BigBear.ai reported third‑quarter 2025 revenue of $33.1 million, a 20% decline from $41.5 million in the same period a year earlier, and a net income of $2.5 million, translating to an earnings‑per‑share figure of $‑0.03. The earnings beat analysts’ consensus estimate of $‑0.05 to $‑0.07, a margin of $0.02 to $0.04 per share, largely driven by disciplined cost management that offset the revenue contraction.
Revenue fell as the company experienced lower volume on certain U.S. Army programs, a short‑term impact linked to the federal government shutdown and reduced contract awards. Despite the year‑over‑year decline, sequentially the quarter outperformed Q2 2025, which generated $32.5 million in revenue and an earnings‑per‑share of $‑0.71, indicating a recovery in demand and a more favorable mix of contracts.
Gross margin contracted from 25.9% in Q3 2024 to 22.4% in Q3 2025, reflecting the loss of higher‑margin programs in the prior year. Nevertheless, operating income improved to $3.1 million from $1.8 million, a result of tighter expense control and efficient allocation of resources across the business.
The company reaffirmed its full‑year 2025 revenue guidance of $125 million to $140 million, unchanged from the previous forecast. The guidance signals management’s confidence in converting its backlog and maintaining profitability amid a challenging contract environment.
On the same day, BigBear.ai entered into a definitive agreement to acquire Ask Sage for $250 million. The transaction is expected to close in late Q4 2025 or early Q1 2026 and is projected to add approximately $25 million in annual recurring revenue in 2025, expanding the firm’s secure, agentic AI capabilities for defense and national‑security agencies.
The company’s cash balance stood at $391 million at the end of the quarter, a record level that provides a strong financial foundation for pursuing additional growth opportunities and supporting the integration of Ask Sage.
CEO Kevin McAleenan said the acquisition “positions us to support the AI revolution in government and regulated industries” and that it “creates a secure, integrated AI platform that connects software, data, and mission services in one place.” CFO Sean Ricker added that the robust balance sheet “allows us to make significant transformational investments to shape the future of BigBear.ai.”
Analysts highlighted the earnings beat and the acquisition’s margin‑accretive potential as key drivers of positive investor sentiment, underscoring confidence in the company’s strategic focus on secure AI solutions for the defense sector.
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