BigBear.ai Holdings 2025 Q3 Earnings Strong Turnaround with 116.7% Net Income Surge

BigBear.ai Holdings (BBAI) reported fiscal 2025 Q3 earnings on Nov 10, 2025, delivering a net income of $2.52 million—a 116.7% improvement from a $15.13 million loss in 2024 Q3. The company also reaffirmed its full-year revenue guidance of $125M–$140M, aligning with expectations despite a 20.1% year-over-year revenue decline.

Revenue

BigBear.ai’s total revenue fell to $33.14 million in 2025 Q3, down from $41.51 million in 2024 Q3, driven by reduced Army program volumes. Time and materials revenue amounted to $17.88 million, while firm fixed price contracts contributed $10.42 million. Cost-reimbursable contracts generated $4.84 million, completing the revenue breakdown.

Earnings/Net Income

The company returned to profitability with an EPS of $0.01, reversing a $0.06 loss in 2024 Q3. This marked a significant 116.7% positive swing in net income, reflecting cost discipline and operational efficiency improvements.

Price Action

Post-earnings, BBAI shares surged 13.3% in after-hours trading but faced a 3.87% drop during the latest trading day. Month-to-date, the stock has declined 23.77%.

Post-Earnings Price Action Review

The strategy of buying BBAI shares on the revenue raise announcement and holding for 30 days yielded a 6.95% return over three years. The initial after-hours surge of 13.3% reflected optimism around the earnings beat and Ask Sage acquisition. Over 30 days, the stock navigated volatility but maintained a positive trend, closing with a 6.95% gain. Long-term prospects remain strong, supported by strategic acquisitions like Ask Sage, which expanded the company’s secure AI capabilities in defense and national security. Key drivers included the revenue raise and acquisition, which reinforced investor confidence.

CEO Commentary

CEO Kevin McAleenan highlighted the Ask Sage acquisition as a catalyst for growth, projecting ARR to grow sixfold to $25M in 2025. He emphasized the company’s $715M cash position and disciplined capital deployment to fuel expansion.

Guidance

BigBear.ai reaffirmed its 2025 full-year revenue guidance of $125M–$140M. The Ask Sage acquisition, expected to close by Q4 2025 or Q1 2026, is anticipated to drive 2026+ growth. The company also noted temporary disruptions from the government shutdown but remains confident in its mission-essential contract base.

Additional News

BigBear.ai’s $250M acquisition of Ask Sage, a secure generative AI platform, dominated recent headlines. The deal, expected to close by early 2026, expands the company’s defense and national security capabilities. Institutional investors like Wedbush Securities increased stakes, acquiring 0.08% ownership. Meanwhile, the government shutdown paused parts of intelligence contracts, impacting revenue and personnel. Analysts remain cautiously optimistic, with a “Hold” rating and $6.00 average price target.

Key Takeaways:

• Strategic Acquisition:

  The Ask Sage deal strengthens BigBear.ai’s position in secure AI for defense.

• Financial Resilience:

  Despite revenue declines, the company improved net income and liquidity.

• Market Reaction:

  Post-earnings volatility underscores investor skepticism, though long-term growth potential remains.

BigBear.ai’s ability to navigate operational challenges while pursuing strategic M&A positions it for future expansion, albeit with near-term headwinds from government pauses and market volatility.