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]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 001-40031 BigBear.ai Holdings, Inc. (Exact name of registrant as specified in its charter) | Delaware ...

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]