Financial Data and Key Metrics Changes - For the fourth quarter of 2025, revenue was $27.3 million, a decrease of $16.5 million year-over-year, primarily due to lower volume on Army programs [30] - Gross margin for the fourth quarter of 2025 was 20.4%, down from 37.4% in the comparable period, attributed to one-time items in the previous year [30] - Net loss for the fourth quarter was $5.8 million compared to a net loss of $138.2 million in the same period last year, mainly due to a non-cash gain on the fair value of derivatives [31] - Adjusted EBITDA for the fourth quarter was -$10.3 million, down from $2 million in the comparable period, driven by lower revenue and increased spending on SG&A and R&D [32] - The company projects full-year 2026 revenue between $135 million and $165 million, representing about 17% growth from 2025 [33] Business Line Data and Key Metrics Changes - The company completed the acquisition of Ask Sage on December 31, 2025, which is a model-agnostic platform for secure distribution of generative AI models [9] - The acquisition of CargoSeer was closed in the first quarter of 2026, enhancing capabilities in customs and cargo inspection [28] - R&D expenses increased from $2.3 million in Q4 2024 to $4.8 million in Q4 2025, reflecting ongoing investments in new capabilities [31] Market Data and Key Metrics Changes - The company is expanding its international footprint, particularly in the UAE, where it has established a presence and formed partnerships to enhance operational effectiveness [8][9] - The U.S. government is expected to increase its defense budget significantly, potentially reaching $1.5 trillion, which could benefit the company [15] - The company is actively pursuing significant government competitions in a robust funding environment, particularly driven by the One Big Beautiful Bill funding [20] Company Strategy and Development Direction - The company aims to strengthen its financial position and expand its international presence while pursuing strategic acquisitions [5][9] - The focus is on delivering top-line growth and enhancing go-to-market strategies to capture significant near-term revenue opportunities [20] - The company is prioritizing operator needs and intends to operate with execution rigor to adapt to the fast-moving market [21][22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of understanding customer missions and applying emerging technologies securely to address challenges [36] - The company is well-prepared to support the U.S. government's AI Acceleration Strategy, which emphasizes rapid deployment of commercial models [17] - Management expressed confidence in the company's strong financial position and its ability to invest in technology and talent for future growth [35] Other Important Information - The company transitioned out of emerging growth company status, enhancing its internal controls and compliance [29] - A proxy solicitation to amend the certificate of incorporation to authorize 500 million shares of common stock is underway, with strong shareholder support [34] Q&A Session Summary Question: What are the expectations for revenue growth in 2026? - The company projects full-year 2026 revenue between $135 million and $165 million, indicating a growth trajectory from 2025 [33] Question: How is the company addressing the needs of its customers? - The company is focusing on delivering mission-ready technology tailored to the specific needs of operators, ensuring rapid and flexible responses to emerging threats [36]

Financial Data and Key Metrics Changes - For the fourth quarter of 2025, revenue was $27.3 million, a decrease of $16.5 million year-over-year, primarily due to lower volume on Army programs [30] - Gross margin for the fourth quarter of 2025 was 20.4%, down from 37.4% in the comparable period, attributed to one-time items in the previous year [30] - Net loss for the fourth quarter was $5.8 million, significantly improved from a net loss of $138.2 million in the same period last year, mainly due to a non-cash gain on the fair value of derivatives [31] - Adjusted EBITDA for the fourth quarter was -$10.3 million compared to $2 million in the prior year, driven by lower revenue and increased spending on SG&A and R&D [32] - The company projects full-year 2026 revenue between $135 million and $165 million, representing about 17% growth from 2025 [33] Business Line Data and Key Metrics Changes - The company completed the acquisition of Ask Sage on December 31, 2025, which is a model-agnostic platform for secure distribution of generative AI models [9] - The acquisition of CargoSeer was closed in the first quarter of 2026, enhancing capabilities in customs and cargo inspection [28] - R&D expenses increased from $2.3 million in Q4 2024 to $4.8 million in Q4 2025, reflecting ongoing investments in new capabilities [31] Market Data and Key Metrics Changes - The company is expanding its international footprint, particularly in the UAE, where it has established a presence and formed partnerships to enhance operational effectiveness [8] - The U.S. government is expected to increase its defense budget dramatically, potentially reaching $1.5 trillion, which could benefit the company significantly [15] - The company is actively pursuing significant government competitions in a robust funding environment, particularly driven by the One Big Beautiful Bill funding [20] Company Strategy and Development Direction - The company aims to strengthen its financial position and expand its international presence while focusing on national security and travel and trade markets [19] - The strategy includes delivering top-line growth, focusing on operator needs, executing with rigor, and capitalizing on catalytic M&A opportunities [20][22] - The company is committed to integrating recent acquisitions and enhancing its technology offerings to meet evolving customer needs [35] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of understanding customer missions and applying emerging technologies securely and rapidly to address threats [36] - The company is well-prepared to support the U.S. government's AI Acceleration Strategy, which emphasizes rapid deployment of commercial models [17] - Management expressed confidence in the company's strong financial position and its ability to invest in technology and talent for future growth [35] Other Important Information - The company transitioned out of emerging growth company status, enhancing its internal controls and compliance [29] - A proxy solicitation to amend the certificate of incorporation to authorize 500 million shares of common stock is underway, with strong shareholder support [34] Q&A Session Summary Question: What are the expectations for revenue growth in 2026? - The company projects full-year 2026 revenue between $135 million and $165 million, indicating a growth trajectory from 2025 [33] Question: How is the integration of recent acquisitions progressing? - The integration of Ask Sage is well underway, with strong adoption metrics and utilization growing month-over-month [23] Question: What is the company's strategy regarding international expansion? - The company is leveraging its established foothold in the UAE to expand its international business, particularly in ports and borders offerings [20]

Financial Data and Key Metrics Changes - For Q4 2025, revenue was $27.3 million, a decrease of $16.5 million year-over-year, primarily due to lower volume on Army programs [30] - Gross margin for Q4 2025 was 20.4%, down from 37.4% in the same period last year, attributed to one-time items in Q4 2024 [30] - Net loss for Q4 2025 was $5.8 million, significantly improved from a net loss of $138.2 million in the comparable period, mainly due to a non-cash gain on derivatives and an income tax benefit related to the Ask Sage acquisition [31][32] - Adjusted EBITDA for Q4 was -$10.3 million compared to $2 million in the prior year, driven by lower revenue and increased expenses [32] Business Line Data and Key Metrics Changes - The company completed the acquisition of Ask Sage on December 31, 2025, which is expected to enhance capabilities in defense and security sectors [8] - CargoSeer was also acquired, aimed at improving customs and security operations through AI technology [10] - R&D expenses increased from $2.3 million in Q4 2024 to $4.8 million in Q4 2025, reflecting ongoing investments in new capabilities [31] Market Data and Key Metrics Changes - The company is expanding its international footprint, particularly in the UAE, where it has established a presence and formed partnerships to enhance operational effectiveness [7][8] - The U.S. government is expected to increase its defense budget significantly, potentially reaching $1.5 trillion, which could benefit the company’s market positioning [13] Company Strategy and Development Direction - The company aims to strengthen its financial position and expand its international presence while pursuing strategic acquisitions [5][19] - Focus areas include national security and travel and trade markets, leveraging AI capabilities to enhance operational efficiency [18][19] - The company plans to capitalize on catalytic M&A opportunities to enhance its service capabilities in national security and trade [22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of adapting to the evolving geopolitical landscape and the increasing demand for advanced technologies in national security [12][18] - The company is well-positioned to support U.S. government initiatives and capitalize on funding opportunities driven by recent legislative measures [13][19] - Future revenue guidance for 2026 is projected between $135 million and $165 million, representing approximately 17% growth from 2025 [33] Other Important Information - The company transitioned out of emerging growth company status, enhancing its internal controls and compliance [29] - A proxy solicitation to authorize 500 million shares of common stock is underway, with strong shareholder support [34] Q&A Session Summary Question: What are the expectations for revenue growth in 2026? - The company projects full-year 2026 revenue between $135 million and $165 million, reflecting growth from recent acquisitions and market opportunities [33] Question: How is the company addressing the recent changes in the defense budget? - Management indicated that the anticipated increase in the defense budget could provide significant opportunities for the company, aligning with its core strengths in national security [13] Question: What is the strategy for integrating recent acquisitions? - The company is focused on fully integrating Ask Sage and CargoSeer to enhance capabilities and deliver mission-specific solutions to customers [22][24]

Investor Presentation Fourth Quarter 2025 Kevin McAleenan Chief Executive Officer, Board Member Sean Ricker Chief Financial Officer © 2026 BigBear.ai, All rights reserved | BigBear.ai Proprietary. 1 Non-GAAP Financial Information This presentation includes financial measures that are not in accordance with generally accepted accounting principles ("GAAP"), such as EBITDA, Adjusted EBITDA, and Adjusted Gross Margin. We believe these non-GAAP financial measures provide investors and analysts with useful suppl ...