wyy_10q.htm

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

	☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

		For the quarterly period ended June 30, 2026

or

	☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

		For the transition period from __________________ to ___________________

		Commission File Number: 001-33035

WidePoint Corporation

(Exact name of Registrant as specified in its charter)

Delaware		52-2040275
(State or other jurisdiction of		(I.R.S. employer
incorporation or organization)		identification no.)

11250 Waples Mill Road, South Tower 210, Fairfax, Virginia		22030
(Address of principal executive offices)		(Zip Code)

(703) 349-2577

(Registrant’s telephone number, including area code)

Securities Registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Exchange on Which Registered
Common Stock, $0.001 par value per share	WYY	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files): Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes ☐ No ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of August 10, 2026, there were 9,998,255 shares of the registrant’s Common Stock issued and outstanding.

WIDEPOINT CORPORATION

INDEX

		Page No.

Part I.	FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3

	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2026 and 2025	3

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026 and 2025	4

	Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025	5

	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025	6

	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2026 and 2025	8

	Notes to Condensed Consolidated Financial Statements	9

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31

Item 4.	Controls and Procedures	31

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Default Upon Senior Securities	33
Item 4.	Mine Safety Disclosures	33
Item 5.	Other Information	33
Item 6.	Exhibits	32

SIGNATURES		33

CERTIFICATIONS

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2026			2025			2026			2025
	(Unaudited)
REVENUES	$	37,999,582		$	37,283,809		$	78,575,612		$	70,793,848
COST OF REVENUES (including amortization and depreciation of $268,315, $492,231, $552,051, and $978,425, respectively)		32,152,726			32,166,567			67,131,130			60,898,085

GROSS PROFIT		5,846,856			5,117,242			11,444,482			9,895,763

OPERATING EXPENSES
Sales and marketing		665,436			669,797			1,261,433			1,309,279
General and administrative expenses (including share-based compensation of $174,834, $166,018, $423,651 and $364,877, respectively)		4,989,623			4,922,649			9,821,646			9,654,431
Depreciation and amortization		181,414			233,122			409,386			456,810

Total operating expenses		5,836,473			5,825,568			11,492,465			11,420,520

INCOME (LOSS) FROM OPERATIONS		10,383			(708,326	)		(47,983	)		(1,524,757	)

OTHER INCOME (EXPENSE)
Interest income		101,756			89,340			189,159			142,770
Interest expense		(43,839	)		(52,382	)		(88,832	)		(107,455	)
Other income (expense), net		188			497			49,428			497

Total other income (expense), net		58,105			37,455			149,755			35,812

INCOME (LOSS) BEFORE INCOME TAX PROVISION (BENEFIT)		68,488			(670,871	)		101,772			(1,488,945	)
INCOME TAX PROVISION (BENEFIT)		2,068			(52,412	)		(41,608	)		(146,423	)

NET INCOME (LOSS)	$	66,420		$	(618,459	)	$	143,380		$	(1,342,522	)

BASIC EARNINGS PER SHARE	$	0.01		$	(0.06	)	$	0.01		$	(0.14	)

BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING		9,893,403			9,586,166			9,883,090			9,569,660

DILUTED EARNINGS PER SHARE	$	0.01		$	(0.06	)	$	0.01		$	(0.14	)

DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING		10,166,714			9,586,166			10,130,809			9,569,660

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2026			2025			2026			2025
	(Unaudited)
NET INCOME (LOSS)	$	66,420		$	(618,459	)	$	143,380		$	(1,342,522	)

Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax		(5,083	)		64,846			(4,476	)		90,951

Other comprehensive income (loss):		(5,083	)		64,846			(4,476	)		90,951

COMPREHENSIVE INCOME (LOSS)	$	61,337		$	(553,613	)	$	138,904		$	(1,251,571	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	JUNE 30,			DECEMBER 31,
	2026			2025
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	10,018,392		$	9,818,503
Restricted cash		748,288			2,647,990
Accounts receivable, net of allowance for credit losses of $54,136 and $57,454, respectively		15,191,497			15,002,571
Unbilled accounts receivable		41,789,749			33,548,228
Other current assets		7,992,877			5,196,613

Total current assets		75,740,803			66,213,905

NONCURRENT ASSETS
Property and equipment, net		397,808			480,082
Lease right of use asset		3,524,472			3,904,479
Intangible assets, net		2,810,848			3,352,296
Goodwill		5,811,578			5,811,578
Deferred tax assets, net		-			1,123
Other long-term assets		642,142			48,822

Total assets	$	88,927,651		$	79,812,285

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable	$	25,318,244		$	25,891,150
Accrued expenses		38,953,286			31,159,173
Current portion of deferred revenue		7,905,839			6,114,402
Current portion of lease liabilities		760,252			751,233

Total current liabilities		72,937,621			63,915,958

NONCURRENT LIABILITIES
Lease liabilities, net of current portion		3,557,927			3,930,495
Deferred revenue, net of current portion		752,763			435,151
Deferred tax liabilities, net		1,351			-

Total liabilities		77,249,662			68,281,604

Commitments and contingencies (Note 16)		-			-

STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 2,045,714 shares issued and none outstanding		-			-
Common stock, $0.001 par value; 30,000,000 shares authorized; 9,994,617 and 9,892,565 shares issued and outstanding, respectively		9,995			9,894
Additional paid-in capital		103,742,093			103,733,790
Accumulated other comprehensive loss		(384,141	)		(379,665	)
Accumulated deficit		(91,689,958	)		(91,833,338	)

Total stockholders’ equity		11,677,989			11,530,681

Total liabilities and stockholders’ equity	$	88,927,651		$	79,812,285

The accompanying notes are an integral part of these condensed consolidated financial statements.

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WIDEPOINT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	SIX MONTHS ENDED
	JUNE 30,
	2026			2025
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	143,380		$	(1,342,522	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred income tax benefit		(2,900	)		(84,900	)
Depreciation expense		420,717			468,136
Provision for credit losses		13,270			31,281
Amortization of intangibles		541,450			967,099
Share-based compensation expense		423,651			364,877
Non-cash lease expense		124,620			105,170
(Gain) loss on disposal of fixed assets		(49,043	)		8,161
Changes in assets and liabilities: