WidePoint Corporation reported its financial results for the first quarter of 2025, revealing revenues of $34.2 million, a slight increase from $34.2 million in the same period of 2024. The company’s gross profit rose to $4.8 million, compared to $4.7 million in the prior year, maintaining a gross margin of 14%. However, WidePoint experienced a net loss of $724,063, which is an increase from the net loss of $653,110 reported in the first quarter of 2024. The loss per share for the quarter was $(0.08), compared to $(0.07) in the previous year.
The company’s revenue composition showed a notable shift, with carrier services revenue increasing to $22.4 million from $19.4 million, attributed to a growth in the number of phone lines managed for a federal customer. Conversely, managed services revenue decreased to $11.8 million from $14.8 million, primarily due to a significant drop in reselling and other services, which fell by $4.2 million. This decline was partly due to an out-of-period adjustment of $2.7 million related to revenue recognition practices. The overall cost of revenues remained stable at approximately 86% of total revenues.
In terms of operational metrics, WidePoint's accounts receivable increased to $14.6 million from $11.9 million at the end of 2024, reflecting ongoing billing and collection challenges, particularly with federal government customers. The company reported a decrease in cash and cash equivalents to $3.7 million from $6.8 million at the end of the previous year, indicating a net cash decrease of $3.5 million during the quarter. The company’s total liabilities increased slightly to $58.4 million from $58.0 million, while stockholders' equity decreased to $13.0 million from $13.6 million.
Looking ahead, WidePoint aims to enhance its market position by focusing on expanding its Technology Management as a Service (TMaaS) offerings and pursuing new sales opportunities, particularly within the federal government sector. The company plans to leverage its FedRAMP Authorized status to differentiate itself from competitors and grow its recurring managed services revenue. Additionally, WidePoint is exploring potential acquisitions to broaden its service capabilities and customer base, while also investing in technology solutions to improve operational efficiency and service delivery. The company remains optimistic about its ability to navigate current market conditions and achieve its strategic goals.
About WIDEPOINT CORP
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