BigBear.ai (NYSE:BBAI) Posts Quarterly Earnings Results, Misses Expectations By $0.13 EPS

BigBear.ai (NYSE:BBAI) posted its earnings results on Tuesday. The company reported ($0.19) EPS for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.13), Briefing.com reports. BigBear.ai had a negative return on equity of 15.17% and a negative net margin of 126.84%. The company had revenue of $43.58 million during the quarter, compared to the consensus estimate of $29.93 million. During the same period last year, the firm posted ($0.03) EPS. The company’s revenue for the quarter was up 31.5% on a year-over-year basis.

Here are the key takeaways from BigBear.ai’s conference call:

• Revenue grew 31% year over year to $43.6 million, prompting BigBear.ai to raise its 2026 revenue guidance to $150 million–$165 million, with the midpoint implying 23% annual growth.
• The company announced more than 25 contracts worth over $225 million in total contract value during the quarter, including major Homeland Security recompetes and new generative AI customers across federal agencies; backlog increased 22% sequentially to $330 million.
• Gross margin expanded 878 basis points year over year to 31.2%, while the company entered the fourth quarter with nearly $400 million in cash and investments and expects to be debt-free after repaying approximately $17 million of convertible debt in December.
• BigBear.ai reported a $91.9 million net loss, or $0.19 per share, primarily due to a $76.7 million non-cash goodwill impairment charge; adjusted EBITDA remained negative at $9.1 million.
• Management emphasized plans to pursue acquisitions and expects defense modernization, secure travel, trade-flow changes, and rising security threats to support growth in 2027, though these statements remain forward-looking and subject to execution and market risks.

BigBear.ai Stock Down 2.6%

NYSE BBAI traded down $0.07 during mid-day trading on Friday, reaching $2.60. The stock had a trading volume of 26,029,693 shares, compared to its average volume of 19,353,074. The stock has a market cap of $1.25 billion, a PE ratio of -7.03 and a beta of 3.37. BigBear.ai has a 1 year low of $2.07 and a 1 year high of $7.40. The company has a fifty day moving average price of $2.67 and a 200 day moving average price of $3.63. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.92 and a quick ratio of 4.92.

Wall Street Analysts Forecast Growth

BBAI has been the topic of several analyst reports. Wall Street Zen cut shares of BigBear.ai from a “hold” rating to a “sell” rating in a research note on Saturday, August 1st. Cantor Fitzgerald dropped their target price on shares of BigBear.ai from $4.00 to $3.00 and set a “neutral” rating on the stock in a research note on Wednesday. Weiss Ratings reissued a “sell (d-)” rating on shares of BigBear.ai in a report on Thursday, October 15th. Finally, Citigroup restated a “market perform” rating on shares of BigBear.ai in a research report on Wednesday. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, BigBear.ai presently has an average rating of “Hold” and an average target price of $4.50.

About BigBear.ai

BigBear.ai Holdings, Inc (NYSE: BBAI) is an artificial intelligence company that develops decision-intelligence solutions for government and commercial organizations. Its technologies are designed to help customers analyze complex data, identify risks and opportunities, and support planning and operational decision-making.

The company provides artificial intelligence and machine-learning capabilities across areas such as supply-chain management, cyber operations, logistics, autonomous systems, predictive analytics, and computer vision.