Companies /Technology

BigBear.ai Inc

NYSE: BBAI Information Technology Services
$3.05
▼ $0.14 (−4.39%) today
Markets closed · 3:54am ET

Q2 2025 Earnings

Reported Aug 11, 2025, 4:15pm ET · SEC source
$-0.71
Miss +0.00%
EPS · est. $0.00
$32.5M
Beat +2.05%
Revenue · est. $31.8M
−17.5%
Trailing market
BBAI vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−20%0+20%Aug 11Aug 12report 4:15pm ETearnings+1.2%−2.3%
−20%0+20%Aug 11Aug 12earnings+1.2%−2.3%
BBAI −2.3%S&P 500 +1.2%
−20%0+20%Aug 11Aug 12report 4:15pm ETearnings+1.5%−2.3%
−20%0+20%Aug 11Aug 12earnings+1.5%−2.3%
BBAI −2.3%NASDAQ +1.5%
0+20%+40%Aug 11Aug 19report 4:15pm ETearnings+0.7%+7.8%
0+20%+40%Aug 11Aug 19earnings+0.7%+7.8%
BBAI +7.8%S&P 500 +0.7%
0+20%+40%Aug 11Aug 19report 4:15pm ETearnings−0.6%+7.8%
0+20%+40%Aug 11Aug 19earnings−0.6%+7.8%
BBAI +7.8%NASDAQ −0.6%
−15.80%
Day of report
−2.68%
Next session
−7.87%
One week
−15.24%
30 days

S&P 500 over the same 30 days: +2.29%.

Did BBAI Beat Earnings? Q2 2025 Results

BigBear.ai delivered a bruising second quarter, posting a net loss of $228.62 million and an EPS of negative $0.71 against a consensus estimate of zero, even as revenue of $32.47 million edged past the $31.82 million consensus by 2.05%. The top line still fell 18.4% year-over-year, with management pointing to lower volume on U.S. Army programs disrupted by federal government efficiency efforts as the primary culprit, a dynamic that has made <a href="https://247wallst.com/investing/2025/08/11/live-will-bigbear-ai-bbai-pop-after-tonights-earnings/">customers more cautious</a> across the defense analytics space. The headline loss was amplified by $135.75 million in non-cash fair value changes on derivative liabilities and a $70.64 million goodwill impairment charge, though adjusted EBITDA also deteriorated to negative $8.50 million. On the brighter side, an at-the-market offering generated $293.43 million during the quarter, lifting cash to a record $390.85 million and opening the door to acquisitions previously out of reach. Looking ahead, the company guided full-year 2025 revenue to $125 million to $140 million while withdrawing its adjusted EBITDA outlook, citing ongoing Army program uncertainty and planned second-half growth investments.

Key Takeaways
  • Revenue decline driven by lower volume on certain U.S. Army programs
  • Disruptions in federal contracts from government efficiency efforts impacting Army data architecture programs
  • Gross margin compression from 27.8% to 25.0%
  • SG&A decreased year-over-year driven by lower legal expenses and lower bonus expense

“Our robust balance sheet allows us to make significant transformational investments to shape the future of BigBear.ai. Our capital raising activities this quarter coincide with the tremendous opportunities we see coming from the One Big Beautiful Bill, particularly in the Department of Homeland Security, and several of which are uniquely aligned to our core capabilities. This legislation will bring a generational investment and provides over $170 billion in supplemental funding to the Department of Homeland Security, and $150 billion to the Department of Defense for disruptive defense technology. This is not incremental funding for innovation - this is a transformative level of investment. As a Mission Ready AI company with a national and border security focus, it's directly in our lane.”

BigBear.ai CEO, on the earnings call

Forward Guidance & Outlook

For full-year 2025, BigBear.ai now projects revenue between $125 million and $140 million. The company withdrew its previously provided Adjusted EBITDA guidance due to uncertainty on certain Army programs and anticipated new growth investment spending in the second half of the year. The company expects to provide updated Adjusted EBITDA guidance at a later date.

BBAI YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$20.0M$40.0M$39.8M$32.5MRevenue$11.1M$8.1MGross Profit
$0$20.0M$40.0MRevenueGross Profit

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