Overview

• US secure mobile management firm's Q1 revenue rose 21% yr/yr to $40.6 mln

• Company posted positive EPS of $0.01, compared to a loss a year ago

• Management says DHS shutdown had minimal impact; expects results to normalize in H2 2026

Outlook

• WidePoint expects billable services fees to normalize in H2 2026 after DHS shutdown resolution

• Company anticipates ramping up revenue recognition from carrier SaaS contract in H2 2026

• CWMS 3.0 and carrier SaaS contract seen as key growth drivers for 2026

Result Drivers

• DHS SHUTDOWN IMPACT - Co said the record-long DHS shutdown slightly affected billable services fees in Q1, but expects results to normalize in H2 2026

• CONTRACT WINS - Co cited $1.5 mln in new IT Managed Services contracts and exclusive access to a major bottler's procurement system as supporting revenue growth

• COST MANAGEMENT - Management said cost management efforts contributed to achieving positive EPS in Q1

Company press release: ID:nGNX5JymPd

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$40.60 mln	$38.07 mln (2 Analysts)
Q1 Adjusted EBITDA		$752,000
Q1 Basic EPS		$0.01
Q1 EBITDA		$500,000
Q1 Gross Profit		$5.60 mln
Q1 Income from Operations		-$58,366

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for WidePoint Corp is $9.00, about 9.2% above its May 13 closing price of $8.24

• The stock recently traded at 67 times the next 12-month earnings vs. a P/E of 33 three months ago

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