BigBear.ai stock (BBAI) has surged more than 35% so far in 2025, despite recent volatility related to artificial intelligence (AI) bubble concerns. Currently, BBAI stock trades at a price-to-sales (P/S) multiple of 6.57x, significantly higher than the sector median and its own five-year average. However, it still trades lower than peers C3.ai (AI) and larger rival Palantir Technologies (PLTR). The company is still loss-making, so we cannot value it based on the popular price-to-earnings (P/E) ratio.
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BBAI offers AI-powered decision intelligence solutions for critical areas in defense and national security as well as in the supply chain, manufacturing, and healthcare sectors.
Ask Sage Could Bolster BBAI’s Growth
BigBear.ai reported disappointing Q3 results on November 10, with revenue falling 20% year-over-year to $33.1 million, mainly due to “lower volume on certain Army programs.” Nonetheless, BBAI stock jumped 6.1% the same day after announcing the $250 million acquisition of generative AI platform Ask Sage, to expand its offerings, increase recurring revenues, and strengthen its AI capabilities for government and defense.
Ask Sage is growing much faster than BigBear.ai, expected to generate $25 million in annual recurring revenue (ARR) in 2025, a sixfold jump from 2024. It currently serves over 16,000 government teams and its platform adoption is rapidly rising due to compatibility with popular AI models from Anthropic, OpenAI, Amazon (AMZN) Web Services, Google (GOOGL), and other open-source AI technologies.
BigBear Faces Ongoing Challenges
BigBear.ai has relied heavily on government contracts, which have caused revenue disruptions in 2025 from U.S. Army efficiency efforts and consolidations. The company forecasts $125 to $140 million in 2025 revenue, with inconsistent growth expected ahead. Also, its Ask Sage acquisition may not greatly expand its commercial AI market presence, which is required to diversify its revenue stream.
BBAI in Focus as Shareholder Meeting Looms
The company remains in focus as it prepares for a special shareholder meeting on December 1, to gain shareholder vote on increasing its authorized common stock from 500 million to 1 billion shares. The share increase aims to enhance financial flexibility for future growth initiatives, public offerings, dividends, and acquisitions like Ask Sage.
Is BBAI Stock a Buy?
Analysts remain cautiously optimistic about BigBear.ai’s long-term outlook. On TipRanks, BBAI stock has a Moderate Buy consensus rating based on only one Buy and one Hold rating. The average BigBear.ai price target of $6.50 implies nearly 8% upside potential from current levels.
