WidePoint's Q4 revenue beats estimates

WidePoint

25/03/2026 20:39

Overview

U.S. technology MSP's Q4 revenue grew yr/yr, beating analyst expectations

Adjusted EBITDA for Q4 rose from prior quarter, driven by cost stabilization

Company posted Q4 net loss, citing ongoing investments and government contract delays

Outlook

WidePoint expects to begin recognizing revenue from a major SaaS contract in H2 2026

Company says delays in the CWMS 3.0 award continue due to government funding disruptions

WidePoint is focused on margin expansion and transitioning clients to 'as-a-service' models

Result Drivers

COST STRUCTURE STABILIZATION - Co said improvements in adjusted EBITDA and free cash flow were due to deliberate steps to stabilize costs while maintaining headcount and investments

GOVERNMENT CONTRACT DELAYS - Co cited delays in government contract awards due to a late 2025 government shutdown, current partial DHS shutdown, funding disruptions, and recent leadership changes

CLIENT TRANSITION TO SERVICE MODEL - Co began proactively engaging existing clients to transition to 'as-a-service' delivery models to enhance revenue visibility

Company press release: ID:nGNX9jHjVG

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$42.30 mln
$40.28 mln (3 Analysts)
Q4 Adjusted EBITDA
$460,000
Q4 Basic EPS
-$0.09
Q4 EBITDA
$200,000
Q4 Gross Profit
$5.80 mln
Q4 Income from Operations
-$800,000


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 71.4% above its March 24 closing price of $5.25

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 42 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)