
CURRENT ASSETS
Cash		$	6,775,139			$	6,921,160
Restricted cash			1,042,256				-
Accounts receivable, net of allowance for credit losses
of $46,150 and $81,359, respectively			11,930,474				8,219,793
Unbilled accounts receivable			31,798,431				16,618,639
Other current assets			3,771,473				1,083,671
Total current assets			55,317,773				32,843,263
NONCURRENT ASSETS
Property and equipment, net			544,723				780,800
Lease right of use asset			4,183,561				4,045,222
Intangible assets, net			5,063,795				7,336,348
Goodwill			5,811,578				5,811,578
Other long-term assets			659,086				483,288
Total assets		$	71,580,516			$	51,300,499
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable		$	16,524,863			$	12,633,658
Accrued expenses			30,851,255				16,175,702
Current portion of deferred revenue			4,770,683				2,009,343
Current portion of lease liabilities			735,152				638,258
Total current liabilities			52,881,953				31,456,961
NONCURRENT LIABILITIES
Lease liabilities, net of current portion			4,200,019				4,114,516
Contingent consideration			-				6,900
Deferred revenue, net of current portion			907,160				1,027,770
Deferred tax liabilities, net			11,415				16,923
Total liabilities			58,000,547				36,623,070
Commitments and contingencies (Note 14)			-				-
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares
authorized; 2,045,714 shares issued and none outstanding			-				-
Common stock, $0.001 par value; 30,000,000 shares
authorized; 9,485,508 and 8,893,220 shares
issued and outstanding, respectively			9,487				8,894
Additional paid-in capital			103,103,653				102,151,381
Accumulated other comprehensive loss			(450,945	)			(334,899	)
Accumulated deficit			(89,082,226	)			(87,147,947	)
Total stockholders' equity			13,579,969				14,677,429
Total liabilities and stockholders' equity		$	71,580,516			$	51,300,499

WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

		THREE- MONTHS ENDED								YEARS ENDED
		DECEMBER 31,								DECEMBER 31,
		2024				2023				2024				2023
		(Unaudited)
REVENUES		$	37,703,266			$	28,256,165			$	142,571,749			$	106,026,360
COST OF REVENUES			32,950,340				24,225,036				123,567,344				90,380,833
GROSS PROFIT			4,752,926				4,031,129				19,004,405				15,645,527
OPERATING EXPENSES
Sales and marketing			560,056				637,951				2,262,266				2,191,838
General and administrative expenses			4,277,156				4,163,373				17,621,388				15,882,415
Impairment charge - definite-lived intangible assets											-				193,336
Depreciation and amortization			232,507				290,393				1,001,133				1,079,724
Total operating expenses			5,069,719				5,285,053				20,884,787				19,347,313
LOSS FROM OPERATIONS			(316,793	)			(1,253,924	)			(1,880,382	)			(3,701,786	)
OTHER (EXPENSE) INCOME
Interest income			53,554				51,557				214,587				90,679
Interest expense			(58,856	)			(54,743	)			(242,835	)			(239,526	)
Other (expense), net			6,898				(9,876	)			(29,408	)			(62,597	)
Total other (expense) income, net			1,596				(13,062	)			(57,656	)			(211,444	)
LOSS BEFORE INCOME TAX (BENEFIT) PROVISION			(315,197	)			(1,266,986	)			(1,938,038	)			(3,913,230	)
INCOME TAX (BENEFIT) PROVISION			41,209				64,821				(3,759	)			133,243
NET LOSS		$	(356,406	)		$	(1,331,807	)		$	(1,934,279	)		$	(4,046,473	)
EARNINGS PER SHARE, BASIC AND DILUTED		$	(0.04	)		$	(0.15	)		$	(0.21	)		$	(0.46	)
WEIGHTED-AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED			9,319,300				8,830,709				9,319,300				8,830,709

WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

		YEARS ENDED
		DECEMBER 31,
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES		(Unaudited)
Net loss		$	(1,934,279	)		$	(4,046,473	)
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Deferred income tax (benefit) expense			(13,473	)			107,157
Depreciation expense			1,016,925				1,088,546
Impairment charge - definite-lived intangible assets			-				193,336
Provision for credit losses			21,818				47,060
Amortization of intangibles			2,251,895				2,282,322
Share-based compensation expense			1,211,247				960,991
Lease expense			26,780				-
Change in fair value of contingent consideration			(6,900	)			-
(Gain) loss on disposal of fixed assets			(8,663	)			1,927
Changes in assets and liabilities:
Accounts receivable and unbilled receivables			(19,166,759	)			(4,686,874	)
Inventories			53,151				(143,668	)
Other current assets			(2,745,818	)			(3,171	)
Other assets			(175,798	)			33,574
Accounts payable and accrued expenses			18,544,582				3,837,059
Income tax payable			(43,946	)			(2,234	)
Deferred revenue and other liabilities			2,667,196				955,696
Other liabilities			(16,186	)			-
Net cash provided by operating activities			1,681,772				625,248
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment			(117,938	)			(208,202	)
Capitalized hardware and software development costs			-				(881,887	)
Proceeds from beneficial interest in sold receivables			259,125				469,104
Net cash provided by (used in) investing activities			141,187				(620,985	)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances on bank line of credit			5,600,000				6,493,284
Repayments of bank line of credit advances			(5,600,000	)			(6,493,284	)
Principal repayments under finance lease obligations			(636,455	)			(586,525	)
Withholding taxes paid on behalf of employees on net settled restricted stock awards			(258,382	)			(3,627	)
Net cash used in financing activities			(894,837	)			(590,152	)
Net effect of exchange rate on cash			(31,887	)			(23,815	)
NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH			896,235				(609,704	)
CASH AND RESTRICTED CASH, beginning of period			6,921,160				7,530,864
CASH AND RESTRICTED CASH, end of period		$	7,817,395			$	6,921,160
CASH AND RESTRICTED CASH CONSISTED OF THE FOLLOWING:
Cash		$	6,775,139			$	6,921,160
Restricted cash			1,042,256				-
		$	7,817,395			$	6,921,160

SOURCE: WidePoint Corporation

View the original press release on ACCESS Newswire

FAQ

What was WidePoint's (WYY) revenue growth in 2024?

WidePoint's revenue grew 35% to $142.6 million in 2024 compared to $106.0 million in 2023.

How much is WidePoint's (WYY) contract backlog as of December 2024?

WidePoint reported a contract backlog of $290 million as of December 31, 2024.

What is the significance of WidePoint's (WYY) FedRAMP Authorization Status?

FedRAMP Authorization Status enables WidePoint to unlock new opportunities previously beyond reach and positions the company for future growth against competitors.

How did WidePoint's (WYY) net loss improve in 2024?

Net loss improved to $1.9 million ($0.21 per share) in 2024 from $4.0 million ($0.46 per share) in 2023.

What are WidePoint's (WYY) key financial goals for 2025?

WidePoint aims to achieve positive earnings per share for the full year 2025, expand strategic partnerships, and successfully compete for the DHS CWMS 3.0 contract.