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MCLEAN, Va. - BigBear.ai Holdings, Inc. (NYSE:BBAI), an AI-powered decision intelligence solutions provider, reported first-quarter 2025 results that fell short of analyst expectations, sending its shares down 9% in after-hours trading.
The company posted a wider-than-expected adjusted loss of $0.25 per share, missing the analyst estimate of a $0.05 loss. Revenue for the quarter came in at $34.8 million, up 5% YoY from $33.1 million, but fell short of the $40.24 million consensus estimate.
Despite the revenue miss, BigBear.ai CEO Kevin McAleenan expressed optimism about the company’s strategic focus. "We are seeing early and encouraging signs that our strategic focus is resonating, particularly in sectors where we’ve built deep relationships, have a clear understanding of the mission, and are deploying proven technologies," he stated.
The company’s gross margin improved slightly to 21.3% in Q1 2025, compared to 21.1% in the same quarter last year. However, BigBear.ai reported a net loss of $62.0 million, primarily due to non-cash losses on the increase in fair value of derivatives and debt extinguishment.
For the full year 2025, BigBear.ai reaffirmed its revenue guidance of $160-180 million, in line with the analyst consensus of $170.1 million. The company also projects adjusted EBITDA in the negative single-digit millions.
BigBear.ai ended the quarter with a cash balance of $107.6 million and reduced its long-term debt by $58 million through voluntary conversions of 2029 Notes. The company’s backlog stood at $385 million as of March 31, 2025.
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