BigBear.ai (BBAI) Q4 2025 earnings summary

Executive summary

• Ended 2025 with the strongest financial position in company history, holding $462 million in cash and investments, record liquidity, and reduced debt.

• Completed strategic acquisitions of Ask Sage (Dec 2025) and CargoSeer (Jan 2026), expanding into the Middle East and reinforcing focus on national security and trade markets.

• Raised $693 million from ATM facilities and warrants, supporting strategic growth initiatives.

• Strengthened financial foundations and positioned for rapid growth and lasting returns, with momentum building into 2026.

• Operating context strengthened by increased U.S. defense funding, rapid AI advancements, and alignment with new government AI strategies.

Financial highlights

• Q4 2025 revenue was $27.3 million, down 38% year-over-year due to lower Army program volume.

• Gross margin for Q4 2025 was 20.3%, down from 37.4% in Q4 2024, impacted by absence of prior year one-time items.

• SG&A expenses rose to $25.7 million from $22.2 million year-over-year; R&D increased to $4.8 million from $2.3 million.

• Net loss for Q4 2025 was $5.8 million, a significant improvement from $138.2 million loss in Q4 2024, aided by non-cash gains and tax benefits.

• Full-year 2025 revenue was $127.7 million, down from $158.2 million in 2024.

Outlook and guidance

• Projecting full-year 2026 revenue between $135 million and $165 million, representing about 17% growth over 2025, with contributions from Ask Sage and CargoSeer acquisitions.

• No adjusted EBITDA guidance provided due to ongoing integration and investment activities.

• Strategic focus on topline growth, operator-centric solutions, executional rigor, and catalytic M&A.