MCLEAN, Va.--(BUSINESS WIRE)--BigBear.ai (NYSE: BBAI), a leading provider of mission-ready AI for national security, today announced their support of the Washington Commanders annual "My Cause, My Cleats†charity campaign. Now in its tenth year, the initiative allows players, coaches, and staff across the league to display custom and creatively designed cleats to elevate important non-profit organizations. BigBear.ai's partner, the Washington Commanders, sported unique causes represented on the. ...

Core Insights - BigBear.ai Holdings, Inc. (BBAI) has seen a significant stock price increase of nearly 36% over the past six months, outperforming major benchmarks and trading around $5.79, well above its 200-day moving average [1][8] - The company's recent momentum is driven by improving earnings expectations, a strengthened balance sheet, and a transformative acquisition, although it faces challenges such as revenue pressure and government funding uncertainty [2][10] Stock Performance - BBAI stock's performance has been supported by positive investor sentiment and a favorable technical setup, trading above its 200-day moving average of approximately $5.29 [6][8] - The stock experienced volatility in 2025, with a notable jump in February followed by consolidation, and a resurgence in momentum from July to October [7][9] Earnings Expectations - Analyst forecasts for BBAI have improved, with the anticipated loss per share for 2025 narrowing from $1.10 to $0.93, and for 2026 from $0.32 to $0.25 [9][10] - Revenue expectations are mixed, with a projected 16.1% decline in 2025, but a forecasted 30.2% rebound in 2026 due to new government funding cycles and strategic moves [10] Financial Profile - In Q3 2025, BBAI reported revenues of $33.1 million, down from $41.5 million in Q3 2024, attributed to lower activity in Army programs [11] - The company achieved a net income of $2.5 million for the quarter, a significant improvement from a loss of $15.1 million a year earlier, primarily due to favorable non-cash adjustments [12] - BBAI ended the quarter with a record cash and investments balance of approximately $715 million, providing substantial flexibility for growth opportunities [13] Acquisition of Ask Sage - BBAI's acquisition of Ask Sage, a generative AI platform for regulated environments, is central to its long-term strategy, with expected annual recurring revenue of around $25 million in 2025 [16][18] - The acquisition is anticipated to close in late 2025 or early 2026, with significant financial impacts expected in 2026 and beyond [19] Market Opportunities - BBAI is expanding in national security and secure travel markets, with progress in biometric deployments at major airports [20] - The company is advancing platforms for situational awareness and logistics support, demonstrating international reach and ongoing initiatives [21] Competitive Landscape - BBAI competes with companies like Palantir Technologies, C3.ai, and Leidos, each having established positions in government contracting and AI-driven analytics [29][31] Conclusion - BBAI's recent stock rally reflects strengthening fundamentals and optimism regarding its role in secure AI for national security [32] - The company is in a transitional phase, facing revenue softness and integration challenges, which require careful monitoring [33]

Core Insights - BigBear.ai has experienced significant stock growth, rising 50% in six months and over 200% in a year, driven by increasing demand for defense-focused AI tools [1][3] - The company has successfully secured major Army contracts and posted a surprise quarterly profit, showcasing its impressive momentum after a challenging period post-SPAC merger [2][4] Company Overview - BigBear.ai operates in the defense analytics sector, focusing on decision intelligence and modular tools that integrate with existing systems, contrasting with Palantir's end-to-end platforms [5][7] - The company's core products include the "Observe, Orient, Dominate" suite, which processes large volumes of raw data into actionable insights for military planners and analysts [7] Clientele and Contracts - BigBear.ai primarily serves public-sector clients, including the U.S. Defense Intelligence Agency and the Department of Defense, with notable contracts such as a 3.5-year, $13.2 million award for the Pentagon's ORION system [8]

Company Performance - Innodata Inc. has gained approximately 45.4% year-to-date, outperforming the average return of 27.2% for the Computer and Technology sector [4] - The Zacks Consensus Estimate for Innodata's full-year earnings has increased by 14.4% over the past 90 days, indicating improving analyst sentiment [4] - Innodata Inc. currently holds a Zacks Rank of 1 (Strong Buy), suggesting a favorable outlook for the stock [3] Industry Comparison - Innodata Inc. is part of the Computer - Services industry, which consists of 9 stocks and is currently ranked 96 in the Zacks Industry Rank, with an average gain of 4.7% year-to-date [6] - In contrast, BigBear.ai Holdings, Inc., which belongs to the Computers - IT Services industry, has returned 42.5% year-to-date, while its industry has declined by 16.3% [5][6] - The Computer and Technology group includes 603 companies and is currently ranked 2 in the Zacks Sector Rank, reflecting strong performance relative to other sectors [2]

Core Insights - Government agencies are increasingly adopting artificial intelligence (AI) solutions for data analysis, task automation, and expedited decision-making [1][3] - BigBear.ai (NYSE: BBAI) is positioned to benefit significantly from this trend, with its stock rising 36% year to date despite a 20% year-over-year revenue decline in Q3 [1][3][5] - The recent acquisition of AskSage, a generative AI platform, is expected to enhance BigBear.ai's growth potential and financial stability through high-margin recurring revenue [4][5] Group 1: Company Performance - BigBear.ai's revenue fell 20% year over year in the third quarter, but investor focus has shifted to future growth prospects [3] - The acquisition of AskSage is anticipated to serve as a key catalyst for growth, bringing a high-growth business and strengthening financials [4][5] - The stock has surged 36% year to date, indicating positive investor sentiment despite current revenue challenges [1][7] Group 2: Market Positioning - BigBear.ai is well-positioned to benefit from the expected increase in government spending on AI technology in the coming years [5] - AskSage is utilized by over 16,000 government teams and hundreds of commercial companies, highlighting its market relevance [5] - The management's strategy of acquiring other AI businesses that provide recurring, high-margin revenue could significantly boost the stock price in the long term [4][5]

Core Insights - The AI boom has significantly benefited NVIDIA Corporation, with its shares rising 33.2% over the past year, while BigBear.ai Holdings, Inc. has seen a remarkable 181% increase in the same period, raising questions about its potential as a future leader in the AI sector [1] Group 1: BigBear.ai's Performance and Growth Potential - BigBear.ai's revenues fell 20% year-over-year to $33.1 million in Q3 2023, following an 18% decline to $32.5 million in Q2 2023, largely due to reduced federal funding [1][7] - The acquisition of Ask Sage for $250 million is expected to enhance BigBear.ai's growth, as it is a widely adopted generative AI platform used by various government agencies, supporting 100,000 users across 16,000 teams [2][3] - BigBear.ai's CEO stated that integrating Ask Sage will create a secure, integrated AI platform, which aligns with market demands [3] Group 2: Financial Position and Future Outlook - BigBear.ai ended Q3 2023 with a strong cash position of $456.6 million, providing a solid foundation for growth initiatives and potential acquisitions [4][7] - The company is maintaining its full-year sales guidance between $125 million and $140 million, with a net income of $2.5 million in Q3 2023, a significant improvement from a net loss of $15.1 million in the same period last year [5][7] - Analysts project a short-term price target for BigBear.ai stock at $6.67, indicating a potential upside of 10.8% from the last closing price, with the highest target at $8, suggesting a 32.9% upside [6] Group 3: Comparison with NVIDIA - Despite the positive outlook for BigBear.ai, it is premature to label it as the "next NVIDIA" due to its operational loss of $21.9 million in Q3 2023, which more than doubled from the previous year's loss [9] - NVIDIA has consistently shown revenue and profit growth, driven by its strong position in AI hardware and competitive advantages from its CUDA software platform [9]

Core Insights - BigBear.ai Holdings, Inc. (BBAI) is experiencing margin pressures, with gross margin contracting by 240 basis points to 22.8% year over year and adjusted EBITDA margin at negative 24.8% in the first nine months of 2025 [1] - The company is optimistic about long-term growth despite near-term challenges, particularly due to the acquisition of Ask Sage, which enhances its generative AI capabilities [2][3] - BBAI's competitive position is defined by its niche focus on mission-centric solutions, allowing it to compete effectively against larger players like Palantir Technologies and C3.ai [5][7] Financial Performance - BBAI's stock has increased by 56% over the past six months, outperforming the Zacks Computers - IT Services industry and the S&P 500 index [8] - The company is currently trading at a forward 12-month price-to-sales (P/S) ratio of 15.52, indicating a discount compared to industry peers [11] - EPS estimates for 2025 and 2026 have been revised to a loss of 93 cents and 25 cents, respectively, with projected year-over-year growth of 15.5% and 72.8% [12] Competitive Landscape - BBAI operates in the generative AI space, competing with established players like Palantir Technologies, which focuses on data integration and enterprise AI, and C3.ai, which emphasizes generative capabilities for specific industries [6][5] - The company's competitive advantage lies in its deep mission expertise and tailored solutions for defense and government sectors, which can outperform generalist platforms in regulated environments [7]

Core Insights - Artificial intelligence is significantly transforming the defense sector, with both emerging companies like BigBear.ai and established firms like Leidos competing for federal contracts [1][2] - BigBear.ai is transitioning to a scalable AI platform model, while Leidos integrates AI into its existing services [2][9] BigBear.ai Overview - BigBear.ai is acquiring Ask Sage, a secure generative AI platform, which has over 100,000 users across 16,000 government teams, expected to drive $25 million in annual recurring revenue (ARR) by 2025 [4][8] - The company reported a record $456.6 million in cash and investments, enhancing its liquidity for strategic initiatives [5][8] - Despite a 20% year-over-year revenue decline due to lower Army program volumes and government shutdown impacts, BigBear.ai's backlog reached $376 million, indicating potential for future growth [6][7] Leidos Overview - Leidos reported $4.47 billion in Q3 revenue, a 7% increase year-over-year, with a total backlog of $47.7 billion [9][10] - The company secured several significant contracts, including a $2.2 billion classified intelligence award and a $540 million AI-enabled counterterrorism software contract [10] - Leidos is focusing on AI-driven mission software and digital modernization, embedding AI across various solutions [11][13] Stock Performance Comparison - BigBear.ai shares surged 180% over the past year, outperforming the broader technology sector and S&P 500 [14] - Leidos shares increased by 16.1%, slightly exceeding the S&P 500 but lagging behind the technology sector [15] Valuation Insights - BigBear.ai trades at a forward price-to-sales multiple of 15.53, significantly higher than Leidos' multiple of 1.37, reflecting market expectations for high growth [18] - Analyst estimates for BigBear.ai show a narrowing loss per share outlook, while Leidos' EPS estimates indicate stable growth [19][21] Investment Considerations - Leidos offers stability and consistent profitability, supported by a large backlog and expanding AI capabilities [25] - BigBear.ai presents greater near-term upside potential due to its transformation and strengthened liquidity position [25][26]

Core Viewpoint - BigBear.ai Holdings, Inc. (BBAI) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook based on an upward trend in earnings estimates, which significantly influences stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [2][3]. - For the fiscal year ending December 2025, BigBear.ai is expected to earn -$0.93 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 38.9% over the past three months [9]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell accordingly, which in turn affects stock prices [5]. Business Outlook - The upgrade to Zacks Rank 2 suggests an improvement in BigBear.ai's underlying business, which is expected to be recognized by investors through a potential increase in stock price [6][11]. - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [10][11].

Core Insights - BigBear.ai Holdings Inc. (NYSE:BBAI) experienced a decline in share prices by 2.75% to close at $6.02, following profit-taking after a significant 16% gain earlier in the week due to expansion news in Malaysia [1][3] - The company signed a memorandum of understanding with Pahang Aerospace City Development Berhad and partners to enhance the development of advanced technologies in Pahang Aerospace City (PAC) [2] - BigBear will provide AI-driven border operation solutions to support regional and international security initiatives [3] Company Developments - The collaboration aims to integrate AI, predictive analytics, and secure orchestration technologies to foster a unique aviation, transit, and space ecosystem in Malaysia, contributing to national economic growth and regional security [4] - PAC is positioned as a crucial gateway for air, land, and sea transport, with its development expected to draw more domestic and foreign investments [5]