Bigbear.Ai Holdings, Inc. ( (BBAI) ) has released its Q3 earnings. Here is a breakdown of the information Bigbear.Ai Holdings, Inc. presented to its investors.
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BigBear.ai Holdings, Inc. is a leading provider of AI-powered decision intelligence solutions, serving sectors such as defense and national security with predictive analytics capabilities. The company recently announced its third-quarter 2025 financial results and a definitive agreement to acquire Ask Sage, a generative AI platform tailored for secure AI model distribution in highly-regulated sectors. The acquisition is expected to bolster BigBear.ai’s offerings and deliver significant annual recurring revenues.
In the third quarter of 2025, BigBear.ai reported a revenue decline of 20% to $33.1 million compared to the same period last year, primarily due to reduced volume on certain Army programs. Despite this, the company achieved a net income of $2.5 million, a significant improvement from a net loss of $15.1 million in the third quarter of 2024. The company’s cash balance reached a record $456.6 million, positioning it well for future growth initiatives.
Key financial metrics revealed a gross margin of 22.4%, down from 25.9% in the previous year, attributed to the absence of higher-margin programs. The company’s SG&A expenses increased to $25.3 million, driven by strategic initiatives and marketing costs. BigBear.ai’s backlog stood at $376 million as of September 30, 2025, indicating a strong pipeline of future business.
Looking ahead, BigBear.ai maintains its full-year 2025 revenue projection between $125 million and $140 million. The anticipated acquisition of Ask Sage is expected to close by early 2026, with no immediate impact on 2025 financial results. The company remains optimistic about future opportunities in border security and defense, anticipating new contracts and accelerated spending in these areas.