WidePoint (WYY) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $40.6 million, up 21% year-over-year, with adjusted EBITDA of $752,000 and free cash flow of $674,000; first positive net income quarter since 2021, with EPS of $0.01 compared to a net loss of $724,000 (EPS -$0.08) last year.

• Achieved 35th consecutive quarter of positive Adjusted EBITDA and 10th consecutive quarter of positive Free Cash Flow.

• Key growth drivers include the pending CWMS 3.0 federal contract and a major carrier SaaS contract, both expected to shape 2026 performance.

• Secured exclusive access to a major national bottler's procurement and inventory systems and won $1.5 million in new IT Managed Services contracts.

• The company remains focused on expanding its TMaaS platform and capturing new contracts, including a key DHS contract currently under re-competition.

Financial highlights

• Revenue increased by $7.1 million year-over-year, driven by growth in carrier services and managed services; carrier services revenue rose to $25.8 million, up $3.4 million, and managed services revenue increased by $3.7 million to $14.8 million.

• Gross profit was $5.6 million (14% margin); excluding carrier services, gross margin was 34% versus 37% last year.

• Adjusted EBITDA grew to $752,000 from $92,000; free cash flow rose to $674,000 from $65,000 year-over-year.

• Operating expenses were $5.7 million, slightly up from $5.6 million year-over-year.

• Cash and cash equivalents at quarter-end were $10.9 million.

Outlook and guidance

• Double-digit percentage growth expected for 2026, with continued positive adjusted EBITDA and free cash flow; management aims for positive EPS in 2026 and beyond.

• Full-year guidance withheld until CWMS 3.0 and carrier contract statuses are finalized.

• SaaS revenue from the carrier contract expected to ramp up in the second half of 2026, with full ramp by year-end.

• The company expects sufficient liquidity for the next 12 months, supported by cash, receivables, and a $4 million credit facility.

• DaaS pipeline with Fortune 100 companies could materially impact growth if secured.