WidePoint Q2 Earnings Call Highlights

WidePoint NYSEAMERICAN: WYY reported higher second-quarter revenue, improved profitability and a strengthened long-term outlook tied to its recently awarded Department of Homeland Security contract, while the company continues to await a decision on a protest of that award. For the quarter ended June 30, 2026, WidePoint recorded revenue of $38 million, up from $37.3 million a year earlier. Net income was $66,000, or $0.01 per diluted share, compared with a net loss of $618,000, or $0.06 per share, in the prior-year quarter. Adjusted EBITDA increased to $635,000 from $183,000, while free cash flow rose to $627,000 from $90,000.

Revenue for the first six months of 2026 totaled $78.6 million, compared with $70.8 million in the prior-year period. Six-month net income was $143,000, or $0.01 per share, versus a net loss of $1.3 million, or $0.14 per share, a year earlier.

CWMS 3.0 Protest Remains in Decision Window President and CEO Jin Kang said the company views the second quarter as a “transformational period” following DHS’s late-June selection of WidePoint as the single awardee of the 10-year, $3.1 billion Cellular Wireless Managed Services, or CWMS 3.0, contract. The award is under protest, but Kang said WidePoint believes the protest will not succeed, citing its solution set, more than two decades of performance and its integration into DHS operations. He also pointed to the company’s successful defense of prior protests involving CWMS 2.0, CWMS 1.0 and the GSA FSSI TEMS award. The Government Accountability Office must issue a decision within 100 days of the protest filing, setting an outside deadline of Oct. 7, 2026, according to Kang. DHS and the protester have submitted responses, and the matter is now in the GAO decision window. Meanwhile, DHS awarded WidePoint a short-term CWMS 2.5 bridge contract on Aug. 6. The bridge contract has a $113 million ceiling and a six-month performance period consisting of a three-month base period and three one-month options. Kang said the award is intended to avoid a gap in the ordering period while the protest is resolved. WidePoint does not expect the protest to have a material effect on third- or fourth-quarter results. Kang said task orders under the current CWMS 2.0 vehicle remain in place through the second quarter of 2027, while the bridge contract allows DHS to modify existing task orders and issue additional ones.

Management Sees Significant CWMS Growth Potential Management described the $3.1 billion CWMS 3.0 ceiling as representing roughly $300 million in average annual revenue over 10 years, approximately twice the annual run rate under CWMS 2.0. WidePoint expects approximately $150 million of annual value to remain consistent with CWMS 2.0, with pricing adjustments expected to make that business slightly more profitable. The company expects the revenue mix to remain about 80% carrier revenue and 20% managed-services revenue. The company sees its largest opportunity...