WidePoint Corporation

Good afternoon. Welcome to WidePoint's first quarter 2026 earnings conference call. My name is Holly 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 at gateway-grp.com. Before we begin the call, I would like to provide WidePoint's safe harbor statement that includes questions 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 and 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 a 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. Jim King. 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 first quarter ended March 31, 2026. Given we recently held our full-year earnings call, today's discussion will be brief. We are pleased to announce the strong momentum we experienced exiting 2025. For the first quarter of 2026, we achieved revenue of $40.6 million, adjusted EBITDA of $752,000, and free cash flow of $674,000. Additionally, we are pleased to report positive EPS for the first quarter. These results will serve as a strong foundation as we move through the rest of the year. As we look ahead, our outlook for 2026 is largely driven by two key factors, with the CWMS 3.0 contract being top of mind. A few weeks ago, Congress ended a record-long shutdown of DHS by approving funding for the majority of agencies under DHS. While this funding excludes CBP and ICE, the broader funding and opening of DHS ends a prolonged period of uncertainty for DHS. We view this encouraging development as a major tailwind for the pending CWMS 3.0 award and a catalyst to propel YPoint forward. We continue to believe that we are in the best position to capture the CWMS 3.0 award. The depths of our services, certifications, and qualifications is uniquely aligned with DHS's need and cannot be matched by our competitors. The remaining variable now is the timing of the award. With the majority of DHS now fully funded, we believe the CWMS 3.0 award could be announced at any time. That said, DHS may choose to wait until CBP and ICE are funded before making an official award announcement. In early May, the Senate Judiciary Committee and Senate Homeland Security Committee unveiled an approximate $72 billion budget reconciliation bill to fund both ICE and CBP through 2029. The progress to officially fund all agencies under DHS is encouraging for the CWMS 3.0 timeline and is something we will monitor closely. With that said, we are continuing to receive and process task order awards, with many extending into Q1 2027 and some even into Q2. We are also happy to report that just last week we received a contract modification that extends the ordering period of the CWMS 2.0 to June 24, 2026. We are particularly encouraged that it was only extended for one month, which leads us to believe that an update from DHS will be provided by the new contract end date. We remain eager to hear from DHS soon. We believe that even if an award is announced before June 24th, an additional extension under the 2.0 contract may still be needed, as DHS may need to account for a protest period after the official 3.0 award announcement. Currently, there is $100 million in ceiling remaining under the 2.0 contract, which should be more than sufficient to fund the contract extensions if necessary. That said, we believe that we are beyond the biggest hurdle for the CWMS 3.0 award. We will continue to monitor this situation closely, and we hope to hear the official award within the next few weeks. We will provide any updates as they become available. The second factor that will shape the outlook for the remainder of 2026 is the implementation process under the carrier contract with one of the big three U.S. carriers. We continue to remain on track to complete the initial implementation and begin recognizing revenue under this contract in the second half of 2026, as stated in the last quarter's earnings call. A key driver is the carrier's current platform will no longer be viable at the end of Q2 2026. And without YPoint's ITMS platform in place, the carrier will be forced to operate without a compliant system. We believe this is a strong indicator of urgency. which we view as a strong tailwind for the second half of the year and into 2027. Beginning to recognize a SaaS revenue over the next three years under this contract will be critical for YPoint's future margin profile trajectory. As a reminder, there will be a ramp-up period as the number of managed devices scales, though by the end of 2026, we expect our ITMS platform to be managing approximately one-third of all of the devices currently covered under the contract. As our future outlook remains influenced by these two contracts, we will be holding off providing concrete full-year guidance until these two factors are officially addressed. While our confidence remains high and both contracts continue to benefit from strong momentum and urgency, we want to ensure that any guidance we provide is not premature or artificially conservative. Our goal is to provide guidance grounded in clarity and visibility to ensure a more accurate and transparent view into our 2026 trajectory and expectations are provided to the shareholders. We do believe that White Point is well-positioned to achieve double-digit percentage growth from 2025 results and continue to maintain positive adjusted EBITDA and free cash flow throughout 2026. While CWMS 3.0 and carrier contract will remain our foundation, we want to reiterate the robust nature of the DAS pipeline we hold. We believe that landing one of these Fortune 100 commercial opportunities could materially impact our growth trajectory as well. These conversations are still ongoing, and we hope to provide more concrete developments later this year. Much of the work and strategic investments WidePoint has made over these past several years are now beginning to come together and bear fruit. We remain highly confident and optimistic about the breadth of opportunities developing in our pipeline and look forward to sharing additional details as these initiatives continue to materialize. I will 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. As Jen outlined, progress within the carrier contract is an important initiative. I am happy to report that we are progressing through the functionality testing, which is a fundamental driver that gives us confidence we will complete the implementation and begin delivering services on schedule, which is slated for the second half of the year. Another encouraging development under the contract is that the carrier has requested to add additional functionality. This speaks to the excellent service and how the carrier has been pleased so far through the process. Importantly, this additional request does not change our overall timeline. We plan to go live in the second half of 2026 following completion of the initial implementation and functionality testing and simultaneously begin testing the new functionality requested by the carrier. A new development this past quarter was securing the managed services with a leading national beverage bottler. As part of this engagement, the bottler has authorized and granted YPoint's VP of Procurement and Vendor Management exclusive access to its procurement and inventory systems. This was traditionally a responsibility within the national bottler's internal IT leadership team. And now our own WidePoint personnel will directly oversee and enhance procurement operations, improve cycle efficiency, and enable more consistent data-driven decision-making across the bottler's supply chain. This new development now makes WidePoint the exclusive provider for the national bottler to create new opportunities for cost, discipline, and operational improvement. Last quarter, we noted that we were actively working with select clients to transition towards an as-a-service model. WhitePoint offers both IT as a service and device as a service. Let me provide clarification regarding the differences between the two and why offering both is a very powerful option for the commercial sector. IT as a service is an operating model where IT delivers pooled capabilities as on-demand, outcome-focused services to the business, usually with consumption-based pricing and service catalogs. This pool of capabilities includes infrastructure, platforms, apps, security, and support. Device as a Service is a subscription-based offering for end-user hardware and lifecycle services, including procurement, imaging, maintenance, support, and disposal, build per device, per user. The key difference in IT as a service is an overall service delivery model for IT capabilities, and device as a service is a specific subscription of providing and managing physical devices that can be one component within a IT as a service program. In addition to working with CDW, Our ITMSP group, which typically focuses on IT as a service, has also been working with select commercial customers to add device as a service as well. This highlights our ability to successfully collaborate with large enterprises and reinforces a growing IT as a service and device as a service pipeline that consists of commercial opportunities with Fortune 100 companies. Our device as a service progress is still ongoing, and interest from target customers continues to remain high. On to mobile anchor. We continue to make progress with our derived credentials on the mobile devices. As we've previously reported, mobile anchor is being deployed under a number of agencies, including the FAA, DOJ, and HUD OIG. Conversation is ongoing with the Department of Energy and the Department of Treasury as well. HUD OIG entered its second year, and FAA is progressing, with the rest in early or pilot stages. We are encouraged with the traction Mobile Anchor is seeing amongst different agencies and remain optimistic in the product's long-term potential. With that, I will now turn the call over to Bob to discuss our financial results. Bob?