BigBear.ai Inc
Q2 2026 Earnings
Market Reaction
Did BBAI Beat Earnings? Q2 2026 Results
BigBear.ai Holdings delivered a mixed second quarter for fiscal 2026, posting revenue of $36.75 million, a 13.2% year-over-year gain that edged past the $36.37 million consensus estimate by 1.04%, while its loss per share of $0.05 came in slightly wider than the $0.04 analysts had expected, a miss of 11.11%. The revenue growth story was largely written by the Ask Sage acquisition, whose higher-margin generative AI platform also lifted gross margin by 781 basis points to 32.8%, though the deal simultaneously drove SG&A expenses $10.40 million higher year-over-year as amortization, legal costs, and expanded sales spend weighed on operating results. Adjusted EBITDA deteriorated to negative $11.57 million from negative $8.50 million, underscoring how acquisition integration costs are tempering near-term profitability even as the company secured more than 20 new contracts and grew its backlog 9% to $269.60 million. Management affirmed full-year 2026 revenue guidance of $135 million to $165 million, with the second half centered on execution discipline and positioning for strategic acquisitions aimed at accelerating growth into 2027.
- Revenue from Ask Sage's GenAI Platforms and Products drove 13% year-over-year revenue growth
- Gross margin expanded 781 basis points to 32.8% due to higher-margin Ask Sage product mix
- More than 20 new contract wins during the quarter
- Backlog increased 9% to $269.6 million between December 31, 2025 and June 30, 2026
- Net loss improvement driven by absence of prior-year goodwill impairment ($70.6M) and reduced derivative fair value losses ($135.3M)
“It has been another strong quarter. Double-digit growth, significant margin expansion and more than 20 new contracts show that the BigBear.ai leadership team is following through on our commitments. We are in a strong financial position with $410 million of cash and investments, we're on track for our target of 17% revenue growth, and we intend to accelerate. The second half of 2026 is all about execution discipline and positioning ourselves for accretive, catalytic M&A and building momentum for even stronger topline growth in 2027.”
BigBear.ai CEO, on the earnings call
Forward Guidance & Outlook
BigBear.ai affirmed its full-year 2026 revenue guidance of $135 million to $165 million, targeting 17% revenue growth. Management stated the second half of 2026 will focus on execution discipline and positioning for accretive, catalytic M&A to build momentum for stronger topline growth in 2027. The company highlighted the rapid expansion of investment and innovation in defense technology as a favorable macro backdrop.
BBAI YoY Financials
Figures from SEC filings and company reports. Not investment advice.