WidePoint Corporation

Welcome to WidePoint's third 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 www.gateway-group.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 link in the Investor Relations section of the company's website at www.widepoint.com. Now I'd like to turn the call over to WidePoint's President and CEO, Mr. Jin Kang.

Thank you, Operator, and good afternoon, everyone. Thank you for joining us today to review WidePoint's financial results for the third quarter ended September 30, 2025. The progress we have recently experienced is a direct result of the strategic foundation built over the last few quarters, setting wide point up for sustainable growth and offering a glimpse into the margin of creative contract opportunities currently in our pipeline. While the past two quarters did not meet our expectations, largely due to opportunities shifting to the right, we took important steps to stabilize our cost structure while maintaining staffing levels and continuing to invest in our business. These actions have positioned YPoint for a strong finish to the second half of 2025 and enable us to capitalize on delayed pipeline opportunities throughout 2026. Revenues for the third quarter were $36.1 million, which was a modest 4% increase from last year. More importantly, we saw an encouraging turnaround in our adjusted EBITDA and free cash flow results. For the quarter, adjusted EBITDA was $344,000 and free cash flow was $324,000, representing not only our 33rd consecutive quarter of positive EBITDA and 8th consecutive quarter of positive free cash flow, but also an 88% and 260% sequential increase, respectively. We can confidently say we are back on the same growth trajectory we experienced throughout 2024. With many opportunities on the horizon, we remain confident in carrying this upward trajectory into Q4 and 2026. Bob will have additional details on our financial performance in his prepared remarks. Now, onto some operational highlights for the quarter. As we have continued to emphasize, YPoint's FedRAMP-authorized ITMS platform unlocks opportunities that were previously out of reach. We stand apart as the only SAS managed mobility platform with this status, positioning YPoint as true pioneers and setting YPoint clearly ahead of our competitors, who simply cannot match or compete with our capabilities, accreditations, and certifications. Our recent margin-accreted multi-year software as a service contract to deliver our FedRAMP authorized ITMS platform to one of the big three mobile telecommunication carriers in the United States serves as a strong validation of this advantage. As we have previewed in our last earnings call, this contract requires WidePoint's ITMS platform to serve as a system of record for 2 to 2.5 million devices across government telecom operations. We estimate that this single contract alone will generate 40 to $45 million in margin-accretive SaaS revenue over the initial three-year term. YPoint's ITMS platform will serve over 50 government clients and further establish us as the premier SaaS FedRAMP-authorized solution provider. This single contract validates our early investment in the FedRAMP process and highlights the advantage of being an early adopter. FedRAMP opens the door to large-scale, margin-accretive opportunities, enhances our access to major companies pursuing FedRAMP-authorized solutions, and support our anticipated growth trajectory. And as mentioned previously, FedRAMP in process is a minimum requirement for the upcoming DHS CWMS 3.0 contract. We strongly believe that FedRAMP-authorized status will receive a higher rating during the evaluation phase of the CWMS 3.0 Recompete. That said, I am pleased to announce that last Thursday afternoon, the final DHS CWMS 3.0 RFP was released. After reviewing the announcement, we found that the requirements are materially the same from the draft RFP that was released a few months earlier. The schedule announced in the final RFP states that the proposal are due by 17 December 2025. We anticipate that a decision on the winner will be announced 30 days from the proposal due date and contract awarded. Accounting for a potential protest of 30 to 60 days, we are optimistically targeting an award by late Q1 or early Q2 2026. We also recently received an extension to our CWMS 2.0 contract. a six-month extension consisting of a two-month base period, and four one-month options. We also have existing contract and task orders in place through November 2026 at a minimum under the current CWMS 2.0 contract. This includes the recent task order with the U.S. Customs and Border Protection, of which the ceiling of the task order exceeds $27.5 million. Revenue recognition for this task order began at the start of Q4, which will provide additional support for our year-end results and reinforce the growth momentum seen in Q3. As we have continued to communicate over the past year, and particularly after reviewing the final RFP, we are even more confident we possess all required certifications, meet every criterion, and with a proven track record as a two-time incumbent delivering exceptional results to the DHS, YPoint is well positioned as a prime contractor to secure this upcoming opportunity. We have invested significant time and resources into the preparation, and we look forward to capitalizing on this investment and securing this contract for the third consecutive time. For a quick update on Spiral 4, We have secured eight task orders year to date and four awards in the third quarter alone. We want to reiterate, while we are competing with some of the largest players in the industry, YPoint stands out as the only provider under Spiral 4 contract to provide multi-carrier and carrier independent solutions. The flexibility YPoint offers is a value added differentiator that is beginning to show in our pipeline. We are currently pursuing several opportunities that are larger in scale than our existing wins. While we are still in the early stages of the potential 10-year contract, we remain bullish in our ability to capture our fair share of the $2.7 billion ceiling. YPoint being awarded eight contracts at this early stage while competing with some of the largest players in the industry is a strong proof point of what the future may hold for us and show that we can punch above our weight class. We are showcasing that we have the capabilities required to compete alongside the six other companies under Spiral 4. And we believe that FedRAMP will emerge as a meaningful differentiator under this contract vehicle. And we remain bullish and opportunistic in our ability to capture additional awards for the next decade. Jason will expand on this topic shortly, but to provide an update on our device as a service for DAS solutions. We are continuing to invest in the logistical infrastructure to further strengthen our ability to manage large-scale opportunities and position the organization for future growth. Our pipeline remains strong, and we remain confident that the opportunities originally expected this year that were delayed will materialize in the coming year. Shifting to Census 2030. The latest request for information was issued in August 2025. and we have since submitted our response. From our perspective, the timing of activities mirrors that of Census 2020, and activities are already underway. We anticipate a very similar scope of work and support requirements for the 2030 activities and continue to align closely with CDW as we progress. While we are still several years away from any significant developments, we are strategically positioning ourselves for success now. At this time, the Y point has no immediate material impact from the government shutdown. However, with the government operating at reduced staffing levels, we may see a slowdown in activities if the shutdown persists. Additionally, the execution of several opportunities in our pipeline have been delayed. However, we remain confident in our ability to secure these deals after the shutdown and any associated lag. Bob will highlight later in the call, but our current cash balance is more than sufficient to sustain operations, even if the government shutdown extends longer than anticipated. We are confident that the first half of the year was an outlier, and we expect adjusted EBITDA and free cash flow growth demonstrated in this quarter to extend into Q4 and 2026. Overall, we remain optimistic for the remainder of the year. The steps we have already taken throughout, combined with opportunities delayed from earlier this year, positions us well for sustainable growth in 2026. I will now turn the call over to Jason, who will walk you through our sales pipeline and upcoming opportunities. Jason.

Thanks, Jen, and good afternoon, everyone. Beginning in the fourth quarter of last year, we increased staffing and invested in the business in anticipation of robust opportunities within our pipeline. Although these opportunities have slightly shifted to the right, we made the strategic decision to maintain and continue those investments as we believe these capabilities will support and sustain our long-term growth. Our sales pipeline remains strong and we were able to begin realizing it through our recent contract with a major and leading U.S. telecommunications carrier. The estimated 2 million to 2.5 million devices we expect to manage under this contract highlight the strategic value of ITMS's FedRAMP authorized status and positions WidePoint as a leader in a market where competitors struggle to meet such rigorous demands. Although we cannot name the customer, The carrier's decision reinforces our agility and capability to satisfy the stringent security and compliance standards of federal government clients. This contract represents only a glimpse of the margin of creative SAS revenue opportunities that we are actively pursuing with our FedRAMP authorized ITMS. While officially securing these opportunities requires patience, Even landing a single award can meaningfully enhance our financial position and specifically our bottom line results. We are pleased to finally showcase a glimpse of the margin accretive opportunities ahead, and I look forward to executing and delivering results. Shifting to DAS, we are continuing to invest in the infrastructure supporting our DAS solution and recently completed the implementation of our initial DAS win with our federal health agency partner. As we mentioned previously, the majority of DAS opportunities are commercial clients, and we continue to advance discussions with leading firms across industries such as manufacturing, healthcare, financial services, and public IT sectors. Many of the opportunities in our pipeline are with Fortune 100 companies that typically manage large fleets of devices. We are currently awaiting award decisions from several of these organizations and remain optimistic about beginning to secure these opportunities in 2026 to further propel our growth. While we cannot disclose the potential range of devices to be managed, the predictability of the DAS business model allows us to forecast the material impact of these opportunities. In fact, we believe securing even one of the opportunities in our pipeline could produce meaningful results, particularly given the scale of device fleets managed by these Fortune 100-sized companies. We are also aligned with our strategic partner, CDW, and are in discussions on the final terms and conditions to support our partner. We stand ready to support the upcoming LA28 Olympics and Paralympics if called upon. This event is estimated to involve approximately 95,000 to 135,000 athletes and support personnel and similar number of devices to be managed. We will be providing our ITMS platform to help secure, manage, and provide visibility into the devices that will be utilized during this historic event. Our platform will be delivered using a SAS model. Shifting to mobile anchor. We have a premier federal government systems integrator in our Mobile Anchor pipeline and are in the process of implementing a project for a major defense contractor for their derived ID certification program. We remain optimistic about the future of Mobile Anchor and plan to continue innovating the product to further generate market interest and drive demand. We're focused on the right opportunities and investing in initiatives that lay the foundation for long-term sustainable growth. This past quarter was only the tip of the iceberg, and we're excited to build on this momentum as we close out the year and head into 2026. I will now pass the call over to Bob for our third quarter financial overview. Bob?