WidePoint (WYY) Q2 2026 earnings summary

Executive summary

• Q2 2026 marked a transformational period with major contract wins, including the 10-year, $3.1 billion DHS CWMS 3.0 and NASA's $60 billion SEWP VI, positioning for significant long-term value and expansion.

• Achieved 36th consecutive quarter of positive Adjusted EBITDA and 11th consecutive quarter of positive free cash flow.

• Expanded operational engagement and scope under the ATV SaaS contract with a major U.S. telecom carrier, expected to go live by year-end.

• Awarded $58 million in new and renewal contracts in H1 2026, with strong pipeline and customer demand.

• 85% of Q2 2026 revenue derived from U.S. federal government contracts.

Financial highlights

• Q2 2026 revenue rose to $38 million from $37.3 million year-over-year; six-month revenue reached $78.6 million, up from $70.8 million.

• Q2 gross profit increased to $5.85 million (15% margin), up from $5.1 million (14%) last year; managed services gross margin rose to 36%.

• Adjusted EBITDA for Q2 was $635,000, up from $183,000; net income was $66,400 versus a net loss of $618,500 last year.

• Federal contract backlog stood at $219 million as of June 30, 2026.

• Ended Q2 with $10 million in unrestricted cash and no bank debt.

Outlook and guidance

• CWMS 3.0 contract expected to double annual revenue run rate to ~$300 million once fully ramped, with higher profitability from managed services.

• Full ramp-up of CWMS 3.0 anticipated by end of 2028, with meaningful ramp beginning in 2027.

• SEWP VI ordering period starts November 1, with ramp-up expected in Q1 2027.

• ATV contract go-live expected by year-end, with ramp-up into Q1/Q2 2027.

• Management expects a sustainable long-term growth trajectory, pending resolution of a routine contract protest.