WidePoint Corporation

Welcome to WidePoint's first quarter 2025 earnings conference call. My name is Kelly and I will be your operator for today's call. Joining us for today's presentation are WidePoint's President and CEO, Jin Kang, Chief Revenue Officer, Jason Holloway, and Chief Financial Officer, Robert George. Following their remarks, we will open up the call for questions from WidePoint's publishing analysts and major investors. If your questions were not taken today and you would like additional information, please contact WidePoint's Investor Relations team at wyy-gateway-grp.com. Before we begin the call, I would like to provide WidePoint's Safe Harbor Statement that includes cautions regarding forward-looking statements made during this call. The matters discussed in this conference call may include forward-looking statements regarding future events and the future performance of WidePoint Corporation that involve risks and uncertainties that could cause actual results to differ materially from those anticipated. These risks and uncertainties are described in the company's Form 10-Q filed with the Securities and Exchange Commission. Finally, I would like to remind everyone that this call will be made available for replay via the link in the investor relations section of the company's website at www.widepoint.com. Now, I would like to turn the call over to WidePoint's president and CEO, Mr. Jin Kang. Please go ahead.

Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to review WidePoint's financial and operational results for the first quarter ended March 31, 2025. Given that we recently held our full-year earnings call, today's discussion will be more concise. Before we dive into the quarterly highlights, I want to briefly address a one-time auto period accounting adjustment recorded this quarter. During our first quarter review, we identified and corrected an error related to the timing of revenue recognition on certain reselling contracts. As a result, we recorded an out-of-period adjustment which reduced revenue by approximately $2.7 million and cost of revenue by approximately $2.5 million. After a thorough evaluation, we concluded that this adjustment is not material to any previously reported periods and is not expected to be material for the full year 2025. Bob will provide further details on this adjustment along with a broader financial overview later in the call. Turning to operational highlights, as we shared during our recent earnings call, Q1 was marked by two major milestones. First, we achieved FedRAMP authorized status for our ITMS solution, a long anticipated accomplishment. While I won't go into the technical specifics here, I want to emphasize the significance of this milestone. It reflects our continued commitment to delivering secure, compliant solutions and clearly differentiates us in the marketplace. With ITMS now listed on the FedRAMP marketplace, our solution is more visible and accessible to a broader range of federal agencies, expanding our pipeline of opportunities. The second milestone was a new task order we were awarded under the Spiral 4 contract to provide managed mobility services to a combat support agency within the U.S. Department of Defense. As we mentioned previously, this award is a strong indicator of growing momentum under the Spiral 4 contract. Building on that, we're pleased to report that we received two additional task orders under the Spiral 4 this quarter. Although combined value of these two awards is less than the initial task order, the increasing level of activity is a positive sign. With many Spiral 3 task orders set to expire at the end of this month, we expect a continued uptick in new awards under Spiral 4. Our team remains laser focused on capturing these opportunities, and we are confident we'll have more to report by the next earnings call. I'll turn things over to Jason shortly for a deeper dive into the sales pipeline, but I want to reiterate how encouraged we are by our year-to-date progress. Our device-as-a-service offerings is gaining real traction. Spiral 4 momentum is building, and we are actively pursuing a strong pipeline of opportunities across multiple stages. To position ourselves for success, we plan to invest strategically, including new hires, to ensure we are fully resourced to execute as these opportunities materialize. Bob will provide more details on our planned capital investments shortly. Amid today's political dynamics and ongoing economic uncertainty, WidePoint remains aligned with federal government's current focus on reducing waste, fraud, and abuse. Our mission helping agencies lower costs while improving efficiency is well matched with these priorities. We are actively working with key stakeholders to increase awareness of our solutions within the current administration, including efforts with Doge. While we remain cautiously optimistic, we see this alignment as a potential tailwind for our business. It's worth noting that while some government agencies have faced budget constraints, Others, such as DHS and DOD, have received increases with DOD securing its largest budget to date. YPoint's value proposition has consistently resonated with these agencies, and we believe our offerings will remain essential, even in today's environment. Before we get into our guidance, I'd like to revisit our four strategic priorities we outlined last quarter. One, deepen our relationship with existing partners while building new ones. Our device as a service initiative is a strong example of this action. Two, prepare for the upcoming DHS CWMS 3.0 recompete. We continue to believe we're best positioned to win this contract again. Three, commercialize our new solutions, mobile anchor and M365 analyzer. And four, deliver positive earnings per share for 2025, which remains a key focus given our current momentum. With that in mind, here is our guidance for 2025. Revenue, 154 million to 163 million. Adjusted EBITDA, 2.8 million to 3 million. Free cash flow, 2.4 million to 2.6 million. And as noted, our goal remains achieving positive earnings per share this year. We remain confident in our outlook and are fully committed to delivering long-term value for our shareholders. With that, I'll now turn the call over to Jason to walk you through our sales pipeline and upcoming opportunities. Jason.

Thanks, Jen, and good afternoon, everyone. Despite the ongoing economic uncertainty, our sales pipeline continues to remain robust with many exciting opportunities in development. As Jen noted, we were awarded two additional task orders under the Spiral 4 contract this quarter, a positive indicator of continued momentum across this contract vehicle. Beyond these recent wins, we currently have several task orders in development and have already submitted multiple responses to active RFQs. I remain confident that we'll have more task order announcements to share throughout the second and third quarters. To support this anticipated momentum, We are strategically expanding our internal team dedicated to the Spiral 4 initiative. These hires reflect our ongoing commitment and strong confidence in our ability to secure and execute meaningful work through this contract vehicle in the years ahead. We are also actively engaging with key political insiders to raise awareness of White Point's capabilities and service offerings, which are closely aligned with the priorities and mission of DOGE. These efforts are part of a broader strategy to position WidePoint as a valuable partner in advancing the current administration's objectives, which we began over a decade ago. We continue to remain cautiously optimistic that these relationships will generate positive momentum and strategic advantage for WidePoint over the long term. Shifting to our device as a service program, we continue to see strong and sustained momentum as interest and engagement continue to grow. In preparation for this opportunity, similar to Spiral 4, we are strategically investing additional resources to ensure we are well positioned for success. This includes the establishment of the dedicated DAS facility, and the onboarding of new personnel to support anticipated demand. In parallel, we are working closely with our strategic partners to actively advance the opportunities that are currently in our pipeline. Together, we are focused on converting these prospects into tangible outcomes and accelerating progress toward full program execution. Across our Smart City initiative, we are seeing several promising developments beginning to take shape. This opportunity originated from one of our key governmental partners. Our ongoing work in the Smart City Initiative with 22 Vets to deliver non-federal smart card credentials demonstrates strong alignment with broader global efforts. On this front, we have already been awarded a contract for a pilot project with a global energy conglomerate to provide credentialing support for their internal elevated privileged users. The synergies between our approach and the priorities of other countries and entities clearly show the relevance and scalability of our solution. While we are not in a position to disclose specific details at this time, we are encouraged by the direction of these discussions and anticipate having meaningful updates to share later this year. Another major initiative on the horizon for WidePoint is an upcoming partnership opportunity with a prominent satellite company in support of a global initiative. This effort represents a multifaceted engagement that leverages several of our key offerings. At the core of this opportunity is our Intelligent Technology Management System, or ITMS, which will provide advanced capabilities for managing deployed satellite-related assets while also integrating our PKI-based identity and access management. We are actively working alongside our chief strategist of government efficiency in cybersecurity to cultivate new strategic partnerships to bring this initiative to fruition. I look forward to providing further substantive updates on this scalable opportunity in the months ahead. As we highlighted during last quarter's call, leveraging strategic partnerships has been a core priority for us in 2025. The opportunities I've mentioned thus far represent just a portion of the broader potential we are seeing across the board. WidePoint's strong reputation, built on a track record of successful execution and trusted relationships with many of our valued clients, continues to open doors for new engagements. This demonstrated credibility continues to encourage our partners to pursue additional collaborative ventures with us. This is precisely why we've made it a priority to deepen our engagement with existing partners while also cultivating new partnerships that can further expand our reach and output. These partnerships remain critical to our long-term growth strategy and our ability to deliver innovative solutions at scale. WidePoint will continue to invest in our sales and marketing capabilities to build on the measurable success we've achieved since making this a strategic focus. These investments have proven to be instrumental in driving visibility, engagement, and growth across our core markets. Looking ahead, we see a bright future filled with compelling opportunities on the horizon. Strategic partnerships will continue to play a central role in our forward momentum, and we are already beginning to see meaningful early returns from these collaborative efforts. As these initiatives mature, I look forward to sharing more substantive updates in the months ahead. With that, I will now turn the call over to Bob to discuss our financial results. Bob?