Key Highlights

  • BBAI reported third-quarter revenue of $43.6 million, up 31% from $33.1 million a year earlier.
  • Gross margin widened to 31.2% from 22.4%, an expansion of 878 basis points.
  • Net loss was $91.9 million, or $0.19 per share, after a $76.7 million non-cash goodwill impairment.
  • Full-year 2026 revenue guidance was raised to $150 million to $165 million.
  • Backlog reached about $330 million, up 22% from the end of the second quarter, with about 23% funded.

BigBear.ai Earnings: Did the Revenue Raise Outweigh the Goodwill Charge?

BigBear.ai (NYSE:BBAI) reported third-quarter results on Tuesday, October 27, with revenue of $43.6 million, up 31% from $33.1 million a year earlier. The company raised its 2026 revenue guidance to a range of $150 million to $165 million. The company calls that a 5% increase in the midpoint, from about $150 million (calculated).

The headline loss was far wider than a year ago. Net loss was $91.9 million, or $0.19 per share, compared with net income of $2.5 million in the third quarter of 2025. The swing was driven by a $76.7 million non-cash goodwill impairment that management attributed to a change in forecast.

Estimates cited in coverage pointed to a loss of $0.05 per share on revenue of about $38.9 million, so revenue came in ahead and GAAP earnings per share behind, a gap shown as a 245.45% negative surprise as screened.

BigBear.ai Margins: How Much Did the Generative AI Platform Add?

BigBear.ai supplies AI-powered decision tools to U.S. government and defense customers. Management said the improvement was driven substantially by the BigBear Generative AI Platform, which came from the Ask Sage acquisition in December 2025.

Gross margin rose to 31.2% from 22.4%, with the release crediting the same platform for the gain. Adjusted EBITDA, a non-GAAP measure, was a loss of $9.1 million, slightly better than the $9.4 million loss a year earlier.

Selling, general and administrative expense was $31.3 million versus $25.3 million, including $2.4 million of Ask Sage amortization, $2.5 million of added labor and $1.4 million of sales and marketing. Research and development rose to $5.4 million from $3.4 million.

For the nine months, revenue was $114.8 million versus $100.4 million, a gain of about 14.3% (calculated). The nine-month net loss narrowed to $174.4 million from $288.1 million.

BigBear.ai Backlog and Cash: What Does the Balance Sheet Show?

Backlog stood at about $330 million at September 30, up 22% from June 30, with about 23% of it funded. Management cited more than 25 new contracts since the second quarter, with total contract value above $225 million, a non-GAAP figure that includes unexercised options and ceiling values.

Named customers included the FBI, the U.S. Coast Guard and the Department of Energy, alongside classified awards and major recompetes. The chief executive said the company is positioned for 2027 growth, and the chief financial officer called it a third straight quarter of organic growth.

Cash and equivalents were $77.1 million, compared with $87.1 million at December 31. Adding available-for-sale investments of $208.7 million current and $113.2 million non-current gives liquidity of about $399.0 million (calculated). Operating cash outflow was $9.6 million in the quarter.

Non-current debt fell to zero from $90.5 million after voluntary note conversions, with $16.7 million current. Shares outstanding rose to 480.4 million from 437.0 million at year-end, an increase of about 9.9% (calculated).

BigBear.ai Outlook: What to Watch After the Guidance Raise?

Watch the conversion of backlog into funded work, Generative AI Platform sales and SG&A growth against revenue. The raised range implies fourth-quarter revenue of roughly $35.2 million to $50.2 million (calculated from nine-month revenue of $114.8 million), a wide band.