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Widepoint
(WYY)
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Rating:52Neutral
Price Target:
$7.00
▼(-26.00% Downside)
Action:Reiterated
Date:09/30/26
The score is driven primarily by mixed financial performance: steady revenue growth, improving losses, positive recent cash flow, and manageable leverage, but still inconsistent profitability. Technical signals are a major drag, with a strong downtrend and weak momentum across indicators. The latest earnings call adds upside optionality from large federal contract awards and improving margins/cash flow, tempered by protest-driven timing uncertainty and near-term cost pressure. Valuation is only mildly supportive due to a negative P/E and no stated dividend yield.
Positive Factors
Revenue Growth
Broad-based growth across carrier and managed services indicates continued customer demand for WidePoint’s mobility and telecom-management offerings. Expansion in recurring and service-oriented revenue can improve operating scale and strengthen the company’s foundation over the next several quarters.
Negative Factors
Inconsistent Profitability
WidePoint has not yet demonstrated durable bottom-line profitability, and its mid-teens gross margin has not consistently covered operating costs. Continued losses can constrain reinvestment, weaken shareholder returns, and make future performance more dependent on successful contract scaling.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Broad-based growth across carrier and managed services indicates continued customer demand for WidePoint’s mobility and telecom-management offerings. Expansion in recurring and service-oriented revenue can improve operating scale and strengthen the company’s foundation over the next several quarters.
Read all positive factors
Widepoint (WYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$70.69M
Dividend YieldN/A
Average Volume (3M)342.19K
Price to Earnings (P/E)―
Beta (1Y)1.72
Revenue Growth8.73%
EPS Growth41.00%
CountryUS
Employees245
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.13
Shares Outstanding9,998,255
10 Day Avg. Volume150,101
30 Day Avg. Volume342,192
Financial Highlights & Ratios
PEG Ratio-0.58
Price to Book (P/B)4.50
Price to Sales (P/S)0.34
P/FCF Ratio9.54
Enterprise Value/Market Cap2.43
Enterprise Value/Revenue1.09
Enterprise Value/Gross Profit7.60
Enterprise Value/Ebitda98.46
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.08
Revenue Forecast (FY)$162.90M
Widepoint Business Overview & Revenue Model
Company Description
WidePoint Corporation provides technology management as a service (TMaaS) to the government and business enterprises in the United States and Europe. It offers TMaaS solutions through a secure federal government certified proprietary portal and th...
How the Company Makes Money
WidePoint makes money primarily by delivering contracted services to customers—especially government agencies and large enterprises—across mobility/telecom management and security-related programs. Key revenue streams typically include: (1) recurr...
Widepoint Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Positive
The call highlighted several transformational wins (CWMS 3.0 single award, SEWP VI prime award, ATV expansion) and clear operating improvements (revenue growth YTD, improved gross margin ex-carrier services, positive free cash flow and return to net income). These positives are tempered by near-term execution and timing risk from the CWMS protest, a Q2 adjusted EBITDA decline, declines in certain reselling/billable fees, and expected higher compliance and investment-related costs in H2 2026. Management expects the major revenue and margin upside to materialize as contracts ramp (notably in 2027), and they reiterated confidence in awards and pipeline.Positive Updates
CWMS 3.0 Single-Award Win (Transformational Contract)
Named single awardee of the 10-year $3.1 billion DHS CWMS 3.0 contract (average ~ $300M/year, ~2x prior CWMS run rate). Management expects ~80% carrier / ~20% managed services split and anticipates the incremental ~ $150M/year in solutions/managed services could support an 8%–10% net profit margin, materially strengthening future earnings once ramped.
Negative Updates
CWMS 3.0 Protest and Timing Uncertainty
An unsuccessful-bidder protest is pending at GAO with an outside decision date of Oct 7, 2026. Ramp and new task orders for CWMS 3.0 depend on protest resolution; management remains confident but execution timing and initial task order cadence remain uncertain.
Read all updates
Q2-2026 Updates
Positive
Negative
CWMS 3.0 Single-Award Win (Transformational Contract)
Named single awardee of the 10-year $3.1 billion DHS CWMS 3.0 contract (average ~ $300M/year, ~2x prior CWMS run rate). Management expects ~80% carrier / ~20% managed services split and anticipates the incremental ~ $150M/year in solutions/managed services could support an 8%–10% net profit margin, materially strengthening future earnings once ramped.
Read all positive updates
Company Guidance
WidePoint’s guidance centered on CWMS 3.0 and near‑term ramp dynamics: CWMS 3.0 is a $3.1B, 10‑year ceiling (≈$300M/year, ~2x prior run rate) with an expected ~80% carrier / ~20% managed‑services split and ≈$150M of incremental annual opportunity concentrated in managed services (historical net margins for that work ~8–10%), GAO protest decision is due within 100 days (outside date 10/07/2026) but continuity is preserved by a CWMS 2.5 bridge award ($113M ceiling; 6‑month PO: 3‑month base + three 1‑month options), management expects no material Q3/Q4 impact and possible new task orders in Q4 if the protest is resolved by Oct, and a meaningful program ramp is expected in 2027; ATV remains margin‑accretive (~$45M over 5 years, ≈$9M/year at ~70% gross margin) covering 2.0–2.5M federal devices with potential state/local expansion (possibly doubling device counts); DaaS pipeline (including LA28) targets very large device footprints with ~70% margins; Q2 results/guidance metrics called out include revenue $38.0M (6‑month $78.6M), carrier services $24.1M Q2 ($49.8M YTD), managed services $9.7M Q2 ($19.0M YTD), gross profit $5.8M (15% of revenue) Q2 with gross profit ex‑carrier 36% Q2, adjusted EBITDA $135K Q2 ($1.4M YTD), free cash flow $627K Q2 ($1.3M YTD), net income $66K Q2 (EPS $0.01), federal funded/unfunded backlog ≈$219M (6/30/26), cash $10M and a $4M revolver; they also warned of higher audit/compliance, health‑insurance and labor costs, one‑time CWMS incentive payments, and near‑term capex for post‑quantum cryptography investments intended to improve margins longer term.Widepoint Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 157.02M | 150.55M | 142.57M | 106.03M | 94.10M | 87.34M |
| Gross Profit | 22.56M | 21.01M | 19.00M | 15.65M | 14.58M | 16.37M |
| EBITDA | 1.74M | 642.41K | 1.57M | -302.84K | -15.71M | 2.91M |
| Net Income | -1.27M | -2.75M | -1.93M | -4.05M | -23.59M | 341.10K |
Balance Sheet | ||||||
| Total Assets | 88.93M | 79.81M | 71.58M | 51.30M | 51.20M | 80.58M |
| Cash, Cash Equivalents and Short-Term Investments | 10.02M | 9.82M | 6.78M | 6.92M | 7.53M | 6.48M |
| Total Debt | 4.32M | 4.68M | 4.94M | 4.75M | 5.34M | 6.82M |
| Total Liabilities | 77.25M | 68.28M | 58.00M | 36.62M | 33.45M | 38.91M |
| Stockholders Equity | 11.68M | 11.53M | 13.58M | 14.68M | 17.75M | 41.68M |
Cash Flow | ||||||
| Free Cash Flow | 4.50M | 5.44M | 1.56M | 417.05K | 5.82M | -1.48M |
| Operating Cash Flow | 4.73M | 5.71M | 1.68M | 625.25K | 6.07M | -1.22M |
| Investing Cash Flow | -181.08K | -265.47K | 141.19K | -620.99K | -3.41M | -7.44M |
| Financing Cash Flow | -981.21K | -719.91K | -894.84K | -590.15K | -1.47M | -705.70K |
Widepoint Technical Analysis
Neutral
9.46
Price Trends
8.88
Negative
10.71
Negative
8.56
Negative
Market Momentum
-0.67
Negative
44.48
Neutral
86.26
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WYY, the sentiment is Neutral. The current price of 9.46 is above the 20-day moving average (MA) of 6.91, above the 50-day MA of 8.88, and above the 200-day MA of 8.56, indicating a neutral trend. The MACD of -0.67 indicates Negative momentum. The RSI at 44.48 is Neutral, neither overbought nor oversold. The STOCH value of 86.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WYY.
Widepoint Risk Analysis
Widepoint disclosed 39 risk factors in its most recent earnings report. Widepoint reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Widepoint Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $91.19M | -57.76 | -8.20% | ― | 10.40% | -152.86% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $70.69M | -52.96 | -10.74% | ― | 8.73% | 41.00% | |
49 Neutral | $10.04M | >-0.01 | -160.83% | 1.05% | 43.54% | -204.04% | |
48 Neutral | $74.70M | -101.93 | -1.53% | 1.62% | -0.68% | 57.82% | |
39 Underperform | $642.29K | >-0.01 | -293.32% | ― | -23.20% | -73.44% |
* Technology Sector Average
WYY
Widepoint
7.07
-0.27
-3.68%
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CSP
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VEEA
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GMM
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1.03
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Widepoint Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
WidePoint Announces CFO Resignation and Transition Plan
Neutral
Oct 16, 2026
On October 9, 2026, WidePoint Corporation announced that Chief Financial Officer Robert George tendered his resignation, effective upon the filing of the company’s Form 10-Q for the quarter ended September 30, 2026. The company stated that h...
Executive/Board Changes
WidePoint Announces Planned Resignation of Chief Revenue Officer
Neutral
Aug 13, 2026
WidePoint Corporation, a provider of technology management and telecom lifecycle services, operates in the enterprise and government IT solutions market, focusing on secure, efficient communications and mobility management for its clients.On Augus...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.