WidePoint (WYY) Q4 2025 earnings summary

Executive summary

• Q4 and full year 2025 results showed sequential growth, with revenues of $42.3M for Q4 and $150.5M for the year, up 12% and 6% year-over-year, respectively.

• Achieved 34 consecutive quarters of positive Adjusted EBITDA and 9 consecutive quarters of positive Free Cash Flow.

• Adjusted EBITDA was $460K for Q4 and $1.1M for the year, with free cash flow of $335K and $814K, respectively, reflecting improved performance in the second half of 2025.

• Net loss for Q4 was $849K ($0.09/share) and $2.8M ($0.28/share) for the year, impacted by delayed SaaS and DaaS opportunities.

• Secured major contracts, including a $40–$45 million SaaS deal and a $27.5 million government task order.

Financial highlights

• Carrier services revenue grew to $26.8M in Q4 and $91.9M for the year, driven by new CBP task orders.

• Managed services fees increased to $10.5M in Q4 and $39.1M for the year, reflecting new commercial and government contracts.

• Gross profit margin improved to 14% for both Q4 and the year, with non-carrier services gross margin reaching 38% in Q4.

• Unrestricted cash at year-end was $9.8M with no bank debt; contract backlog was approximately $223M.

• Q4 Adjusted EBITDA margin: 1.1%; full year Adjusted EBITDA margin: 0.7%.

Outlook and guidance

• Sequential growth expected to continue, especially as SaaS carrier contract revenue is recognized in 2H 2026.

• DaaS pipeline and as-a-service transitions anticipated to enhance revenue visibility and margin profile.

• Guidance may be reinstated after Q1 or Q2 2026, contingent on government funding and contract awards.