All right. Good afternoon. I'd like to introduce our next presenter of the day, Jin Kang, CEO of WidePoint. Welcome.
Thank you. Thank you very much. Thank you. Thank you, everyone, and good afternoon. Hope you're having a great conference so far. Special thanks to LD Micro and Chris Lahiji, who always has the best conferences, and giving us the opportunity to showcase WidePoint. Hopefully, as I said, you're all hearing a lot of good stuff about a lot of great companies to invest in. As Dina said, my name is Jin Kang, and I'm the CEO of WidePoint Corporation. Joining me today is Todd Dzyak, who is our Chief Operating Officer. He will be handling all your questions during the Q&A session at the conclusion of my presentation. Today, I'll be telling you a little bit about WidePoint, who we are, what we do, and what makes us unique. I'll try to keep my prepared remarks short so that we'll have more time for Q&A.
I think that there's going to be a few questions, I sense, that's going to be at the conclusion of my presentation. But first, this is our administrative item. This is our safe harbor statement. I know you've all seen this before, so I won't belabor that. With that out of the way, let me give you a quick snapshot of WidePoint. We are a mobility and cybersecurity solutions company, and we were founded in 1997, and we've been growing through organic and inorganic means over the last 30 years. We're one of the few companies that Chris Lahiji talks about being around for 20 years, and we're finally turning the corner. I think we could all agree that cybersecurity and mobility management are critical elements of our IT environment today, especially with the advancement of AI.
We offer solutions to address the cybersecurity concerns of our customers in this mobile world. We provide solutions to secure, manage, and monitor our clients' mobile technology assets, all delivered using a SaaS business model. We empower our customers to work securely from anywhere and everywhere. The current management team has been able to stabilize a floundering company and position it for growth and profitability. A company with 95% recurring revenues, $219 million in contract backlog, zero bank debt, $36 billion in addressable market, $10 million in cash at the end of Q2 2026, and we are adding to this balance as we are free cash flow positive. 36 consecutive quarters of adjusted EBITDA positive. More notably, we've been free cash flow positive for 11 straight quarters and EPS positive for two consecutive quarters. So we are turning that corner. We closed 2025 with $151 million in revenue.
In the first six months of this year, we were at $79 million in top-line revenue. We are continuing to grow in our double-digit percentage growth. Roughly $60 million in market cap as of today. I believe that there is a disconnect between our valuation and our true worth. An insider owns roughly 12% of the outstanding shares. The objective of the management team and the board are aligned with our investors. As I said, I believe that there is a big disconnect given the near-term catalyst that we have accomplished and those that are pending. First catalyst that has already been accomplished is signing of our ATV contract. It is a contract with one of the big three mobile carriers here in the U.S., AT&T-Mobile, Verizon. I am just not at the liberty to release the names.
I don't think that it is a big deal to know who the carrier is, but we have NDAs in place, so I can't give away the name. This is a SaaS contract with one of these big three carriers. Roughly a $45 million, $50 million five year contract that is 70%+ in gross margins. We believe that this will add up to $0.50 EPS once we get fully ramped on a run rate basis, and the current go-live date is set for the end of Q4 this year. We are currently scheduled to fully ramp over the next couple, three quarters. We are looking at fully being ramped for this contract at the end of Q2, beginning of Q3 next year. Second catalyst is our $3.1 billion 10-year contract with the Department of Homeland Security. This is on the Cellular Wireless Managed Ser vices 3.0.
We were named the winner of this contract in June, and one of the losing bidders protested the award, which was par for the course for these federal government contract, especially as these contracts get very large. But we were still disappointed, and we did find out on September 25th that the protest was sustained. Now the next step in the process is that we are waiting for DHS to address the issues and implement the GAO's recommendation, and make the final award decisions. We believe that the protest will eventually be settled in our favor. We believe that we are the best-qualified candidate and the best value for the federal government. Even though our prices were 28% higher than our competitors, they felt that we were still best qualified and we were the less riskiest contractor to the work.
We have been involved with Department of Homeland Security for over 20 years. In that time, we had excellent past performance, and so they trust us, and they know us, and they know our capabilities. Again, once that contract is fully ramped, we should see approximately $1.50 EPS on a run rate basis, and we are looking at being fully ramped as we exit 2028 or enter 2029. The third catalyst is our DaaS opportunities with Fortune 500 companies, to provide our system of record platform to our partner CDW to manage their customer's technology assets. Another catalyst is that we have successfully transitioned to an as-a-service business model. All of the things that we do now, software as a service, device as a service, platform as a service, are now as a service increasing our gross margins.
I think we also had a press release on our new contract with NASA. It's the NASA SEWP VI contract, and that contract ceiling is $60 billion. We did win that with a couple of other select companies, I think something like 1,300 other vendors. But we feel pretty good about our chances of winning work underneath the contract because of the various contracts that we have with the federal government. Even though we have won this contract with a lot of different contractors, we have a lot of opportunities here, and potentially bringing customers to this contract vehicle. The catalysts will add a lot of wind in our sails.
As I stated, our addressable market size is $36 billion and growing, and that includes federal, state, local governments, and commercial enterprises for large organizations for whom security and compliance is key, and those large organizations that have large mobile workforce. Organizations like the military, healthcare, finance, transportation, consumer products, energy sector, et cetera. This market is continuing to grow due to the cybersecurity threats and the post-pandemic environment that has us working from remote locations from everywhere. Because we are working remotely from everywhere, the endp oints are continuing to proliferate, and the budget to continue to secure and manage these endpoints continue to grow. Even in this cost-saving environment that we're in, our customers are not cutting back on cybersecurity and mobility management. This market continues to grow, and that bodes well for us. Let me tell you a little bit about our core competencies.
As I stated, we provide our clients with the capability to secure, manage, and provide visibility to their technology assets. We help secure their assets and infrastructure with the most secure multi-factor authentication solution available on the market today. A solution that has never been hacked and has been implemented in all of the federal government agencies, including the Department of Defense and the Department of War. I think they're the same. We help manage our customers' assets with a purpose-built, secure platform to manage the full life cycle of their assets. A system we call Intelligent Technology Management System, or ITMS. ITMS has been FedRAMP certified, and I'll go into a little more detail on the next slide on this, but this certification is the most secure system to manage our customer's asset.
Essentially, our ITMS received the FedRAMP certification, and that means our system meets all of the federal government standards for cybersecurity and data protection. We also provide full visibility of our clients' assets through our ITMS and our digital billing and analytics capability, soon to be AI-enabled. We own all of the intellectual property associated with our delivery platform. A little bit about our FedRAMP authorized status. As I stated, our system is certified by FedRAMP, through the FedRAMP program, and this is a huge accomplishment. FedRAMP stands for Federal Risk Authorization Management Program. What this status means is that we meet all of the stringent federal government security standards and requirements for cybersecurity and data protection. We passed this rigorous security assessment and are fully approved to store, process, and transmit federal government data in the cloud.
Only a handful of companies can claim this certification, especially within our sector. This will be a big competitive advantage as we compete for work, both in federal government and the commercial sector. Even though FedRAMP specifically is for the federal government, data protection and cybersecurity is not specific to the federal government. It applies to all of these large organizations. We are also continuously enhancing our solution sets. Here are some notable technological developments. MobileAnchor is our next-generation identity and access management system and solution. We have successfully developed, tested, and deployed the most secure multi-factor authentication solution now on your smartphones. We used to have a solution. We still do. We have a solution that uses a smart card form factor, but now we're using the smartphones to do that now. We also have the M365 Analyzer solution.
It is our enhancement of our unified communication solution to help manage and monitor inventory for software license and cost. We have successfully developed and tested, and deployed this capability to help our customers manage costs and find savings. Our IT-as-a-Service was recognized by ChannelE2E for our comprehensive solution set. Lots of things happening, lots of good capabilities that we're developing to offer up to our customers. Now let me delve a little bit deeper into our cybersecurity solutions and what we do to secure our customers' endpoints. As I stated earlier, we provide the most secure multi-factor authentication solution available on the market today, one that is quantum computing resistant, and one that has never been hacked. This solution is now available on your smartphones, a solution that we call MobileAnchor.
This solution brings all of the high security measures that our federal government customers use now on your smartphones. Our solution is relied upon by over 18,000 enterprises worldwide. It provides the most secure physical and logical access controls. It eliminates the need for multiple user ID and passwords combinations, and waiting for those six nine-digit randomly generated numbers. We have been providing this solution to the federal government since 1995, and in all that time, this solution has never been hacked. Not by the most sophisticated cybersecurity hacking tools that are out there. We were the first company to be certified by the U.S. Department of Defense, and currently, we are only one of two certified by the U.S. government to issue these credentials that serve as their foundation for the zero trust security architecture. Now we're bringing that level of DoD cybersecurity posture to the commercial customers.
Please stay tuned for additional developments there. I talked about this MobileAnchor, so I'll skip that. Our contract vehicle strategy. As I spoke earlier, one of our catalysts that we have accomplished was being named a prime contractor on the NASA SEWP VI contract, which is, as I said, $60 billion in contract ceiling. As you may know, winning federal government contract is a very long and arduous process. As we are experiencing under the CW MS 3.0, which I'm sure you'll have a lot of questions on. I also like to mention that we have won two multi-billion dollar contract vehicles over the last two years, the NASA SEWP VI and the Navy Spiral 4. Together, they represent roughly $62 billion, $63 billion in contract ceiling that we're continuing to exploit. We are also pursuing the GSA Alliant 3 contract, which has no contract ceiling.
A lot of good opportunities there. Being named prime contractors on these large contracts are very beneficial for us because our partners and potential partners will seek us out because they do not have access to these contract vehicles. They come to us because they want that access. In terms of expanding with our partners, these contract vehicles and our certification accreditation have brought to us a lot of these strategic partners and systems integrators that are looking for our certification and accreditation as well as these contract vehicles. Of course, our core competencies and our certification, as I said, represents key requirements on these large solicitations. They are seeking us out. This slide shows a list of some of our large systems integrators and strategic partners. They will continue to seek us out, especially now that we have our FedRAMP certified status.
We have now a handful of contracts that they can utilize to win federal government contracts. This is our financial slide. As you can see, we are a stable company. We have been experiencing double-digit top-line growth over the past several years. As I said, we ended Q2 with roughly $10 million in cash. We have an adjusted EBITDA positive for 36 straight quarters, 11 consecutive quarters of free cash flow positive, two consecutive quarters of EPS positive. We are continuing to experience gross margin improvements. We are on track to beat all of the financial metrics in 2026, all of the metrics of 2025 in 2026. We see this trend continuing as we get fully ramped up on our ATV and our DHS contracts. We should see continued improvements into 2027.
Some solid numbers for our nano cap at $60 million in market cap seems undervalued. Hopefully you will like what you hear. In terms of our growth strategy, we have a multi-pronged approach to accomplishing our task. We will enhance our competitive edge by investing in solution sets such as FedRAMP authorized, Microsoft independent software vendor certification, further integration with various standard applications. We will continue to expand with our strategic partners and systems integrators. Even though organic growth has been sort of on our back burner, we are always quietly looking around for potential acquisitions.
We are looking for companies that have either similar capabilities or similar customer base and bring them onto our delivery systems and make that deal immediately accretive. That concludes my prepared remarks. I will open the floor for questions, and Todd is going to step up here to answer all of your questions for you.
All of them.
All of them.
Questions. Yes, sir.
Tell us about that contract that's in.
John Hickman, is that you back there?
That's me.
Okay. Yes. What was your question?
The contract that's in,
Protested?
Yeah. Contest. What's the right word? Protest you said, right? Protest.
Protested.
Yeah.
So the current status of the protest is that GAO has sustained the protest, and they made several recommendations for DHS to address. We thought the two protest points to the ground that they sustained were addressable quickly. One was, one of the letters of commitment was non-compliant, and the other ground was that one of the cost assumptions that we had made was not an assumption, but an exception, which we disagreed, and I think DHS disagreed as well. But GAO made their ruling and sent their recommendation back to DHS. The recommendation was that DHS open up conversations with the contractor, and they would request additional information from us. We will be compliant in our response, and they will reevaluate the information that they received and make another award.
What about the third point?
The what? What third point are you?
The third point was the conflict of interest one. You want to talk about it?
Oh, the conflict of interest was denied. They deemed there was no conflict of interest.
Who was the competitor that filed?
Turning Point Global Solutions.
What kind of timeframe do you anticipate?
It really is up to DHS, but within the GAO decision letter, they give them 60 days to provide how they are going to address the findings. Yes, sir.
Can we understand just basic level?
Yeah.
What are the key principles of your security features that just make it so different that others can't?
It's based upon public key infrastructure. Again, it's not a solution that's been hacked yet. In fact, we are looking at the post-quantum cryptographic standards that the U.S. government's trying to implement no later than 2032. We're actually the basis for all those zero trust modules that are out there. As soon as that PQC algorithm is defined, we should be one of the first, if not the first, to actually have it to market
But explain to me, right now it just sounds like a blind spot. I don't really understand. Why is yours? How did you come across this technology that is so different that others just haven't been able to also replicate?
There are other people out there that have implemented PKI, the public key and private key exchange, for identity management. But there are only two out there that have gone through all the certifications in order to be able to provide that for U.S. government.
Yeah, there's a lot of nuances associated with that. If you want to have an after discussion, we can do that. We can trade technical notes. How's that?
Yeah.
Okay.
Yeah.
You're one of two vendors for the DoD.
Correct.
Correct?
Correct.
One of only two vendors.
For the ECA, yes. Yes.
Identification cards.
Correct. Yes.
Yeah. One of two certified by the federal government to issue those cards that are equivalent to the CAC, or common access card, or the PIV card, personal identity verification. Yeah. Any other questions? Yes, sir. Barry.
Can we go to the three catalyst slide you had? The third one is CDW. We have a couple of questions, and want to flesh that out a little bit more. What have you done in the past with CDW? How big was it? You mentioned one of the opportunities we have coming up with that. I think there's more. Can you talk about the opportunities coming up and the timelines?
Yeah. CDW, we started a relationship really about 10 years ago, leading up into Census 2020. It was the largest mobility program ever. Over 700,000 devices deployed and tracked. They were the mechanism to configure and ship those devices. We tracked them, and it was our platform, ITMS, that was the database of record integrated in with 42 other systems. We have very good experience with them. We are looking at Census 2030. That's coming up. More near term, we're looking at L.A. 2028 Olympics, that they were an official provider for. They're also the lead on the Device as a Service program.
Of the 700,000, how many did you lose?
We didn't lose any, but actually, the number of lost devices was significantly lower than what they expected. I think they were thinking potentially up to 2%. It was less than half of 1%.
Yeah. It was all user-precipitated kind of thing, where they dropped the device down a m anhole or—
A sewer.
—whatever.
Yeah. Okay. Any other questions? Any other questions? More technical questions. Okay. It's okay.
I'm completely new to this company.
Okay. Yeah.
You guys are the new management team?
We've actually been in the management team since 2017. The company was really struggling in 2017, and we're probably a month, maybe a quarter away from insolvency. Then one of the largest shareholders at the time affected a management and the board change, and that's how we actually stepped up from the COO, my position, to CEO. Todd was the Senior VP of Operations, and he stepped up to the COO role.
Yeah. Okay.
Since then, we've been profitable and EBITDA positive and EPS positive, and so we've been continuing to improve. So I think we're done with the questions, so if we didn't answer your question, we can have a conversation outside. How's that?
Thank you. Thank you.