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what it is
WidePoint helps agencies manage phones, telecom bills, user access, and cloud security through outsourced IT services.
how it gets paid
Last year Widepoint made $143M in revenue. Telecom Management was the main engine at $72M, or 50% of sales.
what just happened
Revenue hit $108M, but WidePoint still posted a loss and held gross margin at 14.0%.
At a glance
C++ balance sheet — some cracks in the foundation
20/100 earnings predictability — expect surprises
0.8% return on capital — nothing to write home about
-$0.21 fy2024 eps est
$143M fy2024 rev est
xvary composite: 31/100 — weak
What they do
WidePoint helps agencies manage phones, telecom bills, user access, and cloud security through outsourced IT services.
WidePoint wins where paperwork beats glamour. It sells into government environments that want secure access, telecom control, and compliance in one place, and it does that with 240 employees. Switching costs (pain of changing vendors) → replacing security and telecom workflows → so what: once your agency is inside the portal, leaving is slow and annoying.
How they make money
$143M
annual revenue
Telecom Management
$72M
flat
Mobility Managed Services
$32M
+200%
Identity and Access Management
$21M
up
Cloud Security and ITaaS
$11M
up
Analytics and Billing as a Service
$7M
flat
The products that matter
secure identity verification
Identity & Access Management
part of the ~$57M managed services mix
This sits inside the smaller managed-services bucket, and in a company doing $143M of annual revenue at a 14% gross margin, higher-value work like this needs to carry more of the mix.
margin lever
telecom and carrier management
Telecom Management
about $~86M · roughly 60% of revenue
This is the scale business. It likely helps keep revenue at $143M, but it also drags the blended gross margin down to about 14–15%.
scale, not margin
mobile device support
Mobility Managed Services
new CBP task order
The new U.S. Customs and Border Protection task order matters because contract wins are how a $44M market cap company changes the story. The next check is whether that win shows up in revenue and helps move margin above the recent 15% quarter.
contract watch
Key numbers
1.0%
operating margin
Operating margin → leftover profit after running the business → so what: WidePoint has almost no cushion if contracts go sideways.
$143M
annual revenue
This is a real revenue base for a company worth about $44M, which is why the stock looks cheap before you notice the weak profit.
$0.21
FY2024 EPS
EPS → profit per share → so what: the business is still losing money even after improving from FY2023's -$0.46.
0.8%
return on capital
Return on capital → profit generated from the money tied up in the business → so what: every dollar invested is barely working.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $4M (9% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for WYY right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Revenue hit $108M, but WidePoint still posted a loss and held gross margin at 14.0%.
EDGAR shows the latest quarter at $108M in revenue with EPS of -$0.20 and a 14.0% gross margin. Quiet part loud: more sales did not fix profitability, because carrier-heavy revenue mixes volume with thin economics.
$108M
revenue
$0.20
eps
14.0%
gross margin
the number that mattered
The 14.0% gross margin matters most because margin is the whole story here: scale without profit is just larger paperwork.
source: EDGAR SEC filings, latest quarter
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What could go wrong
The top threat here is margin compression in low-margin telecom and managed services contracts. WidePoint is trying to prove it deserves a software label while keeping only 14–15 cents of each revenue dollar before overhead.
med
Margin pressure stays the whole story
Gross margin was 14.0% on the annual figure and 15% in the latest quarter. That leaves very little room for labor costs, contract slippage, or pricing pressure.
If gross margin does not move meaningfully higher, revenue growth can keep showing up without durable earnings showing up with it.
med
Government contract dependence
WidePoint sells mostly into U.S. government workflows, and the products section highlights a new CBP task order as material. That tells you contracts matter a lot.
A delayed renewal, lost bid, or smaller task order can hit a $44M market cap company much harder than it hits a diversified peer.
med
The commercial pipeline has to convert
Management says 90% of the pipeline is large commercial deals. That's promising on paper. It is also unproven until bookings turn into revenue and better mix.
If those deals slip or price competitively, the bull case turns into more volume at the same weak margin profile.
At $143M of annual revenue and only a 14% gross margin, the cushion is thin. This story does not need a collapse to disappoint you. It just needs margins to stay where they are.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
Gross margin above 15%
The latest quarter printed 15% versus a 14.0% full-year figure. You want to see that move hold and build, because the entire earnings case depends on it.
calendar
Q1 2026 report timing
The next report is estimated for April 14, 2026. With 20/100 earnings predictability, this is not a company where you sleep through earnings.
trend
Pipeline conversion into commercial wins
Management says 90% of the pipeline is large commercial deals. Watch whether that changes the revenue mix, not just the slide deck.
risk
Institutional flow in a thinly owned stock
Institutions own 22.6% of WYY, and 15 buyers brought in $2.68M over the last 12 months. In a $44M company, small flow changes can look bigger than they are.
Analyst rankings
earnings predictability
20 / 100
in human-speak, analysts do not trust this earnings pattern to stay smooth. Contract timing and thin margins can create surprises.
xvary composite
31 / 100
That score says the stock is weak on the full mix of growth, value, risk, and momentum. There are easier stories to own if you want predictability.
source: institutional data
Institutional activity
institutional ownership data for WYY is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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