Companies /Technology

BigBear.ai Inc

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

Q4 2025 Earnings

Reported Mar 2, 2026, 4:18pm ET · SEC source
$-0.01
Beat +83.33%
EPS · est. $-0.06
$27.3M
Miss −18.04%
Revenue · est. $33.3M
−12.1%
Trailing market
BBAI vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
0+4%+8%+12%Mar 2Mar 3report 4:18pm ETearnings−1.0%+0.0%
0+4%+8%+12%Mar 2Mar 3earnings−1.0%+0.0%
BBAI +0.0%S&P 500 −1.0%
0+4%+8%+12%Mar 2Mar 3report 4:18pm ETearnings−1.1%+0.0%
0+4%+8%+12%Mar 2Mar 3earnings−1.1%+0.0%
BBAI +0.0%NASDAQ −1.1%
−5%0+5%+10%Mar 2Mar 10report 4:18pm ETearnings−1.3%+2.0%
−5%0+5%+10%Mar 2Mar 10earnings−1.3%+2.0%
BBAI +2.0%S&P 500 −1.3%
−5%0+5%+10%Mar 2Mar 10report 4:18pm ETearnings−0.0%+2.0%
−5%0+5%+10%Mar 2Mar 10earnings−0.0%+2.0%
BBAI +2.0%NASDAQ −0.0%
+3.54%
Day of report
−7.32%
Next session
+2.44%
One week
−16.59%
30 days

S&P 500 over the same 30 days: −4.54%.

Did BBAI Beat Earnings? Q4 2025 Results

BigBear.ai closed out fiscal 2025 on a difficult operational note, with <a href="https://247wallst.com/investing/2026/03/02/live-earnings-analysis-bigbear-ai-reports-after-the-bell/">Q4 results reflecting</a> a 38% year-over-year revenue decline to $27.30 million, driven by lower volume on Army programs, while gross margin compressed sharply to 20.3% from 37.4% a year ago as high-margin one-time contracts failed to recur. The company posted a Q4 loss per share of $0.01, with a net loss of $5.83 million, a significant narrowing from the $138.18 million loss in the year-ago period, though that improvement was largely attributable to non-cash items rather than operational momentum. Adjusted EBITDA deteriorated to negative $10.25 million from positive $1.96 million in the prior-year quarter, underscoring the underlying cost pressure. The more compelling story, however, centers on BigBear.ai's balance sheet overhaul; the company ended the year with roughly $462.00 million in cash and investments after raising $693.00 million through equity and warrants, while slashing debt by more than 90%. Looking ahead, management guided 2026 revenue to between $135.00 million and $165.00 million, banking on contributions from the recently acquired Ask Sage and CargoSeer businesses, along with Middle East expansion.

Key Takeaways
  • Lower volume on Army programs drove 38% Q4 revenue decline
  • Non-cash gain of $50.2 million on derivative liabilities in Q4 2025 versus $93.3 million non-cash loss in Q4 2024
  • $21.7 million income tax benefit from change in tax valuation allowances related to Ask Sage acquisition
  • $53.4 million non-cash impairment of long-lived assets driven by downward revisions in U.S. government contract forecasts
  • Gross margin decline from 37.4% to 20.3% due to non-recurrence of high-margin contracts from prior year
  • Increased R&D and SG&A expenses

“At the start of 2025, we set out to transform our financial foundations to establish a base from which to accelerate in 2026. We have delivered exactly that. As of year-end 2025, BigBear.ai is in the strongest financial position in the company's history. I am tremendously grateful to our team for the work they have done. We have reduced our debt by more than 90%, established a powerful cash position that gives us the freedom to invest in catalytic technologies, expanded internationally, and acquired two highly specialized technology companies which play directly into our two core markets in national security and travel & trade.”

BigBear.ai CEO, on the earnings call

Forward Guidance & Outlook

BigBear.ai projects full-year 2026 revenue between $135 million and $165 million, representing approximately 17% growth at the midpoint compared to full-year 2025 revenue of $128 million. The company expects growth to be driven by recent acquisitions (Ask Sage and CargoSeer), international expansion into the Middle East, and alignment with the U.S. Government's AI Acceleration Strategy. The company does not provide GAAP net income guidance or Adjusted EBITDA reconciliation due to the unpredictability of certain non-cash items.

BBAI YoY Financials

Revenue$27.3M
Gross Profit$5.5M
Operating Income$-80,526,000
Net Income$-5,830,000

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