Revenue Growth
Total revenue of $40.6M for Q1 2026, up $7.1M or 21% year-over-year versus $33.5M in Q1 2025.
Widepoint
· WYY
May 14th, 2026
Summary
- Earnings Call Date:
- 2026-05-14
- Change Since:
- +96.21%
- Next Earnings Date:
- 2026-08-17
Earnings Call Sentiment
PositiveThe call communicated strong operational and financial momentum: revenue grew 21% YoY, adjusted EBITDA and free cash flow improved materially and the company reported its first net income quarter since 2021. Management highlighted meaningful near-term catalysts (CWMS 3.0 and a major carrier SaaS implementation) and a healthy federal backlog ($218M). However, several material uncertainties remain — most notably the timing and recognition of the CWMS 3.0 award, DHS funding impacts on billable services, margin pressure from revenue-mix shifts, and some ambiguity on the carrier ramp timing and revenue recognition. On balance, the positive financial trends, backlog, cash position and visible catalysts outweigh the execution and timing risks discussed on the call.
Company Guidance
WidePoint said it is withholding formal full‑year guidance until two near‑term catalysts — the CWMS 3.0 award and the carrier SaaS implementation — are resolved, but provided directional metrics: Q1 revenue $40.6M, adjusted EBITDA $752K, free cash flow $674K, net income $77K (EPS $0.01) on a 21% YoY revenue increase ($7.1M); sequentially adjusted EBITDA rose 64% and free cash flow 101% from Q4; gross profit was $5.6M (14% of revenue) with non‑carrier gross margin ~34% (vs. 37% prior); carrier services $25.8M, managed services $9.3M, reselling/other $4.2M and billable services $1.3M; federal backlog $218M, unrestricted cash $10.9M, $4M revolver capacity and CWMS 2.0 has ~$100M ceiling remaining. Management expects the carrier SaaS contract (announced at roughly $40–45M over five years, ~ $10M/yr, with ~ $1.9–2M of implementation enhancements) to begin recognizing revenue in H2 2026 with ITMS managing roughly one‑third of devices by year‑end, believes it is well positioned to win CWMS 3.0 (award could come any time, possibly before June 24, 2026), anticipates double‑digit percentage growth versus 2025 and to remain positive on adjusted EBITDA and free cash flow through 2026, and sees DaaS and SaaS ramps as key drivers of future margin expansion.
Profitability Improvements — Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA rose to $752K (from $92K a year ago) and improved 64% sequentially from Q4; free cash flow increased to $674K (from $65K a year ago) and improved 101% sequentially.
Net Income Positive
Reported net income of $77K (EPS $0.01) in Q1 2026 vs a net loss of $724K (loss $0.08 per share) in the same period last year — first net income positive quarter since 2021.
Strong Federal Backlog and Cash Position
Federal contract backlog totaled $218M as of March 31, 2026; unrestricted cash balance of $10.9M and an available revolving facility (~$4M renewal in process).
Carrier SaaS Implementation Progress
Implementation and functionality testing progressing on the major carrier SaaS contract; management expects to begin recognizing revenue in H2 2026 and expects meaningful device ramp (management cited expectation to manage ~1/3 of devices by end of 2026, with some public comments suggesting full ramp by year-end).
CWMS 3.0 Position and Contract Extensions
Management states WidePoint is well positioned for the CWMS 3.0 award and noted the CWMS 2.0 ordering period was extended to June 24, 2026 with ~$100M ceiling remaining under 2.0 to fund interim work if needed.
Commercial Pipeline and DaaS Opportunity
Growing Device-as-a-Service and IT-as-a-Service pipeline with CDW partnership; secured a managed services engagement with a national beverage bottler granting WidePoint exclusive procurement/inventory access; management highlights potential Fortune 100 opportunities that could materially impact growth.
MobileAnchor Traction
MobileAnchor deployments underway with FAA, DOJ, HUD OIG and discussions ongoing with DOE and Treasury, indicating cross-agency adoption momentum.
Operator
Good afternoon. Welcome to WidePoint's First Quarter 2026 Earnings Conference Call. My name is Holly, and I will be your operator for today's call. Joining us for today's presentation are WidePoint's President and CEO, Jin Kang; Chief Revenue Officer, Jason Holloway; and Chief Financial Officer, Robert George. Following their remarks, we will open up the call for questions from WidePoint's publishing analysts and major investors. If your questions were not taken today and you would like additional information, please contact WidePoint's Investor Relations team at wyy@gateway-grp.com. Before we begin the call, I would like to provide WidePoint's safe harbor statement that includes cautions regarding forward-looking statements made during this call. The matters discussed in this conference call may include forward-looking statements regarding future events and the future performance of WidePoint Corporation that involve risks and uncertainties that could cause actual results to differ materially from those anticipated.
These risks and uncertainties are described in the company's Form 10-Q filed with the Securities and Exchange Commission. Finally, I would like to remind everyone that this call will be made available for replay via a link in the Investor Relations section of the company's website at www.widepoint.com. Now I would like to turn the call over to WidePoint's President and CEO, Mr. Jin Kang. Sir, please proceed.
Jin Kang
Thank you, operator, and good afternoon, everyone. Thank you for joining us today to review our financial and operational results for the first quarter end...
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