BigBear.ai (BBAI) stock jumped over 15% in after-hours trading following the release of better-than-expected third-quarter results. Alongside earnings, BBAI announced a deal to acquire Ask Sage, a generative AI platform purpose-built for secure environments like defense and national security, for $250 million. The acquisition is expected to enhance the company’s Agentic AI capabilities, particularly in the regulated sectors.
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BigBear.ai CEO Kevin McAleenan said, “By integrating Ask Sage with BigBear.ai, we are creating what the market has been asking for: a secure, integrated AI platform that connects software, data, and mission services in one place.”
BBAI’s Q3 Financials
The company’s Q3 revenue declined 20% to $33.1 million, largely due to lower volume on certain U.S. Army programs. However, it surpassed analyst expectations of $31.81 million.
Similarly, the company posted a net loss of $0.03 per share, which was narrower than the expected consensus estimate of a loss of $0.07. Further, the loss compared favorably with the previous year’s $0.06 per share.
Moreover, adjusted EBITDA stood negative at $9.4 million, reflecting softer margins and higher SG&A spending. Backlog stood at $376 million as of September 30, 2025.
2025 Outlook
Despite delays from the recent U.S. government shutdown, management remains bullish on border security and defense-related AI contracts, citing potential tailwinds from the “One Big Beautiful Bill” and increased federal tech spending in 2026.
For the full-year 2025, BigBear.ai reaffirmed its revenue guidance of $125 million to $140 million, signaling confidence in backlog conversion and new contract wins. The consensus estimate currently stands at $133.53 million.
Is BBAI Stock a Good Buy?
Turning to Wall Street, BBAI stock has a Moderate Buy consensus rating based on two Buys and one Hold assigned in the last three months. At $5.83, the average BigBear.ai price target implies 1.57% upside potential.
However, it’s worth noting that estimates will likely change following today’s earnings report.
