<span item_type="fundamental" item_id="e2c9e3745d5ab7e76a49317b71f3fbe7" counter_id="ST/US/WYY" env="prod"></span><span item_type="announcement" item_id="648374284901158273" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 40.58 M, beating the estimate of USD 38.07 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD 0.01.</p><p>EBIT: As of FY2026 Q1, the actual value is USD -100.78 K.</p><p></p><p>WidePoint Corporation operates as a single segment for financial reporting purposes, with performance evaluated based on consolidated revenue, gross profit, and net income (loss). <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1034760/000165495426004889/wyy_10q.htm"></span></p><h4>Total Revenues</h4><p>Total revenues for the three months ended March 31, 2026, increased by 21% to $40,576,030, up from $33,510,039 in the same period of 2025.</p><h4>Segment Revenue Breakdown</h4><ul><li><strong>Carrier Services Revenue</strong>: Increased by $3,382,741 to $25,784,040 in Q1 2026, from $22,401,299 in Q1 2025, primarily due to growth in phone lines managed for the Department of Homeland Security (DHS) customer.</li><li><strong>Managed Services Revenue</strong>: Increased by $3,683,250 to $14,791,990 in Q1 2026, from $11,108,740 in Q1 2025.<ul><li>Managed Service Fees rose by $751,806 to $9,289,806, mainly due to an additional task order with Customs and Border Protection.</li><li>Billable Service Fees decreased by -$503,890 to $1,278,306, impacted by a partial shutdown of the DHS.</li><li>Reselling and Other Services increased by $3,435,334 to $4,223,878, partly due to the absence of a prior-year out-of-period adjustment and higher revenue from certain contracts.</li></ul></li></ul><h4>Revenue by Customer Type</h4><ul><li>U.S. Federal Government: $34,411,929 in Q1 2026 vs $29,093,879 in Q1 2025.</li><li>U.S. State and Local Governments: $86,338 in Q1 2026 vs $96,822 in Q1 2025.</li><li>Foreign Governments: $16,223 in Q1 2026 vs $15,408 in Q1 2025.</li><li>Commercial Enterprises: $6,061,540 in Q1 2026 vs $4,303,930 in Q1 2025.</li></ul><h4>Revenue by Geographic Region</h4><ul><li>United States: $39,573,706 in Q1 2026 vs $32,508,871 in Q1 2025.</li><li>Europe: $1,002,324 in Q1 2026 vs $1,001,168 in Q1 2025.</li></ul><h4>Operational Metrics</h4><ul><li><strong>Cost of Revenues</strong>: Total cost of revenues increased to $34,978,404 (86% of revenues) in Q1 2026, from $28,731,518 (86% of revenues) in Q1 2025. Carrier costs paid for federal government customers were $25,170,327 in Q1 2026, up from $21,684,683 in Q1 2025.</li><li><strong>Gross Profit</strong>: Increased by $819,105 to $5,597,626 (14% of revenues) in Q1 2026, from $4,778,521 (14% of revenues) in Q1 2025.<ul><li>Gross profit from Carrier Services was 2% in Q1 2026, down from 3% in Q1 2025.</li><li>Gross profit from Managed Services was 34% in Q1 2026, down from 37% in Q1 2025, attributed to slightly higher labor costs and more reselling revenues with lower margins.</li></ul></li><li><strong>Loss from Operations</strong>: Improved to -$58,366 in Q1 2026, from -$816,431 in Q1 2025.</li><li><strong>Sales and Marketing Expenses</strong>: Remained consistent at $595,997 (1% of revenues) in Q1 2026, compared to $639,482 (2% of revenues) in Q1 2025.</li><li><strong>General and Administrative Expenses</strong>: Increased slightly to $4,832,023 (12% of revenues) in Q1 2026, from $4,731,782 (14% of revenues) in Q1 2025, primarily due to higher share-based compensation, partially offset by deferred internal IT labor costs.</li><li><strong>Depreciation and Amortization</strong>: Consistent at $227,972 in Q1 2026, compared to $223,688 in Q1 2025.</li><li><strong>Net Income (Loss)</strong>: Improved significantly to $76,960 in Q1 2026, from a net loss of -$724,063 in Q1 2025.</li></ul><h4>Cash Flow</h4><ul><li><strong>Net Cash Used in Operating Activities</strong>: -$922,487 in Q1 2026, compared to -$3,227,591 in Q1 2025, driven by increases in accounts receivables, partially offset by temporary payable timing differences.</li><li><strong>Net Cash Used in Investing Activities</strong>: -$28,789 in Q1 2026, compared to -$27,632 in Q1 2025, primarily for purchases of property and equipment.</li><li><strong>Net Cash Used in Financing Activities</strong>: -$238,474 in Q1 2026, compared to -$234,977 in Q1 2025, reflecting finance lease principal repayments and withholding taxes paid on behalf of employees for restricted stock awards.</li></ul><h4>Unique Metrics</h4><ul><li><strong>Net Working Capital</strong>: Approximately $2.8 million at March 31, 2026, compared to $2.3 million at December 31, 2025.</li><li><strong>Accounts Receivable, Net</strong>: $19,194,132 at March 31, 2026, compared to $15,002,571 at December 31, 2025.<ul><li>U.S. Federal, State, and Local Government receivables: $15,077,116 at March 31, 2026, vs $12,598,664 at December 31, 2025.</li><li>Commercial receivables: $4,166,614 at March 31, 2026, vs $2,461,361 at December 31, 2025.</li></ul></li><li><strong>U.S. Federal Government Concentration</strong>: Represents 78% of total accounts receivable at March 31, 2026, and 85% of total revenue for Q1 2026.</li><li><strong>Unbilled Accounts Receivable</strong>: $37,711,894 at March 31, 2026, vs $33,548,228 at December 31, 2025, with U.S. Federal Government accounting for 99% of unbilled receivables at both periods.</li><li><strong>Goodwill</strong>: $5,811,578 as of March 31, 2026, with no changes during the three months ended March 31, 2026 and 2025.</li><li><strong>Intangible Assets, Net</strong>: $3,073,788 as of March 31, 2026, compared to $3,352,296 at December 31, 2025. Amortization expense was approximately $278,500 in Q1 2026, compared to $480,600 in Q1 2025.</li><li><strong>Share-based Compensation Expense</strong>: $248,817 in Q1 2026, compared to $198,859 in Q1 2025.</li></ul><h4>Future Outlook and Strategy</h4><p>WidePoint Corporation aims to expand its critical mass to fund technology investments and sales/marketing initiatives, seeking increased market share and broader offerings for sustainability and growth. For fiscal year 2026, key goals include securing the LA 28 contract, obtaining Device-as-a-Service (DaaS) contracts with Fortune 500 companies to improve gross margins, and fully implementing cellular carrier SaaS contracts for government customers by Q2. The company also targets achieving EPS positivity in 2026 and beyond, and plans to use proceeds from an At The Market Offering for general corporate purposes, including business expansion and acquisitions.</p>

Widepoint | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 40.58 M