📊 WYY Key Takeaways
Is Widepoint Corp. (WYY) a Good Investment?
WidePoint is operationally unprofitable with negative operating income (-58.4K) and severely negative cash flows (-922.5K operating, -1.0M free), indicating a fundamentally broken business model despite modest 5.6% revenue growth. The company burns cash despite revenue generation, with razor-thin gross margins (13.8%) and cannot cover interest expenses from operating income. Current cash balance provides only temporary reprieve; absent dramatic margin improvement or significant cost restructuring, the company faces mounting financial distress.
Why Buy Widepoint Corp. Stock? WYY Key Strengths
- Modest revenue growth of 5.6% YoY showing some market demand
- Minimal leverage with debt-to-equity of only 0.04x and low absolute long-term debt of 495.6K
- Cash position of 10.9M provides near-term liquidity buffer
WYY Stock Risks: Widepoint Corp. Investment Risks
- Negative operating cash flow of -922.5K indicates core business cannot fund operations
- Negative free cash flow of -1.0M shows unsustainable cash burn despite revenue generation
- Negative interest coverage ratio (-1.3x) means operating income cannot service debt
- Operating margin is negative despite positive net income, suggesting non-operating items masking operational failure
- Critically low gross margin of 13.8% suggests competitive pressure or operational inefficiency in core services
- Liquidity crisis risk with current ratio approaching 1.0x
Key Metrics to Watch
- Operating cash flow trend (currently negative, needs return to positive)
- Gross margin expansion (stuck at 13.8%, must improve to reach sustainability)
- Operating margin improvement (currently negative, core business must become profitable)
- Cash burn rate and months of runway remaining (critical for survival timeline)
- Revenue quality and customer concentration in services contracts
Widepoint Corp. (WYY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Widepoint Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
WYY Profit Margin, ROE & Profitability Analysis
WYY vs Technology Sector: How Widepoint Corp. Compares
How Widepoint Corp. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Widepoint Corp. Stock Overvalued? WYY Valuation Analysis 2026
Based on fundamental analysis, Widepoint Corp. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Widepoint Corp. Balance Sheet: WYY Debt, Cash & Liquidity
WYY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Widepoint Corp.'s revenue has declined by 17% over the 5-year period, indicating business contraction. The most recent EPS of $-0.21 indicates the company is currently unprofitable.
WYY Revenue Growth, EPS Growth & YoY Performance
WYY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $33.5M | $77.0K | $0.01 |
| Q3 2025 | $34.6M | -$425.2K | $-0.04 |
| Q2 2025 | $36.0M | -$499.6K | $-0.05 |
| Q1 2025 | $34.2M | -$653.1K | $-0.07 |
| Q3 2024 | $25.7M | -$425.2K | $-0.04 |
| Q2 2024 | $26.8M | -$499.6K | $-0.05 |
| Q1 2024 | $25.3M | -$653.1K | $-0.07 |
| Q3 2023 | $25.3M | -$392.9K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Widepoint Corp. Dividends, Buybacks & Capital Allocation
WYY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Widepoint Corp. (CIK: 0001034760)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WYY
What is the AI rating for WYY?
Widepoint Corp. (WYY) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WYY's key strengths?
Claude: Modest revenue growth of 5.6% YoY showing some market demand. Minimal leverage with debt-to-equity of only 0.04x and low absolute long-term debt of 495.6K.
What are the risks of investing in WYY?
Claude: Negative operating cash flow of -922.5K indicates core business cannot fund operations. Negative free cash flow of -1.0M shows unsustainable cash burn despite revenue generation.
What is WYY's revenue and growth?
Widepoint Corp. reported revenue of $40.6M.
Does WYY pay dividends?
Widepoint Corp. does not currently pay dividends.
Where can I find WYY SEC filings?
Official SEC filings for Widepoint Corp. (CIK: 0001034760) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WYY's EPS?
Widepoint Corp. has a diluted EPS of $0.01.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WYY a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Widepoint Corp. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is WYY stock overvalued or undervalued?
Valuation metrics for WYY: ROE of 0.7% (sector avg: 22%), net margin of 0.2% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy WYY stock in 2026?
Our dual AI analysis gives Widepoint Corp. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WYY's free cash flow?
Widepoint Corp.'s operating cash flow is $-922.5K, with capital expenditures of $77.8K. FCF margin is -2.5%.
How does WYY compare to other Technology stocks?
Vs Technology sector averages: Net margin 0.2% (avg: 18%), ROE 0.7% (avg: 22%), current ratio 1.04 (avg: 2.5).