BigBear.ai Posts Mixed Q4 Results, Shares Down 4%
BigBear.ai reported a fourth quarter loss of -$0.01 per share, beating analyst estimates of -$0.07, but revenue of $27.3 million fell short of the $34.48 million consensus estimate.
Shares fell 4.2% following the results, reflecting investor concern over the revenue shortfall.
Revenue declined 38% YoY from $43.8 million in the fourth quarter of 2024, primarily due to lower volume on Army programs.
The company issued full-year 2026 revenue guidance of $135 million to $165 million, with a midpoint of $150 million representing approximately 17% growth compared to full-year 2025 revenue of $128 million.
"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," said Kevin McAleenan, CEO of BigBear.ai. "As of year-end 2025, BigBear.ai is in the strongest financial position in the company’s history."
The company’s gross margin declined to 20.3% in the fourth quarter from 37.4% in the prior-year period, due to significant one-time high margin contracts in the fourth quarter of 2024 that did not recur. Adjusted EBITDA was -$10.3 million compared to $2.0 million in the fourth quarter of 2024, driven by the decrease in gross margin and increased research and development and SG&A expenses.
BigBear.ai ended 2025 with total cash and investments of $462 million. The company settled the remaining $125 million of 2029 convertible notes in January 2026, primarily through debt-to-equity conversion features. The company also completed acquisitions of Ask Sage in December 2025 and CargoSeer in January 2026, positioning itself for growth in 2026.
Related Articles
Starbucks (SBUX) Stock in 2026: Is This Dividend Stock a Good Buy Compared to AI Stocks?
After a tough run, Starbucks (SBUX) is entering 2026 with a less complex playbook, the earliest evidence of accelerating sales, and a dividend that compensates shareholders to wait. AI stocks have produced bigger gains but come with higher expectations and are more volatile. For everyone trying to i
JPMorgan Warns Hormuz Blockade Risks Oil Shutdown in 25 Days, But How Will the US-Iran Conflict Shape Global Oil Prices?
TradingKey - Following the announcement on the night of February 28 banning all vessels from passing through the Strait of Hormuz, JPMorgan Chase issued a warning: if the Strait of Hormuz is completely blocked, the combined onshore and offshore storage capacity of Middle Eastern oil-producing nation
US-Iran Conflict Ignites, Global Arms Race Heats Up, Will Defense Stocks See a New Round of Gains?
TradingKey - On February 28 local time, the United States and Israel launched joint large-scale airstrikes against Iran, targeting its nuclear facilities, missile industry, and naval forces. This marks another sharp escalation in the conflict following the US military strikes on Iranian nuclear facilities in June last year. The military operation not only exacerbates already strained geopolitical tensions but has also sent shockwaves through global capital markets, which is expected to further boost defense stocks.
U.S.-Iran Conflict Escalates. Strait of Hormuz Shutdown, How Much Room for Oil Prices to Rise?
TradingKey - A sharp escalation in geopolitical risks has directly triggered intense volatility in global crude oil markets. At the market open this Monday, WTI crude oil futures surged by over 11%, and Brent crude opened up 13%, though these gains subsequently narrowed.
