WidePoint Q1 revenue rises 21% on IT services demand

WidePoint

14/05/2026 21:20

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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(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.)