Widepoint (WYY) AI Stock Analysis

• Market Cap: $65.02M
• Dividend Yield: N/A
• Average Volume (3M): 64.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: 16.25%
• EPS Growth: 41.38%
• Country: US
• Employees: 240
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.06
• Shares Outstanding: 9,776,906
• 10 Day Avg. Volume: 96,919
• 30 Day Avg. Volume: 64,157
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.47
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 1.59
• Enterprise Value/Ebitda: 34.79
• 1Y Price Target: $9.00
• Price Target Upside: 35.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $6.50 ▼(-2.26% Downside)

Widepoint's overall stock score is primarily impacted by its financial performance, which shows significant challenges in profitability and cash flow management. While technical analysis indicates a positive trend, the valuation remains unattractive due to ongoing losses. The company's strategic initiatives and potential future opportunities provide some optimism, but immediate financial health concerns weigh heavily on the score.

Positive Factors

Strategic Partnerships

Expanding partnerships with major firms like CDW and BroadSat enhances WidePoint's service offerings and market reach, supporting long-term growth.

Federal Backlog

A robust federal backlog provides revenue visibility and stability, supporting future financial performance and strategic planning.

DHS CWMS 3.0 Contract

Securing the DHS CWMS 3.0 contract could significantly boost revenue and solidify WidePoint's position in government contracts, driving long-term growth.

Negative Factors

Profitability Challenges

Ongoing struggles with profitability and cash flow conversion can hinder WidePoint's ability to invest in growth and maintain financial health.

Net Loss

Continued net losses indicate operational inefficiencies and financial strain, potentially impacting future investment and growth capabilities.

Revenue Decline in Reselling Services

A decline in reselling services revenue suggests challenges in maintaining diverse income streams, which could affect overall revenue stability.

Widepoint Business Overview & Revenue Model

Company Description

Widepoint Corporation (WYY) is a technology company that specializes in providing secure mobile communications and identity management solutions. The company operates primarily in the telecommunications and information technology sectors, offering a range of services that include mobile device management, cybersecurity solutions, and managed services for government and enterprise clients. Widepoint's core products focus on enhancing the security and efficiency of mobile communications, ensuring compliance, and optimizing the management of mobile assets.

How the Company Makes Money

Widepoint generates revenue through a combination of service contracts, software licenses, and managed service agreements. The company's primary revenue streams include fees from its mobile device management solutions, cybersecurity services, and consulting services geared towards compliance and security management. Additionally, Widepoint has established partnerships with key government agencies and commercial enterprises, which contribute significantly to its earnings. The company's ability to secure long-term contracts with government clients is a crucial factor in its revenue stability and growth.

Widepoint Financial Statement Overview

Summary

Widepoint faces challenges across its financial statements, with particular issues in profitability and cash flow management. While revenue is growing, the company struggles to convert this into profit and positive cash flow. The balance sheet shows moderate leverage but negative returns on equity, indicating inefficiencies. Overall, Widepoint needs to focus on improving profitability and cash flow to enhance its financial health.

Income Statement

Widepoint's income statement shows a modest revenue growth rate of 1.29% TTM, indicating slight improvement. However, the company is struggling with profitability as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively low at 13.39%, suggesting limited pricing power or high cost of goods sold. Overall, the income statement reflects challenges in achieving profitability despite revenue growth.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.41, indicating manageable leverage. However, the return on equity is negative, reflecting ongoing losses and inefficiencies in generating returns for shareholders. The equity ratio is not provided, but the existing data suggests a need for improved financial stability and profitability.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth, down by over 3200% TTM, highlighting cash management issues. The operating cash flow to net income ratio is low, indicating challenges in converting earnings to cash. Despite a high free cash flow to net income ratio, the overall cash flow position is weak, suggesting potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	144.42M	142.57M	106.03M	94.10M	87.34M	180.34M
Gross Profit	19.34M	19.00M	15.65M	14.58M	16.37M	20.46M
EBITDA	882.12K	1.57M	-302.84K	-15.72M	2.91M	4.85M
Net Income	-2.12M	-1.93M	-4.05M	-23.59M	341.10K	10.32M
Balance Sheet
Total Assets	76.58M	71.58M	51.30M	49.01M	75.49M	101.32M
Cash, Cash Equivalents and Short-Term Investments	6.82M	6.78M	6.92M	7.53M	6.48M	16.00M
Total Debt	5.13M	4.94M	4.75M	5.34M	6.82M	6.51M
Total Liabilities	64.01M	58.00M	36.62M	31.26M	33.81M	60.77M
Stockholders Equity	12.56M	13.58M	14.68M	17.75M	41.68M	40.55M
Cash Flow
Free Cash Flow	4.04M	1.56M	-464.84K	2.66M	-3.98M	5.23M
Operating Cash Flow	4.26M	1.68M	625.25K	6.07M	-1.22M	6.39M
Investing Cash Flow	-220.82K	141.19K	-620.99K	-3.41M	-7.44M	-1.16M
Financing Cash Flow	-735.23K	-894.84K	-590.15K	-1.47M	-705.70K	3.73M

Widepoint Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 6.65 is above the 20-day moving average (MA) of 6.07, above the 50-day MA of 5.49, and above the 200-day MA of 4.04, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 61.85 is Neutral, neither overbought nor oversold. The STOCH value of 53.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WYY.

Widepoint Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMM	―	$56.98M	0.91	15.52%	―	41.74%	-75.97%
USIO	―	$38.95M	14.03	16.71%	―	4.44%	―
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WYY	―	$65.02M	―	-15.98%	―	16.25%	41.38%
CSPI	―	$131.55M	―	-3.33%	0.90%	-0.37%	-161.02%
NOTE	―	$58.90M	―	-45.39%	―	-15.39%	-50.65%

Widepoint Corporate Events

WidePoint’s Earnings Call: Strategic Growth Amid Challenges

WidePoint’s recent earnings call reflected a cautiously optimistic sentiment, highlighting significant future opportunities despite some current challenges. The company is strategically positioned for growth, particularly with the upcoming DHS CWMS 3.0 recompete and expanding partnerships. Although there were timing delays and a net loss reported, WidePoint’s strategic initiatives and growing federal backlog suggest potential for long-term growth.

WidePoint Corporation Reports Q2 2025 Financial Results

WidePoint Corporation, a Delaware-based company, specializes in Technology Management as a Service (TMaaS), providing secure and efficient management of mobile communications assets through its Intelligent Technology Management System (ITMS™). The company’s latest earnings report for the quarter ended June 30, 2025, highlights a slight increase in revenues to $37.88 million from $36.04 million in the same period last year, despite a net loss of $618,459. Key financial metrics reveal a gross profit of $5.12 million, up from $4.89 million, although operating expenses also rose, leading to a loss from operations of $708,326. The company continues to face challenges with a net loss of $1.34 million for the first half of 2025, compared to $1.15 million in 2024, primarily due to increased operating expenses and amortization costs. Looking ahead, WidePoint’s management remains focused on leveraging its TMaaS platform to drive growth and improve financial performance, while navigating market pressures and maintaining compliance with federal standards.