From The Motley Fool · Motley Fool Transcribing · · 1m 50s
WidePoint Q3 2026 Earnings Report
WidePoint reports 27% revenue growth despite DHS contract delays.
In brief
WidePoint reports 27% revenue growth despite DHS contract delays. WidePoint's Q3 revenue rose 27% to $45.1 million as it navigates DHS contract delays and prepares for ATV contract launch in Q4. Originally reported by The Motley Fool.
Q3 Revenue Growth
Total revenue increased 27% year over year to $45.1 million.
DHS Contract Delays
GAO sustained protest on CWMS 3.0 award creating near-term disruption.
Carrier Services Revenue
Carrier services revenue rose to $26.3 million from $20.4 million last year.
Managed Service Fees
Managed service fees increased to $10.9 million with additional U.S. Customs and Border Protection task orders.
Reselling Activities
Reselling revenue grew to $6.7 million from $4.3 million with Digital Seabag sales to U.S. Coast Guard.
Gross Profit
Gross profit reached $6.2 million or 14% of revenue, up from 15% last year.
Net Loss
Reported net loss of $192,000 or $0.02 per share compared to $559,000 last year.
Bridge Contracts
40 new task orders valued at $33.7 million under DHS bridge contracts.
ATV Contract
ATV contract launch expected in Q4 with post-quantum cryptography security upgrades.
SEWP VI Contract
SEWP VI ordering period began November 1, 2026 with dedicated program management office.
Federal Backlog
Federal backlog totaled $209 million as of September 30, 2026.
New Task Orders
40 task orders valued at $33.7 million under DHS bridge contracts.
Compliance Costs
Estimated compliance costs of $800,000 expected in second half of 2026 for SEC transition.
Capital Expenditures
Projected capital expenditures of $400,000 for remainder of 2026 and $2 million in 2027.
Device-as-a-Service
8,000 Digital Seabag units expected to be delivered to U.S. Coast Guard by Q4 2026.
Leadership Transition
Chief Financial Officer Robert George stepping down to focus on personal priorities.
The headline
WidePoint's Q3 revenue rose 27% to $45.1 million as it navigates DHS contract delays and prepares for ATV contract launch in Q4.
