Core Insights - BigBear.ai Holdings, Inc. (BBAI) reported mixed second-quarter 2025 results, with the bottom line beating the Zacks Consensus Estimate while revenues missed expectations, showing a year-over-year decline in both metrics [1][3][7] - The quarterly performance was negatively impacted by significant declines in demand for certain Army programs, alongside increased research and development and restructuring expenses [1][4][7] Earnings & Revenue - The company reported an adjusted loss per share of six cents, which was better than the Zacks Consensus Estimate of a loss per share of seven cents, but worse than the adjusted loss per share of four cents reported in the same quarter last year [3][4] - Revenues totaled $32.5 million, missing the consensus estimate of $41 million by 20.8% and reflecting an 18.3% year-over-year decline [3][7] Operating Performance - Adjusted gross profit decreased to $9.5 million from $12.5 million year over year, with the adjusted gross margin contracting by 220 basis points to 29.2% [4] - Adjusted EBITDA loss widened to $(8.5) million compared to $(3.7) million reported a year ago, primarily due to decreased gross margin and increased R&D expenses [4] Balance Sheet & Cash Flow - As of the second quarter, BigBear.ai had cash and cash equivalents of $390.8 million, a significant increase from $50.1 million at the end of 2024, while net long-term debt decreased to $102.7 million from $135.4 million [5] - Net cash used in operating activities reduced to $10.5 million in the first half of 2025 from $21.4 million in the same period last year [5] Revenue Guidance - The company revised its full-year revenue guidance down to a range of $125 million to $140 million from the previous expectation of $160 million to $180 million, compared to $158.2 million reported in 2024 [6][7] - Due to uncertainties surrounding certain Army programs and anticipated growth investments in the second half of 2025, BBAI has not provided revised adjusted EBITDA guidance [8]

Core Viewpoint - BigBear.ai has reported disappointing second-quarter earnings, leading to a significant drop in its stock price despite gains in broader market indices [1][2]. Financial Performance - The company reported a loss of $0.71 per share on revenue of $32.5 million, which was below analyst expectations and marked an 18% decline year-over-year [2]. - Consensus estimates had anticipated a loss of $0.06 per share on revenue of $40.6 million [2]. Revenue Guidance - BigBear.ai has revised its full-year revenue guidance down to between $125 million and $140 million, a substantial decrease from the previous range of $160 million to $180 million [3]. - The CEO attributed the revenue shortfall primarily to disruptions in federal contracts, although he noted potential growth from new Department of Homeland Security funding [3]. Industry Context - While major tech firms like Microsoft and Alphabet have reported strong earnings, BigBear.ai is among the end-user AI companies showing weakness, similar to C3.ai, while Palantir continues to perform well [5]. Risk Factors - The company's sales trajectory is concerning, with increasing losses and existing debt, alongside negative cash flows [6]. - Despite these challenges, the stock maintains a significant premium relative to its current sales and earnings outlook [6].

BigBear.AI, Inc. BBAI stock sank on Tuesday after the company revealed massive quarterly losses and cut its full-year outlook due to lower volume on certain Army contracts. BigBear.AI executives gave more color on the company's Monday evening earnings call. BBAI stock is sliding on disappointing news. See the full story here. Revenue Hit From Program Slowdowns Read Next: Retail Crowd's Top Stocks With Earnings This Week: Archer, Rigetti, Oklo And More The company also withdrew its adjusted EBITDA guidance f ...

Core Viewpoint - BigBear.ai Holdings (BBAI.US) experienced a significant decline of over 25%, closing at $5.27 following disappointing Q2 financial results [1] Financial Performance - Q2 revenue was reported at $32.5 million, representing an 18% year-over-year decline [1] - The net loss for the quarter was $228.6 million, compared to a net loss of $14.4 million in the same period last year [1] Revenue Guidance - The company has revised its full-year revenue guidance down to between $125 million and $140 million, previously expected to be between $160 million and $180 million [1]

Core Viewpoint - BigBear.ai Holdings (BBAI.US) experienced a significant decline of over 25%, closing at $5.27, following disappointing Q2 financial results and a downward revision of revenue guidance [1] Financial Performance - Q2 revenue for BigBear.ai was $32.5 million, representing an 18% year-over-year decline [1] - The company reported a net loss of $228.6 million for the quarter, compared to a net loss of $14.4 million in the same period last year [1] Revenue Guidance - BigBear.ai has revised its full-year revenue guidance down to $125 million to $140 million, from a previous expectation of $160 million to $180 million [1]

Core Viewpoint - BigBear.ai Holdings, Inc. (NYSE: BBAI) reported disappointing Q2 2025 earnings, leading to a negative reaction from investors despite the stock previously reaching the upper $8 range this quarter [1] Company Summary - BigBear.ai's stock performance was strong prior to the earnings report, hitting the top side of the $8 range [1] - The earnings report has caused investor dissatisfaction, indicating potential concerns about the company's financial health or future prospects [1] Industry Context - The article reflects on the broader market dynamics, particularly in the technology sector, where momentum plays a crucial role in investment strategies [1]

Group 1 - U.S. stock futures are slightly lower, with Dow futures down approximately 0.1% [1] - Celanese Corporation reported second-quarter financial results and provided third-quarter adjusted EPS guidance below market estimates, expecting earnings of $1.10 to $1.40 per share compared to estimates of $1.73 per share [1] - Celanese shares fell 15.5% to $40.00 in pre-market trading following the announcement [1] Group 2 - BigBear.ai Holdings, Inc. experienced a decline of 30.8% to $4.91 in pre-market trading after reporting worse-than-expected second-quarter results and cutting FY25 sales guidance [4] - PubMatic, Inc. shares dropped 28.7% to $7.55 in pre-market trading after issuing Q2 results and Q3 sales guidance below estimates [4] - Fluence Energy, Inc. shares dipped 14.3% to $7.83 in pre-market trading after mixed third-quarter financial results [4] - Archer Aviation Inc. fell 9.9% to $8.60 in pre-market trading due to a wider-than-expected quarterly loss [4] - Microvast Holdings, Inc. shares decreased by 10.2% to $2.72 after reporting disappointing quarterly sales [4] - TAT Technologies Ltd. saw a decline of 7.6% to $34.25 following weak quarterly sales [4]

Core Viewpoint - BigBear.ai has faced significant challenges following a disappointing quarterly report, leading to a nearly 30% decline in stock price and a downward revision of revenue forecasts due to disruptions in federal contracts [3][4][11]. Financial Performance - The company's sales decreased by 18% year-over-year, falling to $32 million from $40 million, which is over 20% below consensus expectations [3][7]. - BigBear.ai's operating income over the past four quarters was -$127 million, resulting in an operating margin of -83% [13]. - The net income for the last four quarters was -$449 million, indicating a net income margin of -294.5% [13]. - The company has a strong cash position, with cash and cash equivalents amounting to $391 million, representing a cash-to-assets ratio of 65.2% [13]. Valuation Metrics - BigBear.ai's price-to-sales (P/S) ratio stands at 7.2, significantly higher than the S&P 500's ratio of 3.2, indicating that the stock may be overpriced relative to its performance [6][11]. - The stock has dropped 95% from its peak of $12.69 in April 2022 to around $5 currently, while the S&P 500 experienced a peak-to-trough decline of 25.4% during the same period [14]. Growth and Profitability - BigBear.ai's revenue growth has been weak, with an average increase of only 3.4% over the last three years compared to a 5.7% rise for the S&P 500 [7]. - Profit margins are significantly lower than those of most companies within the Trefis coverage area, indicating very weak profitability [8]. Financial Stability - Despite weak operational performance, BigBear.ai's balance sheet is considered very robust, with a low debt-to-equity ratio of 7.7% compared to 21.8% for the S&P 500 [9][13]. Downturn Resilience - The stock has historically performed poorly during downturns, with negative returns in over 85% of instances following earnings announcements [4][10].

Core Insights - BigBear.ai Holdings, Inc. (BBAI) reported a quarterly loss of $0.06 per share, which was better than the Zacks Consensus Estimate of a loss of $0.07, representing an earnings surprise of +14.29% [1] - The company posted revenues of $32.47 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 20.78%, and a decline from $39.78 million year-over-year [2] - BigBear.ai shares have increased approximately 60.5% year-to-date, significantly outperforming the S&P 500's gain of 8.6% [3] Financial Performance - Over the last four quarters, BigBear.ai has surpassed consensus EPS estimates three times, but has not beaten consensus revenue estimates during the same period [2] - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $44.14 million, and for the current fiscal year, it is -$0.41 on revenues of $166.85 million [7] Industry Context - The Computers - IT Services industry, to which BigBear.ai belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact BigBear.ai's stock performance [5][6]

Financial Data and Key Metrics Changes - The company reported second quarter revenue of $32.5 million, a decrease of $7.3 million year over year, primarily due to disruptions in Army programs [23] - Gross margin for the second quarter was 25%, down from 27.8% in the comparable period [24] - The net loss for the second quarter was $228.6 million, driven by changes in the fair value of derivatives and a goodwill impairment charge [24] - Adjusted EBITDA for the second quarter was negative $8.5 million, compared to negative $3.7 million in the prior year [25] - The company ended the quarter with $391 million in cash, marking an all-time record, and a net positive cash position of almost $250 million [21][22] Business Line Data and Key Metrics Changes - The biometric solution Veriskan has become a market standard for enhanced passenger processing, with expanded deployments across 12 airports and seaports in North America [16] - The company is preparing to support multiple critical IT systems at Customs and Border Protection (CBP) as the agency pursues several acquisitions [17] - The autonomous command and control software, ConductorOS, performed well during the Talisman Sabre exercise, enhancing battlefield decision-making [17] Market Data and Key Metrics Changes - The U.S. and allies have committed to unprecedented partnerships in AI, including a $1.4 trillion investment with the UAE [12] - The "one big beautiful bill" (OB3) includes $170 billion in supplemental funding for the Department of Homeland Security (DHS) over the next four years, with $70 billion earmarked for CBP [13] - Federal procurement for AI/ML-enabled mission systems is estimated to grow by approximately 10% to 15% year over year [15] Company Strategy and Development Direction - The company aims to capitalize on significant market tailwinds and has a clear strategy to go on offense, focusing on organic growth and targeted acquisitions [27][30] - Investments will be made to enhance marketing efforts and attract top-tier talent from the tech and national security sectors [28] - The company is pursuing strategic transformational acquisitions to accelerate scale and unlock new markets [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disruptions in federal contracts but emphasized the importance of adapting to streamline data layers and enhance software delivery [9] - The company is confident in its mid-term outlook due to historic funding levels focused on areas where it has leading capabilities [10] - Management is committed to building the business for the long term, focusing on future growth prospects rather than short-term quarterly results [11] Other Important Information - The company raised approximately $293 million through the sale of shares, demonstrating strong market execution [22] - The company plans to withdraw its adjusted EBITDA guidance due to a reduction in revenue outlook and increased investment spending [26] Q&A Session Summary Question: What is the company's outlook on federal contracts? - Management noted disruptions in Army programs but expressed confidence in competing for new contracts and adapting to changes in government technology investment [9] Question: How does the company plan to utilize its strong cash position? - The company plans to aggressively invest in growth initiatives, both organically and through acquisitions, leveraging its record cash position [21][27]