NEW YORK, May 03, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against BigBear.ai Holdings, Inc. (NYSE: BBAI) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in BigBear.ai, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/bigbearai-holdings-inc. Investors have until June 10, 2025, to ask the Court to be a ...

Financial Performance - BigBear.ai reported revenues of $34.8 million for the three months ended March 31, 2025, representing a year-over-year increase of $1.6 million or 4.9% compared to $33.1 million in the same period of 2024[196][197]. - The operating loss for Q1 2025 was $21.2 million, an improvement from a loss of $98.1 million in Q1 2024[196]. - BigBear.ai's net loss for the three months ended March 31, 2025, was $62.0 million, compared to a net loss of $127.8 million in the same period of 2024[196]. - Free cash flow for Q1 2025 was a negative $8.3 million, an improvement from negative $16.0 million in Q1 2024, indicating better cash generation capabilities[215]. - The company reported a net loss before depreciation, amortization, and other non-cash items of $12.0 million for the three months ended March 31, 2025, compared to a net loss of $7.8 million in the same period of 2024[245][246]. Revenue and Cost Analysis - Cost of revenues for the same period was $27.4 million, up $1.2 million or 4.7% from $26.1 million in 2024, maintaining a cost of revenues as a percentage of total revenues at 79%[196][199]. - SG&A expenses increased to $22.7 million for the three months ended March 31, 2025, up 34.1% from $16.9 million in the same period of 2024, with SG&A as a percentage of revenues rising to 65% from 51%[200]. - Research and development expenses surged by $3.0 million to $4.2 million in Q1 2025, representing a 264.2% increase compared to $1.1 million in Q1 2024, driven by increased headcount and project timing[201]. - Restructuring charges rose to $1.7 million in Q1 2025, a 97.4% increase from $860,000 in Q1 2024, related to employee separation costs for strategic cost-saving initiatives[202]. Cash Flow and Financing Activities - The net cash provided by financing activities for the three months ended March 31, 2025, was $65.9 million, an increase of 29% from $51.0 million in the same period of 2024[248][249]. - The company sold 1,936,000 shares under the ATM Program for an aggregate offering price of $6.6 million during the three months ended March 31, 2025[228]. - The net proceeds from the exercise of the 2024 PIPE warrants and 2024 RDO warrants contributed $64.7 million to financing activities in Q1 2025[248]. - The company incurred capitalized software development costs of $1.5 million in Q1 2025, compared to $1.6 million in Q1 2024[247]. Debt and Backlog - Total debt decreased to $143.1 million as of March 31, 2025, down from $200.8 million as of December 31, 2024, reflecting a reduction of approximately 29%[230]. - Funded backlog represents the remaining contract value of goods and services to be delivered under existing contracts, providing insight into future revenue potential[219]. - As of March 31, 2025, total backlog was $384.9 million, down from $418.3 million as of December 31, 2024, representing a decrease of approximately 8%[221]. Strategic Initiatives and Acquisitions - The company completed the acquisition of Pangiam on February 29, 2024, enhancing its capabilities in vision AI and positioning it as a leader in operationalizing AI at the edge[176]. - The company anticipates that the global economic and geopolitical environment will drive long-term adoption of its AI offerings, despite potential funding shifts affecting defense spending[185]. Other Financial Metrics - Interest expense for the three months ended March 31, 2025, was $5.1 million, down from $6.4 million in the same period of 2024[196]. - Other income improved to a net loss of $276,000 in Q1 2025, a 39.3% reduction from a loss of $455,000 in Q1 2024, mainly due to increased interest income[207]. - A favorable change in net working capital of $5.4 million in Q1 2025 was driven by a decrease in accounts receivable of $4.3 million and an increase in accrued expenses of $4.4 million[245]. - Cash and cash equivalents at the end of the period for Q1 2025 were $107.6 million, up from $81.4 million at the end of Q1 2024, reflecting a 32% increase[244].

Core Viewpoint - A class action securities lawsuit has been filed against BigBear.ai Holdings, alleging securities fraud that affected investors between March 31, 2022, and March 25, 2025 [1][2]. Group 1: Allegations and Financial Misstatements - The lawsuit claims that BigBear maintained inadequate accounting review policies regarding the reporting of complex transactions [2]. - It is alleged that the Company incorrectly accounted for the 2026 Convertible Notes, failing to bifurcate the conversion option as required by accounting standards [2]. - Due to these errors, BigBear misrepresented various items in its previously issued financial statements, which may need to be restated [2]. - The inaccuracies in financial statements could lead to delays in filing reports with the SEC, increasing operational risks for the Company [2]. Group 2: Legal Process and Participation - Investors who suffered losses during the specified timeframe have until June 10, 2025, to request appointment as lead plaintiff [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees [3]. Group 3: Firm Background - Levi & Korsinsky has a strong track record in securities litigation, having secured hundreds of millions for shareholders over the past 20 years [4]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Company Performance - BigBear.ai Holdings, Inc. reported a quarterly loss of $0.10 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.06, and an improvement from a loss of $0.22 per share a year ago, indicating a significant year-over-year improvement [1] - The company posted revenues of $34.76 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 3.17%, but showing an increase from $33.12 million in the same quarter last year [2] - Over the last four quarters, BigBear.ai has surpassed consensus EPS estimates three times, but has not been able to beat consensus revenue estimates during the same period [2] Stock Performance - BigBear.ai shares have declined approximately 23.4% since the beginning of the year, contrasting with the S&P 500's decline of 5.3% [3] - The current Zacks Rank for BigBear.ai is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $41.53 million, and for the current fiscal year, it is -$0.21 on revenues of $167.2 million [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock performance [6] Industry Context - The Computers - IT Services industry, to which BigBear.ai belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could be a useful metric for investors [5]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $34.8 million, up 5% year-on-year from $33.1 million in Q1 2024, primarily driven by additional revenue from the Department of Homeland Security and digital identity awards [22] - Gross profit increased by 6% from $7 million in Q1 2024 to $7.4 million in Q1 2025, with a gross margin of 21.3%, slightly up from 21.1% in the previous year [23] - Net loss for Q1 2025 was $62 million, an improvement from a net loss of $127.8 million in Q1 2024, mainly due to the absence of goodwill impairment charges that were $85 million in the prior year [25] - Adjusted EBITDA was negative $7 million for Q1 2025, compared to negative $1.6 million in Q1 2024, driven by increased R&D expenses and recurring SG&A due to government funding delays [26] - Backlog at the end of Q1 2025 was $385 million, up 30% from Q1 2024, indicating continued customer confidence [27] - Cash and cash equivalents at the end of Q1 2025 were $108 million, up from $81 million in Q1 2024, providing increased financial flexibility [27][28] Business Line Data and Key Metrics Changes - The company is focusing on core markets such as border security, defense, and manufacturing, with ongoing support for missions at the Department of Homeland Security and expanding AI infrastructure [15][16] - In manufacturing and supply chain, the company aims to modernize the American industrial base and streamline global supply chains [16] Market Data and Key Metrics Changes - The global security environment is driving renewed focus and investment in defense technology, creating opportunities for American AI innovation [10] - There is a shift in federal procurement practices with increased emphasis on efficiency and advanced commercial technologies [10] Company Strategy and Development Direction - The company is focused on mission expertise, international growth, business alliances, and relentless innovation in AI as core strategic priorities for 2025 [12][13][14] - The growth strategy includes strengthening core markets while selectively expanding into high-potential adjacencies [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the dynamic business and macroeconomic environment, which presents both opportunities and potential short-term risks, including delays in funding and award timing [20] - The company reaffirms its full-year guidance for 2025, indicating confidence in its strategic focus and market positioning [20] Other Important Information - The company is committed to providing more context and transparency in its communications with stakeholders [5] - The CEO emphasizes the importance of blending technological innovation with operational expertise to succeed in complex environments [6][9] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $34.8 million, up 5% year-on-year from $33.1 million in Q1 2024, primarily driven by additional revenue from the Department of Homeland Security and digital identity awards [22] - Gross profit increased by 6% from $7 million in Q1 2024 to $7.4 million in Q1 2025, with a gross margin of 21.3%, slightly up from 21.1% in Q1 2024 [23] - Net loss for Q1 2025 was $62 million, compared to a net loss of $127.8 million in Q1 2024, with the primary drivers being non-cash items [25] - Adjusted EBITDA was negative $7 million for Q1 2025, compared to negative $1.6 million in Q1 2024, primarily due to increased R&D expenses and recurring SG&A [26] - Backlog at the end of Q1 2025 was $385 million, up 30% from Q1 2024, indicating continued customer confidence [27] - Cash and cash equivalents at the end of Q1 2025 were $108 million, up from $81 million in Q1 2024 [28] Business Line Data and Key Metrics Changes - In border security, the company continues to support missions at the Department of Homeland Security and is expanding AI infrastructure at major US and partner nation gateways [15] - In defense and intelligence, the company is orchestrating AI at the mission edge, delivering actionable insights directly to the point of need [15] - In manufacturing and supply chain, the company is positioned to help modernize the American industrial base and streamline global supply chains [16] Market Data and Key Metrics Changes - The global security environment is driving renewed focus and investment in defense technology, creating opportunities for American AI innovation [10] - There are fundamental transitions in global trade, creating demand for smarter, more resilient supply chains [10] - A shift in federal procurement practices is emphasizing efficiency and the adoption of advanced commercial technologies [10] Company Strategy and Development Direction - The company is focused on mission expertise, international growth, business alliances, and relentless innovation in AI [12][13][14] - The growth strategy for 2025 includes strengthening core markets while selectively expanding into high-potential adjacencies [14] - The company aims to build flexible, mission-driven solutions that can adapt and scale with technology innovation [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the dynamic business and macroeconomic environment, which creates opportunities but also potential short-term risks [20] - The company is confident in its strategy and has reaffirmed its full-year guidance for 2025 [20] - Management emphasizes the importance of a strong financial foundation and healthy backlog for long-term positioning [31] Other Important Information - The company is committed to providing more context and transparency in its communications with stakeholders [5] - The CEO's leadership philosophy is shaped by experiences in operational government organizations, emphasizing the fusion of technology and operational expertise [6][7] Q&A Session Summary - No specific questions or answers were documented in the provided content [33]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $34.8 million, up 5% year-on-year from $33.1 million in Q1 2024, primarily driven by additional revenue from the Department of Homeland Security and digital identity awards [21] - Gross profit increased by 6% from $7 million in Q1 2024 to $7.4 million in Q1 2025, with a gross margin of 21.3%, slightly up from 21.1% in Q1 2024 [22] - Net loss for Q1 2025 was $62 million, significantly improved from a net loss of $127.8 million in Q1 2024, mainly due to the absence of goodwill impairment charges that were $85 million in the previous year [24] - Adjusted EBITDA was negative $7 million for Q1 2025 compared to negative $1.6 million in Q1 2024, primarily driven by increased R&D expenses and recurring SG&A due to government funding delays [25] - Backlog at the end of Q1 2025 was $385 million, up 30% from Q1 2024, indicating continued customer confidence [26] - Cash and cash equivalents at the end of Q1 2025 were $108 million, up from $81 million in Q1 2024, providing increased financial flexibility [26] Business Line Data and Key Metrics Changes - The company is focusing on core markets such as border security, defense, and manufacturing, where it continues to deepen its leadership and expand AI infrastructure [14][18] - In border security, advanced AI solutions have been deployed at major points of entry, enhancing operational efficiency and security [18] - The company is also modernizing the American industrial base and streamlining global supply chains, particularly in shipbuilding [15] Market Data and Key Metrics Changes - The global security environment is driving renewed focus and investment in defense technology, creating opportunities for AI innovation [9] - There is a shift in federal procurement practices towards efficiency and the adoption of advanced commercial technologies [9] - The company is seeing early signs of strategic focus resonating in sectors where it has built deep relationships and understands the mission [17] Company Strategy and Development Direction - The company is committed to mission expertise, international growth, business alliances, and relentless innovation in AI as core strategic priorities for 2025 [12][13] - The growth strategy focuses on strengthening core markets while selectively expanding into high-potential adjacencies [13] - The company aims to build flexible, mission-driven solutions that can adapt and scale with technology innovation [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the dynamic business and macroeconomic environment, which presents both opportunities and potential short-term risks [19] - The company reaffirms its full-year guidance for 2025, emphasizing a strong financial foundation and healthy backlog [30] - Management expresses confidence in the strategy and the ability to navigate market uncertainties while investing in future growth [31] Other Important Information - The company is focused on responsible capital allocation towards projects that aim to provide material improvement to shareholder returns [27] - The debt position has materially reduced, with a significant portion of convertible notes converted into equity, enhancing financial flexibility [27] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Performance - Revenue for Q1 2025 was $34.8 million, a 5% increase from $33.1 million in Q1 2024, primarily due to additional revenue from Department of Homeland Security and Digital Identity awards[5] - Net loss for Q1 2025 was $62.0 million, significantly reduced from a net loss of $127.8 million in Q1 2024, mainly due to the absence of non-cash goodwill impairment charges of $85.0 million that occurred in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $(7.0) million, compared to $(1.6) million in Q1 2024, driven by increased research and development expenses and higher SG&A costs due to government funding delays[6] - Revenue for the three months ended March 31, 2025, was $34,757 thousand, an increase from $33,121 thousand in the same period of 2024, representing a growth of 4.9%[20] - The net loss for Q1 2025 was $61,986 thousand, significantly improved from a net loss of $127,792 thousand in Q1 2024, indicating a reduction of 51.5%[20] - Adjusted EBITDA for Q1 2025 was $(6,989) thousand, compared to $(1,626) thousand in Q1 2024, reflecting a decline in performance[20] - The net loss margin for Q1 2025 was (178.3)%, an improvement from (385.8)% in Q1 2024[20] Expenses - SG&A expenses increased to $22.7 million in Q1 2025 from $16.9 million in Q1 2024, with recurring SG&A rising to $17.7 million from $13.6 million[6] - Selling, general and administrative expenses for Q1 2025 were $22,732 thousand, up from $16,948 thousand in Q1 2024, marking a 33.9% increase[24] - Equity-based compensation allocated to selling, general and administrative expense was $4,087 thousand in Q1 2025, compared to $2,171 thousand in Q1 2024[24] - The company recognized a loss on extinguishment of debt amounting to $2,577 thousand in Q1 2025, with no such loss reported in Q1 2024[20] Cash and Debt Management - Cash balance as of March 31, 2025, was $107.6 million, up from $50.1 million at the end of Q1 2024[13] - The company reduced long-term debt by $58 million during Q1 2025 through voluntary conversions of the 2029 Notes[5] Future Projections - For the full year 2025, the company projects revenue between $160 million and $180 million, with adjusted EBITDA expected to be in the negative single-digit millions[9] - Ending backlog as of March 31, 2025, was $385 million[7] Gross Margin - Gross margin for Q1 2025 was 21.3%, slightly up from 21.1% in Q1 2024[6] - The gross margin for Q1 2025 was 21.3%, slightly up from 21.1% in Q1 2024[20] Non-GAAP Measures - BigBear.ai reported non-GAAP financial measures including EBITDA and Adjusted EBITDA, which are not prepared in accordance with GAAP[28] - Adjusted EBITDA is defined as EBITDA further adjusted for various costs, including equity-based compensation and non-recurring expenses[31] - The company emphasizes that non-GAAP measures should not be considered in isolation from GAAP measures, as they exclude significant expenses and income[34] - BigBear.ai's Adjusted EBITDA Margin is calculated as Adjusted EBITDA as a percentage of Revenue[32] - The company does not provide guidance for net income or reconciliation of Adjusted EBITDA due to unpredictability of certain GAAP elements[35] - Management uses non-GAAP measures to analyze business performance and trends, providing additional tools for investors[33] Strategic Focus - The company is focused on strategic initiatives and market expansion, with ongoing efforts to align organizational capacity and improve product affordability[26] - BigBear.ai operates in sectors such as national security, defense, and enterprise, providing AI-powered decision intelligence solutions[37] - BigBear.ai aims to enhance transparency regarding key measures used to operate and analyze the business over time[30] Company Information - The company is publicly traded on the NYSE under the symbol BBAI[37] - The financial information presented is unaudited and reflects the company's expectations as of the release date[28]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of BigBear.ai Holdings, Inc. regarding a class action lawsuit due to alleged misleading statements and accounting errors during a specified class period [1][3]. Summary by Relevant Sections Class Period and Allegations - The class period for the lawsuit is from March 31, 2022, to March 25, 2025 [3]. - Allegations include that BigBear maintained deficient accounting review policies, leading to incorrect accounting for the 2026 Convertible Notes and misstatements in financial statements [3]. Financial Reporting Issues - The company allegedly failed to disclose that the conversion option within the 2026 Convertible Notes did not qualify for the derivative scope exception under ASC 815-40, resulting in improper accounting [3]. - As a consequence, BigBear's financial statements were inaccurate and may require restatement, increasing the risk of delays in filing reports with the SEC [3]. Next Steps for Shareholders - Shareholders are encouraged to register for the class action by June 10, 2025, to monitor the case's progress [4]. - Registration allows shareholders to receive updates and does not incur any costs or obligations [4]. Law Firm's Commitment - The Gross Law Firm aims to protect investors' rights and seeks recovery for losses incurred due to misleading statements or omissions by companies [5].

Core Viewpoint - A lawsuit has been filed against BigBear.ai Holdings, Inc. and certain senior executives for potential violations of federal securities laws, specifically under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [1][2]. Company Overview - BigBear.ai is an AI-driven technology solutions company that focuses on operationalizing AI through data analysis, providing insights in national security, supply chain management, and digital identity and biometrics [3]. Financial Misstatements - Following its public listing via a SPAC transaction, BigBear.ai issued $200 million of unsecured convertible notes with a maturity date of December 15, 2026. The company improperly accounted for these notes, leading to misstatements in its financial statements [4]. Stock Performance and Impact - On March 18, 2025, BigBear.ai announced a delay in filing its 2024 10-K, stating that prior financial statements since fiscal year 2021 should not be relied upon, resulting in a stock price decline of approximately 15%, from $3.49 to $2.97 per share [5]. - Following the restatement of its financial statements on March 25, 2025, which revealed a material weakness in internal controls, the stock price fell again by about 9%, from $3.51 to $3.19 per share [6].