WidePoint (NYSEAMERICAN:WYY) Issues Quarterly Earnings Results

WidePoint (NYSEAMERICAN:WYY) posted its earnings results on Thursday. The technology company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.03), FiscalAI reports. The company had revenue of $38.00 million during the quarter, compared to analysts’ expectations of $41.83 million. WidePoint had a negative net margin of 1.24% and a negative return on equity of 16.24%.

Here are the key takeaways from WidePoint’s conference call:

• CWMS 3.0 remains the key growth catalyst: WidePoint expects to retain the 10-year, $3.1 billion DHS contract, pending a GAO protest decision due by October 7, 2026. A $113 million CWMS 2.5 bridge contract is intended to preserve business continuity during the protest period.
• Management estimates CWMS 3.0 could generate approximately $300 million in annual revenue at full scale, including about $150 million of incremental, primarily solutions-based opportunity with an expected 8%-10% net profit margin. The company anticipates a meaningful ramp beginning in 2027 and reaching contemplated scale by the end of 2028.
• Q2 revenue rose to $38.0 million from $37.3 million, while adjusted EBITDA increased to $635,000 from $183,000 and net income improved to $66,000 from a $618,000 loss. Six-month revenue, adjusted EBITDA, and free cash flow also improved year over year, although management expects higher compliance, labor, insurance, and technology investment costs in the second half.
• The ATV telecommunications-carrier SaaS implementation has expanded, with go-live still targeted by year-end and a three-to-six-month deployment ramp thereafter. The existing engagement covers approximately 2 million to 2.5 million federal devices and could potentially expand into state and local government and commercial customers; management cites an estimated 70% gross margin profile.
• WidePoint was named a prime awardee on the 10-year, $60 billion SEWP VI vehicle, with ordering expected to begin November 1 and activity potentially ramping in early 2027. The company also reported progress in its DaaS and MobileAnchor pipelines, but several opportunities—including LA28 and potential additional carrier engagements—remain prospective rather than contracted.

WidePoint Stock Up 1.2%

WidePoint stock traded up $0.14 during midday trading on Thursday, reaching $11.63. The company’s stock had a trading volume of 86,847 shares, compared to its average volume of 160,179. The stock’s 50-day simple moving average is $12.76 and its 200-day simple moving average is $8.57. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.04 and a quick ratio of 1.04. WidePoint has a 52-week low of $3.25 and a 52-week high of $24.30. The stock has a market capitalization of $115.02 million, a P/E ratio of -58.15 and a beta of 1.77.

Analyst Upgrades and Downgrades

Separately, Zacks Research raised shares of WidePoint from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $8.67.

Insider Transactions at WidePoint

In other news, COO Todd Dzyak sold 5,000 shares of the company’s stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $12.75, for a total transaction of $63,750.00. Following the transaction, the chief operating officer owned 110,436 shares in the company, valued at $1,408,059. This represents a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director John J. Fitzgerald sold 15,000 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $15.63, for a total transaction of $234,450.00. Following the completion of the transaction, the director directly owned 90,414 shares of the company’s stock, valued at $1,413,170.82. The trade was a 14.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 82,745 shares of company stock worth $1,355,144. Insiders own 16.10% of the company’s stock.

Institutional Investors Weigh In On WidePoint

A number of large investors have recently made changes to their positions in WYY. XTX Topco Ltd purchased a new position in WidePoint in the 2nd quarter worth $58,000. NewEdge Advisors LLC purchased a new position in shares of WidePoint in the second quarter worth about $74,000. Jane Street Group LLC purchased a new position in shares of WidePoint in the second quarter worth about $87,000. Bridgeway Capital Management LLC lifted its holdings in shares of WidePoint by 87.6% during the second quarter. Bridgeway Capital Management LLC now owns 60,527 shares of the technology company’s stock worth $207,000 after purchasing an additional 28,269 shares during the period. Finally, Vanguard Group Inc. lifted its holdings in shares of WidePoint by 2.4% during the third quarter. Vanguard Group Inc. now owns 376,513 shares of the technology company’s stock worth $1,862,000 after purchasing an additional 8,850 shares during the period. 22.60% of the stock is owned by hedge funds and other institutional investors.

About WidePoint

WidePoint Corporation (NYSE American: WYY) is a provider of secure mobility management and identity management solutions. Headquartered in Reston, Virginia, the company delivers a range of managed services designed to help organizations control and secure their telecommunications and IT environments. Since its inception in the late 1990s, WidePoint has focused on helping businesses and government agencies optimize their mobile device portfolios and ensure regulatory compliance.

WidePoint’s core offerings include mobile device management, telecom expense management, and unified endpoint security.