NEW YORK, March 31, 2025 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of BigBear.ai Holdings, Inc. ("BigBear" or the "Company") (NYSE: BBAI). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980. The investigation concerns whether BigBear and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action] CONTACT: Daniell ...

Core Viewpoint - Kirby McInerney LLP is investigating potential claims against BigBear.ai Holdings, Inc. regarding possible violations of federal securities laws and unlawful business practices [1]. Company Developments - On March 18, 2025, BigBear announced a delay in filing its annual 10-K report and indicated the need to restate previously reported financial results for the fiscal years 2022 and 2023, as well as individual quarterly results for 2023 and 2024 [3]. - Following the announcement, BigBear's share price fell by $0.52, or nearly 15%, from $3.49 on March 17, 2025, to close at $2.97 on March 18, 2025 [3]. Legal Context - The investigation by Kirby McInerney LLP focuses on whether BigBear and/or its officers have engaged in unlawful business practices [1]. - The law firm specializes in securities litigation and has a history of recovering billions of dollars for shareholders [6].

BigBear.ai (BBAI -4.56%) management was forced to return and restate financial figures, which is never a good sign for investors.*Stock prices used were the afternoon prices of March 21, 2025. The video was published on March 23, 2025. ...

Financial Performance - Revenues for the year ended December 31, 2024, increased to $158,236 million, up from $155,164 million in 2023, representing a growth of 1.3%[548]. - Gross margin improved to $45,220 million in 2024, compared to $40,601 million in 2023, reflecting a significant increase of 11.5%[548]. - Research and development expenses rose to $10,863 million in 2024, a substantial increase from $5,035 million in 2023, indicating a growth of 116.5%[548]. - The net loss for 2024 was $295,547 million, compared to a net loss of $70,657 million in 2023, representing an increase in losses of 318.5%[548]. - Basic and diluted net loss per share for 2024 was $1.27, compared to $0.47 in 2023, indicating a deterioration in per-share performance[548]. - Total comprehensive loss for 2024 was $295,426 million, compared to $70,657 million in 2023, marking an increase of 318.3%[548]. - Net loss for the year ended December 31, 2024, was $295.5 million, compared to a net loss of $70.7 million in 2023[556]. - The accumulated deficit as of December 31, 2024, was $571.6 million, up from $276.1 million as of December 31, 2023[546]. Assets and Liabilities - As of December 31, 2024, the total assets of BigBear.ai Holdings, Inc. amounted to $343.8 million, a significant increase from $199.9 million as of December 31, 2023[546]. - Total current liabilities increased to $203.0 million as of December 31, 2024, compared to $69.1 million in the previous year[546]. - Long-term debt, net of unamortized discounts, was $135.4 million as of December 31, 2024, down from $156.2 million in the previous year[546]. - Total liabilities decreased to $229.9 million as of December 31, 2023, down from $267.2 million[566]. - The company reported cash and cash equivalents of $50.1 million as of December 31, 2024, up from $32.6 million in the previous year[546]. Employee and Organizational Structure - The company employs 630 individuals, with approximately 53% being software engineers, data scientists, and cyber subject-matter experts[38]. - The company had approximately 630 full-time employees as of December 31, 2024, with no employees affiliated with labor unions[47][48]. - The company incurred employee separation costs of $1.3 million during the three months ended March 31, 2024, compared to $0.8 million for the same period in 2023, indicating a 63% increase[636][637]. - The company completed its organizational restructuring by March 31, 2024, with no unpaid employee separation costs as of December 31, 2024[636]. Acquisitions and Investments - The company completed the acquisition of Pangiam Intermediate Holdings, LLC on February 29, 2024, enhancing its vision AI capabilities in global trade, travel, and digital identity industries[23]. - The company issued 63,982,145 common shares as consideration for the acquisition of Pangiam, contributing to the increase in total stockholders' equity[551]. - The acquisition of Pangiam resulted in post-acquisition net revenues of $38.7 million and a net loss of $82.6 million for the year ended December 31, 2024[649]. - BigBear.ai's acquisition of ProModel Corporation was completed for approximately $16.1 million, funded through cash and the issuance of 649,976 shares[653]. Financial Instruments and Derivatives - The estimated fair value of derivative liabilities related to warrants was $54.7 million as of December 31, 2024, with the 2024 RDO and PIPE Warrants fully exercised in Q1 2025[525]. - The estimated fair value of derivative liabilities related to the 2029 and 2026 Convertible Notes was $116.2 million as of December 31, 2024[526]. - The company recorded changes in fair value of Level 3 liabilities, with significant additions of $37.4 million in 2024[666]. Revenue Recognition and Accounting Policies - The Company recognizes revenue from fixed-price contracts based on the predetermined price, with profit varying according to actual costs incurred[580]. - For T&M contracts, revenue is recognized based on the right to invoice method, corresponding directly with the value of the Company's performance[581]. - Revenue is recognized over time for contracts with continuous transfer of control, using the percentage-of-completion method based on costs incurred[591]. - The Company allocates transaction prices to performance obligations based on estimated standalone selling prices, particularly for contracts with the U.S. government[589]. Goodwill and Intangible Assets - Goodwill impairment for 2024 was recorded at $85,000 million, while there was no impairment in 2023, indicating a significant adjustment in asset valuation[548]. - Goodwill related to the Pangiam acquisition was recorded at $156.1 million, reflecting potential synergies and market expansion opportunities[648]. - The weighted-average estimated useful lives of the acquired intangible assets from Pangiam are 7 years for technology, 5 years for trade names, and 20 years for customer relationships[646]. - Intangible assets net amount to $119.1 million as of December 31, 2024, with amortization expense of $11.3 million recognized in 2024[673][674]. Research and Development - Research and development expenses were $5,035 million in 2023, down from $8,393 million in 2022, reflecting a strategic reduction in R&D spending[568]. - Capitalized software development costs increased to $10.2 million for the year ended December 31, 2024, compared to $3.3 million for the year ended December 31, 2023, reflecting a 209% increase[626].

Core Viewpoint - BigBear.ai Holdings, Inc. is under investigation for potential violations of federal securities laws and unlawful business practices following the disclosure of restated financial statements [1][2]. Financial Disclosure - On March 18, 2025, BigBear announced that certain financial statements since fiscal year 2021 should no longer be relied upon and would be restated due to issues related to the accounting treatment of convertible notes due in 2026 [2]. - Following this announcement, BigBear's stock price dropped by $0.52 per share, representing a decline of 14.9%, closing at $2.97 per share on the same day [2]. Legal Investigation - Bragar Eagel & Squire, P.C. is investigating potential claims on behalf of BigBear stockholders who may have suffered losses due to the company's financial disclosures [1][3]. - The law firm is reaching out to long-term stockholders and those with information regarding the situation to participate in the investigation [3].

Core Viewpoint - Brokerage recommendations, particularly for BigBear.ai Holdings, Inc. (BBAI), suggest a Buy rating, but reliance solely on these recommendations may not be prudent due to potential biases and misalignment with retail investors' interests [2][4][9]. Group 1: Brokerage Recommendations - BigBear.ai has an average brokerage recommendation (ABR) of 2.00, indicating a Buy, with 50% of the recommendations classified as Strong Buy [2]. - The ABR is based on recommendations from four brokerage firms, with two firms issuing Strong Buy ratings [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often fail to effectively guide investors towards stocks with significant price appreciation potential [4][5]. Group 2: Analyst Bias and Limitations - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [5][9]. - The ABR may not accurately reflect the future price direction of a stock, suggesting that it should be used to validate independent research rather than as a standalone indicator [6][9]. Group 3: Zacks Rank Comparison - Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which are more reliable indicators of near-term price movements [7][10]. - The Zacks Rank is updated more frequently than the ABR, reflecting timely changes in analysts' earnings estimates [11]. - For BigBear.ai, the Zacks Consensus Estimate has declined by 12.3% over the past month, leading to a Zacks Rank of 4 (Sell), indicating potential risks for the stock [12][13].

Company Performance - BigBear.ai Holdings, Inc. (BBAI) closed at $2.97, reflecting a -1% change from the previous session, underperforming compared to the S&P 500's daily gain of 0.08% [1] - The company's shares have decreased by 60.05% over the last month, significantly worse than the Computer and Technology sector's loss of 12.04% and the S&P 500's loss of 7.33% [1] Earnings Expectations - The upcoming earnings disclosure is expected to report an EPS of -$0.06, which is an improvement of 72.73% from the prior-year quarter [2] - The consensus estimate projects revenue of $35.9 million, reflecting an 8.38% increase from the same quarter last year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates forecast earnings of -$0.21 per share and revenue of $167.2 million, indicating changes of +80.91% and +5.67%, respectively, compared to the previous year [3] Analyst Estimates - Recent adjustments to analyst estimates for BigBear.ai Holdings, Inc. are important as they reflect evolving short-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [4] - The Zacks Rank system, which assesses these estimate changes, currently ranks BigBear.ai Holdings, Inc. at 4 (Sell), with a downward shift of 12.28% in the consensus EPS estimate over the past month [6] Industry Context - The Computers - IT Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 80, placing it in the top 32% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - BigBear.ai is facing significant stock price decline and will need to restate past financial statements due to inaccuracies, impacting investor confidence [1][2][4] Financial Performance - The company expects to restate financials for 2022, 2023, and 2024, with preliminary expectations indicating a smaller loss before taxes in 2022, but higher losses in subsequent years [2] - Losses in 2024 are projected to increase from approximately $257 million to $296 million [2] - The main contributors to the increased losses are higher interest expenses and losses related to the extinguishment of debt from 2026 convertible notes [3] Market Reaction - Since the announcement, shares of BigBear.ai have dropped over 14%, reflecting investor concerns amid a broader trend of selling off expensive AI stocks [1][4] - The stock has decreased by 67% from its peak on February 13, indicating heightened volatility and investor wariness [4] Company Outlook - Despite the challenges, BigBear.ai is recognized for its AI capabilities, but the path to profitability remains uncertain, suggesting potential volatility in the stock [5]

A big risk for investors when buying speculative stocks is that they can be incredibly volatile. As of Monday's close, shares of data analytics company BigBear.ai Holdings (BBAI 4.54%) were down more than 64% in just the past month. While the tech stock has a lot of potential in artificial intelligence (AI), its valuation has often fluctuated significantly, with a lot depending on investor sentiment, particularly from retail investors.Can the stock recover from this significant drop and be a good buy right ...

Core Viewpoint - BigBear.ai's stock has faced significant challenges since its public debut, trading at approximately $3.50 compared to its initial opening price of $9.84, raising questions about its investment viability in a volatile market [1][2]. Company Performance - BigBear.ai's revenue forecasts have consistently overestimated actual performance, with projected revenues of $182 million in 2021 and $550 million in 2024, while actual revenues were only $146 million and $158 million respectively [5][6]. - The company attributes its slow growth to macroeconomic factors, competition, and the bankruptcy of a major customer, Virgin Orbit, but peers like Palantir and C3.ai have shown better growth under similar conditions [6][7]. Recent Developments - The acquisition of Pangiam has been a key factor in BigBear.ai's revenue growth, contributing to its performance in 2024, but without this acquisition, revenue would likely have declined [7]. - Since the new CEO, Kevin McAleenan, took over, BigBear.ai has secured three new government contracts, indicating potential for future growth [8]. Future Outlook - For 2025, BigBear.ai projects revenue growth of 1% to 14%, estimating between $160 million and $180 million, with analysts predicting a 7% increase to $170 million [9]. - Despite these projections, management expects continued losses, guiding for adjusted EBITDA to remain in the negative single-digit millions [10]. Financial Position - BigBear.ai has increased its total outstanding shares by 86% since going public, raising concerns about potential shareholder dilution through further secondary offerings [11]. - The company ended 2024 with $50 million in cash and $134 million in long-term debt, which could pose challenges in meeting debt obligations if losses persist [14]. Market Sentiment - The stock has been polarizing, with significant fluctuations influenced by political factors and government spending expectations, leading to a 400% increase at one point before a sharp decline [12][15]. - Bulls argue that the company's ties to the Trump administration may help secure contracts, while bears contend that its small size limits its competitiveness against larger firms [13].