Fourth Quarter 2025 and Recent Operational Highlights:
34th consecutive quarter of positive Adjusted EBITDA
9th consecutive quarter of positive Free Cash Flow
Awarded $1.3 million managed services contract with a leading bottler in the beverage industry
Awarded $1.25 million task order under the Navy Spiral 4 Contract for the U.S. Army
Secured estimated $40 million to $45 million SaaS contract to deliver FedRAMP-authorized ITMS platform for a major telecommunications carrier
Awarded new CWMS 2.0 task order by U.S. Customs & Border Protection valued up to $27.5 million
Fourth Quarter 2025 Financial Highlights:
Revenues were $42.3 million, an increase of $4.6 million from the same quarter last year
Gross margin was 14%, and gross margin excluding carrier services revenue was 38%
Net loss was $849,000 or a loss of $(0.09) per share
Adjusted EBITDA1, a non-GAAP financial measure, was $460,000, a 34% increase from Q3 2025
Free cash flow1, a non-GAAP financial measure, was $335,000, a 3% increase from Q3 2025
As of December 31, 2025, unrestricted cash was $9.8 million with no bank debt
As of December 31, 2025, contract backlog was approximately $223 million
Full Year 2025 Financial Highlights:
Revenues were $150.5 million, an increase of $8.0 million from the same period last year
Gross margin was 14%, and gross margin excluding carrier services revenue was 36%
Net loss was $2.8 million or a loss of $(0.28) per share.
Adjusted EBITDA1, a non-GAAP financial measure, was $1.1 million
Free cash flow1, a non-GAAP financial measure, was $814,000
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 CommentaryWidePoint CEO Jin Kang commented: "The deliberate steps we took to stabilize our cost structure while maintaining headcount and ongoing investments back into the business resulted in meaningful improvements across our second half results. Adjusted EBITDA and Free Cash Flow results grew over 190% and 325%, respectively, from the first half to the second half of 2025. We navigated the headwinds experienced early in the year efficiently, and with our strong pipeline, we believe WidePoint is well-positioned to deliver meaningful growth over the coming years.
"The pending CWMS 3.0 award remains top of mind for WidePoint and many of our stakeholders. The late 2025 government shutdown, the current partial DHS shutdown, funding disruptions, and recent DHS leadership changes have all contributed to delays in the award timeline. While these headwinds made inevitable delays, WidePoint continues to operate ‘business-as-usual' while maintaining the same competitive advantages that other firms simply cannot match. DHS has submitted an extension period that provides flexibility through May 2026 under the CWMS 2.0 contract. We currently have an extension through April 24, 2026, with an option for an additional 1-month extension. With a limited contract ceiling remaining under this extension, we expect to receive an update from DHS in the coming months. Whether this update comes in the form of an official 3.0 award announcement or an additional extension under the 2.0, we believe we are well-positioned under either outcome. We remain confident in our competitive standing for the CWMS 3.0 recompete and firmly believe WidePoint is the most qualified partner for DHS.
"Beyond CWMS 3.0, advancing our margin-accretive contract pipeline remains a key focus for future quarters. We provided a glimpse into this pipeline last November with the announcement of our SaaS carrier contract with one of the ‘big three' mobile carriers in the U.S. Implementation under this agreement is progressing as planned, and we remain on schedule to begin recognizing revenue in the second half of 2026, with a ramp-up period into 2027. Additionally, Devices as a Service (DaaS) continues to represent a compelling growth avenue as we engage with large enterprises, including Fortune 100 companies. We remain optimistic about momentum across many pending opportunities and are eager to showcase what our pipeline truly consists of.
"We have also begun proactively engaging with select existing clients to transition them toward an ‘as-a-service' delivery model. Rather than waiting for new SaaS and DaaS awards, we believe it is important to actively transition these customers to the ‘as a service model' to enhance revenue visibility. While closing opportunities with large enterprises can take time, we remain flexible in meeting client requirements while continuing to execute on our strategy. WidePoint's current scope of work provides a strong foundation for margin expansion. As we await decisions on pending opportunities that hold the potential to meaningfully enhance growth, we remain focused on delivering long-term growth and value for shareholders."
Fourth Quarter 2025 Financial Summary
THREE MONTHS ENDED
DECEMBER 31,
(In millions except per share amounts)
2025
2024
(Unaudited)
REVENUE
$
42.3
$
37.7
GROSS PROFIT
5.8
4.8
GROSS PROFIT %
14
%
13
%
OPERATING EXPENSES
6.6
5.1
LOSS FROM OPERATIONS
(0.8
)
(0.3
)
LOSS PER SHARE, BASIC AND DILUTED
$
(0.09
)
$
(0.04
)
EBITDA
0.2
0.4
ADJUSTED EBITDA
0.5
0.6
FREE CASH FLOW
0.3
0.5
Full Year 2025 Financial Summary
YEARS ENDED
DECEMBER 31,
(In millions except per share amounts)
2025
2024
(Unaudited)
REVENUE
$
150.5
$
142.6
GROSS PROFIT
21.0
19.0
GROSS PROFIT %
14
%
13
%
OPERATING EXPENSES
23.8
20.9
LOSS FROM OPERATIONS
(2.8
)
(1.9
)
LOSS PER SHARE, BASIC AND DILUTED
$
(0.28
)
$
(0.21
)
EBITDA
0.2
1.4
ADJUSTED EBITDA
1.1
2.6
FREE CASH FLOW
0.8
2.5
Conference Call
WidePoint's management will host the conference call today (March 25, 2026) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.
U.S. dial-in number: 888-506-0062International number: 973-528-0011Access Code: 619990
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 8, 2026.
Toll-free replay number: 877-481-4010International replay number: 919-882-2331Replay ID: 53688
About WidePointWidePoint Corporation (NYSE: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 & Access Management (IAM), Mobility Managed Services (MMS), Telecom Management, Information Technology as a Service, Cloud Security, and Analytics & Billing as a Service (ABaaS). To learn more, visit https://www.widepoint.com.
Non-GAAP Financial MeasuresWidePoint 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 cash flow is provided below:
THREE MONTHS ENDED
THE YEARS ENDED
DECEMBER 31,
DECEMBER 31,
2025
2024
2025
2024
(Unaudited)
(Unaudited)
NET LOSS
$
(849,400
)
$
(356,400
)
$
(2,751,100
)
$
(1,934,300
)
Adjustments to reconcile net income to EBITDA:
Depreciation and amortization
1,007,800
706,800
3,093,400
3,268,800
Income tax provision (benefit)
109,700
41,200
97,700
(3,800
)
Interest income
(106,900
)
(53,600
)
(333,100
)
(214,600
)
Interest expense
47,300
58,800
202,400
242,800
EBITDA
$
208,500
$
396,800
$
309,300
$
1,358,900
Other adjustments to reconcile net (loss) income to Adjusted EBITDA:
Loss on factoring of receivables
-
8,948
-
8,948
Stock-based compensation expense
251,200
224,900
770,200
1,211,200
Adjusted EBITDA
$
459,700
$
630,648
$
1,079,500
$
2,579,048
Capital expenditures
(124,551
)
(37,236
)
(265,469
)
(117,938
)
Free cash flow
$
335,149
$
593,412
$
814,031
$
2,461,110
WidePoint uses EBITDA, Adjusted EBITDA and Free cashflow as supplemental non-GAAP measures 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 ...
