WidePoint at Lytham Summit: Strategic Moves and Market Opportunities

On Tuesday, 19 August 2025, WidePoint Corporation (NYSE:WYY) participated in the Lytham Partners Consumer & Technology Summit. During the event, CEO Jin Kang outlined the company’s strategic initiatives and market positioning. While WidePoint is transitioning to a Software as a Service (SaaS) model and exploring new contract opportunities, it is also facing challenges in meeting EBITDA forecasts due to infrastructure investments.

Key Takeaways

• WidePoint is shifting to a SaaS model, focusing on identity management and managed mobility.
• The company has been EBITDA positive for 32 consecutive quarters, with recent challenges in meeting forecasts.
• WidePoint is pursuing significant contracts, including a potential $3 billion deal with the Department of Homeland Security.
• The company ended Q2 with $6.8 million in cash and expects this to rise with pending invoices.
• WidePoint aims to become a leader in mobile technology management.

Financial Results

• EBITDA Performance: WidePoint has maintained 32 straight quarters of EBITDA positivity, although recent forecasts were not met due to investments in device-as-a-service (DaaS) infrastructure.
• Cash Position: The company concluded Q2 with $6.8 million in cash, projecting an increase to $11-12 million once outstanding invoices are settled.
• Revenue and Growth: Revenue targets were achieved, with a compound annual growth rate (CAGR) of 15% over the past four to five years.

Operational Updates

• Business Model Transition: WidePoint is transitioning to a SaaS model, offering an integrated ITMS platform that includes identity management, managed mobility, and data analytics.
• Contract Opportunities: The company is engaged in major contract pursuits, including a potential 10-year, $3 billion contract with the Department of Homeland Security and a large-scale cellular carrier deal.
• Device Management: WidePoint manages approximately 700,000 devices for the 2020 census, highlighting its capability in large-scale deployments.

Future Outlook

• Growth Strategy: WidePoint is focused on expanding its market presence, improving gross margins, and achieving profitability by the end of the year or early next year.
• Market Positioning: The company is leveraging its FedRAMP authorization to meet federal cybersecurity standards, enhancing its competitive edge in the mobility management sector.
• Vision: WidePoint aims to be a premier player in mobile technology management, emphasizing customer satisfaction and solution delivery.

Q&A Highlights

• CEO Insights: Jin Kang emphasized the predictability of WidePoint’s revenue stream, driven by multi-year contracts and a stable device management base.
• Strategic Goals: The company’s focus is on execution and delivering solutions that meet customer needs, which is crucial for long-term success and investor confidence.

In conclusion, WidePoint’s participation in the Lytham Summit highlighted its strategic initiatives and market opportunities. Readers are encouraged to refer to the full transcript for a detailed discussion.

Full transcript - Lytham Partners Consumer & Technology Summit:

Robert Blum, Managing Partner, Lithum: Alright. Hello, and welcome to the WidePoint fireside chat. My name is Robert Blum. I’m managing partner here at Lithum. And today, I’ll be moderating a q and a discussion with Jin Kang, the company’s chief executive officer.

As a reminder, WidePoint trades under the, on the NYSE American, ticker symbol, WYY. Jin, welcome.

Jin Kang, CEO, WidePoint: Thank you, Robert. It’s always a pleasure speaking with you. Absolutely. Thanks, Bert.

Robert Blum, Managing Partner, Lithum: Yeah. Thank you for coming back here. Look, I wanna sort of utilize this as an opportunity to give folks not familiar with the story a bit of an overview here on the company. So start off high level overview of WidePoint here.

Jin Kang, CEO, WidePoint: Yeah. Just very short, WidePoint. You know, we are in the business of helping our customers secure, manage, and, you know, gain visibility into their mobility assets, technology assets that allow our customers’ staff to work from anywhere in the world. Especially in this post pandemic environment, it is a critical function.

Robert Blum, Managing Partner, Lithum: How is things the company’s got a long history. Sort of talk about how things have evolved here and and how sort of you’ve moved into the position that you’re at here today.

Jin Kang, CEO, WidePoint: Yeah. So I joined the company back in 2008 when my company that was doing the mobility management piece of this our managed mobility piece of the work, And I sold my company in 02/2008, joined WidePoint as the chief operating officer, and fast forward 2017, the company was struggling and you know, the board wanted to have a management change. They looked around and, you know, chose me as the successor. You know, since taking the helm in 2017, we have been now EBITDA positive for 32 straight consecutive quarters, and now seven consecutive quarters of, you know, adjusted EBITDA positive. You know, me in terms of my background is I’m I’m a, you know, technologist at heart, so I’m all about technical solutions and cybersecurity.

Unidentified speaker: Yeah.

Robert Blum, Managing Partner, Lithum: Let’s walk through core product offerings and and sort of how they all integrate together to to serve the clients.

Jin Kang, CEO, WidePoint: Yeah. So, you know, our integrated solution set includes four main components, which is identity management, manageability, data analytics, and IT as a service, all delivered in a SaaS model. Our, you know, our the four main components, number one is our identity management. It provides the most secure multifactor authentication solution available on the market today, one that has been certified by the US federal government and that has been implemented in all of the federal departments, including the Department of Defense. You know, a solution that is quantum computing resistant and never been hacked.

Right? The second part of our solution is our managed mobility solution, which provides 360 degree support for our customers’ mobile technology assets. From the time that the technology asset is acquired to when it’s put into operation. We do invoice auditing to discover cost savings, which is a huge deal under the current Doge environment, all the way to when the asset is processed for end of life recycling. We’re a full life cycle support provider that associates with all of the technology assets and their associated ancillary services and plans.

The third part of our solution is our data analytics that provides full visibility of how that asset is used, location, cost, operating conditions, who is assigned to, usage, contracts, invoices, etcetera, etcetera. The fourth part of our solution integrated solution is our IT as a service. Our customer completely outsources their management of their IT infrastructure to us, including their cybersecurity requirements. So all of our solutions are delivered in a very integrated fashion, and we utilize our proprietary intelligent technology management system, which recently received the federal risk authorization management program or FedRAMP, which means that we meet all of the federal, requirements for cybersecurity. So we we deliver a very integrated set of solutions for mobility technology asset management for our customers.

Robert Blum, Managing Partner, Lithum: Alright. Very good. Let’s talk about the business model a little bit, how revenue is generated, and and maybe lead into visibility and backlog?

Jin Kang, CEO, WidePoint: Yeah, so our business model, as I said, is a software as a service model. All of our solutions are delivered through our ITMS platform, And in terms of, you know, in terms of all of the the the our our I I think let me see let me understand. I forgot to squat. You asked how is our

Robert Blum, Managing Partner, Lithum: Rep revenue. So sorry. The business model. Let’s let’s walk through the business model. How do you build clients?

How is revenue generated? And then maybe lead into the the backlog and the visibility you have into into contracts.

Jin Kang, CEO, WidePoint: Yeah. So as I stated earlier, our business model is delivered through a SaaS model. Right? Yep. Our delivery platform is ITMS.

We license that to our customer. And few of our customers operate their own instances of ITMS. However, in most cases, what we do is we utilize the licenses to operate the systems on our customers’ behalf. Does that make sense? Yeah.

We are also moving forward with a a a new model called device as a service or DaaS, where our customers will, you know, essentially pay a fixed monthly fee for all of their, you know, mobile management needs, including equipment, cybersecurity services, accessories, backup, recovery, all of that. And, you know, essentially, they will pay a fixed monthly fee. And we recently announced our first such project with the federal agency for health, and and it’s it’s going well so far. In terms of, you know, you know, how we generate revenue, we generate revenue is based upon the the number of devices managed for our customer, and, you know, we have a fairly large set of customers both in the, you know, public and private sectors.

Robert Blum, Managing Partner, Lithum: Talk about sort of the predictability that you have into into revenues then. Right? If it’s it’s number of devices, is is there do do you sign up for periods of time, multi multiyear agreements? Walk through that.

Jin Kang, CEO, WidePoint: Yeah, typically on the federal government side, we have a five year contract. Usually it’s like one base year with four option periods, four one year option periods. And in the commercial side, it’s a three year you know, engagement usually. And then the the the revenue is is very predictable in that it’s a, you know, number of devices that are currently under management for a particular contract. So unless, you know, the agency or the customer that we’re supporting has a, you know, wild swing in terms of staffing levels, that that the the number of devices stays steady.

And actually, it usually experiences a little tick upwards as we continue to perform. So you’ll see that revenue continue to climb. And so it’s very predictable.

Robert Blum, Managing Partner, Lithum: All right. Very good. Talk about some of the bigger contracts, specifically on the government side that you have, but but please sort of address commercial as well.

Jin Kang, CEO, WidePoint: Yeah. So we have a, you know, very big contract that is coming off for renewal, and and this is one of our flagship contract. It’s called the Department of Homeland Security CWMS three point o, And that’s a predecessor to the CWMS two point o, which in its it is a predecessor of the one o, and there was even a previous contract to that. So we’ve been performing on this particular contract for now probably going on twenty years, and that contract in the current form is a $500,000,000 contract, which had been recently modified. They executed a modification to increase the the cap on that by 254,000,000.

So now the the the total spend, maximum you can spend on that contract is 274,000,000, and that contract is coming to an end at the end of this year, November. DHS has already issued a draft RFP, which we responded to and a final RFP for the three point o, the the successor to the two point o is coming out in November. That contract is stated to be a ten year contract versus a five year contract that we currently have, and they’re increasing the cap on that contract by it’s going to go from 1,500,000,000.0 to 3,000,000,000. So they’re foreseeing an increase in the size of that contract, and and DHS is, as as you know, have been receiving additional mission to close help close the southern and the northern borders. And so they’ll be relying on a lot of wireless and cellular technology, satellite technology to implement that in the southern and the northern border.

So they’re they’re foreseeing that this particular contract has to be sized up. Instead of being a 1,500,000,000 that we thought it was going to be, it’s going to be a $3,000,000,000 contract. Right. And and we covered the the RFP in some great detail. So in our q two earnings call, so if you go back and go to our site and listen to that a little bit, I’ll give you a real quick rundown of it, but we feel that we are in the best position to win because of various requirements that they’ve put in to the RFP.

One of the ones that they put in is that it needs to be FedRAMP authorized. FedRAMP authorized means we meet all of the federal government cybersecurity requirements, and we recently received the FedRAMP authorized status in March. Are no none of our competitors can claim that they are FedRAMP authorized. They have a platform that has that’s been FedRAMP authorized. It is a small business set aside, meaning the company has to be 1,500 people or less.

We meet that criteria. The company has to have a federal facility security clearance, which we have. We have fantastic past performance. Only the prime contractor’s past performance can be used, And and so we look through all of these requirements that are in the RFP, and we meet every one of those requirements, and our competitors will have a hard time hitting those requirements. The other big piece of this contract that I want to talk about is our Spiral four contract, which is the $2,700,000,000 ten year contract.

So far we have run four task orders underneath that contract and we see additional contracts coming. We also talked about that in our earnings call, so if you would just listen to or read through the script, you’ll see there’s a lot of good things happening. We also are engaged in a, potential contract with a large, carrier, you know, cellular carrier, one of the big threes. And, we’re talking about they’re talking about using our ITMS platform to manage all of their mobile devices. And we’re talking about on the all of their customers’ mobile, devices.

We’re talking about somewhere in the order of two to 2,500,000 devices. We also talked about our device as a solution, device as a service partner called CDW. They recently announced that they have won the right to be a supporter of the LA twenty eight Olympics and Paralympics, and they’ll and and when we partnered with them doing the census project, and they used our platform to manage all of their devices. And so we have a lot of opportunities, and we have a lot of opportunities that we’ve won, and we have a lot of opportunities that are just on the cusp. And and the two opportunities that I talked about the last two, the device as a service and also the contract with one of the larger cellular carriers, all commercial deals.

Robert Blum, Managing Partner, Lithum: Decision points on some of these upcoming events or or when?

Jin Kang, CEO, WidePoint: Decision points. We’re we’re a bit, disappointed in the the the the the time that it’s taken to close some of these device as a service deals. We thought some of these things would come in at the beginning of this year in Q1 and Q2. It hasn’t. It has slipped right, but these opportunities are know we’re dotting the i’s and crossing the t’s, And so we feel that these things will happen in q three and q four.

Robert Blum, Managing Partner, Lithum: Alright. Very good. You you sort of talked at the beginning, high level, about what are the the factors that are sort of shaping the markets that you serve. Right? Maybe just kind of help put a bow on that and and help investors understand why the opportunity for what it is that you’re providing is is is unique and and has growth opportunity to it.

Jin Kang, CEO, WidePoint: Yeah. I I think the thing that that’s happening is is that we are squarely in the trusted mobility management, where we help our customers secure, manage, and gain visibility into their mobile technology assets. We are in this post pandemic environment, and there’s been a lot of talk about back to the office, everybody needs to come back, but the reality is that it’s going to be mobile workforce, it’s going to be a hybrid workforce that’s going to be heavily relying on how they can work from anywhere securely. And so the technology and the solutions that we have helps our customers secure, manage, and have visibility into their mobility assets as they’re moving around, doing their work on a daily day to day basis connecting into their IT infrastructure. We help them secure that connectivity.

We help them manage all of the devices provide the logistics and reverse logistics configuring those devices, and then providing visibility of how those devices are used. So in this pandemic environment, I think the market is moving, you know, definitely towards us.

Robert Blum, Managing Partner, Lithum: Alright. Very good. Help people understand when you when you’re submitting the proposals or responding to the the the RFPs and such, you are going up against the likes of who?

Jin Kang, CEO, WidePoint: We’re going up against the likes of, you know, mobility management vendors, identity management vendors. We’re going against, you know, data analytics vendors and IT as a service vendors, and they all have a stovepipe of this solution. What we have done is we have now cobbled that together. We have a very integrated solution. You know, so, you know, and and our solutions, you know, are battle tested.

Right? We are certified by the federal government to that and and that says that we meet all of their federal government cybersecurity standards. Right? We have authorization to operate ATOs. Right?

We have recently received our FedRAMP authorized status. And essentially, what that means is that we meet the federal government standards for cybersecurity for not just one agency or one department. We’re talking we meet the cybersecurity standards for all of the federal government. Right? And so when we go out and we, you know, bid on these contracts, that gives us a huge leg up on our competitors who don’t have a platform that meet that level of security.

And so the the the cellular, you know, provider that we’re talking about is they need a platform to manage all of these devices that they’re doing managing for the federal government. Well, they need a system that is FedRAB authorized. And who do they go to? Who who else has that? That would be us.

Right? And so, you know, it it it what it’s a huge huge deal for us because we meet, you know, all of the cybersecurity standards for the federal government. And, you know, we have the most comprehensive technology management platform that we built up from the ground up specifically to, you know, help our customers secure, manage, and gain visibility into a mobility asset. So in this, you know, post pandemic environment, I think we’re at the right place at the right time with the right solution.

Robert Blum, Managing Partner, Lithum: Like any good CEO, don’t give too much publicity to your competition there. I like that.

Jin Kang, CEO, WidePoint: Right. Right.

Unidentified speaker: Well, let’s talk.

Jin Kang, CEO, WidePoint: I mean, I could give you some names, but, you know, the we compete with them in these various stovepipes, but, you know, that that you know, you you won’t see their names, you know, know, two, three years down the line.

Robert Blum, Managing Partner, Lithum: Alright. Very good. Let’s talk about recent operational highlights. You just mentioned 32 straight, you know, profitable EBITDA quarters, cash flow profitable here, most recent. Give people your reported numbers here, I guess it was last week, but maybe just give people a little bit of an update here on what the second quarter looked like.

Jin Kang, CEO, WidePoint: Yeah. The second quarter, we hit our guidance on our top line revenue. We have been investing in our DaaS infrastructure, sales and marketing, our logistics space, so that we could support a lot of the device as a service solutions. We’re looking at some large opportunities. And so while our EBITDA wasn’t as strong as we forecasted at the beginning of the year, still positive, still positive free cash flow.

We have zero bank debt. We’re adding cash to our balance sheet. We ended Q2 with 6,800,000.0 and should be higher. We have some unbilled issues that we’re working down. Our cash balance should be somewhere around 11 or $12,000,000 if all of those unbilled were billed.

These are legitimate invoices that we’re getting out. We’re in the process of negotiating with our contracting officer representative on the government side to get all of those things done. So we had 15% CAGR for the last four or five years, seven consecutive quarters of free cash flow positive, no bank debt, and, you know, we’re an established, stable, growing, and we’re looking to get to profitability here, you know, probably towards the end of this year, beginning of next year.

Robert Blum, Managing Partner, Lithum: I think you probably just hit on my next question there, which is sort of the investment highlights, right? But, you know, beyond some of the financial metrics that you just mentioned, you know, maybe talk about sort of the moat that you have, the opportunity to have, the assets beyond just sort of the the the cash flows and and and cost you know, talk about your customers and everything else that sort of create this moat of of of an investment opportunity here for investors.

Jin Kang, CEO, WidePoint: Yeah. So so we talked about the CWMS three o recompete, which we believe we have the inside track, ten year, $3,000,000,000 contract. Right? Yeah. This is doubling our current size of our current contract.

Right? Doubling the length as well. And so not a five, ten year. As I said, we discussed that in detail. You know, we are way ahead of our competition on meeting all of those requirements.

We recently announced, as I said, the four Navy Spire four contract, $2,700,000,000 contract. We have a growing sales pipeline with huge deals that could dwarf some of the the opportunities that we currently already have with some of the federal government agencies. And so it’s you know, I think we’re in a very good situation. We introduced a couple of our new solutions, our m three sixty five analyzer, which we are now starting to offer in the Microsoft marketplace. We recently announced several wins on our mobile anchor solution, which puts the digital certificates, meaning you can use your mobile device as your physical and logical access, as your security token for physical and logical access to access your IT infrastructure.

We know that we don’t have a you know, there are there isn’t a a competitor in our identity management solution that does that. It is the most secure multi factor authentication solution available on the market, one that is quantum computing resistant, and now we’re putting that onto these mobile devices. So a lot of good things happening, we got a good set of product offerings, very integrated solution platform, and it’s just a matter of time. Mean, we’re going to continue to grow, We’re going to continue to grow. Hopefully, it’ll be the what they call the tyranny of small numbers.

So as we win some of these, you know, larger opportunities, you know, our our we always talk about double digit percentage growth. Maybe, we could even double the size of our managed services revenue with a single contract. That’s how large some of these opportunities are, and we know we can size up and scale because we performed on the, you know, the the census decennial census 2020. And and to talk about that a little bit, we are already seeing activity in the census 2030, decennial census. The RFI has come out.

And and and, of course, president Trump is talking about a mid decennial census happening, like, this year. And so if the Census Bureau has to go out and execute a new census in short order, they would have to rely on vendors that they have already done this and they have already been successful. And as you know, in 2020, we managed roughly 700,000 devices, set them all up, acquired all of them, put them all into the database, imaged them all, sent, you know, did the logistics to send them all out, supported 24 by seven help desk. After the census was done, we did the reverse logistics. We put them all back in, wiped all of them, make sure that none of the the data was, you know, on there so that we could recycle them into inventory or resell them.

And we did all of that without a single device being lost or compromised. Right? And so we know that we can scale. And so in terms of our operational highlights, I mean, we have a lot of things happening, and we announced several new contracts, Spiral four contracts, mobile anchor contracts. Right?

And so these are all new contracts with, you know, our partners where you know, and and some of them where we’re prime. And so we should see some of the revenues roll into q three because they were you know, we we were awarded those task orders at the second second quarter, so we should see them, you know, rolling in in q three and q four.

Robert Blum, Managing Partner, Lithum: Alright. Very good. Final question here. I assume that the answer is execution and such, but the the vision for WidePoint over the next decade, and that’s maybe even too long in today’s world, but your vision and and what you sort of hope to leave behind as CEO of this company is what?

Jin Kang, CEO, WidePoint: Yeah. So, you know, we’re gonna continue to grow. You know, we’re gonna, know, continue our growth trajectory. We’re gonna continue to execute. And and, you know, and we wanna grow into a you know, to be a premier player in the mobile technology management, you know, for large enterprises, both public and private.

And, you know, as we grow, you know, our gross margins will continue to improve, and we’ll move into that EPS positive territory. But I think, you know, even though it’s still early, I think we can get there pretty quickly here. And, you know, I think my legacy will be, you know, to leave behind a growing and profitable company with a trusted set of solutions that has universal application. Right? And growing that you know, continuing to grow that list of satisfied customers.

I think, you know, we are are, you know, I think, claim to fame is we always deliver the solution that our customer wants. We and what we promised. Right? And so we are good at blocking and tackling operations. Of course, winning it is great, but you gotta deliver.

You can market all you want, but when it comes down to it, you have to deliver, and you have to be profitable delivering it. And so we’ll get there in pretty short order.

Robert Blum, Managing Partner, Lithum: Take care of your customers. You typically take care of your investors as well. Yep. Jin, thank you so much for the time today. Greatly appreciate it.

Thank you, everybody watching here. If there are any questions, reach out to Jin or the company’s investor relations team. I’m sure they’ll be able to take care of you. We have additional presentations, fireside chats coming up, so please stick around for more. Again, Jin, thanks so much for your time today.

Greatly appreciate

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