WidePoint (NYSEAMERICAN:WYY) stock moved higher after the company was awarded a $3.1 billion contract from the Department of Homeland Security, a figure that outstrips the company’s market value. New York, June 25, 2026, 09:12 (EDT)
- WidePoint was named the sole awardee on the Department of Homeland Security’s CWMS 3.0 IDIQ contract, which runs for 10 years and has a ceiling of $3.066 billion.
- WYY is set to open at $25.36, a 43.9% jump from the $17.62 it closed at.
- The DHS ceiling comes in at nearly 18 times WidePoint’s market cap before the move in premarket, but that’s only a ceiling, not confirmed revenue.
WidePoint Corporation (NYSEAMERICAN:WYY) traded sharply higher in premarket action Thursday. The company announced it was chosen as the sole awardee for a Department of Homeland Security wireless services deal with a contract ceiling of $3.066 billion. The Fairfax, Virginia-based secure mobility company said it was picked for the contract.
The stock traded at $25.36 ahead of the open, jumping 43.9% from Wednesday’s close at $17.62, Google Finance said. This quote hit before the NYSE American’s main session that starts at 9:30 a.m. ET and ends at 4 p.m. ET. NYSE’s holiday calendar has the next holiday closing on June 19, followed by another on July 3.
WidePoint’s market cap is dwarfed by the DHS ceiling, which is 17.6 times bigger than its listed value of $174.21 million before the premarket move. With the premarket price at $25.36, WidePoint’s implied equity value rises to around $251 million on 9.89 million shares. That’s still a 12.2x gap to the DHS ceiling.
The award is above what WidePoint had listed as backlog. The company’s federal contract backlog stood at around $218 million on March 31. The new DHS ceiling is roughly 14 times that figure and about 76 times the quarter’s revenue of $40.6 million.
WidePoint said the new CWMS 3.0 ordering starts June 25, with an initial one-year term and nine option years. The company is set to handle lifecycle, connectivity, security and day-to-day operations for DHS units.
Chief Executive Jin Kang called the DHS award a “major strategic milestone.” Chief Revenue Officer Jason Holloway said DHS is “more than doubling” the ceiling this time and pointed to managed services as possibly a bigger share versus before. Chief Operating Officer Todd Dzyak said WidePoint “looks forward to expanding” services for DHS. GlobeNewswire
WidePoint put out an 8-K on Thursday that adds detail to the initial number. The company said the agreement has standard government contract clauses—compliance, confidentiality, indemnification, termination. WidePoint said it will file the whole agreement with its next regular report.
WidePoint said on June 23 it landed a spot as a prime awardee on NASA’s SEWP VI contract. This is a multiple-award, not sole-award, government-wide vehicle. SEWP VI runs for a five-year base and up to five extra years, for a $60 billion total cap, WidePoint said.
NASA said the SEWP VI contract lets agencies buy commercial gear and services — hardware, software, cloud, cybersecurity. NASA also said SEWP VI is set up as an IDIQ contract, running for 10 years from Nov. 1 through Oct. 31, 2036. Each contract tops out at $20 billion.
Margin mix is the main question for the stock now. WidePoint posted gross margin at 14% for the first quarter, or 34% when carrier services sales are left out. Net income was $77,000. Free cash flow ran to $674,000. If future DHS orders are mostly lower-margin carrier pass-through, the contract ceiling won’t show the earnings picture. More managed services business would change the mix, so contract headlines may not show what really matters for WidePoint.
