Key Takeaways BBAI stock jumped nearly 86% in a month, far outpacing tech peers and broader market indices. Defense wins and global AI partnerships helped drive 5% revenue growth and a 30% jump in backlog. BBAI remains unprofitable but cut long-term debt by $58M and reaffirmed $160M-$180M revenue guidance.BigBear.ai Holdings, Inc. (BBAI) has been on a tear, with its stock surging nearly 86% over the past month. This sharp rally far outpaces the broader market, where the S&P 500 rose just 3.5%, the Zacks C ...

Core Insights - Geopolitical risks and increasing defense budgets are driving the integration of artificial intelligence (AI) into national security modernization, with BigBear.ai (BBAI) positioning itself at the intersection of AI and defense [1][5] Company Performance - In Q1 2025, BigBear.ai reported a 5% year-over-year revenue increase to $34.8 million, primarily due to contracts with the Department of Homeland Security and digital identity projects [2][12] - The company secured a significant deal to deliver and maintain the Department of Defense's Joint Staff J35 Orion AI platform, enhancing its credibility in military applications [2][12] - Despite a wider adjusted EBITDA loss of $7 million in Q1, attributed to government funding delays and increased R&D investments, BigBear.ai has a $385 million backlog and $108 million in cash, positioning it well for future growth [4][12] Competitive Landscape - BigBear.ai faces competition from established players like Palantir Technologies and C3.ai in the national security AI sector [6] - Palantir is recognized for its strong government partnerships and platforms, setting a high benchmark for BigBear.ai in terms of scale and influence [7] - C3.ai, while more commercially diversified, is aggressively targeting defense, focusing on predictive maintenance and logistics, areas where BigBear.ai is also making strides [8][9] Stock Performance - BigBear.ai's stock has surged 101.3% in the past month, outperforming the Zacks Computers - IT Services industry, the Zacks Computer and Technology sector, and the S&P 500 index [10] - The stock is currently trading at a forward 12-month price-to-sales (P/S) ratio of 12.44, indicating it is priced at a discount compared to industry peers [18] Earnings Estimates - Earnings estimates for BigBear.ai indicate a projected loss of 41 cents per share for 2025, showing improvement from a loss of $1.10 per share the previous year [14] - Estimates for 2026 have trended slightly downward to a loss of 21 cents per share [14]

Key Takeaways Notably, the Pangiam acquisition enables BBAI to explore the commercial sector globally (especially airports and ports), offering the latter a strong Vision AI portfolio focused on travel, trade and identity. One of the widely demanded commercial AI solutions, Pangiam Threat Detection, is a strategic addition to BBAI's portfolio, which strengthens its market share in the commercial sector. Moreover, BigBear.ai's other commercial and software solutions, including veriScan, Trueface, Pro Model A ...

Under new CEO Kevin McAleenan, BigBear.ai is refocusing on mission-critical AI deployments in defense, border security and supply-chain optimization. Its $385 million backlog at the first-quarter end, up 30% year over year, reflects deepening demand across these sectors. Recent wins include the Department of Defense's Orion Decision Support Platform and AI-powered threat detection deployments at major U.S. airports. BigBear.ai's integration of operational expertise with cutting-edge AI models gives it an ed ...

Key Takeaways BBAI's backlog rose 30% year over year to $384.9M, driven by long-term national security contracts. Revenue growth is expected to accelerate in H2 2025, averaging 6.8% versus 4% in H1. BBAI retained its 2025 revenue outlook of $160M-$180M, projecting up to 13.8% year-over-year growth.BigBear.ai Holdings, Inc.’s (BBAI) AI-based portfolio of offerings is at a juncture where the demand for national security and mission-critical needs meet. The increasing spending by the United States on travel, ...

The underdog AI software maker still has a lot to prove.BigBear.ai (BBAI -2.87%) hasn't impressed too many investors since its public debut. The artificial intelligence (AI) software company went public by merging with a special purpose acquisition company (SPAC) on Dec. 7, 2021. Its stock opened at $9.84 on its first day, but it now trades at less than $4.Like many other SPAC-backed start-ups, BigBear.ai overpromised and underdelivered. In the company's pre-merger presentation, it claimed it would triple a ...

Key Takeaways BBAI's Q1 revenue of $34.8 million grew 5% year over year, driven by defense and homeland security contracts. A $385 million backlog and $108 million cash position signal growth, despite a $62 million quarterly net loss. Investments in Orion, Pangiam, and veriScan show progress, but profitability remains elusive.BigBear.ai Holdings, Inc. (BBAI) is positioning itself at the intersection of artificial intelligence and national security, an increasingly lucrative niche. In first-quarter 2025, t ...

Core Viewpoint - BigBear.ai (BBAI) is currently trading at a forward 12-month price-to-sales (P/S) ratio of 6.45X, which is higher than its three-year median of 1.9X and slightly above the sector's average of 6.38X, indicating a premium valuation despite recent stock performance [1][8]. Valuation and Performance - Over the past three months, BBAI shares have increased by 22.7%, outperforming the industry average gain of 5.3%, driven by optimism around defense spending and AI-driven government services [3]. - The company has a backlog of $385 million, reflecting a 30% year-over-year increase, which indicates strong customer demand and revenue visibility [13]. - Despite the positive backlog, the company reported a wider loss of $7 million in Q1 2025 compared to a loss of $1.6 million in the same period last year, highlighting operational challenges [15][18]. Strengths and Growth Opportunities - BigBear.ai operates at the intersection of AI, national security, and critical infrastructure, benefiting from long-term trends in defense spending [7]. - The company has secured significant contracts, including a recent agreement with the U.S. Department of Defense, validating its relevance in critical AI solutions [7]. - Strategic partnerships with major technology firms like Amazon, Palantir, and Autodesk enhance the credibility and effectiveness of its AI solutions, indicating increasing enterprise adoption [12]. Challenges and Risks - Variability in federal procurement processes has led to delays in funding and contract awards, impacting operational efficiency and increasing SG&A expenses [15]. - Revenue growth has been modest at 5% year-over-year, with total revenue reported at $34.8 million, which missed expectations by 3.2% [16]. - Increased R&D spending has pressured margins, with adjusted gross margin dipping to 28.6% from 29.1% year-over-year [17]. Financial Position - The company's cash position improved significantly, reporting $108 million at the end of Q1 2025, more than doubling from year-end 2024, while also reducing debt by converting $58 million in convertible notes into equity [14]. - Despite the improved liquidity, the company faces a substantial net loss of $62 million, although this is an improvement from a loss of $127.8 million a year earlier [18]. Market Sentiment and Future Outlook - The Zacks Consensus Estimate for 2025 loss per share has widened to 41 cents from 21 cents over the past 60 days, indicating declining investor confidence [19]. - The stock's current valuation appears to price in more progress than the company has delivered, raising concerns about profitability visibility and operational execution [21].

Core Insights - Advances in artificial intelligence (AI) are transforming the global economy, with BigBear.ai emerging as a leader in AI-powered decision intelligence solutions [1][2] - BigBear.ai specializes in operationalizing AI and machine learning for mission-critical intelligence and national defense applications [4] Company Overview - BigBear.ai is focused on developing AI solutions rather than merely adding AI features to existing products [4] - The company has established credibility through high-profile clients, including the U.S. Department of Homeland Security and the U.S. Army, in areas such as autonomous systems and cybersecurity [5] Product and Market Applications - BigBear.ai's Vision AI technology is utilized by airlines and airports for passenger screening, with potential applications in supply chain logistics [6] - The company aims to capture growing AI demand across multiple industries, positioning itself for future growth [6] Financial Performance - In Q1 2025, BigBear.ai reported revenue of $34.8 million, a 5% year-over-year increase, driven by new contracts [8] - The company experienced an adjusted EBITDA loss of $7 million, widening from a $1.6 million loss in the prior-year quarter, due to increased spending [9] - BigBear.ai's current order backlog is $385 million, up 30% from the previous year, indicating potential for stronger growth [10] Future Outlook - The company projects full-year revenue between $160 million and $180 million, representing an 8% increase from 2024 [10] - Management expresses optimism about narrowing recurring losses and targeting adjusted EBITDA in the "negative single-digit millions" for 2025 [10] Competitive Landscape - BigBear.ai faces competition from larger tech companies like Palantir Technologies and Booz Allen Hamilton, which have greater financial resources [11] - The sustainability of BigBear.ai's proprietary technology and its ability to maintain an innovative edge remain uncertain [12] Investment Considerations - The next several quarters are critical for BigBear.ai to demonstrate commercial traction and the success of its growth initiatives [13] - Without significant catalysts, a cautious approach may be advisable for potential investors [13]

BigBear.ai Holdings (BBAI) Q1 2025 Earnings Call May 01, 2025 04:30 PM ET Company Participants None - ExecutiveKevin McAleenan - CEO & DirectorJulie Peffer - Chief Financial Officer Operator Greetings, and welcome to the Big Bear AI Holdings Incorporated First Quarter twenty five Earnings Call and Webcast. At this time, all participants are in a listen only mode. As a reminder, this conference is being recorded. It is now my pleasure to introduce David Cronlow. Thank you, David. You may begin. None Thank yo ...