FAIRFAX, Va., Nov. 12, 2026 (GLOBE NEWSWIRE) — WidePoint Corporation (NYSE American: WYY), a leading provider of Secure Mobility Management solutions, reported results for the third quarter ended September 30, 2026.

Third Quarter 2026 and Recent Operational Highlights:

  • 37th consecutive quarter of positive Adjusted EBITDA
  • 12th consecutive quarter of positive free cash flow
  • Awarded 40 new and replacement task orders with a total value of approximately $33.7 million during the third quarter under the U.S. Department of Homeland Security’s (“DHS”) Cellular Wireless Managed Services (“CWMS”) 2.5 bridge contract
  • Awarded the CWMS 2.5 bridge contract, a 6-month IDIQ with a ceiling value of approximately $113 million

Third Quarter 2026 Financial Highlights:

  • Revenues were $45.1 million, an increase of $9.5 million from the same quarter last year
  • Gross margin was 14%, and gross margin excluding carrier services revenue was 30%
  • Net loss was $(192,000) or $(0.02) per share, compared to a net loss of $(559,000) or a loss of $(0.06) per share in the same quarter last year
  • Adjusted EBITDA1, a non-GAAP financial measure, was $338,000 compared to $344,000 in the same quarter last year
  • Free cash flow1, a non-GAAP financial measure, was $338,000 compared to $324,000 in the same quarter last year
  • As of September 30, 2026, unrestricted cash was $10.1 million with no bank debt
  • As of September 30, 2026, federal contract backlog was approximately $209 million

Nine Months 2026 Financial Highlights:

  • Revenues were $123.6 million, an increase of $17.3 million from the same period last year
  • Gross margin was 14%, and gross margin excluding carrier services revenue was 33%
  • Net loss was $(49,000) or $(0.00) per share, compared to a net loss of $(1.9) million or a loss of $(0.20) per share in the same period last year
  • Adjusted EBITDA1, a non-GAAP financial measure, was $1.7 million, a 178% increase from the same period last year
  • Free cash flow1, a non-GAAP financial measure, was $1.6 million, a 242% increase from the same period last year

1 Free cash flow and Adjusted EBITDA are non-GAAP financial measures. See below for the definition of such measures and a reconciliation to GAAP.

Management Commentary
WidePoint CEO, Jin Kang commented: “The decision by the Government Accountability Office (“GAO”) to sustain the protest related to the CWMS 3.0 award has undoubtedly created near-term disruption; however, we believe the issues are temporary in nature. While sustained protests are not unprecedented in federal procurement, we recognize this was an unexpected setback. With respect to the pending CWMS 3.0 procurement, DHS has requested revised proposals, and WidePoint has submitted a revised proposal for evaluation by DHS. We await DHS’s announcement of the results of its evaluation and the resulting award decision. We will have no further comment on the status of the CWMS 3.0 procurement at this time.

“Importantly, operations continue uninterrupted under the CWMS 2.5 bridge contract. In the third quarter alone, we received 40 new and replacement task orders valued at approximately $33.7 million and we continue to receive additional task orders in the fourth quarter. We also hold CWMS 2.0 task orders extending into 2027, providing a meaningful runway as the CWMS 3.0 award process moves towards resolution.

“Beyond CWMS, integration efforts under the ATV contract continue to advance, and we remain on track for our targeted year-end go-live. We also recently received a letter of authorization from CDW as we work toward potentially becoming the official subcontractor supporting CDW’s role as the Official IT Equipment and Solutions Provider for the LA28 Olympic and Paralympic Games and Team USA. In addition, we strengthened our federal growth initiative through the hiring a professional with extensive experience in federal government acquisitions, IDIQ contracts, and the implementation of a Program Management Office (PMO) model similar to that of the DHS PMO model to maximize opportunities under the NASA SEWP VI contract vehicle. Together, these developments reinforce our confidence in WidePoint’s long-term growth prospects and execution against multiple strategic opportunities.”

  Third Quarter 2026 Financial Summary      
         
    THREE MONTHS ENDED
    SEPTEMBER 30,
  (In millions except per share amounts)   2026       2025  
      (Unaudited)  
  REVENUES $ 45.1     $ 35.5  
  GROSS PROFIT   6.2       5.3  
  GROSS PROFIT %   14 %     15 %
  OPERATING EXPENSES   6.4       5.7  
  NET LOSS   (0.19 )     (0.56 )
  LOSS PER SHARE BASIC AND DILUTED $ (0.02 )   $ (0.06 )
  EBITDA   0.23       0.19  
  ADJUSTED EBITDA   0.34       0.34  
  FREE CASHFLOW   0.34       0.32  

Nine Months 2026 Financial Summary   NINE MONTHS ENDED
    SEPTEMBER 30,
(In millions except per share amounts)     2026       2025  
      (Unaudited)  
REVENUES   $ 123.6     $ 106.3  
GROSS PROFIT     17.6       15.2  
GROSS PROFIT %     14 %     14 %
OPERATING EXPENSES     17.9       17.2  
NET LOSS     (0.05 )     (1.90 )
LOSS PER SHARE BASIC AND DILUTED   $ (0.00 )   $ (0.20 )
EBITDA     1.19       0.10  
ADJUSTED EBITDA     1.73       0.62  
FREE CASHFLOW     1.64       0.48  


Conference Call
WidePoint’s management will host the conference call today (November 12, 2026) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results.

U.S. dial-in number: 888-506-0062
International number: 973-528-0011
Access Code: 633294

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at (949) 574-3860.

The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website.

A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through Thursday, November 26, 2026.

Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 54625

About WidePoint
WidePoint Corporation (NYSE American: WYY) is a leading technology Managed Solution Provider (MSP) dedicated to securing and protecting the mobile workforce and enterprise landscape. WidePoint is recognized for pioneering technology solutions that include Identity & Access Management (IAM), Mobility Managed Services (MMS), Telecom Management, Information Technology as a Service, Cloud Security, and Analytics & Billing as a Service (ABaaS). To learn more, visit https://www.widepoint.com .

Non-GAAP Financial Measures
WidePoint uses a variety of operational and financial metrics, including non-GAAP financial measures such as EBITDA, Adjusted EBITDA, and Free cashflow, to enable it to analyze its performance and financial condition. The presentation of non-GAAP financial information should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. A reconciliation of GAAP Net income to EBITDA and Adjusted EBITDA and Free cashflow is provided below:

        THREE MONTHS ENDED   NINE MONTHS ENDED
        SEPTEMBER 30,   SEPTEMBER 30,
          2026       2025       2026       2025  
Other adjustments to reconcile net loss to adjusted EBITDA and free cashflow (Unaudited)   (Unaudited)
                     
NET LOSS $ (192,000 )   $ (559,200 )   $ (48,600 )   $ (1,901,700 )
Adjustments to reconcile net income to EBITDA:              
  Depreciation and amortization   432,800       650,400       1,395,000       2,085,600  
  Income tax provision (benefit)   13,000       134,400       (28,600 )     (12,000 )
  Interest income   (68,200 )     (83,400 )     (257,400 )     (226,200 )
  Interest expense   42,500       47,600       131,300       155,100  
                     
EBITDA     228,100       189,800       1,191,700     $ 100,800  
                     
  Stock-based compensation expense   110,200       154,100       533,900       519,000  
                     
Adjusted EBITDA $ 338,300     $ 343,900     $ 1,725,600     $ 619,800  
  Capital expenditures   –       (20,031 )     (85,537 )     (140,918 )
Free cashflow $ 338,300     $ 323,869     $ 1,640,063     $ 478,882  

WidePoint uses EBITDA, Adjusted EBITDA and Free cashflow as supplemental non-GAAP measure of performance. WidePoint defines EBITDA as net income excluding (i) interest expense, (ii) provision for or benefit from income taxes, (iii) depreciation and amortization, and (iv) Impairment charges. Adjusted EBITDA excludes certain amounts included in EBITDA such as stock-based compensation expense. WidePoint defined Free cashflow as Adjusted EBITDA less capital expenditures. Management believes that adjustments for certain non-cash or other items and the exclusion of certain pass-through revenue and expenses should enhance stockholders’ ability to evaluate the Company’s performance, as such measures provide additional insights into the factors and trends affecting its business. Therefore, the Company excludes these items from its GAAP financial measures to calculate these unaudited non-GAAP measures. These unaudited non-GAAP measures may not be comparable to similarly titled measures reported by other companies and should be considered in addition to, and not as a substitute for GAAP.

Safe Harbor Statement
This press release contains forward-looking statements concerning our business, operations and financial performance and condition as well as our plans, objectives and expectations for our business operations and financial performance and condition that are subject to risks and uncertainties. All statements other than statements of historical fact included herein are forward-looking statements. You can identify these statements by words such as “aim,” “anticipate,” “assume,” “believe,” “could,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “positioned,” “predict,” “should,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends. These forward-looking statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and our management’s beliefs and assumptions. These statements are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including, the impact of supply chain issues; our ability to successfully execute our strategy; our ability to sustain profitability and positive cash flows; our ability to access sufficient financing on acceptable terms given the tightening credit markets due to the current banking environment; our ability to gain market acceptance for our products; our ability to win new contracts, execute contract extensions and expand scope of services on existing contracts; our ability to compete with companies that have greater resources than us; our ability to penetrate the commercial sector to expand our business; our ability to identify potential acquisition targets and close such acquisitions; our ability to successfully integrate acquired businesses with our existing operations; our ability to maintain a sufficient level of inventory necessary to meet our customers demand due to supply shortage and pricing; our ability to retain key personnel; our ability to mitigate the impact of increases in interest rates; the impact of increasingly volatile public equity markets on our market capitalization; the impact and outcome of negotiations around the Federal debt ceiling; our ability to mitigate the impact of inflation; and the risk factors set forth in our Form 10-Q for the quarter ended September 30, 2026 filed with the SEC on November 12, 2026.

The forward-looking statements included herein are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

WidePoint Investor Relations:
Gateway Group, Inc.
Matt Glover or John Yi
949-574-3860
WYY@gateway-grp.com

WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED UNAUDITED BALANCE SHEETS
         
         
         
  SEPTEMBER 30,   DECEMBER 31,
    2026       2025    
ASSETS (Unaudited)  
CURRENT ASSETS        
Cash and cash equivalents $ 10,103,515     $ 9,818,503    
Restricted cash   1,042,925       2,647,990    
Accounts receivable, net of allowance for credit losses        
of $134,996 and $57,454, respectively   13,926,953       15,002,571    
Unbilled accounts receivable   46,456,528       33,548,228    
Other current assets   16,173,725       5,196,613    
         
Total current assets   87,703,646       66,213,905    
         
NONCURRENT ASSETS        
Property and equipment, net   331,649       480,082    
Lease right of use asset   3,325,968       3,904,479    
Intangible assets, net   2,554,282       3,352,296    
Goodwill   5,811,578       5,811,578    
Deferred tax assets, net   –       1,123    
Other long-term assets   874,257       48,822    
         
Total assets $ 100,601,380     $ 79,812,285    
         
LIABILITIES AND STOCKHOLDERS’ EQUITY  
         
CURRENT LIABILITIES        
Accounts payable $ 24,814,711     $ 25,891,150    
Accrued expenses   43,572,673       31,159,173    
Current portion of deferred revenue   15,835,046       6,114,402    
Current portion of lease liabilities   771,493       751,233    
         
Total current liabilities   84,993,923       63,915,958    
         
NONCURRENT LIABILITIES        
Lease liabilities, net of current portion   3,337,801       3,930,495    
Deferred revenue, net of current portion   800,045       435,151    
Deferred tax liabilities, net   15,496       –    
         
Total liabilities   89,147,265       68,281,604    
         
Commitments and contingencies (Note 16)   –       –    
         
STOCKHOLDERS’ EQUITY        
Preferred stock, $0.001 par value; 10,000,000 shares        
authorized; 2,045,714 shares issued and none outstanding   –       –    
Common stock, $0.001 par value; 30,000,000 shares        
  authorized; 10,028,316 and 9,892,565 shares        
issued and outstanding, respectively   10,029       9,894    
Additional paid-in capital   103,715,779       103,733,790    
Accumulated other comprehensive loss   (389,726 )     (379,665 )  
Accumulated deficit   (91,881,967 )     (91,833,338 )  
         
Total stockholders’ equity   11,454,115       11,530,681    
         
Total liabilities and stockholders’ equity $ 100,601,380     $ 79,812,285    
         

WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS
                 
                       
                       
        THREE MONTHS ENDED   NINE MONTHS ENDED  
        SEPTEMBER 30,   SEPTEMBER 30,  
          2026       2025       2026       2025    
        (Unaudited)  
REVENUES $ 45,066,908     $ 35,526,949     $ 123,642,520     $ 106,320,797    
COST OF REVENUES (including amortization and depreciation of                
$261,479, $424,411, $813,530, and $1,402,836, respectively)   38,881,325       30,251,637       106,012,455       91,149,722    
                       
GROSS PROFIT   6,185,583       5,275,312       17,630,065       15,171,075    
                       
OPERATING EXPENSES                
Sales and marketing   646,723       677,618       1,908,155       1,986,897    
General and administrative expenses (including share-based                
compensation of $110,241, $154,111, $533,892 and $518,988, respectively)   5,572,106       4,832,422       15,393,752       14,486,853    
Depreciation and amortization   171,382       225,908       580,768       682,718    
                       
Total operating expenses   6,390,211       5,735,948       17,882,675       17,156,468    
                       
LOSS FROM OPERATIONS   (204,628 )     (460,636 )     (252,610 )     (1,985,393 )  
                       
OTHER INCOME (EXPENSE)                
Interest income   68,191       83,439       257,350       226,209    
Interest expense   (42,445 )     (47,671 )     (131,277 )     (155,126 )  
Other income (expense), net   (70 )     93       49,358       590    
                       
Total other income (expense), net   25,676       35,861       175,431       71,673    
                       
LOSS BEFORE INCOME TAX PROVISION (BENEFIT)   (178,952 )     (424,775 )     (77,179 )     (1,913,720 )  
INCOME TAX PROVISION (BENEFIT)   13,057       134,410       (28,551 )     (12,013 )  
                       
NET LOSS $ (192,009 )   $ (559,185 )   $ (48,628 )   $ (1,901,707 )  
                       
EARNINGS PER SHARE, BASIC AND DILUTED $ (0.02 )   $ (0.06 )   $ (0.00 )   $ (0.20 )  
                       
WEIGHTED-AVERAGE SHARES OUTSTANDING, BASIC AND DILUTED   10,018,287       9,655,173       9,928,651       9,598,478    
                       

WIDEPOINT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS
             
             
             
        NINE MONTHS ENDED
        SEPTEMBER 30,
          2026       2025  
        (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (48,628 )   $ (1,901,707 )
Adjustments to reconcile net income (loss) to net cash provided by      
(used in) operating activities:      
Deferred income tax expense   10,200       50,200  
Depreciation expense   597,013       699,768  
Provision for credit losses   96,043       38,694  
Amortization of intangibles   798,015       1,385,786  
Share-based compensation expense   533,892       518,988  
Non-cash lease expense   213,288       164,883  
(Gain) loss on disposal of fixed assets   (49,043 )     8,161  
Changes in assets and liabilities:      
Accounts receivable and unbilled receivables   (11,942,864 )     6,784,375  
Inventories   (8,459,836 )     (712,121 )
Other current assets   (2,520,191 )     (1,542,224 )
Other assets   (825,435 )     161,150  
Accounts payable and accrued expenses   11,383,901       (1,124,995 )
Income tax payable   (76,746 )     (55,111 )
Deferred revenue and other liabilities   10,098,943       1,556,822  
Other liabilities   (198,896 )     (152,483 )
             
Net cash (used in) provided by operating activities   (390,344 )     5,880,186  
             
CASH FLOWS FROM INVESTING ACTIVITIES      
Purchases of property and equipment   (85,537 )     (140,918 )
Proceeds from the sale of property and equipment   49,043       –  
             
Net cash used in investing activities   (36,494 )     (140,918 )
             
CASH FLOWS FROM FINANCING ACTIVITIES      
Advances on bank line of credit   –       2,800,000  
Repayments of bank line of credit advances   –       (2,800,000 )
Principal repayments under finance lease obligations   (353,521 )     (412,299 )
Withholding taxes paid on behalf of employees on net settled equity awards   (551,768 )     (130,745 )
             
Net cash used in financing activities   (905,289 )     (543,044 )
             
Net effect of exchange rate on cash   12,074       (52,334 )
             
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH   (1,320,053 )     5,143,890  
             
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, beginning of period   12,466,493       7,817,395  
             
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, end of period $ 11,146,440     $ 12,961,285  
             
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH CONSISTED OF THE FOLLOWING:  
Cash and cash equivalents $ 10,103,515     $ 12,128,422  
Restricted cash   1,042,925       832,863  
             
        $ 11,146,440     $ 12,961,285  
             


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