WidePoint at LD Micro: Strategic Growth in Cybersecurity

On Monday, 20 October 2025, WidePoint Corporation (NYSE:WYY) presented at the LD Micro Main Event XIX Investor Conference. The company highlighted its strong financial performance and strategic initiatives in the cybersecurity and mobility sectors. While showcasing positive EBITDA and cash flow, WidePoint also addressed challenges such as market valuation discrepancies.

Key Takeaways

• WidePoint reported a 35% revenue increase in 2024, reaching $142 million.
• The company achieved FedRAMP authorization, enhancing its competitive edge.
• A $265 million contract backlog supports future growth.
• Strategic partnerships and a focus on high-margin contracts are central to their growth strategy.
• The company aims for a 50% gross margin by the end of 2026.

Financial Results

• Revenue: 2024 revenue increased by 35% to $142 million, with 95% being recurring.
• Profitability: WidePoint marked 32 consecutive quarters of positive adjusted EBITDA, with $2.6 million in 2024.
• Cash Flow: The company reported $2.5 million in free cash flow for 2024.
• Backlog: A robust $265 million in contract backlog was noted.
• Cash Reserves: $6.8 million in cash was reported at the end of Q2 2025.
• Gross Margins: Managed services revenue achieved approximately 35% gross margins, with a target of 50% by 2026.

Operational Updates

• FedRAMP Authorization: Achieved in February, setting WidePoint apart from competitors.
• Technology: Innovations include Mobile Anchor for identity management and M365 Analyzer for license management.
• Device-as-a-Service: Emphasized as a key business model for predictable revenue.
• Contracts: Successes include the DHS CWMS 2.0 contract ceiling increase to $750 million and Navy Spiral 4 task orders worth $26 million over 10 years.
• Partnerships: Strategic alliances, notably with Ingram Micro, were highlighted.
• Certifications: Achieved R2 V3 certification for electronic waste recycling.

Future Outlook

• Growth Strategy: Focus on high-margin SaaS and DAS contracts, expanding the customer base, and pursuing acquisitions.
• Contract Pursuit: Actively seeking contracts such as NASA SOOP and Alliant 4.
• Financial Targets: Aiming for 50% gross margin by 2026, excluding carrier services revenue.

Q&A Highlights

• DHS DOGE Impact: WidePoint provided monitoring solutions to DHS, though not maintained continuously.
• Margin Expectations: Managed services gross margins are around 35%, with future contracts expected to boost this.
• EBITDA Targets: Striving for a 50% gross margin by the end of 2026.

For more detailed insights, readers are encouraged to refer to the full transcript below.

Full transcript - LD Micro Main Event XIX Investor Conference:

Jenny, Host, LD Micro: Morning, everyone. Today we have WidePoint Corporation presenting Jin Kang, Jason Holloway, and Jason’s Chief Revenue Officer. Thank you.

Great. Thank you. Thank you, Jenny.

Jin Kang, CEO, WidePoint Corporation: Good afternoon, everyone. Thank you for your time, and many thanks to LD Micro for hosting this event and giving us this opportunity to showcase our company. As Jenny said, my name is Jin Kang, and I’m the CEO of WidePoint Corporation. With me today is Jason Holloway, who is our Chief Revenue Officer. He will be participating in the Q&A right at the conclusion of my presentation. Today I’ll be telling you a little bit about WidePoint, who we are, what we do, and what differentiates us from our competitors. Before I get to that, this is our safe harbor statement. I’m sure you’ve all seen this, so I won’t be reading it. There is a copy of it on our website at widepoint.com, so please take a look if you need to do that.

With that out of the way, let me give you a quick snapshot of WidePoint. Before I go any further, let me just say that we’re the company that Chris always talks about, how he’s been carrying the company and owned the company longer than his mother carried him, right? In his room, something like 25 years or so. The good news is that we’re still here, and better news is that we’re not here to raise capital and do any type of dilutive deals for us. We’re in great shape. This is a quick snapshot of WidePoint. We are a mobility as a service company founded in 1997 and have been growing through organic and inorganic means over the last almost 30 years.

I think we can all agree that cybersecurity is a critical element of our IT technology world today, especially in a mobile world and with the advancement of all AI that’s happening now. It’s a huge pain point for our customers, and we offer solutions and services to address the cybersecurity concerns of our customers in this mobile world. We provide solutions to secure, manage, and monitor our clients’ mobile technology assets, all delivered using a SaaS business model. We empower our customers to work securely from anywhere and everywhere. The current management team has been in place since the second half of 2017, and since then we have stabilized a floundering company and positioned it for growth and profitability. A company with 95% recurring revenues, $265 million in contract backlog, zero bank debt, $35 billion in addressable market, $6.8 million in cash at the end of Q2 2025.

Positive now 32 consecutive quarters of EBITDA positive. More notably, we have been free cash flow positive now for seven consecutive quarters. We closed 2024 with $142 million in top line revenue, which was a 35% increase compared to 2023. Roughly $56 million in market cap. I believe that there is a disconnect between our valuation and our performance. The other piece of information, the insider owns roughly 18% of the outstanding shares, so the objectives of the management team are aligned with our investors. As I stated, our addressable market size is approximately $36 billion and growing, and that includes federal, state, and local governments and commercial enterprises. A large organization for whom the security and compliance is key. Organization with like the military, healthcare, finance, transportation, consumer products, energy sector.

This market is continuing to grow due to cybersecurity threats, and we’re in this post-pandemic environment that has us working from all over the place in various remote locations. Because we are working remotely, the number of endpoints that need to be secure is continuing to increase, and the budget to secure those endpoints are also continuing to increase, and this will provide additional tailwinds for our business. Even in our DOGE environment, enterprises are not cutting back on cybersecurity and mobility solutions. Now let me dive a little bit deeper into each of our company’s capabilities and differentiators. As I said earlier, we provide solutions that secure, manage, and provide visibility into our clients’ mobility assets, and all delivered using a SaaS business model. Our integrated solution set is made up of four main components: identity management, managed mobility, data analytics, and IT as a service.

The first component of our solution, which is our identity management, we have the most secure multi-factor authentication solution available on the market today. One that has never been hacked, one that has been implemented in all of the federal government agencies, including the Department of Defense, one that has universal application, one that is quantum computing and AI resistant. It is estimated that it would take roughly 140 years to breach our solution using the current computing technology and AI technology. Now we’re bringing that level of security and multi-factor authentication solution to the commercial markets and on a smartphone form factor. The second component of our solution is our managed mobility solution, a solution that was built from the ground up to securely manage our clients’ mobile technology assets. A comprehensive management platform that supports the full lifecycle management requirements for our customers.

That solution is now FedRAMP authorized, and I’ll go into a little more detail on FedRAMP authorization in a few minutes. The third component of our solution is our data analytics that provides full visibility for our customers’ technology assets. The fourth component is our IT as a service solution that provides full lifecycle support for our customers’ IT infrastructure. Our solutions are at the confluence of cybersecurity and mobility, and we secure our customers’ cyber interaction in a mobile world. We own all of the IP for all of our solutions, and we have accreditations and certifications that are sought after by our clients and our strategic partners. We have the authorization to operate from various government agencies, and now we have achieved FedRAMP authorization, which is a huge differentiator. As I said, I’ll cover that later in my slides here.

In terms of a notable technological accomplishment in the last year, as I stated, we own all of the IP for our solutions, and this slide shows some of our accomplishments in 2024. Achieved FedRAMP authorization, recognized by Gartner for our managed mobility services and telecom expense management services. Received R2 V3 certification for responsible recycling of electronic waste. Certified to meet requirements of various other international standards attesting to WidePoint’s dedication to quality, environmental, and occupational health and safety factors. In terms of our FedRAMP, why is that so important? What FedRAMP stands for is Federal Risk and Authorization Management Program, or FedRAMP. We achieved FedRAMP authorized status in February of this year after working with the General Services Administration, or GSA, for nearly three years.

What this status means is that we meet all of the federal government’s cybersecurity standards for data protection, and we have passed a rigorous security assessment and are officially approved to store, process, and transmit federal government data in the cloud. None of our competitors can claim this accreditation. This will give us a big competitive advantage as we compete for contracts with federal government as well as large enterprises, because many of these solicitations will require FedRAMP authorized status. Some additional technical developments. We’re continuously enhancing our solution sets. Here are some of the more notable developments. Our Mobile Anchor is our next-generation Identity & Access Management solution. We have successfully developed, tested, and deployed the most secure multi-factor authentication solution on the smartphone form factor, one that, as I said, is quantum computing resistant and has never been hacked.

Be on the lookout for additional press releases on that front as we capture new business. Our M365 analyzer is our enhancement to our unified communication solution to help manage and monitor inventory of software licenses and costs. We have successfully, again, developed, tested, and deployed this capability to help our customers manage costs and find savings. We also recently put out a press release about our strategic relationship with Ingram Micro. Our solution is available through the Microsoft Marketplace, and of course, our IT as a service recognized by Channel EDE for our comprehensive solution sets. Let me delve a little bit deeper into our cybersecurity solutions and what we do to help secure our customers’ endpoints. As I stated earlier, we have the most secure multi-factor authentication solution available on the market today, one that is quantum computing resistant and one that has never been hacked.

This solution is now available on a smartphone, a solution we call Mobile Anchor, and this solution brings all of the high security measures that our federal government use now on your smartphone. Your smartphone now becomes your security token for both physical and logical access and for all of your interaction in cyberspace. This same solution is relied on by over 18,000 enterprises worldwide. It provides the most secure physical and logical access controls. It eliminates the need for multiple user IDs and passwords and combinations. We have been providing this solution since 1995 to the U.S. government, and in all that time, this solution has never been hacked. We were the first company to be certified by the U.S. Department of Defense, and currently only one of two companies certified by the U.S.

government to issue these credentials that serve as a foundation for their zero trust security architecture. Now we have brought this DoD-grade multi-factor authentication solution to the commercial sector on a smartphone. We recently set up the infrastructure to begin issuing these identity credentials for commercial use, and we are getting some good traction there, so please stay tuned for more news on that front. I’m also excited to announce our business model, a new business model, what we call the Device-as-a-Service, or DAS. This solution delivers a full range of mobility management solutions, and our customers pay a predictable monthly or annual fee that bundles hardware, software, and services all in one package. Some of the advantages of this DAS business model is that it reduces capital expenses, automatic technical refreshes, improved IT and security management, and easily scalable and very easy to budget on an annual basis.

We used this model on the largest mobility project called the 2020 Decennial Census. This project involved around 700 plus devices, and we teamed with a company called CDW. As I said, this project involved over roughly 700,000 devices and enumerators, and we scaled up to perform flawlessly without losing a single device and having a single device compromise all during COVID. We know that our solution can scale. Recently, our partner CDW announced that they are an official supporter of the LA 28 Olympics and Paralympics. We look forward to supporting CDW and the LA 28 event, so that should be a catalyst for us. Let’s see here. Our capabilities and solutions have enabled us to capture and pursue some significant contracts with the federal government and large commercial entities. We captured a half a billion dollar DHS CWMS 2.0 contract.

We also were the incumbents on the CWMS 1.0 contract. All told, we’ve been performing in this contract for DHS for roughly 20 years, and we recently have been awarded an additional $250 million in contract ceiling increase due to the success of the CWMS 2.0 contract. We captured under the Navy Spiral 4 contract four additional task orders, approximate value of $26 million over the next 10 years, and we are looking to capture more of those task orders. We are pursuing the NASA SOOP contract, SOOP 6, and the Alliant 4 contracts with multi-billion dollar contract ceilings. We are also recompeting on the CWMS 3.0, which is going to be now a 10-year contract with a contract value of $3 billion contract ceiling. We are the incumbents on this contract, and we feel that we believe that we are the leading contender for this contract.

We had some success with these large contracts. I think I talked most about that already. In terms of our growth strategy, we have a multi-pronged strategy for accomplishing our tasks. We’ll enhance our competitive advantage by investing in our solution sets, such as FedRAMP authorized status achieved, Microsoft Independent Software Vendor certification also achieved, further integration with industry standard applications like mobile device management, mobile application management, ServiceNow, these industry standard software. We will improve our leverage by pursuing higher margin SaaS and DAS contracts and expanding into the commercial sector. We’ll continue to expand our customer base by investing in our direct sales and staff and efforts and teaming with these large entrenched systems integrators and strategic partners to leverage their significant sales and marketing resources, as well as their substantial customer relationships.

We’ll continue to develop new offerings and new teaming relationships to pursue opportunities that we cannot capture on our own. Although inorganic growth has been on the back burner for a while, we’ll continue to seek out high-value acquisition candidates and vertical and horizontal integration capabilities and opportunities. We’re looking for established and stable companies with desirable IP and/or customer base. Let me dive a little bit deeper into our growth strategy with our strategic partners. This slide shows a list of those our strategic partners. We’ll continue to expand our relationship with these large entrenched systems integrators, as well as other strategic partners. We are becoming their vendor of choice for mobility as a service solution and Device-as-a-Service solution. Our core competencies and our certification and accreditation are becoming a rare commodity for them. They’re continuing to seek us out.

There was a time when we would pursue these strategic partners, but now they’re seeking us out because of all of our certification and accreditation, like FedRAMP authorization. So far, we had great successes capturing these large contracts, and now we’ll have more success because we do have our FedRAMP authorization. If you go out to the FedRAMP marketplace, you’ll see very few companies that have that certification. We should see a lot more activity with our strategic partners. In terms of our customers, this slide shows a sampling of our customers. As you can see, these logos represent large, stable enterprises that require a large mobile workforce. The box to the right shows our marquee contract with the Department of Homeland Security, the CWMS 2.0 contract. It is a five-year contract if all options are exercised.

We recently announced that our contract ceiling was increased from $500 million to $750 million. We rewon this contract about four years ago, and so far we have captured over $500 million in work under this contract. We also saved the Department of Homeland Security something like $300 million. I’m sure you’ve heard about the Department of Government Efficiency, DOGE. We helped save. We were DOGE before DOGE was DOGE, right? We helped save our customers on the order of 15% to 40% on their telecom costs. We can do that for the entire federal government and state and local governments as well. DHS recently announced the CWMS 3.0 recompete. As I said, it is going to be a 10-year contract with a $3 billion contract ceiling. This solicitation specifically requires the vendor to have a FedRAMP authorized status.

Our competitors are going to have trouble meeting that requirement based upon what we have seen in the FedRAMP marketplace. It is a three-year process to go through in order to get that FedRAMP authorized status. We should be the only contractor that should be able to meet that particular requirement. There are other requirements in there that point to us having the inside track on that. Now for our financials, as you can see, we have a stable company with improving financials. Our top line has experienced double-digit percentage growth for the past several years, nearly 35% in 2024 over 2023. We ended Q2 2025 with $6.8 million in cash, and we’re continuing to add to that. We have an adjusted EBITDA positive for now 32 consecutive quarters and counting. We ended 2024 with $142 million in top line revenue.

We had $2.6 million in adjusted EBITDA, $2.5 million in free cash flow. They all exceeded our guidance. Some solid number for a nano cap with a market cap of $56 million is, I think that there is a disconnect. I’ll end my presentation with some key investment considerations, why you should consider investing in WidePoint. We are a solid, stable company and are poised for continued growth and improved profitability. We have exited 2024 with some solid financials, and we’re continuing that in 2025. We have a proven track record, 32 consecutive quarters EBITDA positive, seven consecutive quarters positive free cash flow. We recently announced several material contract wins with the Navy Spiral 4. Keep checking our website for additional wins. There’ll be more coming. We have material pending contracts that should put additional wind in our sails, even with the federal government shutdown.

We have a proven management team who are operators and know how to operate a business and grow profitably. We operate in a cyber and mobility market that is continuing to grow. I think we’re in the right place in the right market. Some $36 billion and growing. It’s going to continue to grow as we continue to navigate this post-pandemic environment. We have the intellectual property, the subject matter expertise, and the business model to address all the needs of this growing market. We have a robust set of customers who are large and stable in both public and private sectors, and we are successfully executing our growth strategy for both organic and inorganic means. We look to continue our growth trajectory and improve our profitability in 2025 and further improvement in 2026.

I hope you take a closer look at us and just follow us for maybe a quarter or two and hope—yes, that concludes my presentation, but go ahead. Christian.

Speaking of DHS, did your company get looked at at all by the DHS? If so, did you get impacted?

Yes. I mean, what we have done is when DOGE was first formed, we actually put a one-pager together for them to review, and they acted on some of the things that we’ve told them, specifically with the Office of Personnel Management in monitoring all of their mobile devices. We did provide them that information. What they didn’t do is they didn’t institute a program that continued to maintain that program. Every 12 months or so, they would go through an audit. They would find overages, overusage, or devices that haven’t been used, and they would turn them off after they paid for it for 12 months. Our program runs the program on an annual basis continuously so that we’re managing devices that shouldn’t be on the government’s invoice. We’ve done that. Yeah.

I mean, obviously, margins have been tight.

Yes.

What can we think of our gross margins and EBITDA margins for 2026, 2027, and long term?

Yeah. There are two streams of revenue. There’s carrier services revenue, which is essentially zero pass-through revenue, zero margins. If you just look at our managed services revenue, we are at somewhere around 35% gross margins. We have several material contracts that are pending that have gross margins of 80%. As we lock down these new customers, and we think that it’s going to be in the next couple of quarters, that should change our gross margin profile, hugely improve our gross margin profile.

Do you guys have any targets for 2026, 2027, and long term for EBITDA?

Yeah. Our target is to be somewhere around 50% gross margin minus the carrier services revenue. We’re looking at somewhere probably towards the end of 2026 to getting to that point.

That’s all the time we have today. Unfortunately, any additional questions can be asked on the website. Thank you so much.

Thank you. Thank you.

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