WidePoint Corporation

Good afternoon, and welcome to WidePoint's fourth quarter and full year 2025 earnings conference call. My name is Matthew, 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'll open the call for questions from WidePoint's Publishing Analyst and major investors. If your questions were not taken today and you'd like additional information, please contact WidePoint's investor relations team at wyy at 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 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-K filed with the Securities and Exchange Commission. Finally, I'd like to remind everyone that this call will be made available for replay via a 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. Sir, please proceed.

Thank you, Operator, and good afternoon, everyone. Thank you for joining us today to review our financial and operational results for the fourth quarter and pool year ended December 31, 2025. To begin, I'd like to immediately address the topic that is top of mind for all stakeholders, provide some clarity, and reaffirm YPoint's competitive positioning for the Department of Homeland Security, CWMS 3.0. As many of you are aware, the timing of the CWMS 3.0 award has experienced continued delays that are out of our control. It is important to emphasize that these delays are entirely the results of broader federal government headwinds over the past several months, including government and DHS shutdowns, funding disruptions, and DHS leadership changes, and are not indicative of any change to YPoint's competitive standing or prospect for award. The competitive strengths we offer DHS continue to distinguish us from other competitors in the award process. Some of our competitive advantages include our FedRAMP authorized status, robust past performance, ITMS being the command center platform and system of record for DHS, small business classification, facility security clearance, alignment across the new statement of work, and the best value to government. Our confidence and positioning remains unchanged, and we firmly believe Y-Point is the most qualified partner for DHS. As discussed during last quarter's call, we received a six-month extension under the CWMS 2.0 contract consisting of a two-month base period followed by four one-month option periods. This extension provides DHS flexibility through May 24, 2026 to either announce the CWMS 3.0 award winner or issue an additional extension. When all current and pending task orders are considered, approximately 80 million in contract ceiling remains under the CWMS 2.0 contract. As such, we expect to see some form of an update from DHS by the middle of the second quarter. whether it be the CWMS 3.0 award announcement or another extension period under the CWMS 2.0 contract. We believe YPOINT is well positioned under either outcome. An extension would allow us to continue performing our work under the existing CWMS 2.0 contract with no material impact on our day-to-day operations. If an award decision is announced during the quarter, we continue to believe WidePoint is the best position to win the re-compete. In the meantime, WidePoint will continue to operate business as usual. Rest assured, we will remain fully engaged and proactive in supporting VHS and CWMS 3.0 will remain top priority for our organization as we navigate these uncertain times. WidePoint's operation and business continuity remains resilient as we successfully weathered the government shutdown in late 2025 and the current DHS shutdown. With the current DHS shutdown, we are still seeing activities ongoing for operations and administrations at DHS. Invoices are still being processed, contracts and task orders are continuing to actively be modified, and we have not seen any material slowing of administrative activities. While we have no insight into how long this current shutdown will persist, YPOIN remains well equipped to adapt. Moving on to some Q4 highlights, we ended on a high note following some of the headwinds experienced during the first half of 2025. As outlined in our Q3 earnings call, the strategic steps taken to stabilize a cost structure while maintaining staff levels and continuing to invest back into the business positioned us to deliver stronger results during the second half of 2025. TU4 revenues were $42.3 million, adjusted EBITDA was approximately $460,000, and free cash flow was $335,000, representing the 34th consecutive quarters of positive adjusted EBITDA, 9th consecutive quarters of positive free cash flow, and growth on a sequential basis. Sequential growth is a trend we expect to continue, especially as we begin to recognize revenue under the SAS carrier contract. and begin to land our DAS opportunities in the pipeline. Q4 presented a glimpse into our robust margin of creative contract pipeline. Back in November, we were awarded a 40 to 45 million SAS contract to deploy our ITMS platform for a major mobile telecom carrier. We are progressing through the implementation process at this stage, and we continue to remain on track to begin recognizing the margin of creative SAS revenue under this contract, starting in the second half of 2026. As we begin to scale the number of devices managed under this contract, we expect to see notable quarterly enhancements to our margin profile and growth across our bottom line results. Additionally, last October, we announced a managed mobility contract with the U.S. Customs and Border Protection under the CWMS 2.0 contract. This award has a period of performance of one base year and one option period extending through December 2026, with total task order ceiling exceeding $27.5 million. We are pleased to announce the period of performance under this contract started in October, which has supported our Q4 results and will continue to do so for the future quarters. We remain confident in CBP eventually extending the period of performance beyond the one-year base period. An important development over the past several months has been our initiative to transition select existing clients towards an as-a-service model. Jason will expand on the strategy behind this initiative, but we are pleased to share that we are currently working to migrate two IT MSP clients to our DAS model, which we expect will enhance revenue visibility. While delay and contract award can be frustrating, they are typical in working with large enterprises that are prospective customers to a wide point. However, we recognize that these processes can take time, often longer than expected, and we remain flexible and responsive as we work to meet our potential future customers' needs and requirements. we remain hopeful and cautiously optimistic about landing a number of opportunities in our pipeline throughout 2026. We are fully committed to working through any potential headwinds, whether timing-related delays or other external headwinds, and demonstrating to our shareholders the strength and depth of our pipeline. With that, I'll now hand the call over to Jason, who will provide additional insight into our sales and marketing initiatives. Jason.

Thanks, Jim, and good afternoon, everyone. Over the past several quarters, we've continued to highlight the depth and quality of Widepoint's commercial and government pipeline. As we've discussed, the SAS contract with one of the three major carriers awarded in Q4 served as a major accomplishment and shows the types of opportunities currently in our pipeline. Implementation under this agreement continues to progress. We recently completed a portion of the minimum viable product or MVP functionality testing and are currently awaiting additional data sets from the carrier to complete further functionality testing. Overall, progress remains very positive and we expect material growth under this agreement over time. Devices of Service continues to present immense upside potential, and we believe will deliver a compelling ROI as these opportunities materialize. Q4 marked the official opening of our DAF facility in Columbus, Ohio. Since then, we've begun supporting large mobile equipment configuration and accessory sales depot maintenance for IT as a service customers, and device recycling activities. We are pleased to have the infrastructure in place and ready to execute, and we are now awaiting final approvals from the prospective clients to move forward and begin contract performance. As we've consistently emphasized, these discussions are with large commercial and government enterprises, including several Fortune 100 organizations. While timelines can be extended, we remain cautiously optimistic that a number of these opportunities will convert, which will allow us to finally demonstrate the scale and potential of our DAS offerings. Additionally, WidePoint's staff offering has the potential to play a role in the upcoming LA 2028 Olympic and Paralympic Games. We are actively in discussions with CDW regarding how WidePoint can support their efforts as a subcontractor for this large-scale event. As a longtime strategic partner, WidePoint recently supported CDW's activities at the Winter Olympics in Italy, and our solutions align seamlessly with their needs. We look forward to continuing to build on this long-standing partnership and supporting LA-28 when called upon. We remain confident that our DAS pipeline will materialize, especially given the value that our solutions provide. Mobile Anchor continues to grow with a number of clients. Specifically, HUD OIG is entering into its second year and expanding our WidePoint derived credentials. We are also in a Mobile Anchor pilot with the DOJ to upgrade their derived credentials to WidePoint's capabilities. Phase one of the pilot is for 1,000 credentials with the goal of growing up to 130,000 credentials by 2027. Mobile Anchor is close to getting another pilot with Treasury, duplicating the same scope as the DOJ with the potential for 120,000 derived credentials. We are progressing nicely with the FAA with the goal of getting to 90,000 credentials Additionally, we are in early discussions with the Department of Energy, consisting of multiple national labs and technology centers. Stay tuned for additional updates. Lastly, as Jen mentioned, we have begun engaging select clients to begin shifting them towards an as-a-service delivery model. We are receiving very positive feedback from our current customer base that are wanting to make the switch. With WidePoint opening its DAS logistics facility, this gives us several additional offerings that are once again being very well received by the current customer base. Stay tuned for additional information on future calls regarding the exciting expansion. With that, I will now turn the call over to Bob to discuss our financial results. Bob?