We are ready to begin with our next presentation. Let's please give a warm welcome to the stage CEO of WidePoint, Jin Kang.
Thank you. Thank you, everyone. Thank you very much for your time today. Appreciate it. You know, thanks to LD Micro for the opportunity to present here and, of course, you know, to special thanks to Chris Lahiji, who's been supporting WidePoint, and carrying us longer than my mother has carried me. He keeps repeating that. I don't know why. My name is Jin Kang. I'm the CEO of WidePoint Corporation. Joining me today is our Chief Revenue Officer, Jason Holloway . He'll be handling all your questions at the conclusion of my presentation. I'll be telling you a little bit about WidePoint Corporation, who we are, what we do, and what makes us unique. This, you know, is an administrative item. It's our safe harbor statement.
A full safe harbor statement is available on our website at widepoint.com. I won't belabor that. Now that that's out of the way, let me give you a quick snapshot of, you know, who we are, you know, of WidePoint. We are the leading provider of secure mobile solutions, founded in 1997. We've been growing through organic and inorganic growth for nearly 30 years. I think, you know, we can all agree that cybersecurity is a critical element of, you know, our IT world today, especially in a mobile world. Cybersecurity is a huge, you know, a challenge for our customers. We offer the solutions to address all of these mobility management requirements and the cybersecurity requirements, especially in this post-pandemic world.
We provide the solution to secure, manage, and give visibility to our clients' mobile technology assets, and we deliver all of our solutions through a software as a service model. The current management team has been in place since the second half of 2017, and, you know, we inherited a company that was, you know, struggling and floundering, and we have stabilized that company, and we have positioned it for growth, with, you know, a company with 95% recurring revenues, over $200 million in contract backlog, zero bank debt, $36 billion in addressable market.
$10.9 million in cash at the end of Q1 this year, and we're continuing to add to that balance. 35 consecutive quarters of Adjusted EBITDA positive, and more notably, we have been free cash flow positive for now 10 consecutive quarters. For Q1, we are EPS positive. We are turning the corner, and we're hitting that inflection point. We closed 2025 with $151 million in top-line revenue, and our objective is to exceed that at least by a double-digit percentage growth, and our objective also is to be EPS positive in 2026. Roughly, I think, $90 million as of today in market cap. I think we are, you know, there's a, you know, bit of a disconnect here.
Insiders own 18%+ of the outstanding shares, the objectives of the management team is in line with our investors. We have these three main catalyst events that are happening. One has already happened. We recently announced that we signed a contract in November with one of the big three cellular carriers, that contract is a software as a service model. They came to us because they needed a system, a platform, that they needed to manage all of their federal government customers, a system that is FedRAMP authorized, I'll go into a little bit more detail on that. They came to us because they needed a platform to manage all of their federal government customers, that contract alone could translate to $0.50 EPS as we exit 2026.
The second c atalyst is our DHS CWMS 3.0 contract. It's a $3 billion contract, and it's a 10-year contract. We are the incumbents on the 2.0 contract, so we feel pretty good about being able to, you know, recapturing this $3 billion contract. The third catalyst, before I, you know, go into that contract, the CWMS 3.0, could potentially add, as w e exit 2026, another $1.50 per share EPS. Just add those two together, we're looking at, you know, exit run rate potentially at $2 a share as we exit 2026.
The third catalyst is our pending DaaS contract, device as a service. These are fairly large contracts and whatever we capture in this DaaS opportunities are gonna continue to add to, you know, the top line and the profitability for 2026. In terms of our market size, as I stated, you know, we have addressable market size of roughly $36 billion. That's continuing to grow. That's because, you know, in this post, you know, pandemic environment, everybody's working, you know, from a remote location. You know, our customers include federal, state, local governments, commercial enterprises, large organizations for whom security and compliance is key, organizations like the military, healthcare, finance, transportation, consumer products, energy sector. You name it, they need it.
This market is continuing to grow, as I said, because we were working in this post-pandemic environment, and it's going to continue to grow. The post-pandemic environment that has us working from a remote location is increasing the number of endpoints, and the budget to secure and manage those endpoints are continuing to grow, and that provides additional tailwinds for our business. Even in our post-DOGE environment, companies and government agencies are not cutting back on cybersecurity and mobility management, and we stand to benefit from all of that. Diving a little bit deeper into our capabilities and our differentiators, as I said, you know, we provide solutions to secure, manage, and monitor our clients' mobility assets.
Our integrated solution setting is made up of four main components: identity and access management, managed mobility, data analytics, and IT as a service, all delivered as a service model. The first component is our identity multi-factor authentication solution. It's a solution that has never been hacked, and it's a solution that's been implemented in all of the federal government agencies, including the Department of Defense, right? One that has universal applications, one that is quantum computing resistant. It is estimated that it would take roughly 140 years using the current technology and current AI technology to be able to break the encryption on that. We are now bringing that level of security to the commercial sector, right?
The second component of our solution is our, you know, managed mobility solution, a solution that was specifically built from the ground up to help manage, you know, all of our customers' mobility assets. A system that's now been FedRAMP authorized. I'll go into a little bit more, you know, what FedRAMP means. The third component is our data analytics that provides full visibility of our customers' mobility assets, right? The fourth component is our IT as a service, the wraparound service to manage all of our customers' IT infrastructure, right? Our solutions are at the confluence of cybersecurity and mobility management. We secure our customers' cyber interactions in the mobile world, right? We own all of the intellectual property for all of our solutions.
We have accreditations and certifications by various federal government agencies that are sought after now by our strategic partners and our systems integrators, right? We have the authorization to operate from various government agencies, and we have achieved FedRAMP-authorized status. What that means is that it means that we protect all of the federal government. Was that me, or was it somebody? We protect all of the federal government data as prescribed by our federal government, right? We meet all of the federal standards, all of the federal requirements for cybersecurity. We have passed rigorous assessment and are officially approved to store, process, and transmit federal government data in the cloud, right? This certification is pretty rare.
You could g o onto a FedRAMP Marketplace, you'll see, you know, like one or two companies that are our competitors that are on that list. It's very rare, and it gives us a huge leg up when we're competing for contracts with the federal government and large systems, large, you know, customers in the industry. More and more requests for quote and Requests for Proposals packages will require that. Some, you know, additional technological enhancements to our solutions. You know, we're always continuously working on enhancing our solutions, here are some of the notable technical developments. MobileAnchor, I'll talk a little bit about that. It's a technological leap forward. You know, based upon, you know, what the available technology is, we have leapfrogged our competition on that.
M365 Analyzer is our enhancement of our unified communication solutions. Our IT as a service has been recognized by ChannelE2E for comprehensive solution sets. Now let me delve a little bit deeper into our, you know, cybersecurity solution called MobileAnchor. It helps, you know, secure our customers' endpoints, right? As I stated earlier, we provide this most secure multi-factor authentication solution, you know, now available in the commercial markets, right? This solution, as I said, is quantum computing resistant, and it's never been hacked. It's a solution that is now available on your smartphone, right? Instead of using digital certificates that are on, you know, cards that you've seen, you know, federal government employees and agents have on their persons, we're using your mobile device instead of the card factor, right?
This is the same solution that is relied upon by over 18,000 enterprises worldwide. It provides the most secure physical and logical access available on the market. It eliminates the need for user IDs and passwords and waiting for, you know, the randomly generated phone numbers. We've been providing this solution since 1995 to the U.S. government, and in all that time, this solution has never been hacked. We were the first company to be certified by the federal government and currently one of two certified by the U.S. government to issue these credentials that serve as the foundation for the government's zero trust architecture. Now we're bringing that level of security to the commercial world on your smartphone and for commercial use.
It's a huge deal, and as I said, it is a technological leap forward, and we have surpassed our competitors on that. We should see a lot of traction there. We're also excited about to announce the, our new business model we are focused on that we call Device as a Service or DaaS, D-a-a-S. We are now offering that full set of solution, our set of solutions using a new business model called Device as a Service, and it includes not only all of the wraparound services, but also the hardware and the software that are associated with it. Right? Some advantages of Device as a Service are reduced capital expenses, auto tech refreshes, improve IT and security management, easily scalable, and easily for ease of budgeting.
As many of you may remember, if you've been following WidePoint, we used this model to manage the largest mobility project in the world at the time in 2020. It was called the 2020 Decennial Census, along with our partner CDW. This project involved approximately 700,000 mobile devices and enumerators, and we scaled up and performed, you know, flawlessly. We rolled all of these devices out. We configured them. We, you know, provided all of the logistics services, collected the data, brought them all back, wiped the devices all down, and we did all of that without losing a single device or having a single device compromised, all during COVID.
We see this project coming up here now, the 2030 Census, I believe that we are in the inside track to win that as well. Our partner CDW recently announced that they are the official supporter of the LA28 Olympics, and we will be providing our platform to manage all of those devices, for, you know, the judges, the referees, the participants and their families, and we'll be managing all of those devices for the 2028 Olympics. As I said, MobileAnchor, we're providing the most secure multi-factor authentication solution that is available on the market.
We're taking it from the smart cards to the smartphone, and it is in the most secure way, we are issuing these digital certificates that you're gonna use to identify yourself to, you know, servers, your accounts, your, you know, IT infrastructure, right? All of that information is only being stored on your mobile device, right? Unlike our competitors who uses their servers to generate the identity certificate, sending it over the air in the open. We do that a little bit differently in that we actually generate the certificate on the mobile device. We believe that capability is unique, and it is as I said, leapfrogging our competition. We're also excited to announce a business model here. Let's see here. MobileAnchor, driving opportunities, right?
Now let me showcase a little bit about our largest part of our business, which is our federal government business. Our capabilities and solutions have enabled us to capture and pursue some significant contracts, right? We recently announced our major win with one of the big three mobile carriers. It's a $40 million-$45 million, five-year contract. This contract is scheduled to be fully implemented by the end of this quarter. And it is a project that is essentially 70%+ in gross margins and potentially be worth $0.50 EPS as we exit 2026. We captured a half a billion dollar DHS CWMS 2.0 contract. We also were the incumbents on the CWMS 1.0 and the predecessor contracts.
All told, we've been working with DHS for 20 some years, right? We recently have been awarded an additional $254 million in contract ceiling increase due to the success of the CWMS 2.0. We captured the U.S. Navy Spiral 4 contract with a contract ceiling of $2.7 billion, right? Have recently announced a new task order under that contract, worth roughly $26 million. We are also looking to capture more task orders underneath that contract. We're pursuing the NASA SEWP and the Alliant 4 contracts with multi-billion dollar contract ceilings. Most importantly, we are recompeting on the CWMS 3.0 with DHS, which is a 10-year contract, $3 billion contract.
We believe that we have the inside track to re-win that contract because of the various requirements that they have put on by the DHS. We're, I think we're punching way above our weight, and we've been pretty successful at it. Now let me elaborate a little bit about our growth strategy with our strategic partners. We're partnered with, you know, fairly large, you know, strategic partners, and they're seeking us out because of all of our certification and accreditation. In the old days, you know, we would try to knock on their doors and try to be on their team.
Now what's happening is that these large contractors, large systems integrators are coming to us, and the reason for that is because of all of our certification and accreditation, our past performance. For example, the Decennial Census 2020, without our platform and without our experience, they probably would not have won that contract. Now that we have all of the certification now, in addition to the FedRAMP authorized status, they're continuing to seek us out to team with us. This slide shows a just a sampling of our partnerships. This is ou r financial slide, and as you can see, we are a stable company for a microcap, and we're continuing to improve our financials.
Our top line experienced double-digit % growth for the past several years, and we look to continue this trend. We ended Q1 with $10.9 million in cash, improving upon the $9.8 million we finished in Q4 of last year. We have been Adjusted EBITDA positive for 35 consecutive quarters, and counting. Free cash flow positive for 10 consecutive quarters. EPS positive for Q1. I mean, we're just hitting our inflection point. Let me end my presentation with that and open the floor for questions. Any questions? Yes, sir. Jason, this is you. Yes, sir. Go ahead.
The federal government with the Trump administration recently, in the last 12 months, made a big push towards AI and canceled a lot of the NOFOs out there. How is that impacting your businesses and moving to more, both on the software and hardware side, changing on how If there's a fundamental change on the networks that are being structured?
Yeah. You know, AI is going to have a huge impact on all companies that are, you know, that are delivering, you know, services through their IT platforms. We've been using some, you know, flavor of AI, as we do our auditing, and we have routines that run in the background to, you know, catch errors and invoices and such, and doing, you know, plan, you know, optimizations and all of these things. I think AI still has got a, you know, a lot to, you know, lot of improvements to go. We are implementing it as what we have been doing in the back office functions. It has minimal impact on, you know, on our, you know, our operations. You know, Jason, our CRO.
I wanna add to it. Great question. I mean, obviously, AI is, you know, is the push and you know, you quoted POTUS. About four years ago, we got ahead of the curve, and we did acquire a company called IT Authorities, because, you know, they were traditional IT MSP. They have a very strong AI component to it, and what it allowed us to do is to be much more well-rounded in terms of the different RFPs that were coming out to where we already have the secure managed mobility side sewn up. We have the cybersecurity or public key infrastructure sewn up, but, you know, as you noted, AI. We went and acquired the company. We do have a PhD in AI.
He's a representative with NATO and all kinds of stuff, regardless of what you think about where we are and all of that. We have been ahead of it. As Jin says, you know, we're looking at it, we're implementing it where it makes sense, We just don't wanna get in front of it just because everybody's talking AI. We're critical and essential in terms of the services that we provide, and we're staying ahead of that technological curve, and we're just taking AI as it comes.
Any other questions? Yes. Yes, sir. Mr. Sine.
That, $10.9 million has gotta be burning a hole in your pocket.
No.
Are you doing balance sheet? Are you gonna do acquisitions?
Excellent question. You know, we did end Q1 with, you know, $10.9 million, and it's plenty for working capital. You know, things are, you know, still, you know, in fragile, you know, state. I think federal government tend to shut down every now and then, and so we wanna be prepared for that. In terms of doing acquisitions, you know, we are quietly looking around. We're looking for companies that are stable, you know, in an adjacent technology area. We're also looking for companies that are, you know, similar to us, so that we can, you know, bring their customers onto our, you know, platform, 'cause we believe that our delivery platform is superior to our competitors.
In terms of, you know, using that cash to do acquisitions, I think, you know, we'd rather wait for our market cap to reflect our true value, which is happening. You know, it's gonna continue to happen. As we recognize the second two catalysts are CWMS 3.0 and the DaaS contracts, I think we'll be able to leverage that versus, you know, using a lot of cash or debt to do the work. Yes, sir.
Just a couple of questions on the statement of operations on P&L. Did I hear you say in the beginning of your presentation you're looking for $2 in earnings per share sometime soon?
Potentially. If, you know, the first catalyst, which is our contract with one of the big three mobile carriers, that could potentially add $0.50 as we exit on an exit run rate in 2026. Then the second catalyst, which is our CWMS 3.0, which will add, you know, another, you know, $1.50 respectively. Those two catalysts added together could be, you know, $2 a share as we exit 2026.