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1. Company Snapshot

1.a. Company Description

WidePoint Corporation provides technology management as a service (TMaaS) to the government and business enterprises in North America and Europe.It offers TMaaS solutions through a federal government certified proprietary portal to manage, analyze, and protect communications assets, as well as deploy identity management solutions that provide secured virtual and physical access to restricted environments.The company provides telecom lifecycle management, mobile and identity management, and digital billing and analytics solutions.


It also offers information technology as a service, including cybersecurity, cloud, network operation, and professional services.WidePoint Corporation was founded in 1991 and is headquartered in Fairfax, Virginia.

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1.b. Last Insights on WYY

WidePoint Corporation's recent performance was driven by strong momentum, with the company exceeding its full-year 2024 revenue guidance and meeting or surpassing its adjusted EBITDA and free cash flow guidance. The company's strategic positioning in high-trust federal contracts, such as DHS CWMS 3.0 and NASA SEWP VI, offers significant growth opportunities. WidePoint's revenue increased by 35% to $142.6 million in 2024, with positive free cash flow for five consecutive quarters. The company's recent earnings call transcript highlighted its improving cash flows and deep federal contract visibility. Additionally, WidePoint's inclusion in the Zacks Computer-Services industry, which is poised to benefit from digital transformation, is a positive driver.

1.c. Company Highlights

2. WidePoint's Q3 Earnings: A Step Closer to Sustainable Growth

WidePoint reported revenues of $36.1 million for the third quarter, a 4% increase from the same period last year. The company's adjusted EBITDA was $344,000, and free cash flow was $324,000, representing an 88,260% sequential increase. The net loss for the quarter was $559,000, or a loss of $0.06 per share, slightly worse than the estimated loss of $0.05 per share. Gross profit for the quarter was $5.3 million or 15% of revenues, up from $4.7 million or 14% of revenues in the same period last year.

Publication Date: Nov -23

📋 Highlights

Contract Wins and Pipeline

The company recently secured a multiyear software as a service contract to deliver its FedRAMP authorized ITMS platform to one of the big three mobile telecommunication carriers in the United States, estimated to generate $40 to $45 million in margin accretive SaaS revenue over the initial three-year term. As Jin Kang, President and CEO, noted, this progress is a direct result of the strategic foundation built over the last few quarters, positioning WidePoint for sustainable growth. The company is also optimistic about its chances of securing the DHS CWMS 3.0 contract, citing its proven track record and required certifications.

Valuation and Growth Prospects

With a P/S Ratio of 0.43, WidePoint's valuation appears reasonable considering its growth prospects. Analysts estimate next year's revenue growth at 15.4%, which is expected to drive the company's upward trend in bottom-line adjusted EBITDA and free cash flow. The company's EV/EBITDA ratio is 68.72, indicating that the stock may be priced for perfection. However, with a Free Cash Flow Yield of 6.49%, the stock offers an attractive return for investors willing to look beyond the current losses.

Cash Position and Debt

WidePoint ended the quarter with $12.1 million in cash and no bank debt, providing a solid foundation for future growth. The company's ability to generate positive free cash flow for the eighth consecutive quarter is a testament to its improving financial health.

3. NewsRoom

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WidePoint to Participate in the iAccess Alpha Virtual Best Ideas Winter Investment Conference 2025 on December 9-10, 2025

Dec -01

Source: accessnewswire.com

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WidePoint Corporation (WYY) Q3 2025 Earnings Call Transcript

Nov -14

Source: seekingalpha.com

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WidePoint Reports Third Quarter 2025 Financial Results

Nov -13

Source: accessnewswire.com

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WidePoint Awarded Task Order Under the Navy Spiral 4 Contract Vehicle for the U.S. Army Valued at More than $1.25 Million

Nov -10

Source: prnewswire.com

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WidePoint Secures an Estimated $40 Million to $45 Million SaaS Contract to Deliver FedRAMP-Authorized ITMS™ Command Center Platform for Leading Global Telecom Carrier

Nov -04

Source: globenewswire.com

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WidePoint Awarded Task Order Under the Navy Spiral 4 Contract Vehicle for the U.S. Army Valued at More than $1.25 Million

Nov -03

Source: accessnewswire.com

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WidePoint Sets Third Quarter 2025 Conference Call for Thursday, November 13, 2025, at 4:30 p.m. ET

Oct -30

Source: accessnewswire.com

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WidePoint Secures an Estimated $40 Million to $45 Million SaaS Contract to Deliver FedRAMP-Authorized ITMS(TM) Command Center Platform for Leading Global Telecom Carrier

Oct -28

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.13%)

6. Segments

Carrier Services

Expected Growth: 12%

WidePoint Corporation's Carrier Services segment growth is driven by increasing demand for secure and managed mobility services, expansion into new markets, and strategic partnerships. Additionally, the growing need for IoT and 5G network infrastructure, as well as the increasing adoption of cloud-based services, contribute to the 12% growth rate.

Managed Service Fess and Billable Fees

Expected Growth: 13%

WidePoint Corporation's 13% growth in Managed Service Fees and Billable Fees is driven by increasing demand for cybersecurity and IT consulting services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on cloud-based solutions and digital transformation initiatives has contributed to the growth, as clients seek to optimize their IT infrastructure and reduce costs.

Reselling and Other Services

Expected Growth: 11%

WidePoint Corporation's Reselling and Other Services segment growth of 11% is driven by increasing demand for IT consulting and managed services, expansion into new markets, and strategic partnerships. Additionally, the company's focus on cloud-based solutions, cybersecurity, and digital transformation services has contributed to the growth. Furthermore, the segment's ability to provide customized solutions to government and commercial clients has also fueled the growth.

7. Detailed Products

Identity Management

WidePoint's Identity Management solutions provide secure and efficient identity verification, authentication, and authorization services to government agencies and commercial organizations.

Telecom Expense Management

WidePoint's Telecom Expense Management solutions help organizations manage their telecom expenses, optimize their telecom infrastructure, and improve their overall telecom operations.

Cybersecurity Services

WidePoint's Cybersecurity Services provide comprehensive cybersecurity solutions, including risk assessments, penetration testing, and incident response, to protect organizations from cyber threats.

Consulting Services

WidePoint's Consulting Services provide strategic guidance and support to organizations in the areas of IT, cybersecurity, and telecom management.

IT Services

WidePoint's IT Services provide a range of IT solutions, including help desk support, network management, and cloud services, to support organizations' IT needs.

8. WidePoint Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

WidePoint Corporation's services are specialized, but there are some substitutes available in the market, which may pose a moderate threat to the company.

Bargaining Power Of Customers

WidePoint Corporation's customers have limited bargaining power due to the company's specialized services and lack of alternative options.

Bargaining Power Of Suppliers

WidePoint Corporation's suppliers have some bargaining power due to the company's dependence on them for certain components and services.

Threat Of New Entrants

The threat of new entrants is high in the industry, as the barriers to entry are relatively low, and new companies can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry is high in the industry, as there are many competitors, and the market is highly competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 24.46%
Debt Cost 4.87%
Equity Weight 75.54%
Equity Cost 10.89%
WACC 9.42%
Leverage 32.38%

11. Quality Control: WidePoint Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
IBEX

A-Score: 5.0/10

Value: 5.0

Growth: 5.7

Quality: 6.1

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Usio

A-Score: 4.0/10

Value: 6.2

Growth: 4.7

Quality: 5.8

Yield: 0.0

Momentum: 5.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
WidePoint

A-Score: 3.8/10

Value: 5.1

Growth: 4.6

Quality: 4.4

Yield: 0.0

Momentum: 7.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Conduent

A-Score: 3.6/10

Value: 8.4

Growth: 3.7

Quality: 4.2

Yield: 0.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Grid Dynamics

A-Score: 2.9/10

Value: 4.3

Growth: 4.3

Quality: 5.5

Yield: 0.0

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
TTEC

A-Score: 2.6/10

Value: 8.1

Growth: 1.3

Quality: 2.2

Yield: 2.0

Momentum: 1.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.69$

Current Price

6.69$

Potential

-0.00%

Expected Cash-Flows