Key Highlights

  • BigBear.ai reported third quarter revenue of USD 43.6 million, up 31% year over year and above consensus estimates.
  • The company posted a net loss of USD 91.9 million, or USD 0.19 per share, driven by a noncash goodwill impairment charge.
  • Gross margin expanded to 31.2%, up 878 basis points year over year, supported by the company's generative AI platform.
  • BigBear.ai raised its full year 2026 revenue guidance to a range of USD 150 million to USD 165 million.

Revenue Accelerates as Goodwill Charge Weighs on Net Income

BigBear.ai (NYSE:BBAI) reported third quarter revenue of USD 43.6 million, up 31% year over year, marking the company's third consecutive quarter of accelerating growth. The increase was driven substantially by the company's generative AI platform, acquired through the Ask Sage transaction in December 2025.

The company recorded a net loss of USD 91.9 million, or USD 0.19 per share, compared with net income of USD 2.5 million in the prior year period. A noncash goodwill impairment charge of USD 76.7 million, or USD 0.16 per share, was the primary driver of the loss. Adjusted EBITDA improved to negative USD 9.1 million from negative USD 9.4 million a year earlier.

Contract Wins and Backlog Growth Support Raised Guidance

Gross margin expanded to 31.2%, an increase of 878 basis points from the prior year period, supported by the generative AI platform's contribution to the revenue mix. The company secured more than 25 new contracts since the second quarter, representing over USD 225 million in total contract value, including awards from the Federal Bureau of Investigation, NASA, the Department of Energy and the Department of Veterans Affairs.

Backlog reached USD 330 million at the end of the quarter, a 22% increase from the prior quarter, driven by new wins and recompetes tied to the company's homeland and border security work. The company raised its full year 2026 revenue guidance to a range of USD 150 million to USD 165 million, an increase of 5% at the midpoint versus its prior guidance range, which would represent 23% growth over 2025 at the midpoint.

Balance Sheet Position and Risk Factors

The company ended the quarter with approximately USD 400 million in cash and investments, against about USD 17 million of convertible debt maturing in December 2026, positioning it to enter 2027 with reduced leverage. Continued contract win momentum in the company's national security and border security segments supported the raised guidance.

The goodwill impairment charge, while noncash, reflects a revaluation of prior acquisition related assets and could recur if further valuation adjustments are required. Government contract timing and the pace of new agency awards remain variables that could affect whether the company's raised revenue guidance range is achieved by year end.

Figures to Track Into Year End

Progress toward the raised USD 150 million to USD 165 million full year revenue guidance, further backlog growth beyond the USD 330 million reported this quarter, and the resolution of the remaining convertible debt maturing in December are among the items the company has pointed to for the fourth quarter. Contract award activity across federal agencies remains a recurring data point in the company's quarterly updates.