Good morning, ladies and gentlemen. Welcome to the 2026 WidePoint Corporation Virtual Annual Meeting of Stockholders. The meeting will please come to order. The voting is now closed. I'm Philip Garfinkle, Chairman of the Board of Directors of WidePoint Corporation and will act as chairman of this meeting. In virtual attendance today is Jin Kang, our Chief Executive Officer and a director, who will act as secretary of the meeting. We also have in virtual attendance today all of the continuing directors in addition to myself and Jin Kang. You may submit questions that you have by following the instructions on our virtual meeting screen at any time.
John Woelfel has been appointed as the inspectors of elections for the stockholder actions to be taken at this meeting. Finally, I would like to introduce the representative present from our independent public accounting firm, Baker Tilly, who will be available to respond to appropriate stockholder questions during the designated stockholder question and answer period at the end of the meeting. Will the secretary please report on the notice of the meeting?
Mr. Chairman, the notice of meeting and related proxy statements were sent beginning on April 30 to all stockholders as of April 24, record date of the meeting.
Thank you. The notice of meeting and the affidavit as to its mailing shall be made part of the minutes of this meeting. Will the secretary please report on stockholder attendance at the meeting?
The Inspectors of Elections appointed for the meeting has provided a preliminary tabulation of written proxies received, which indicates that there are stockholders present by the proxy representing a quorum of shares.
Legal notice of the meeting has been given and a quorum is present. Therefore, this annual meeting is properly legally convened and ready to transact the legal portion of this meeting. The first item of business to be presented for stockholder consideration at this meeting is the election of Philip Garfinkle as a class 2 director to serve until the annual meeting of stockholders in the year 2029. From the tabulations of proxies or votes received prior to the meeting, the results of the election are known. Mr. Secretary, will you please report on the results of the election of directors?
Mr. Chairman, a preliminary tabulation provided by the Inspectors of Elections indicates that Mr. Garfinkle has received sufficient votes to be elected as a director.
As indicated by your vote, I hereby declare that Mr. Garfinkle has been duly elected as a director of the company. The next item of business for stockholder consideration at this meeting is the ratification of the appointment of Baker Tilly to serve as the company's independent registered public accounting firm for the year ended December 31st, 2026. From the tabulation of proxies or votes received prior to this meeting, the results of the vote are known. Mr. Secretary, will you please report on the ratification of the appointment of Baker Tilly to serve as the company's independent registered public accounting firm for December 31st, 2026?
Mr. Chairman, a preliminary tabulation provided by the Inspectors of Elections indicates that the ratification of the appointment of Baker Tilly to serve as the company's independent registered public accounting firm for fiscal year 2026 has been approved.
As indicated by your vote, I hereby declare that the appointment of Baker Tilly to serve as the company's independent registered public accounting firm for fiscal 2026 has been ratified. There being no other legal business to come before this meeting, this legal portion of the meeting is hereby adjourned. I would like to now turn it over to our CEO, Jin Kang, for a presentation on the company.
Thank you, Mr. Chairman. Good morning, everyone, and thank you for joining us today. On behalf of the board of directors and management team, I want to thank the shareholders for your continued confidence and support of WidePoint. Your commitment has enabled us to remain focused on our mission of delivering secure, innovative technology solutions that help organizations manage and protect their increasingly mobile and connected environments. Today, I would like to review our accomplishments during 2025, discuss the momentum we have built in 2026, and share why we believe WidePoint is positioned for meaningful long-term growth. 2025 was a year that demonstrated the resilience of our business model and the strength of our strategic direction. Despite a challenging federal procurement environment and uncertainty surrounding government funding and contract training, our team remained focused on execution.
We continued to invest in our people, our technology platforms, and our customer relationship while maintaining operational discipline. Among our key accomplishments during 2025, we achieved our 34th consecutive quarter of positive adjusted EBITDA and ninth consecutive quarter of positive free cash flow, underscoring the consistency and the durability of our business model. We secured an estimated $40 million-$45 million Software as a Service contract with a major telecommunications carrier to deliver our FedRAMP-authorized Intelligent Technology Management System. This award validates our investment in scalable SaaS solutions and demonstrates that our capabilities resonate well beyond the federal market. We expanded our federal footprint through several important contract wins, including a new U.S. Customs and Border Protection task order valued at up to $27.5 million under the CWMS 2.0 contract and task orders supporting the U.S. Army under the Navy SPIRE4 contract vehicle.
We continue to strengthen our commercial business with new managed services engagements, demonstrating growing demands for our technology management, mobility, identity solutions across multiple industries. We advanced our device as a service capability and completed important infrastructure investments that support future growth opportunities and recurring revenue expansion. We deployed MobileAnchor under a number of agencies with notable pilot stage projects with the FAA, DOJ, and HUD OIG, and are in conversations with the Department of Energy and the Department of the Treasury regarding other pilot projects. Turning to our financial performance. Our financial results reflect both the resilience of our business and benefits of our long-term investments. For the full year 2025, revenue increased to $151 million, representing continued growth over 2024.
Gross profit increased to $21 million, while gross margins, excluding carrier services revenue, remained strong at 36%, highlighting the value of our higher margin managed services and software offerings. We generated positive adjusted EBITDA of $1.1 million and positive free cash flow of approximately $814,000. We ended the year with $9.8 million of unrestricted cash and no bank debt, providing financial flexibility to support future growth initiatives. Contract backlog reached approximately $223 million, providing strong revenue visibility and reinforcing the confidence of our customers place in WidePoint's solutions. While market conditions and procurement timing created challenges during the year, our second half performance improved significantly as management actions and operational efficiencies gained traction. We believe those improvements position us well as we move through 2026. The technology landscape continues to evolve rapidly.
Organizations today face growing pressure to secure mobile workforces, manage digital identities, optimize technology spending, and comply with increasingly stringent cybersecurity requirements. These trends play directly into WidePoint's strengths. Our secure mobility management platform combines secure identity management, managed mobility services, telecom lifecycle management analytics, and IT as-a-service capabilities into a comprehensive solution set that helps customers reduce risk, improve visibility, and control costs. Our decades-long track record supporting mission-critical federal programs has established WidePoint as a trusted partner across government. At the same time, we are increasingly leveraging those proven capabilities to expand our presence in commercial markets. The recent Carrier SaaS contract award and growing interest in our DaaS, MobileAnchor, and analytics offering demonstrate that our strategy is gaining traction and that our addressable market continues to expand. Looking ahead, as we enter 2026, we carry meaningful forward momentum.
We finished Q1 with revenues of $40.6 million, adjusted EBITDA of $752,000, free cash flow of $674,000, $10.9 million in unrestricted cash with no bank debt, and return to EPS positive. While government procurement timeline continued to evolve, we remain encouraged by the opportunities ahead and by the strength of our sales pipeline. We continue to monitor developments surrounding the DHS CWMS 3.0 procurement opportunity and remain confident in our competitive position. At the same time, we are pursuing numerous additional opportunities that further diversify our revenue base and reduce resilience on any single program. Our Carrier SaaS contract continues to remain on track, and we expect to have the majority of the devices implemented by the end of 2026. The SaaS nature of this contract is expected to meaningfully support our bottom line for the next several years. In addition, the DaaS opportunities continue to present meaningful upside potential.
Conversations are ongoing with several opportunities on the verge of closing. These three catalysts remain central to WidePoint's growth strategy and will be key areas of focus over the next several quarters. Looking ahead, our priorities remain clear. Expand our federal and commercial customer base. Grow recurring revenues through SaaS, DaaS, and managed services offerings. Continue investing in innovation, automation, secure credentialing, analytics, cloud-based technology, and integration of AI into our solutions. Maintain operational discipline while improving profitability and cash generation. Deliver long-term value for our customers, employees, and shareholders. We believe that the investments we have made over the past several years have established a strong foundation for our future growth, and we are excited about the opportunities before us. In closing, I would like to thank our employees for their dedication and commitment, our customers for their trust, and our shareholders for their continued support.
The accomplishments we achieved in 2025 reflects the hard work of our entire organization and the confidence our customers place in WidePoint every day. While there is still work ahead, we enter 2026 with strong balance sheet, a substantial backlog, an expanding portfolio of solutions, and confidence in our long-term strategy. We remain committed to creating sustainable growth and delivering long-term shareholder value. Thank you for your continued confidence in WidePoint and for joining us today. With that, I will now turn the call meeting back over to our chairman, Mr. Phil Garfinkle.
Thanks, Jin. We would be happy to answer any questions you may have about the company that were submitted during the meeting through our meeting website. I would also like to remind you that the representative from the company's independent registered public accounting firm of Baker Tilly is present at the meeting and is available to respond to any appropriate questions you may have.
We have no questions.
All right. Thank you very much. Being that there is no questions, I really want to thank you for coming today and for your continued support of WidePoint.
The meeting has now concluded. Thank you for attending today's presentation. You may now disconnect.