WidePoint Corporation

Total revenue for Q2 2026 was $38 million, up from $37.3 million in the same quarter last year. Gross profit was $5.8 million, or 15% of revenue, versus $5.1 million, or 14%, last year. Net income was $66 thousand, or $0.01 per share, compared with a net loss of $618 thousand, or $0.06 per share, a year ago. For the first six months, revenue was $78.6 million versus $70.8 million, gross profit was $11.4 million versus $9.9 million, and EPS was $0.01 versus a loss of $0.14. Looking ahead, management said CWMS 3.0’s $3.1 billion ceiling implies about $300 million of average annual revenue, with roughly $150 million of additional annual opportunity; they expect some task orders could begin in Q4 if the protest is resolved by October 7, and 2027 to be a meaningful ramp year. They also said the ATV contract is expected to see devices implemented in Q4 and ramp toward full deployment in 3 to 6 months, and that SEWP VI ordering begins November 1.

Jin H. Kang described Q2 as a transformational period and a key inflection point, emphasizing that WidePoint is building a foundation for a profitable growth trajectory over the next decade. He focused heavily on CWMS 3.0, saying the company expects to remain the single awardee and sees the award’s expanded ceiling and broader scope as evidence of DHS commitment. His tone was confident and forward-looking, repeatedly pointing to 2027 as the beginning of a meaningful ramp.

Robert J. George said revenue growth came from higher phone lines under management at DHS and the US Customs and Border Protection task order, while gross profit improved to $5.8 million and gross margin held at 15%. He highlighted stronger 6-month adjusted EBITDA of $1.4 million and free cash flow of $1.3 million, versus $276 thousand and $155 thousand last year. He also said WidePoint ended the quarter with $10 million in unrestricted cash, $4 million of revolver capacity, does not intend to use the ATM at current valuations, and expects higher compliance, insurance, labor, and cybersecurity investment costs ahead.

Analysts focused on the ATV contract timeline, the potential size of expansion into state and local government, the meaning of backlog, and the DaaS pipeline. Management said ATV should have some devices implemented by Q4 with a 3 to 6 month ramp to fuller deployment, and that state and local expansion could potentially double device counts, though it is still early. On DaaS, management said they are cautiously optimistic about closing an opportunity in the next few months, with LA28 the clearest near-term target, and added that MobileAnchor is seeing inbound interest from government and commercial prospects.