BroadSat Technologies has formed a strategic partnership with WidePoint (WYY, Financial) to enhance secure connectivity and computing at the edge. This collaboration is focused on bolstering Smart Cities and federal agencies with a robust defense network for connected devices and applications. By integrating BroadSat’s Sure Broadcast platform—utilizing ATSC 3.0, 5GBroadcast, and EdgeAI technologies—with WidePoint’s cybersecurity solutions, including Identity and Access Management, IT-as-a-Service, and cloud-based security communication services, the partnership aims to create a highly secure and intelligent edge network. This network is designed to support smart infrastructure, defense communications, and critical mission services effectively.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for WidePoint Corp (WYY, Financial) is $6.50 with a high estimate of $7.00 and a low estimate of $6.00. The average target implies an upside of 54.03% from the current price of $4.22. More detailed estimate data can be found on the WidePoint Corp (WYY) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, WidePoint Corp's (WYY, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for WidePoint Corp (WYY, Financial) in one year is $3.77, suggesting a downside of 10.66% from the current price of $4.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the WidePoint Corp (WYY) Summary page.
WYY Key Business Developments
Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- WidePoint Corp (WYY, Financial) achieved FedRAM authorized status for its ITMS solution, enhancing its visibility and accessibility to federal agencies.
- The company was awarded a new task order under the Spiral 4 contract, indicating growing momentum and potential for future awards.
- WidePoint Corp (WYY) reported a robust sales pipeline with several task orders in development and multiple responses to active RFQs.
- The company is strategically investing in its device as a service program, including a dedicated facility and new personnel to support anticipated demand.
- WidePoint Corp (WYY) has a strong alignment with federal government priorities, particularly in reducing waste, fraud, and abuse, which could serve as a tailwind for its business.
Negative Points
- An out of period accounting adjustment reduced revenue by $2.7 million and cost of revenue by $2.5 million, impacting the financial results for the quarter.
- The adjustment in revenue recognition may slightly degrade revenue growth in 2025 due to the new accounting treatment of certain reselling contracts.
- Net loss for the first quarter was $724,000, an increase from a net loss of $653,000 in the same period last year.
- There are ongoing administrative challenges with a major customer affecting invoice approvals and cash flow, which may take a couple of quarters to resolve.
- General administrative expenses increased due to inflationary pressures, which could continue to impact financial performance.
