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Widepoint
(WYY)
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Rating:56Neutral
Price Target:
$11.00
▲(16.28% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by improving fundamentals and solid recent cash generation, balanced against still-uneven profitability. Earnings-call takeaways are a net positive due to major contract wins and backlog, but are tempered by protest-related timing risk and higher near-term costs. Technical indicators remain a headwind with bearish momentum and the stock trading below key moving averages, while valuation is limited by negative earnings and no stated dividend support.
Positive Factors
Major Federal Contract Win
The CWMS 3.0 award could substantially enlarge WidePoint’s government-services platform and recurring revenue opportunity. Its larger scale and higher-margin managed-services component may improve earnings quality, deepen federal customer ties, and strengthen competitive positioning once implementation progresses.
Negative Factors
CWMS Protest Creates Timing Risk
The protest introduces uncertainty around when WidePoint can begin capturing the full benefits of its largest contract award. Even with the bridge contract preserving continuity, delayed task orders or implementation could defer revenue, margin improvement, and operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Major Federal Contract Win
The CWMS 3.0 award could substantially enlarge WidePoint’s government-services platform and recurring revenue opportunity. Its larger scale and higher-margin managed-services component may improve earnings quality, deepen federal customer ties, and strengthen competitive positioning once implementation progresses.
Read all positive factors
Widepoint (WYY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$109.18M
Dividend YieldN/A
Average Volume (3M)131.59K
Price to Earnings (P/E)―
Beta (1Y)1.64
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. Volume93,765
30 Day Avg. Volume131,594
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.15
Revenue Forecast (FY)$171.13M
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 providing telecom lifecycle management (TLM) and managed services under customer contracts, earning service revenue for operating and administering telecom programs on behalf of clients. Key revenue streams gener...
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 | 1.32M | 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
Positive
9.46
Price Trends
11.43
Negative
10.67
Positive
8.17
Positive
Market Momentum
-0.07
Negative
53.70
Neutral
85.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WYY, the sentiment is Positive. The current price of 9.46 is below the 20-day moving average (MA) of 10.08, below the 50-day MA of 11.43, and above the 200-day MA of 8.17, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 53.70 is Neutral, neither overbought nor oversold. The STOCH value of 85.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $78.36M | -49.46 | -8.20% | ― | 10.40% | -152.86% | |
56 Neutral | $109.18M | -81.20 | -10.74% | ― | 8.73% | 41.00% | |
53 Neutral | $9.36M | -0.02 | -160.83% | 1.05% | 43.54% | -204.04% | |
48 Neutral | $81.55M | -109.35 | -1.53% | 1.51% | -0.68% | 57.82% | |
41 Neutral | $1.50M | >-0.01 | -293.32% | ― | -23.20% | -73.44% |
* Technology Sector Average
WYY
Widepoint
10.84
5.54
104.53%
USIO
Usio
2.74
1.25
83.89%
CSPI
CSP
7.95
-2.79
-25.99%
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FiscalNote Holdings
0.06
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-98.82%
VEEA
Veea
1.73
-9.16
-84.11%
GMM
Global Mofy Metaverse Ltd.
2.05
-108.96
-98.16%
Widepoint Corporate Events
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...
Business Operations and StrategyLegal Proceedings
WidePoint Faces Protest Over Major DHS Wireless Contract
Negative
Jun 30, 2026
On June 24, 2026, WidePoint was selected as the single awardee for the Department of Homeland Security’s Cellular Wireless Managed Services 3.0 contract, a 10-year IDIQ agreement with a ceiling value of about $3.1 billion. On June 29, 2026, ...
Executive/Board ChangesShareholder Meetings
WidePoint Shareholders Reaffirm Board Leadership and Auditor
Positive
Jun 22, 2026
On June 17, 2026, WidePoint Corporation stockholders held their annual meeting, at which they elected Phil Garfinkle as a Class II director to serve a three-year term ending with the 2029 annual meeting. The vote reflected significant support for ...
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.