Financial Performance - BigBear.ai reported a quarterly loss of 71 cents per share, missing the analyst consensus estimate of a 6-cent loss [1] - Quarterly revenue was $32.47 million, falling short of the Street estimate of $41.17 million and down from $39.78 million in the same period last year [1][5] - Revenue decreased by 18% primarily due to lower volume on certain Army programs [5] - Gross margin for the second quarter of 2025 was 25%, compared to 27.8% in the second quarter of 2024 [5] - The net loss for the second quarter of 2025 was $228.6 million, compared to a net loss of $14.4 million for the same quarter in 2024 [5] - Non-GAAP Adjusted EBITDA was -$8.5 million for the second quarter of 2025, compared to -$3.7 million for the second quarter of 2024 [5] Future Outlook - BigBear.ai lowered its full-year 2025 revenue forecast to between $125 million and $140 million, down from the previous estimate of $167.95 million [4] - The CEO highlighted the company's robust balance sheet and significant transformational investments aligned with opportunities from the One Big Beautiful Bill, particularly in the Department of Homeland Security [3]

Financial Highlights - BigBear.ai reported a record ending cash balance of $391 million[19, 20] - The company achieved a net positive cash position for the first time, with almost $250 million[19, 20] - For the three months ended June 30, 2025, revenues were $32472 thousand, with a gross margin of 250%[34] - Adjusted gross margin for the three months ended June 30, 2025, was 292% or $9488 thousand[34] - Net loss for the three months ended June 30, 2025, was $(228619) thousand[33] - Adjusted EBITDA for the three months ended June 30, 2025, was $(8498) thousand[33] Market and Strategic Focus - There is a massive increase in emphasis on border and biometrics[12] - The industry is experiencing defense disruption and AI breakthroughs[12] - The company is accelerating global expansion with UAE partnership and others[12] - There is a $14 trillion investment through One Big Beautiful Bill[15] - There is a $70 billion acceleration joint AI investment with the United Arab Emirates (UAE)[15] - There is a 44% YoY increase in U S investments in AI physical infrastructure[15]

Exhibit 99.1 BigBear.ai Announces Second Quarter 2025 Results; Updates Financial Outlook McLean, VA– August 11, 2025 – BigBear.ai Holdings, Inc. (NYSE: BBAI) ("BigBear.ai" or the "Company"), a leader in AI-powered decision intelligence solutions, today announced financial results for the second quarter of 2025 and issued an investor presentation that has been posted to the Investor Relations section of the Company's website. "Our robust balance sheet allows us to make significant transformational investment ...

Group 1 - BigBear.ai (NYSE:BBAI) is preparing for its Q2 earnings report, with investors closely monitoring key indicators [2] - The company's backlog was reported at $418 million at the end of Q4'24, which decreased to $385 million in Q1'25, reflecting a 30% year-over-year increase [2] - Analysts expect the market to respond positively to backlog figures exceeding $400 million [2]

Core Viewpoint - The article emphasizes the importance of conducting thorough due diligence before making investment decisions, highlighting that past performance does not guarantee future results [2][3]. Group 1 - The content is based on personal thoughts and research, indicating that it is not financial or investment advice [2][3]. - The article mentions that the author has no business or personal relationship with any company mentioned, ensuring objectivity [2][3]. - It is noted that all investments in the market face risks, including the potential to lose the entire investment [2][3].

Core Insights - BigBear.ai Holdings, Inc. (BBAI) is expected to report second-quarter 2025 results on August 11, driven by increasing AI adoption and expanding federal contract momentum [1][10] AI Innovation Driving Market Expansion - The company is focused on operationalizing artificial intelligence for mission-critical environments, targeting areas such as national security, critical infrastructure, manufacturing, and supply-chain modernization [2] - Recent deployments at major U.S. airports and partnerships in shipbuilding demonstrate the effectiveness of its solutions in delivering operational improvements [3] Federal Contracts Boost Backlog - The recent Department of Defense award for the Orion Decision Support Platform highlights BigBear.ai's alignment with defense priorities, contributing to a $385 million backlog, which is a 30% increase year-over-year [4] - This backlog indicates strong customer confidence and provides visibility into future revenues, positioning the company well amid increased government efficiency and tech deployment [4] Overall Q2 Earnings & Revenue Expectations - The Zacks Consensus Estimate for second-quarter earnings per share remains unchanged at a loss of 7 cents, reflecting a decline from the previous year's loss of 4 cents [6] - Revenue is estimated at $40.99 million, indicating a 3% year-over-year increase [6] 2025 Revenue Projections - For 2025, BigBear.ai is expected to see a 5.5% increase in revenues compared to the previous year, with an anticipated improvement in the bottom line to a loss of 41 cents from $1.10 a year ago [7] Competitive Landscape - In the AI-driven defense and government solutions market, BigBear.ai faces competition from established players like Palantir Technologies and C3.ai [8] - Palantir's competitive edge lies in its entrenched federal contracts and AI-powered platforms, while C3.ai differentiates itself through a broad enterprise AI application suite [9][11] - Despite the competition, BigBear.ai's niche mission expertise and tailored solutions may allow it to capture market share in the federal AI landscape [12]

CANADA - 2025/05/14: In this photo illustration, the BigBear AI (Big Bear) logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images BigBear.ai (NYSE:BBAI), a provider of AI solutions focused on national security, is set to announce its earnings on Monday, August 11, 2025. According to historical data, there is a considerable chance of the stock responding negatively to the announcement. In the past ...

Core Insights - BigBear.ai Holdings, Inc. (BBAI) is set to report its second-quarter 2025 results on August 11, with a focus on whether recent strategic alignments and contract wins can address previous revenue declines [1] Financial Performance - In the last reported quarter, BBAI generated revenues of $34.8 million, reflecting a 5% year-over-year increase but falling short of consensus estimates by 3.2% [2] - The adjusted EBITDA loss widened to $7 million due to increased R&D and SG&A expenses, while gross margin improved slightly to 21.3% [2] - Backlog increased by 30% to $385 million, indicating strong demand, and the company ended the quarter with $108 million in cash, having reduced its debt by $58 million [2] Earnings Estimates - The Zacks Consensus Estimate for the second-quarter earnings per share remains unchanged at a loss of 7 cents, indicating a decline from the previous year's loss of 4 cents [4] - Revenue consensus for the second quarter is $40.99 million, suggesting a 3% year-over-year increase [4] - For 2025, BBAI is expected to see a 5.5% revenue increase, with an anticipated improvement in the bottom line to a loss of 41 cents per share from $1.10 a year ago [5] Growth Drivers - Key growth catalysts include new defense contracts, particularly the Department of Defense's Orion Decision Support Platform, which validates BBAI's AI capabilities [7][9] - Expansion in AI-driven solutions for border and travel security at major U.S. airports is expected to contribute to revenue and backlog growth [10] - Relationships with U.S. industrial leaders, particularly in shipbuilding, are anticipated to drive incremental growth as deployment activity increases [11] - International partnerships, such as with Smith Detection, are opening new channels for revenue generation [12] Innovation and Margins - Continued investment in R&D is aimed at long-term product differentiation, with several projects now commercially viable [13] - Adjusted gross margins are expected to improve in the second quarter as high-margin AI products scale, although elevated SG&A may still pose challenges [14] Market Position - BBAI stock has gained 130.2% over the April-June 2025 period, outperforming its industry, and is currently trading at a discount to its 52-week high [18] - The company competes in a crowded AI field, focusing on tactical AI for mission-critical environments, distinguishing itself from larger rivals like Palantir and C3.ai [21][22] Strategic Outlook - Despite previous revenue softness, BBAI is entering the earnings season with stronger fundamentals, driven by new defense contracts and expanding AI deployments [24] - The company's reaffirmed full-year guidance and solid liquidity position support management's confidence in a second-half acceleration [25]

Core Viewpoint - BigBear.ai stock has experienced significant volatility, with a recent sell-off despite a 90.5% increase over the last three months, influenced by broader market trends and geopolitical developments [1][2][4]. Group 1: Stock Performance - BigBear.ai stock fell 13.4% last week, coinciding with a 2.4% decline in the S&P 500 and a 2.2% decline in the Nasdaq Composite [1]. - Despite the recent pullback, the stock remains up 90.5% over the last three months, indicating strong investor interest [2][4]. Group 2: Market Influences - The decline in BigBear.ai's stock price was not due to any specific business news but was influenced by the U.S. lifting restrictions on technology exports to China, which some investors viewed negatively for defense software companies [2][4]. - The Trump administration's decision to pause export restrictions on advanced AI processors and chip manufacturing equipment to China was seen as a potential negative catalyst for defense-related investments [4]. Group 3: Future Outlook - BigBear.ai is set to release its second-quarter results and host an investor conference call on August 11, with full-year revenue guidance between $160 million and $180 million, suggesting an annual growth of approximately 7.5% [5]. - Investors are anticipating significant performance beats or announcements of new contracts or partnerships in the upcoming quarterly report [5].

Core Viewpoint - The article compares two AI companies, Nvidia and BigBear.ai, highlighting that Nvidia is a significantly better investment due to its strong revenue growth and profitability, while BigBear.ai shows concerning financial metrics despite its stock price increase [1][13][14]. Group 1: Nvidia - Nvidia has experienced substantial growth, with total sales soaring 114% in fiscal 2025 to $130.5 billion and earnings skyrocketing 147% to $2.94 per share [5]. - The data center segment of Nvidia saw a revenue surge of 142% to $115 billion last year, indicating strong demand for its AI semiconductors [5]. - Nvidia's stock has surged 57% over the past year, with a current price-to-earnings multiple of about 56, which is lower than the semiconductor industry's average P/E ratio of 64 [6]. - Nvidia's CEO anticipates that AI will drive $2 trillion in data center spending over the coming years, suggesting ongoing growth opportunities for the company [7]. Group 2: BigBear.ai - BigBear.ai's stock has increased by 323% over the past year, but its revenue growth is concerning, with only a 5% increase in Q1 to $34.8 million [9][10]. - The company's full-year revenue outlook is between $160 million to $180 million, representing a mere 7.5% increase at the midpoint [10]. - A significant risk for BigBear.ai is its revenue concentration, with 52% coming from just four customers, which poses a threat if any of these customers leave [11]. - BigBear.ai reported a loss of $1.10 per share last year and continued this trend with a loss of $0.25 per share in Q1, indicating a lack of profitability [12]. - The company's price-to-sales ratio is 11, significantly higher than the S&P 500 average of 3, suggesting that investors are paying a premium for its stock [12].