WidePoint Q1 Revenue Rises 21% to $40.6M; Adjusted EBITDA Jumps 714%
WYY•WidePoint posted Q1 revenues of $40.6 million, up $7.1 million year-over-year, drove Adjusted EBITDA to $752,000 (+714% YoY) and free cash flow to $674,000 (+941% YoY), achieving EPS of $0.01 versus a $0.08 loss last year. Unrestricted cash reached $10.9 million with a $218 million federal contract backlog.
1. Q1 Financial Results
WidePoint delivered Q1 2026 revenues of $40.6 million, up $7.1 million year-over-year, with gross margin at 14% (34% ex-carrier services). Net income was $77,000 ($0.01 per share) versus a $724,000 loss last year, while Adjusted EBITDA reached $752,000 and free cash flow hit $674,000.
2. Operational Milestones
The company recorded its 35th consecutive positive Adjusted EBITDA quarter and 10th consecutive positive free cash flow quarter, secured exclusive access to a leading national bottler’s procurement system, and won $1.5 million in IT Managed Services contracts. Unrestricted cash stood at $10.9 million with zero bank debt and a $218 million federal contract backlog.
3. Outlook on CWMS 3.0 and Carrier SaaS
Management navigated the prolonged DHS funding shutdown with minimal impact and expects billable services to normalize in the second half of 2026. The CWMS 2.0 contract was extended to June 24, 2026, paving the way for a CWMS 3.0 award, while carrier SaaS platform implementation and FedRAMP authorization should drive a revenue ramp in H2 2026.
