WidePoint Corporation

Thank you for holding and please remain on the line. The wide point conference call will begin momentarily. Thank you for your patience. Thank you. Thank you for holding and please remain on the line. The wide point conference call will begin momentarily. Thank you for your patience. Good afternoon. Welcome to WidePoint's second 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 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 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 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. 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 second quarter ended June 30, 2026. Q2 marked a transformational period and a key inflection point for YPoint as we strengthened our foundation and sharpened our outlook for a profitable growth trajectory over the next decade. As many of you are aware, in late June, the Department of Homeland Security named YPoint the single awardee of the 10-year $3.1 billion CWMS 3.0 contract. This award will provide a strong platform to expand our role, deepen our customer relationship, and create meaningful long-term value for DHS. As many of you are already aware of what CWMS 3.0 means for WidePoint, we'd like to use today's discussion to focus on two key topics. First, the status of the award protest, and second, the financial outlook and growth opportunity we see under the contract over the next decade. To address the protest directly, we firmly believe the protest will not be successful. We continue to operate and prepare with confidence that YPoint will remain the single awardee of the CWMS 3.0 following the protest period. Our confidence is grounded in the strength of YPoint's solution set, more than two decades of proven performance, and the deep integration of our solutions into DHS's operations. Precedent also reinforces our view. Unsuccessful bidders protested CWMS 2.0, the CWMS 1.0, and the GSA FSSI Thames Awards, the predecessors to CWMS 3.0. Wide point prevailed in all three cases. We believe this protest will reach the same outcome, allowing us to move forward and begin executing on the opportunities ahead. The GAO is required to issue a decision within 100 days of protest filing. setting an outside deadline of October 7, 2026. DHS and the protester have submitted their responses and the matter is now in the decision window with GAO. Although the deadline falls in early October, we remain optimistic that GAO could issue its decision sooner. In the meantime, our team continues preparing for the full launch of work under CWMS 3.0. Additionally, on August 6th, DHS awarded a short-term bridge contract, the CWMS 2.5, with a contract ceiling of $113 million, with a six-month period of performance comprised of a three-month base period and three one-month options. This award was to ensure that there were no gaps in the ordering period. This bridge contract will ensure business continuity as the protest is settled. Our second topic is the financial outlook for CWMS 3.0 over the next decade. For discussion purposes, the contract's $3.1 billion ceiling represents an average annual revenue of approximately $300 million per year. This equates to approximately twice the annual revenue run rate under CWMS 2.0. We expect the original $150 million in annual value to remain consistent with the CWMS 2.0. though due to pricing adjustment, we believe this will be slightly more profitable. Consistent with the CWMS 2.0 split between carrier and managed services revenue, we expect the split to remain roughly 80% carrier and 20% managed services revenue. We see the greatest value in the approximately $150 million of additional annual opportunity, which we expect to be concentrated towards managed services and solution-based work. Based on historical federal contracting economics, this type of managed services and solution-based work typically supports an 8% to 10% net profit margin. Applying this net profit margin to the additional $150 million annual opportunity, we believe CWMS 3.0 holds the potential to materially strengthen YPoint's future earnings profile once the contract is fully ramped and scaled. DHS underwent a significant set of reviews to increase the contract ceiling and face scrutiny at both the departmental and congressional levels. We view that entire process and the resulting ceiling increase as a strong signal of institutional commitment to the CWMS program, its long-term potential, and the value WidePoint and the contract vehicle provides DHS. We also expect the scope of work on the CWMS 3.0 to expand beyond smartphones and traditional IoT devices to additional connected devices and form factors. Although the pipeline continues to evolve in real time, we see meaningful pent-up federal demand for high-value solutions that can be delivered through the CWMS contract vehicle using YPoint's capabilities. While the contract ceiling was effectively doubled on an annual basis, we do not expect a corresponding increase in headcount because the approximate $150 million in additional annual opportunity is expected to consist primarily of solutions-based work. Any incremental staffing needs should be relatively minimal. The timing of the full CWMS 3.0 ramp and the execution of margin accretive opportunities currently depends on the conclusion of the protest. If resolved on or before October 7, we may see some new task orders to begin arriving in the fourth quarter. We expect 2027 to be a year of meaningful ramp-up, with task orders likely to arrive unevenly as the program begins scaling. If CWMS 3.0 reaches the contemplated scale by the end of 2028, The approximate $150 million of additional annual opportunity, together with an assumed 8% to 10% net profit margin, supports our view that the contract could materially and positively change YPoint's future earnings potential. For now, we look forward to expect a decision from GAO and commence work under CWMS 3.0. Beyond CWMS, the second quarter saw two additional major developments. A few days before the CWMS announcement, YPoint was named a prime contract awardee on the 10-year, $60 billion NASA Solutions for Enterprise-Wide Procurement, or SUP6, contract. YPoint was selected as a prime contractor awardee under the category A, which covers information technology, communications, and audiovisual solutions. Similar to the Navy Spiral IV contracts, SuP6 provide us with a more efficient way to connect with our federal customers with our full portfolio of solutions and scale mission critical support where agency needed most. As many of you are aware, the federal acquisition cycle is long and arduous process. Thus, by qualifying for such contract vehicles like SuP6 and Navy Spiral IV, We can shorten the acquisition process and open the door to new opportunities. With a majority of task orders projected to be solutions-based under SUP6, capturing even a small fraction of the contract ceiling could have a meaningful impact on YPoint. The ordering period is set to start on November 1st, and as such, we expect activities to begin ramping up as early as Q1 2027. Nonetheless, we remain prepared to take advantage of our seat at the table and pursue the opportunities ahead. We also saw new and encouraging development under our SAS contract with one of the big three U.S. telecommunications carriers. We will be referring to this contract as the ATV contract going forward. In late June, we announced an expanded implementation scope under the ATV contract to support additional operational requirements. As you continue to work through the implementation phase with the carrier, we identified additional implementation needs. We view this expanded scope as a clear indicator of the carrier's confidence in our platform, technical expertise, and ability to execute increasingly complex deployment requirements at scale. With this expanded scope, we now anticipate the official go live by the end of the year. ATV is a margin accretive contract that we believe will meaningfully support YPoint's future earning trajectory. The original contract was valued at approximately $45 million over five years or roughly $9 million per year. At an estimated 70% gross margin profile, along with the expanded scope I previously highlighted, ATV has the potential to generate a material contribution to our bottom line and further enhance our EPS trajectory once fully ramped. Lastly, before I hand the call off to Jason, I'd like to reiterate the strong underlying fundamentals of the business that have supported our progress thus far. as we pursue and secure opportunities that position YPoint for sustainable growth, our current business and the market we serve remain healthy and expanding. In the first half of 2026 alone, YPoint was awarded $58 million in new and renewal contractual actions, demonstrating both the strength of the foundation we have built and growing customer demand across the federal and commercial sectors. YPoint continues to expand customer and partner relationships, win and renew engagements, and ultimately build a strong pipeline that supports a shift towards higher value as a service work. The rest of the year centers on fortifying the foundation to accelerate YPoint's future trajectory. We expect 2027 to begin reflecting the company's evolving profile, and by the end of 2028, we anticipate a stronger organization platform capable of accelerating growth beyond current levels. That said, I will now hand the call over to Jason, who will provide additional insight into our sales and marketing initiatives, including the expanding potential of the ATV contract and recent DAS developments. Jason?

Thanks, Jin, and good afternoon, everyone. To start with an update on the ATV contract, as Jin mentioned, we were pleased to announce at the end of the second quarter the expanded integration engagement with our carrier customer. During these conversations and through the implementation, and our carrier customer have also identified and begun initial discussions about extending the partnership beyond its current federal scope to the carrier's state and local government clients. The current existing contract is expected to cover 2 million to 2.5 million devices at the federal level. The potential expansion could increase both the number of devices managed and the total value of the engagement. To preface, this potential expansion remains in the early stages of discussion. However, we believe White Point's technical expertise, differentiated capabilities, and decades of experience serving government clients with the most stringent security requirements positions us to compete effectively in the market. That said, our primary focus now continues to center on completing the implementation phase and reaching the go-live status. Both parties remain committed to launch by year-end. Regardless of the official launch date, this will be one of the largest government mobility management deployments in the industry to date. On to DAS to provide an update on our pipeline. We remain cautiously optimistic that we will close a DAS opportunity in the next few months. The LA-28 DAS opportunity is one where we currently have the clearest line of sight. We are cautiously optimistic that the required contracting should begin in the near term. Beyond LA-28, we have two additional DAS opportunities that are close to closing. These two opportunities are much smaller than the other major opportunities in the pipeline as the client wants to implement in tranches. Still, progress in the pipeline is encouraging and reinforces our confidence in the broader level of activity. Larger opportunities with Fortune 100 size organizations also remain active, and we continue to believe we can convert these engagements over time. Fortune 100 size organizations can have workforces and device footprints spanning hundreds of thousands of devices. And DAS revenue is billed based on the number of devices managed per person per month. And with DAS margin economics expected to land in the 60 to 70% range on these large engagements, securing even one of these engagements could materially improve our EPS outlook. We remain optimistic about the DAS pipeline and look forward to sharing material updates on future calls. SUP6 was another major second quarter highlight. Our team has been working diligently with contacts at the highest levels of the federal government who hold funding and have a need for our service. Government-wide acquisition contracts like SUP6 come especially handy during these conversations because they provide a readily available pre-competed vehicles that can shorten customer acquisition cycles. And while competition will be high with many other organizations qualifying and competing under SOUP6, we believe WidePoint stands out among a small group of providers under Category A positioned to support multiple portions of the available solution categories. With the ordering period beginning November 1st, SOUP6 has the potential to generate incremental opportunities beyond those we have highlighted over the past several quarters. Lastly, Mobile Anchor continues to gain traction. Beyond the several pilot programs currently underway, which are continuing to progress, we've been extremely busy responding to numerous requests for information to very high-level organizations such as U.S. Access, Treasury IRS, NATO NCIA or NATO Communications and Information Agencies, DHS's USCIS or US Citizenship and Immigration Services, and Defense Manpower Data Center or DMDC. We will keep you posted as these high-level profile opportunities make their way through the process. With that, I will now turn the call over to Bob to discuss our financial results. Bob?