--- title: "Widepoint | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 40.58 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286461744.md" datetime: "2026-05-14T20:18:14.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286461744.md) - [en](https://longbridge.com/en/news/286461744.md) - [zh-HK](https://longbridge.com/zh-HK/news/286461744.md) --- # Widepoint | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 40.58 M Revenue: As of FY2026 Q1, the actual value is USD 40.58 M, beating the estimate of USD 38.07 M. EPS: As of FY2026 Q1, the actual value is USD 0.01. EBIT: As of FY2026 Q1, the actual value is USD -100.78 K. WidePoint Corporation operates as a single segment for financial reporting purposes, with performance evaluated based on consolidated revenue, gross profit, and net income (loss). #### Total Revenues Total revenues for the three months ended March 31, 2026, increased by 21% to $40,576,030, up from $33,510,039 in the same period of 2025. #### Segment Revenue Breakdown - **Carrier Services Revenue**: Increased by $3,382,741 to $25,784,040 in Q1 2026, from $22,401,299 in Q1 2025, primarily due to growth in phone lines managed for the Department of Homeland Security (DHS) customer. - **Managed Services Revenue**: Increased by $3,683,250 to $14,791,990 in Q1 2026, from $11,108,740 in Q1 2025. - Managed Service Fees rose by $751,806 to $9,289,806, mainly due to an additional task order with Customs and Border Protection. - Billable Service Fees decreased by -$503,890 to $1,278,306, impacted by a partial shutdown of the DHS. - Reselling and Other Services increased by $3,435,334 to $4,223,878, partly due to the absence of a prior-year out-of-period adjustment and higher revenue from certain contracts. #### Revenue by Customer Type - U.S. Federal Government: $34,411,929 in Q1 2026 vs $29,093,879 in Q1 2025. - U.S. State and Local Governments: $86,338 in Q1 2026 vs $96,822 in Q1 2025. - Foreign Governments: $16,223 in Q1 2026 vs $15,408 in Q1 2025. - Commercial Enterprises: $6,061,540 in Q1 2026 vs $4,303,930 in Q1 2025. #### Revenue by Geographic Region - United States: $39,573,706 in Q1 2026 vs $32,508,871 in Q1 2025. - Europe: $1,002,324 in Q1 2026 vs $1,001,168 in Q1 2025. #### Operational Metrics - **Cost of Revenues**: Total cost of revenues increased to $34,978,404 (86% of revenues) in Q1 2026, from $28,731,518 (86% of revenues) in Q1 2025. Carrier costs paid for federal government customers were $25,170,327 in Q1 2026, up from $21,684,683 in Q1 2025. - **Gross Profit**: Increased by $819,105 to $5,597,626 (14% of revenues) in Q1 2026, from $4,778,521 (14% of revenues) in Q1 2025. - Gross profit from Carrier Services was 2% in Q1 2026, down from 3% in Q1 2025. - Gross profit from Managed Services was 34% in Q1 2026, down from 37% in Q1 2025, attributed to slightly higher labor costs and more reselling revenues with lower margins. - **Loss from Operations**: Improved to -$58,366 in Q1 2026, from -$816,431 in Q1 2025. - **Sales and Marketing Expenses**: Remained consistent at $595,997 (1% of revenues) in Q1 2026, compared to $639,482 (2% of revenues) in Q1 2025. - **General and Administrative Expenses**: Increased slightly to $4,832,023 (12% of revenues) in Q1 2026, from $4,731,782 (14% of revenues) in Q1 2025, primarily due to higher share-based compensation, partially offset by deferred internal IT labor costs. - **Depreciation and Amortization**: Consistent at $227,972 in Q1 2026, compared to $223,688 in Q1 2025. - **Net Income (Loss)**: Improved significantly to $76,960 in Q1 2026, from a net loss of -$724,063 in Q1 2025. #### Cash Flow - **Net Cash Used in Operating Activities**: -$922,487 in Q1 2026, compared to -$3,227,591 in Q1 2025, driven by increases in accounts receivables, partially offset by temporary payable timing differences. - **Net Cash Used in Investing Activities**: -$28,789 in Q1 2026, compared to -$27,632 in Q1 2025, primarily for purchases of property and equipment. - **Net Cash Used in Financing Activities**: -$238,474 in Q1 2026, compared to -$234,977 in Q1 2025, reflecting finance lease principal repayments and withholding taxes paid on behalf of employees for restricted stock awards. #### Unique Metrics - **Net Working Capital**: Approximately $2.8 million at March 31, 2026, compared to $2.3 million at December 31, 2025. - **Accounts Receivable, Net**: $19,194,132 at March 31, 2026, compared to $15,002,571 at December 31, 2025. - U.S. Federal, State, and Local Government receivables: $15,077,116 at March 31, 2026, vs $12,598,664 at December 31, 2025. - Commercial receivables: $4,166,614 at March 31, 2026, vs $2,461,361 at December 31, 2025. - **U.S. Federal Government Concentration**: Represents 78% of total accounts receivable at March 31, 2026, and 85% of total revenue for Q1 2026. - **Unbilled Accounts Receivable**: $37,711,894 at March 31, 2026, vs $33,548,228 at December 31, 2025, with U.S. Federal Government accounting for 99% of unbilled receivables at both periods. - **Goodwill**: $5,811,578 as of March 31, 2026, with no changes during the three months ended March 31, 2026 and 2025. - **Intangible Assets, Net**: $3,073,788 as of March 31, 2026, compared to $3,352,296 at December 31, 2025. Amortization expense was approximately $278,500 in Q1 2026, compared to $480,600 in Q1 2025. - **Share-based Compensation Expense**: $248,817 in Q1 2026, compared to $198,859 in Q1 2025. #### Future Outlook and Strategy WidePoint Corporation aims to expand its critical mass to fund technology investments and sales/marketing initiatives, seeking increased market share and broader offerings for sustainability and growth. For fiscal year 2026, key goals include securing the LA 28 contract, obtaining Device-as-a-Service (DaaS) contracts with Fortune 500 companies to improve gross margins, and fully implementing cellular carrier SaaS contracts for government customers by Q2. 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