WidePoint (WYY) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 revenue of $40.6 million, up 21% year-over-year, with adjusted EBITDA of $752,000, free cash flow of $674,000, and first positive net income quarter since 2021, reversing a net loss of $724,000 in Q1 2025.

• Positive EPS of $0.01 reported for the quarter, compared to $(0.08) last year, with strong momentum into 2026.

• Achieved 35th consecutive quarter of positive Adjusted EBITDA and 10th consecutive quarter of positive Free Cash Flow.

• Key growth drivers include the pending CWMS 3.0 federal contract and a major carrier SaaS contract, both expected to shape 2026 results.

• Secured exclusive access to a major national bottler's procurement system and won $1.5 million in new IT Managed Services contracts.

Financial highlights

• Revenue increased by $7.1 million year-over-year to $40.6 million, driven by growth in carrier and managed services.

• Carrier services revenue rose to $25.8 million; managed services increased to $14.8 million; reselling/other services to $4.2 million.

• Gross profit was $5.6 million (14% margin); excluding carrier services, gross margin was 34%.

• Adjusted EBITDA improved to $752,000 from $92,000 year-over-year; free cash flow rose to $674,000 from $65,000.

• Net income was $77,000 (EPS $0.01), compared to a net loss of $724,000 (EPS -$0.08) last year.

Outlook and guidance

• Double-digit percentage growth expected for 2026, with continued positive adjusted EBITDA and free cash flow.

• Full-year guidance withheld until CWMS 3.0 and carrier contract statuses are finalized.

• SaaS revenue from the carrier contract expected to ramp up in the second half of 2026, with full ramp by year-end.

• DaaS pipeline with Fortune 100 companies could materially impact growth if secured.

• Management aims for positive EPS in 2026 and beyond, focusing on expanding managed services and improving gross margins.