WidePoint Corporation (WYY) Q2 2025 Earnings Call Transcript
Total Revenue (Q2 2025) $38 million, an improvement from $36 million in the same period last year, representing a year-over-year increase. The increase was attributed to growth in carrier services revenue and managed services fees.
Total Revenue (6 months ended June 30, 2025) $72.1 million, an improvement from $70.2 million in the same period last year, showing a year-over-year increase. The increase was driven by growth in carrier services revenue and managed services fees.
Carrier Services Revenue (Q2 2025) $22.2 million, an increase of $1.8 million compared to the same period in 2024. The growth was due to an increase in the number of phone lines under management for the DHS customer.
Carrier Services Revenue (6 months ended June 30, 2025) $44.6 million, an increase of $4.8 million from the same period last year. The growth was attributed to the same reason as Q2 2025, an increase in phone lines under management for the DHS customer.
Managed Services Fees (Q2 2025) $9.2 million, relatively consistent with the same period in 2024.
Managed Services Fees (6 months ended June 30, 2025) $18.4 million, an increase of $600,000 compared to the same period last year. The increase was due to a new federal end customer that began in September 2024.
Billable Services Fees (Q2 2025) $1.3 million, relatively consistent with the same period in 2024.
Billable Services Fees (6 months ended June 30, 2025) $3.1 million, an increase of $600,000 compared to the same period last year, reflecting increased activity in this area.
Reselling and Other Services (Q2 2025) $5.1 million, a slight increase compared to the same period last year. Included in this is $300,000 of connectivity and device resells under the new Spiral 4 contract.
Reselling and Other Services (6 months ended June 30, 2025) $6 million compared to $10.2 million in the same period last year, showing a decrease. The decrease was primarily due to an out-of-period adjustment of $2.7 million recorded in Q1 2025 and recognition of revenue for SaaS agreements over the Period of Performance compared to point-of-sale recognition.
Gross Profit (Q2 2025) $5.1 million or 14% of revenues, compared to $4.9 million or 14% of revenues in the same period last year. Gross profit percentage, excluding carrier services, increased to 33% from 31% in the same period last year.
Gross Profit (6 months ended June 30, 2025) $9.9 million or 14% of revenues, compared to $9.6 million or 14% of revenues in the same period last year. Gross profit percentage, excluding carrier services, increased to 36% from 31% in the same period last year, due to lower reselling revenues which have a lower gross margin.
Sales and Marketing Expense (Q2 2025) $700,000 or 2% of revenues, compared to $600,000 or 2% of revenues in the same period last year.
Sales and Marketing Expense (6 months ended June 30, 2025) $1.3 million or 2% of revenues, compared to $1.2 million or 2% of revenues in the same period last year.
General and Administrative Expenses (Q2 2025) $4.9 million or 13% of revenues, compared to $4.5 million or 13% of revenues in the same period last year. The increase was due to inflationary pressures, additional headcount, and costs related to DaaS offering and DHS delivery capability.
General and Administrative Expenses (6 months ended June 30, 2025) $9.6 million or 13% of revenues, compared to $9 million or 13% of revenues in the same period last year. The increase was due to similar reasons as Q2 2025.
Net Loss (Q2 2025) $618,000 or a loss of $0.06 per share, compared to a net loss of $500,000 or a loss of $0.05 per share in the same period last year.
Net Loss (6 months ended June 30, 2025) $1.3 million or a loss of $0.14 per share, compared to a net loss of $1.2 million or a loss of $0.13 per share in the same period last year.
Adjusted EBITDA (Q2 2025) $183,000, representing the 32nd consecutive quarter of adjusted EBITDA.
Free Cash Flow (Q2 2025) $90,000, representing the 7th consecutive quarter of positive free cash flow.
Adjusted EBITDA (6 months ended June 30, 2025) $276,000.
Free Cash Flow (6 months ended June 30, 2025) $155,000.
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Earnings Performance: PDF Solutions reported quarterly earnings of $0.25 per share, matching the Zacks Consensus Estimate, with revenues of $57.12 million, exceeding expectations and showing growth from $46.41 million a year ago.
Stock Outlook: The company's stock has underperformed compared to the S&P 500 this year, and its future performance will depend on management's commentary and earnings estimate revisions, currently holding a Zacks Rank #3 (Hold).
Industry Context: The Computer - Services industry, to which PDF Solutions belongs, is ranked in the bottom 38% of Zacks industries, indicating potential challenges for stock performance relative to higher-ranked industries.
Upcoming Reports: Another industry player, WidePoint, is set to report its quarterly results soon, with expectations of a loss and revenue growth, highlighting the mixed outlook within the sector.
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AI Security Market Growth: The AI security market is projected to grow from $25 billion in 2024 to $94 billion by 2030, driven by increased investment in AI-powered threat detection and defense solutions, which reached approximately $28 billion in 2025.
VisionWave Holdings' Progress: VisionWave Holdings, Inc. has successfully completed a pilot with a U.S. defense company, focusing on unmanned systems and high-fidelity sensing, indicating strong interest in their technology and potential for further collaboration in defense applications.
Gateway Group Reveals Complete Lineup of Over 60 Companies in AI, FinTech, Cleantech, and Other Growth Industries for Presentation in San Francisco on September 3–4
Gateway Conference Announcement: Gateway Group has confirmed the lineup for its annual Gateway Conference, scheduled for September 3-4, 2025, at the Four Seasons Hotel in San Francisco, featuring over 60 public and private companies from various high-growth sectors.
Diverse Presenting Companies: Notable participants include Applied Digital, Anterix, Solaris Energy Infrastructure, and Bitcoin Depot, among others, showcasing innovations across AI, fintech, cleantech, and more.
Investor Engagement: The conference will host over 300 institutional investors and analysts, with a partnership with Stocktwits to enhance engagement with retail investors through live broadcasts.
Focus on Networking: The event emphasizes building connections between innovative companies and thoughtful investors, aiming to foster long-term relationships and value creation within the investment community.
$WYY Earnings Results: $WYY Reports Quarterly Earnings
Earnings Report: $WYY reported quarterly earnings of -$0.08 per share, missing estimates by $0.06, and revenue of $34.22 million, falling short of expectations by approximately $4.44 million.
Insider Trading Activity: In the past six months, $WYY insiders executed three stock sales with no purchases, while seven institutional investors increased their holdings and 18 reduced theirs in the latest quarter.
WidePoint Q1 25 Earnings Conference Call At 4:30 PM ET
Conference Call Announcement: WidePoint Corp. will hold a conference call on May 15, 2025, at 4:30 PM ET to discuss its Q1 25 earnings results.
Access Information: The call can be accessed via a live webcast or by phone, with specific numbers provided for both US and international listeners, along with details for replay access.
Zacks Industry Outlook Highlights CGI, CACI International and WidePoint
Industry Growth and Challenges: The Zacks Computer - Services industry, including companies like CGI Group, CACI International, and WidePoint, is experiencing growth due to increased demand for cloud solutions amid digital transformation in sectors like healthcare and finance, although they face macroeconomic challenges such as higher tariffs and elongated sales cycles.
Company Performances: CGI Group is benefiting from strong government contracts despite some softness in manufacturing; CACI International is expanding through new business wins and acquisitions; while WidePoint has secured significant contracts and achieved FedRAMP authorization, though it has seen a decline in stock value year-to-date.
