Companies /Technology

BigBear.ai Inc

NYSE: BBAI Information Technology Services
$3.05
▼ $0.14 (−4.39%) today
Markets closed · 4:28am ET

Q1 2025 Earnings

Reported May 1, 2025, 4:16pm ET · SEC source
$-0.25
Miss +0.00%
EPS · est. $0.00
$34.8M
Miss −4.15%
Revenue · est. $36.3M
+21.6%
Beating market
BBAI vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
0+6%+12%+18%May 1May 2report 4:16pm ETearnings+1.6%+13.9%
0+6%+12%+18%May 1May 2earnings+1.6%+13.9%
BBAI +13.9%S&P 500 +1.6%
0+6%+12%+18%May 1May 2report 4:16pm ETearnings+1.8%+13.5%
0+6%+12%+18%May 1May 2earnings+1.8%+13.5%
BBAI +13.5%NASDAQ +1.8%
0+7%+14%Apr 30May 9report 4:16pm ETearnings+1.4%+2.3%
0+7%+14%Apr 30May 9earnings+1.4%+2.3%
BBAI +2.3%S&P 500 +1.4%
0+7%+14%Apr 30May 9report 4:16pm ETearnings+1.9%+2.3%
0+7%+14%Apr 30May 9earnings+1.9%+2.3%
BBAI +2.3%NASDAQ +1.9%
+0.60%
Day of report
−4.46%
Next session
−5.95%
One week
+26.79%
30 days

S&P 500 over the same 30 days: +5.15%.

Did BBAI Beat Earnings? Q1 2025 Results

BigBear.ai delivered a disappointing first quarter, missing revenue estimates and deepening adjusted losses as the AI defense company struggles with government funding delays and elevated costs absorbed from its Pangiam acquisition. Revenue grew 4.9% year-over-year to $34.76 million, falling short of the $36.26 million consensus by 4.15%, while the company posted an EPS loss of $0.25 against a breakeven estimate. The most material drag came from surging operating expenses, with R&D spending jumping to $4.17 million from $1.14 million a year earlier and SG&A climbing to $17.73 million from $13.56 million, pushing Adjusted EBITDA to negative $6.99 million from negative $1.63 million. On a more constructive note, the company meaningfully strengthened its balance sheet during the quarter, converting $58 million in convertible notes to equity and raising $64.70 million from warrant exercises, lifting cash to $107.61 million. Compounding investor concern, a securities fraud investigation related to prior financial restatements has added an overhang on the stock. Management affirmed full-year 2025 revenue guidance of $160 million to $180 million, though the path there remains contingent on resolving federal funding delays.

Key Takeaways
  • Additional revenue from Department of Homeland Security and Digital Identity awards
  • 5% year-over-year revenue growth
  • Gross margin essentially stable at 21.3% versus 21.1%

“As we enter the second quarter, we are seeing early and encouraging signs that our strategic focus is resonating, particularly in sectors where we've built deep relationships, have a clear understanding of the mission, and are deploying proven technologies.”

BigBear.ai CEO, on the earnings call

Forward Guidance & Outlook

For the full year ending December 31, 2025, BigBear.ai projects revenue between $160 million and $180 million and Adjusted EBITDA in the negative single-digit millions. The company affirmed this outlook as part of its Q1 2025 results announcement.

BBAI YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$-240,000,000$-160,000,000$-80,000,000$0$33.1M$34.8MRevenue$7.0M$7.4MGross Profit$-234,601,770$-21,208,000Operating Income$-41,194,923$-61,986,000Net Income
$-240,000,000$-160,000,000$-80,000,000$0RevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.