BigBear.ai(US:BBAI)2025-05-01 20:16Financial 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]