0001654954-26-002749
SEC filingWidePoint Corporation reported FY 2025 revenues of $150.5 million, up 6% from $142.6 million in 2024, driven by higher carrier services ($91.9 million, +6%) and managed services ($58.7 million, +5%), primarily from expanded federal contracts including a new task order with Customs and Border Protection adding $5.2 million. Gross profit improved 11% to $21.0 million (14% margin vs. 13% prior year), reflecting better managed services margins at 36% from 34%. However, operating expenses rose to $23.8 million, leading to a $2.8 million operating loss and net loss of $2.8 million, wider than the $1.9 million loss in 2024 due to higher G&A ($19.7 million) and depreciation. U.S. federal government revenue comprised 83% ($125.3 million, +5%). Cash from operations strengthened to $5.7 million from $1.6 million, supporting liquidity with $9.8 million cash and $11.5 million equity. Key risks include DHS CWMS 2.0 contract renewal (77% of 2025 revenues), pending re-competition. Forward outlook focuses on winning re-compete, leveraging FedRAMP status, and expanding commercial sales for growth.
WidePoint Corporation's FY 2025 results showed revenue growth to $150.5 million, a 6% increase from $142.6 million in 2024, fueled by federal contracts. Gross profit rose 11% to $21.0 million (14% margin vs. 13%), with managed services margins expanding to 36% from 34%. Operating expenses totaled $23.8 million, including sales/marketing $2.7 million, G&A $19.7 million, and depreciation/amortization $1.3 million, yielding a $2.8 million operating loss. Other income netted $0.1 million, income tax provision $98K, resulting in $2.8 million net loss ($0.28 per share) vs. $1.9 million loss ($0.21 per share) prior year. Single reportable segment: TMaaS.
Revenues broke down to carrier services $91.9 million (+6% YoY, pass-through with no margin) and managed services $58.7 million (+5%), including managed fees $39.1 million (+9%), billable services $5.4 million (flat), reselling/other $14.2 million (-5%). U.S. federal government dominated at $125.3 million (83%, +5%), driven by full-year commercial contract for government end-customer and CBP task order for 30,000 lines ($5.2 million add). State/local $0.4 million, foreign $0.1 million (flat), commercial $24.8 million (+7%). DHS CWMS 2.0 was 77% of revenues.
Gross margin improved to 14% from 13%, led by managed services at 36% (vs. 34%), offsetting carrier services' zero margin. Cost of revenues $129.5 million (86% of sales) vs. $123.5 million (87%). Operating loss $2.8 million reflected higher G&A ($19.7 million vs. $17.6 million, +12% due to compensation/health costs) and depreciation $1.3 million (+30%). Sales/marketing stable at 2% of revenues.
Operating cash flow $5.7 million (vs. $1.6 million), aided by $4.7 million AR/unbilled improvement, $9.6 million payables increase. Investing outflow $0.3 million (PPE purchases). Financing outflow $0.7 million (line advances/repays net zero, leases $0.6 million). Net cash increase $4.6 million; ending cash/restricted $12.4 million ($9.8 million cash, $2.6 million restricted). Total assets $79.8 million, current assets $66.2 million, liabilities $68.3 million (current $63.9 million), equity $11.5 million. $4 million credit facility compliant.
Strategy emphasizes DHS CWMS 3.0 re-compete (extended to May 2026), FedRAMP leverage, recurring managed services growth, SaaS expansion, commercial push, AI integration. Risks: contract non-renewal (77% revenue exposure), competition, fixed costs, government spending/shutdowns. No dividends; focus on pipeline, partnerships.