WidePoint Adjusted EBITDA Drops to $1.1M, Wins $40M-$45M SaaS Deal
Adjusted EBITDA fell to $1.1 million from $2.6 million and free cash flow dropped to $814,000, while general and administrative expenses rose to $19.7 million in fiscal 2025. Q4 net loss widened to $849,000 ($0.09 per share), and a $40M-$45M SaaS contract will boost H2 2026 margins.
1. Q4 and Full-Year Financials
WidePoint reported Q4 net loss of $849,000 ($0.09 per share) and full-year net loss of $2.8 million ($0.28 per share). General and administrative expenses rose to $19.7 million, free cash flow fell to $814,000 from $2.5 million, and adjusted EBITDA declined to $1.1 million from $2.6 million.
2. Major Contracts and Delays
WidePoint’s CWMS 3.0 contract award with DHS remains delayed due to government shutdowns and funding disruptions. The company captured eight task orders under the Navy’s Spiral 4 program totaling about $30 million and secured a $40 million-$45 million SaaS contract with a major mobile carrier slated to enhance margins in H2 2026.
3. Operational Initiatives and Guidance
Management is converting IT-as-a-Service clients to Device-as-a-Service through a new Columbus, Ohio facility offering depot maintenance, logistics and device management. WidePoint maintains robust cash reserves to navigate funding uncertainties, with revenue guidance set to follow once DHS funding and CWMS 3.0 award are confirmed.