WIDEPOINT CORP

WIDEPOINT CORP has a market capitalization of $83.11 million and a price-to-earnings ratio of 1079.9, indicating a high valuation relative to earnings. The company's price-to-book ratio is 29.01, and its enterprise value to revenue is 1.78, suggesting that the company is valued at a premium to its tangible book value but at a relatively low multiple of revenue. The company's liquidity position is characterized by a current ratio of 1.04, which is close to the minimum comfort range, indicating potential liquidity constraints. Free cash flow is negative at -$1.00 million, and operating cash flow is also negative at -$0.92 million, signaling cash flow challenges. Profitability metrics show a return on equity of 0.65% and a return on assets of 0.09%, both of which are significantly below the industry median for software companies, indicating weak returns relative to equity and asset base. The company's operating income is negative at -$58,366, and net income is positive at $76,960, suggesting that the company is barely profitable and may be relying on non-operating income or cost controls to maintain a positive net income. The company's revenue is concentrated in the United States, with disclosed segments including Commercial Enterprises, Foreign Governments, and U.S. Federal Government. The U.S. Federal Government segment is a significant source of revenue, and the company operates in both enterprise and government markets. The company's geographic exposure is primarily domestic, with limited international operations. The company's growth trajectory is uncertain, with no clear indication of revenue growth in the current fiscal year. The company's operating income is negative, and its free cash flow is also negative, suggesting that the company may be investing in growth or facing operational challenges. The company's risk assessment indicates medium liquidity and dilution risk, with a current ratio near the minimum comfort range and source documents mentioning dilution or offering risk. The company has a dilution potential of 2.03% from basic to diluted shares, and the valuation snapshot includes adjustments for dilution risk. Recent filings and transcripts indicate that the company is preparing for an ATM (At-The-Market) offering from April 1 to April 10, 2026, and has disclosed potential dilution risks in its 10-Q filing. The company has also adopted new accounting guidance for internal-use software prospectively for the year ended December 31, 2025, which may impact its financial reporting.