Key Highlights

  • BBAI shares are trading 1.28% lower at $2.32 on Wednesday, October 28, 2026, from an implied prior close near $2.35 (calculated).
  • Third-quarter revenue rose 31% to $43.6 million, with gross margin at 31.2% versus 22.4% a year earlier.
  • A non-cash goodwill impairment of $76.7 million drove a net loss of $91.9 million, or $0.19 per share.
  • Short interest was 136,497,137 shares for the settlement date of October 15, 2026, with days to cover at 6.76.
  • Full-year 2026 revenue guidance was raised to $150 million to $165 million, and backlog reached about $330 million.

BigBear.ai Earnings Reaction: Why Is the Stock Slipping After a 31% Revenue Gain?

BigBear.ai (NYSE:BBAI) shares are trading 1.28% lower at $2.32 on Wednesday, October 28, 2026, a day after third-quarter results on Tuesday, October 27. The implied prior close of about $2.35 (calculated) was roughly 11% above the $2.12 close of Monday, October 26 (calculated).

Revenue was $43.6 million, up 31% from $33.1 million. The net loss of $91.9 million, or $0.19 per share, compares with net income of $2.5 million a year earlier and was driven by a $76.7 million non-cash goodwill impairment tied to a lower forecast.

BigBear.ai, based in McLean, Virginia, builds AI-powered products and services for national security, trade and travel customers, including U.S. government agencies.

Q3 Margins and Guidance: How Much Did Ask Sage Change the Profile?

Gross margin widened to 31.2% from 22.4%, and adjusted EBITDA was a loss of $9.1 million versus a loss of $9.4 million. The release credits a generative AI platform acquired as Ask Sage in December 2025 with much of the revenue and margin gain.

For the nine months, revenue was $114.8 million versus $100.4 million, and the net loss narrowed to $174.4 million from $288.1 million. Full-year 2026 revenue guidance was raised to $150 million to $165 million.

Backlog was about $330 million at September 30, up 22% since the second quarter, with about 23% funded. The company cited more than 25 wins worth over $225 million, with customers including the FBI, the U.S. Coast Guard and the Department of Energy.

Short Interest at 136.5 Million Shares: What Does a 6.76-Day Cover Ratio Imply?

Short-interest data for the settlement date of October 15, 2026 show 136,497,137 shares sold short, down 4,366,735 from 140,863,872 on September 30. Days to cover were 6.76, down from 10.29. The September 15 reading was 150,124,548 shares.

Against about 480.4 million shares outstanding, the position equals roughly 28.5% (calculated). Heavy short interest can reflect skepticism about earnings quality and dilution, and it can amplify moves if shorts cover.

Cash, Debt and Convertible Notes: Is the Balance Sheet Cushion Intact?

Cash was $77.1 million at September 30, with available-for-sale investments of $208.7 million current and $113.2 million non-current, for about $399 million combined (calculated). Debt on the balance sheet was about $16.7 million, all current.

Derivative liabilities fell to $6.2 million from $116.9 million at year-end after voluntary conversions of the 2029 convertible notes, which raised shares outstanding to 480.4 million from 437.0 million. At $2.32, market value is about $1.1 billion (calculated).

What to Watch Next: Backlog Funding, the October 30 Short-Interest Date and Fourth-Quarter Results

Readers can follow how much of the $330 million backlog becomes funded, the October 30, 2026 short-interest settlement and delivery against the raised guidance. The fourth-quarter report would show whether margins hold near 31% without a repeat impairment.