BigBear.ai Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.18%.
Did BBAI Beat Earnings? Q3 2025 Results
BigBear.ai delivered a stronger-than-expected Q3 2025, posting a loss of $0.03 per share against a consensus estimate of $0.07, a 59.07% beat, while revenue of $33.14 million cleared the $31.82 million estimate by 4.16%, even as the top line fell 20.1% year-over-year amid lower volume on certain Army programs. The <a href="https://247wallst.com/investing/2025/11/10/live-complete-bigbear-ai-bbai-q3-earnings-coverage/">quarter's headline story</a> may be the company's definitive agreement to acquire Ask Sage, a fast-growing Generative AI platform for defense and national security, for $250 million; Ask Sage is projected to generate roughly $25 million in annual recurring revenue in 2025, a roughly six-fold increase over its 2024 ARR, and already serves more than 100,000 users across 16,000 government teams. A GAAP net income swing to $2.52 million from a prior-year loss of $15.13 million was largely driven by a $26.13 million non-cash gain on derivative liabilities. BigBear.ai maintained its full-year 2025 revenue guidance of $125 million to $140 million, with management pointing to border security and defense spending as catalysts expected to convert into contracts in the coming year.
- Revenue declined 20% YoY primarily due to lower volume on certain Army programs
- Gross margin compression to 22.4% from 25.9% due to absence of higher margin programs from prior year
- Net income of $2.5 million driven by $26.1 million non-cash gain from decrease in fair value of derivative liabilities
- SG&A increased to $25.3 million from $17.5 million driven by marketing, non-recurring strategic initiatives, and labor cost increases
- Adjusted EBITDA declined to $(9.4) million from $0.9 million in prior year
“Today, I'm thrilled to announce that BigBear.ai has signed a definitive agreement to acquire Ask Sage, a cutting-edge and fast-growing Generative AI platform for secure distribution of AI models and agentic AI capabilities, built specifically for defense and national security agencies and other highly-regulated sectors. Ask Sage already supports more than 100,000 users on 16,000 government teams and across hundreds of commercial companies. It is a turnkey platform that's in production today, at scale, in the environments that matter most.”
BigBear.ai CEO, on the earnings call
Forward Guidance & Outlook
BigBear.ai continues to project full-year 2025 revenue between $125 million and $140 million. The anticipated acquisition of Ask Sage is expected to close late Q4 2025 or early Q1 2026 and is not expected to have a material impact on the Company's consolidated 2025 financial results. Management believes potential for new business in border security and defense remains strong despite government shutdown delays, and expects opportunities including accelerated spending from the 'One Big Beautiful Bill' to materialize into contracts next year.
BBAI YoY Financials
Figures from SEC filings and company reports. Not investment advice.