BigBear.ai (NYSE:BBAI) Issues Quarterly Earnings Results, Meets Expectations

BigBear.ai (NYSE:BBAI) released its earnings results on Thursday. The company reported ($0.05) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.05), FiscalAI reports. BigBear.ai had a negative return on equity of 16.02% and a negative net margin of 226.69%.The firm had revenue of $36.75 million during the quarter. During the same quarter last year, the company earned ($0.71) earnings per share. The business’s revenue for the quarter was up 12.9% on a year-over-year basis.

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

• Second-quarter revenue rose 13% year over year to $36.7 million, while gross margin expanded 781 basis points to 32.8%. Management reaffirmed its full-year revenue guidance of $135 million to $165 million.
• BigBear.ai won more than 20 contracts during the quarter, with individual values of up to $5 million, and backlog increased 9% from year-end to $270 million. Management also highlighted a new five-year CargoSeer deployment agreement in El Salvador.
• The company reported progress in applied AI products, including air-gapped generative AI deployments, CargoSeer customs screening, and ConductorOS for coordinating multi-vendor drone and autonomous systems. Management sees growing demand from defense, security, trade, and travel customers.
• BigBear.ai ended the quarter with $410 million in cash and investments and plans to pursue additional accretive acquisitions after integrating Ask Sage and CargoSeer. Executives said they intend to be aggressive but deliberate in deploying capital toward M&A.
• Despite higher revenue and margins, adjusted EBITDA worsened to negative $11.6 million from negative $8.5 million a year earlier because of increased sales, go-to-market, and research-and-development spending.

BigBear.ai Stock Performance

Shares of BBAI stock opened at $2.92 on Friday. BigBear.ai has a 1-year low of $2.59 and a 1-year high of $9.39. The company has a market capitalization of $1.40 billion, a price-to-earnings ratio of -3.40 and a beta of 3.32. The company has a current ratio of 6.08, a quick ratio of 6.08 and a debt-to-equity ratio of 0.01. The stock’s fifty day simple moving average is $3.70 and its 200-day simple moving average is $4.06.

Insider Buying and Selling

In other BigBear.ai news, CFO Sean Raymond Ricker sold 10,000 shares of the business’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $4.33, for a total value of $43,300.00. Following the transaction, the chief financial officer owned 609,256 shares in the company, valued at $2,638,078.48. The trade was a 1.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Dorothy D. Hayes sold 15,000 shares of the business’s stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $4.11, for a total value of $61,650.00. Following the completion of the sale, the director directly owned 204,150 shares of the company’s stock, valued at approximately $839,056.50. The trade was a 6.84% decrease in their position. The SEC filing for this sale provides additional information. 0.57% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its holdings in BigBear.ai by 18.4% in the fourth quarter. Vanguard Group Inc. now owns 32,695,344 shares of the company’s stock worth $176,555,000 after purchasing an additional 5,090,508 shares in the last quarter. UBS Group AG boosted its stake in shares of BigBear.ai by 145.7% during the 4th quarter. UBS Group AG now owns 10,386,833 shares of the company’s stock worth $56,089,000 after acquiring an additional 6,158,665 shares in the last quarter. State Street Corp increased its holdings in shares of BigBear.ai by 33.6% during the 4th quarter. State Street Corp now owns 10,279,145 shares of the company’s stock valued at $55,507,000 after acquiring an additional 2,584,278 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of BigBear.ai by 35.9% in the 4th quarter. Geode Capital Management LLC now owns 10,247,877 shares of the company’s stock valued at $55,347,000 after acquiring an additional 2,706,195 shares in the last quarter. Finally, Van ECK Associates Corp acquired a new stake in BigBear.ai in the 4th quarter worth approximately $46,675,000. Institutional investors own 7.55% of the company’s stock.

More BigBear.ai News

Here are the key news stories impacting BigBear.ai this week:

• Positive Sentiment: Revenue and margins improved: Second-quarter revenue rose approximately 13% year over year to $36.7 million, slightly exceeding estimates, while gross profit increased 48.5% to $12.1 million. The company reported a loss of roughly $0.05 per share, broadly in line with expectations and substantially improved from the prior-year loss. BigBear.ai Announces Second Quarter 2026 Results
• Positive Sentiment: Contract wins support the growth outlook: BigBear.ai announced more than 20 new contract wins, expanded its generative-AI capabilities and cited record bookings. Management also discussed a strategic focus on acquisitions to broaden its defense and security technology platform. BigBear.ai Q2 2026 Earnings Call Highlights
• Neutral Sentiment: Full-year guidance was reaffirmed: BigBear.ai expects 2026 revenue of $135 million to $165 million, compared with FactSet estimates of approximately $143.5 million. The midpoint is close to consensus, although the wide range leaves considerable uncertainty around the pace of growth. BigBear.ai 2026 Revenue Forecast
• Negative Sentiment: Profitability and cash flow remain weak: The operating loss widened to $28.6 million, net loss reached $25.7 million and operating cash flow was negative $22.2 million. Investors are also focused on valuation after the stock’s prior decline, while recent insider activity showed sales and no reported purchases. BigBear.ai Stock and Q2 2026 Earnings

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on BBAI shares. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of BigBear.ai in a report on Friday, July 17th. Wall Street Zen upgraded shares of BigBear.ai from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, BigBear.ai presently has an average rating of “Hold” and a consensus target price of $5.50.

BigBear.ai Company Profile

BigBear.ai is a provider of artificial intelligence (AI) and data analytics solutions designed to deliver actionable insights for public sector and commercial clients. Headquartered in Columbia, Maryland, the company specializes in advanced analytics, machine learning, predictive modeling and network analysis to support decision-making in complex, data-rich environments. Its clientele spans defense and intelligence agencies, civil government organizations and enterprise businesses seeking to enhance mission outcomes and operational efficiency.

The company’s flagship offerings include an AI-driven analytics platform that integrates data engineering, algorithm development and visualization tools.