BigBear.ai (NYSE:BBAI) Issues Earnings Results, Misses Estimates By $0.04 EPS

BigBear.ai (NYSE:BBAI) posted its quarterly earnings results on Tuesday. The company reported ($0.12) earnings per share for the quarter, missing the consensus estimate of ($0.08) by ($0.04), FiscalAI reports. The business had revenue of $34.44 million during the quarter, compared to the consensus estimate of $33.60 million. BigBear.ai had a negative return on equity of 18.22% and a negative net margin of 230.21%.The company’s revenue for the quarter was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.25) earnings per share.

Here are the key takeaways from BigBear.ai’s conference call:

• BigBear.ai ended Q1 with a strong balance sheet of $431 million in cash and investments, a backlog up 14% to $281.9 million, and it reaffirmed 2026 revenue guidance of $135–$165 million, supporting near-term financial flexibility.
• Revenue was flat at $34.4 million year‑over‑year, but gross margin expanded sharply to 34%, driven by a higher mix of GenAI platforms and products from the Ask Sage acquisition.
• Despite margin improvement, the company remains unprofitable with a Q1 net loss of $56.8 million and adjusted EBITDA of ‑$9.9 million, weighed by higher SG&A (including amortization and legal costs), R&D investments, and about $36 million of non‑cash charges related to debt conversion.
• Operational momentum includes multiple wins and product progress — a ~$53 million classified sole‑source IC contract, airport deployments ($7M) using BearScan/TrueFace, shipbuilding and DoD/NASA Ask Sage contracts, plus ongoing integrations and a new commercial Ask Sage offering that shift revenue mix toward technology.

BigBear.ai Price Performance

BigBear.ai stock traded up $0.05 during mid-day trading on Wednesday, reaching $4.19. 33,859,737 shares of the company’s stock traded hands, compared to its average volume of 49,408,316. BigBear.ai has a 12-month low of $2.96 and a 12-month high of $9.39. The company has a quick ratio of 1.78, a current ratio of 1.78 and a debt-to-equity ratio of 0.16. The stock has a 50 day moving average of $3.75 and a two-hundred day moving average of $5.13. The company has a market cap of $2.01 billion, a price-to-earnings ratio of -4.19 and a beta of 3.25.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of BigBear.ai in a research note on Monday, April 20th. Cantor Fitzgerald dropped their price objective on shares of BigBear.ai from $6.00 to $5.00 and set a “neutral” rating for the company in a report on Tuesday, March 3rd. HC Wainwright cut their price objective on BigBear.ai from $8.00 to $6.00 and set a “buy” rating for the company in a research report on Tuesday, March 3rd. Finally, Wall Street Zen downgraded BigBear.ai from a “hold” rating to a “sell” rating in a research report on Saturday, January 10th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, BigBear.ai presently has a consensus rating of “Hold” and a consensus price target of $5.50.

Key BigBear.ai News

Here are the key news stories impacting BigBear.ai this week:

• Positive Sentiment: Reported revenue beat estimates and margin improvement: Q1 revenue of $34.4M topped consensus and gross margin rose to ~34%; management said net loss narrowed — signals operational progress that could support future profitability. BigBear.ai Reports Q1 Loss, Beats Revenue Estimates
• Positive Sentiment: Backlog and national‑security wins: Company announced increased backlog including more than $60M in national security contracts and cited close to $75M in Q1 contract wins — a revenue runway that supports growth expectations for federal AI spending. Company Press Release
• Positive Sentiment: Dealmaking and classified federal AI work: Management highlighted a classified intelligence‑community AI contract and the Ask Sage acquisition to expand generative AI capabilities — strategic moves that increase addressable market and backlog quality. BigBear.ai Builds Federal AI Backlog
• Neutral Sentiment: Affirmed FY‑2026 revenue guidance but left a wide range ($135M–$165M) vs. consensus (~$142.8M) — keeps guidance in play but creates uncertainty on precise upside. Investor presentation and slide deck provide more context for modeling. Earnings Call Presentation
• Negative Sentiment: EPS missed estimates: Reported GAAP EPS of ($0.12) vs. consensus (~($0.08)), a notable miss that contributed to the sell‑off despite the revenue beat. MarketBeat Earnings Summary
• Negative Sentiment: Still sizable GAAP losses and negative margins/ROE: company reported negative net margin and negative return on equity, and Q1 revenue was slightly down year‑over‑year — risks for near‑term profitability and investor confidence. Zacks Commentary
• Negative Sentiment: Immediate market reaction: Coverage noted the stock plunged ~5% after the print, reflecting investor focus on the EPS miss, guidance range and continued GAAP losses despite positive contract news. Invezz Market Reaction

Insider Buying and Selling at BigBear.ai

In other news, Director Pamela Joyce Braden sold 80,000 shares of the business’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $4.00, for a total value of $320,000.00. Following the sale, the director directly owned 508,687 shares in the company, valued at $2,034,748. The trade was a 13.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.54% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On BigBear.ai

Large investors have recently added to or reduced their stakes in the stock. PNC Financial Services Group Inc. increased its position in shares of BigBear.ai by 150.9% during the 4th quarter. PNC Financial Services Group Inc. now owns 5,640 shares of the company’s stock valued at $30,000 after purchasing an additional 3,392 shares during the last quarter. HM Payson & Co. boosted its stake in BigBear.ai by 616.9% during the fourth quarter. HM Payson & Co. now owns 7,169 shares of the company’s stock worth $39,000 after buying an additional 6,169 shares during the period. Hodges Capital Management Inc. bought a new position in BigBear.ai during the fourth quarter valued at $54,000. Arete Wealth Advisors LLC purchased a new stake in shares of BigBear.ai in the fourth quarter valued at $64,000. Finally, Quadrature Capital Ltd bought a new stake in shares of BigBear.ai in the 4th quarter worth about $69,000. 7.55% of the stock is owned by institutional investors.

BigBear.ai Company Profile

BigBear.ai is a provider of artificial intelligence (AI) and data analytics solutions designed to deliver actionable insights for public sector and commercial clients. Headquartered in Columbia, Maryland, the company specializes in advanced analytics, machine learning, predictive modeling and network analysis to support decision-making in complex, data-rich environments. Its clientele spans defense and intelligence agencies, civil government organizations and enterprise businesses seeking to enhance mission outcomes and operational efficiency.

The company’s flagship offerings include an AI-driven analytics platform that integrates data engineering, algorithm development and visualization tools.