WidePoint Corp (WYY)
AMEXInformation TechnologyInformation Technology ServicesSnapshot 2026-09-04
$10.92-4.13%
Close 2026-09-04 · 1-day change
AMEXInformation TechnologyInformation Technology ServicesSnapshot 2026-09-04
Warn: Management is running behind on a stated commitment.
WidePoint is returning to profitability after losses. Revenue is expected near $42.5 million in 2026. The company won a key DHS contract supporting growth. Free cash flow is forecasted around $2.6 million in 2025.
The company is still loss-making and faces high risk. Recent sharp stock selloff shows investor concern. Revenue growth and profitability could fail to normalize as planned.
The price is about 28% above our fair value near $15. Analysts expect 24% revenue growth. Our view is cautious given the turnaround risks and recent volatility.
Breaks if: free cash flow falls below $2.4M in FY25
Breaks if: losses persist beyond H2 2026
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with a focus on stabilizing operations and expanding revenue through new contracts. The current thesis state indicates mixed results, with management aiming to normalize financial performance in the second half of 2026.
The market appears to have priced in a low expectations gap, indicating that WYY is seen as relatively cheap compared to its peers. However, the valuation has recently risen, suggesting that some positive sentiment may be building despite ongoing challenges.
Fundamentals are expected to remain mixed in the near term. Management's focus on generating stable SaaS revenue and expanding its contract portfolio is ongoing, but recent revenue declines suggest limited progress so far.
The long-term thesis hinges on management's ability to deliver on its revenue targets and the impact of external factors like potential Fed rate cuts and performance of sector peers. Any guidance cuts in upcoming calls could negatively affect sentiment.
The most important moves since the prior daily snapshot.
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Management aims to normalize financial results in the second half of 2026 after a challenging first half.
Stated as a priority in 2 of last 2 quarters. Revenue declined from $40.6M in 2026-Q1 to $38.0M in 2026-Q2, while operating income improved from -$58K to $10K. Management's expectation to normalize results in H2 2026 is persistent, with early signs of operating income improvement but revenue slightly declining, indicating limited progress so far.
“we expect these results to normalize in the second half of 2026”
“we expect these results to normalize in the second half of 2026”
Breaks if: revenue falls below $40M in FY26
Management aims to normalize financial results in the second half of 2026 after a challenging first half.
Stated as a priority in 2 of last 2 quarters. Revenue declined from $40.6M in 2026-Q1 to $38.0M in 2026-Q2, while operating income improved from -$58K to $10K. Management's expectation to normalize results in H2 2026 is persistent, with early signs of operating income improvement but revenue slightly declining, indicating limited progress so far.
“we expect these results to normalize in the second half of 2026”
“we expect these results to normalize in the second half of 2026”
Over the next 1 to 3 years, WYY's performance will depend on its execution of strategic priorities and external market conditions. Not investment advice.