BBAI Stock Tumbles on Q2 Loss, Revenues Decline Y/Y, '25 View Down

Core Insights - BigBear.ai Holdings, Inc. (BBAI) reported mixed second-quarter 2025 results, with the bottom line beating the Zacks Consensus Estimate while revenues missed expectations, showing a year-over-year decline in both metrics [1][3][7] - The quarterly performance was negatively impacted by significant declines in demand for certain Army programs, alongside increased research and development and restructuring expenses [1][4][7] Earnings & Revenue - The company reported an adjusted loss per share of six cents, which was better than the Zacks Consensus Estimate of a loss per share of seven cents, but worse than the adjusted loss per share of four cents reported in the same quarter last year [3][4] - Revenues totaled $32.5 million, missing the consensus estimate of $41 million by 20.8% and reflecting an 18.3% year-over-year decline [3][7] Operating Performance - Adjusted gross profit decreased to $9.5 million from $12.5 million year over year, with the adjusted gross margin contracting by 220 basis points to 29.2% [4] - Adjusted EBITDA loss widened to $(8.5) million compared to $(3.7) million reported a year ago, primarily due to decreased gross margin and increased R&D expenses [4] Balance Sheet & Cash Flow - As of the second quarter, BigBear.ai had cash and cash equivalents of $390.8 million, a significant increase from $50.1 million at the end of 2024, while net long-term debt decreased to $102.7 million from $135.4 million [5] - Net cash used in operating activities reduced to $10.5 million in the first half of 2025 from $21.4 million in the same period last year [5] Revenue Guidance - The company revised its full-year revenue guidance down to a range of $125 million to $140 million from the previous expectation of $160 million to $180 million, compared to $158.2 million reported in 2024 [6][7] - Due to uncertainties surrounding certain Army programs and anticipated growth investments in the second half of 2025, BBAI has not provided revised adjusted EBITDA guidance [8]