What are the key takeaways for BigBear.ai Holdings Inc ($BBAI)?

Revenue for Q1 2026 was $34.4 million, a slight decrease of 0.9% compared to Q1 2025, driven by lower volume on Army programs. The company completed the acquisition of Ask Sage, Inc. on December 31, 2025, and CargoSeer Ltd on January 16, 2026, aimed at bolstering generative AI and customs inspection capabilities. All outstanding 2029 Convertible Notes (par value $124.6 million) were voluntarily converted into approximately 38.1 million shares of common stock prior to the January 16, 2026 redemption date.

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BigBear.ai Holdings Inc (BBAI) AI Stock Analysis & Earnings

Latest Report Overview for BigBear.ai Holdings Inc ($BBAI)

AI-powered analysis of BigBear.ai Holdings Inc (BBAI) stock based on Q1 2026 financial data.

Published: May 28, 2026

Latest Report Overview

BigBear.ai Holdings Inc (BBAI) reported For the quarterly period ended March 31, 2026 (Issuer fiscal Q1 FY2026) revenue of $34.4 million, representing a 0.9% decrease YoY. The company reported a net loss of $56.8 million and diluted EPS of -$0.12, with a gross margin of 34.0% for the quarter. The company continues to navigate a transformation focused on Edge AI and decision intelligence. Management notes that results were impacted by lower volumes on certain Army programs and the absence of one-time contracts that occurred in the prior-year period. However, the inclusion of the recently acquired Ask Sage platform contributed to performance in the quarter. Operating expenses remain high as the company invests in sales, marketing, and R&D. The company maintains a solid cash and investment position, providing liquidity for ongoing operations. Management continues to emphasize the importance of defense sector partnerships and the role of its AI solutions in supporting national security missions, despite the ongoing budgetary and political complexities affecting federal government spending.

Key Takeaways for BigBear.ai Holdings Inc

Revenue for Q1 2026 was $34.4 million, a slight decrease of 0.9% compared to Q1 2025, driven by lower volume on Army programs.
The company completed the acquisition of Ask Sage, Inc. on December 31, 2025, and CargoSeer Ltd on January 16, 2026, aimed at bolstering generative AI and customs inspection capabilities.
All outstanding 2029 Convertible Notes (par value $124.6 million) were voluntarily converted into approximately 38.1 million shares of common stock prior to the January 16, 2026 redemption date.
The company maintains a significant cash position, with $100.7 million in cash and cash equivalents and $248.7 million in available-for-sale investments as of March 31, 2026.
The company continues to face high operational expenses, reporting an operating loss of $24.3 million for the first quarter of 2026.
Management noted that while the federal government shutdown early in 2026 had an insignificant impact, uncertainty remains regarding future U.S. government funding and procurement priorities.

What Does BigBear.ai Holdings Inc Do?

BigBear.ai is a specialized provider of mission-ready artificial intelligence (AI) technology, primarily serving the national security, travel, and trade sectors. Its solutions include Edge AI-powered decision intelligence, computer vision, predictive analytics, and biometrics, designed to assist U.S. government agencies and commercial enterprises in making complex decisions. Key offerings include the ConductorOS platform for AI and sensor orchestration at the mission edge and the Ask Sage generative AI platform for secure defense and intelligence use. The company operates as a technology-led solutions provider, combining software and services. It maintains deep relationships with U.S. government agencies, with a large portion of its workforce holding security clearances and working in specialized environments. The company's goal is to bridge the gap between commercial AI breakthroughs and operational/battlefield application through specialized, mission-critical solutions.

Growth Drivers for BigBear.ai Holdings Inc

Expanding the adoption of the Ask Sage generative AI platform across government and enterprise users.
Increasing market penetration in the national security sector by leveraging Edge AI capabilities for tactical environments.
Expanding digital identity and biometric verification solutions into new commercial verticals, such as travel and trade hubs.
Strategic acquisitions, such as CargoSeer, to add niche AI technologies for customs and border security missions.
Continuing to convert prototype pilots into long-term, funded contract awards with major government customers.

Overview AI Summary Charts Financials Valuation

Based on March 31, 2026

Latest Report Overview for BigBear.ai Holdings Inc ($BBAI)

Key Takeaways

1.Revenue for Q1 2026 was $34.4 million, a slight decrease of 0.9% compared to Q1 2025, driven by lower volume on Army programs.
2.The company completed the acquisition of Ask Sage, Inc. on December 31, 2025, and CargoSeer Ltd on January 16, 2026, aimed at bolstering generative AI and customs inspection capabilities.
3.All outstanding 2029 Convertible Notes (par value $124.6 million) were voluntarily converted into approximately 38.1 million shares of common stock prior to the January 16, 2026 redemption date.
4.The company maintains a significant cash position, with $100.7 million in cash and cash equivalents and $248.7 million in available-for-sale investments as of March 31, 2026.
5.The company continues to face high operational expenses, reporting an operating loss of $24.3 million for the first quarter of 2026.
6.Management noted that while the federal government shutdown early in 2026 had an insignificant impact, uncertainty remains regarding future U.S. government funding and procurement priorities.

What They Do

How They Make Money

BigBear.ai recognizes revenue primarily through a mix of time-and-materials, firm-fixed-price, and cost-reimbursable contracts, often working closely with U.S. government entities. Revenue is generally recognized over time as the company performs under these contracts, supported by customer ownership of work-in-process and rights to terminate for convenience. The company also generates revenue from SaaS subscriptions and software licenses, typically bundled with ongoing maintenance and support services. Key drivers of revenue growth include the expansion of existing customer contracts, the acquisition of new high-value programs, and the deployment of its AI software products. Growth can be impacted by the timing of contract awards, the availability of government appropriations, and the success of the company's integration of new AI technologies into its existing customer base.

Competitive Position

BigBear.ai competes with large system integrators, corporate IT organizations, specialized commercial software providers, and major public cloud companies. Its primary differentiator is its deep domain expertise in national security and its ability to provide AI solutions that are secure and mission-ready for highly regulated environments, such as its FedRAMP-authorized Ask Sage platform. The competitive landscape is characterized by organizations that attempt to build internal solutions using patchwork technologies before realizing the complexity and cost involved, at which point they often seek specialized external partners like BigBear.ai. While the company faces pressure from larger competitors with broader product portfolios and more resources, it emphasizes its specialized, secure focus as a key advantage.

Business Strategy & Moat

BigBear.ai's strategy centers on scaling its Edge AI and decision intelligence platform to become a central pillar of its customers' technological infrastructure. The company focuses on creating high switching costs by deeply integrating its software into mission-critical, complex operational environments, particularly within defense and national security. This 'land and expand' model is designed to build trust through initial pilot deployments (often as MVPs) before deepening the engagement into multi-year contracts. Capital allocation is focused on both organic R&D and strategic acquisitions, as evidenced by the purchases of Ask Sage and CargoSeer, which extend the company's capabilities into generative AI and customs inspection. The company is transitioning toward a more capital-efficient profile, as evidenced by the recent conversion of its 2029 Convertible Notes and the reduction of total debt, aiming to strengthen its balance sheet for future growth.

Industry Outlook

The AI industry, particularly for defense and critical infrastructure, is benefiting from a trend toward increased spending on national security and technological dominance. Governments are prioritizing 'AI acceleration' and the integration of commercial frontier models into mission-critical applications. This shift creates a significant tailwind for providers of secure, FedRAMP-authorized, and mission-ready AI solutions. However, the industry remains sensitive to geopolitical tensions, federal budget processes, and potential shifts in government procurement policies. While the demand for AI tools is growing, companies must navigate the complexities of long sales cycles, government budget uncertainty, and intense competition from both legacy contractors and newer, well-funded tech entities.

Growth Drivers

•Expanding the adoption of the Ask Sage generative AI platform across government and enterprise users.
•Increasing market penetration in the national security sector by leveraging Edge AI capabilities for tactical environments.
•Expanding digital identity and biometric verification solutions into new commercial verticals, such as travel and trade hubs.
•Strategic acquisitions, such as CargoSeer, to add niche AI technologies for customs and border security missions.
•Continuing to convert prototype pilots into long-term, funded contract awards with major government customers.

Recent Developments

•Acquired CargoSeer Ltd in January 2026 for $5.0 million to enhance trade and customs AI capabilities.
•Completed the voluntary conversion of all outstanding 2029 Convertible Notes into common stock by January 16, 2026.
•Managing operations through recent federal government partial shutdown and subsequent funding extensions for key departments.
•Continuing to integrate Ask Sage, acquired in December 2025, into the existing platform-agnostic generative AI offering.
•Retired 9.95 million shares of treasury stock in Q1 2026, reclassifying $57.4 million to additional paid-in capital.

Catalysts

•Winning new high-value task orders or contracts under existing government contract vehicles by the end of FY 2026.
•Successful cross-selling of the Ask Sage platform to existing defense and intelligence customers throughout 2026.
•Updates on the U.S. government budget appropriation process that could release funding for paused or new defense projects.
•Announcement of new strategic partnerships that could expand the reach of the company's Edge AI and identity verification technologies.

Acquisitions & Strategy

•Acquired CargoSeer Ltd in January 2026 for $5.0 million to expand its unified AI decision support technology for customs and border operations.
•Acquired Ask Sage, Inc. in December 2025 for approximately $272.1 million to integrate a secure, multi-modal generative AI platform into its product suite.

Share Repurchase / Buyback Program

•The company retired 9,952,803 shares of treasury stock during the first quarter of 2026.

RPO & Key Performance Indicators

•Funded backlog increased to $79.1 million as of March 31, 2026, from $54.9 million at December 31, 2025.
•Unfunded backlog increased to $81.0 million as of March 31, 2026, compared to $57.5 million at year-end 2025.
•Priced, unexercised options decreased to $116.7 million as of March 31, 2026, from $130.6 million as of December 31, 2025.
•Total backlog reached $281.9 million as of March 31, 2026, up from $248.1 million at December 31, 2025.

Strengths

•Strong balance sheet position with over $431 million in available liquidity (cash and investments) as of March 31, 2026.
•Deep-rooted relationships with mission-critical U.S. government and defense customers with high security clearance requirements.
•Pioneering FedRAMP authorization for the Ask Sage platform, providing a competitive advantage in the secure generative AI market.
•Successful reduction of debt burden through the conversion of convertible notes, significantly de-risking the capital structure.
•Portfolio of proven Edge AI and decision intelligence software tailored for unique, complex operating environments.

AI Benefits & Opportunities

•The Ask Sage platform provides a proprietary, secure generative AI solution tailored for highly regulated environments like defense and intelligence, driving new revenue streams.
•AI-powered edge computing allows customers to perform split-second inference and analysis in disconnected or low-bandwidth environments, providing a unique mission capability.

Risks & Concerns for BigBear.ai Holdings Inc ($BBAI)

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About this summary

AI-generated research for BigBear.ai Holdings Inc (BBAI, filings period ending March 31, 2026). Informational only; not investment advice or personalized guidance.Enumerated risk factors in this view may be abbreviated for anonymous or guest sessions. Full risk sections are available with full access.

Summary generated on May 28, 2026.

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Latest Report Overview for BigBear.ai Holdings Inc ($BBAI)

AI-powered analysis of BigBear.ai Holdings Inc (BBAI) stock based on Q1 2026 financial data.

Published: May 28, 2026

Latest Report Overview

Key Takeaways for BigBear.ai Holdings Inc

Revenue for Q1 2026 was $34.4 million, a slight decrease of 0.9% compared to Q1 2025, driven by lower volume on Army programs.
The company completed the acquisition of Ask Sage, Inc. on December 31, 2025, and CargoSeer Ltd on January 16, 2026, aimed at bolstering generative AI and customs inspection capabilities.
All outstanding 2029 Convertible Notes (par value $124.6 million) were voluntarily converted into approximately 38.1 million shares of common stock prior to the January 16, 2026 redemption date.
The company maintains a significant cash position, with $100.7 million in cash and cash equivalents and $248.7 million in available-for-sale investments as of March 31, 2026.
The company continues to face high operational expenses, reporting an operating loss of $24.3 million for the first quarter of 2026.
Management noted that while the federal government shutdown early in 2026 had an insignificant impact, uncertainty remains regarding future U.S. government funding and procurement priorities.

What Does BigBear.ai Holdings Inc Do?

Growth Drivers for BigBear.ai Holdings Inc

Expanding the adoption of the Ask Sage generative AI platform across government and enterprise users.
Increasing market penetration in the national security sector by leveraging Edge AI capabilities for tactical environments.
Expanding digital identity and biometric verification solutions into new commercial verticals, such as travel and trade hubs.
Strategic acquisitions, such as CargoSeer, to add niche AI technologies for customs and border security missions.
Continuing to convert prototype pilots into long-term, funded contract awards with major government customers.

Based on March 31, 2026

Latest Report Overview for BigBear.ai Holdings Inc ($BBAI)

Key Takeaways

1.Revenue for Q1 2026 was $34.4 million, a slight decrease of 0.9% compared to Q1 2025, driven by lower volume on Army programs.
2.The company completed the acquisition of Ask Sage, Inc. on December 31, 2025, and CargoSeer Ltd on January 16, 2026, aimed at bolstering generative AI and customs inspection capabilities.
3.All outstanding 2029 Convertible Notes (par value $124.6 million) were voluntarily converted into approximately 38.1 million shares of common stock prior to the January 16, 2026 redemption date.
4.The company maintains a significant cash position, with $100.7 million in cash and cash equivalents and $248.7 million in available-for-sale investments as of March 31, 2026.
5.The company continues to face high operational expenses, reporting an operating loss of $24.3 million for the first quarter of 2026.
6.Management noted that while the federal government shutdown early in 2026 had an insignificant impact, uncertainty remains regarding future U.S. government funding and procurement priorities.

What They Do

How They Make Money

Competitive Position

Business Strategy & Moat

Industry Outlook

Growth Drivers

•Expanding the adoption of the Ask Sage generative AI platform across government and enterprise users.
•Increasing market penetration in the national security sector by leveraging Edge AI capabilities for tactical environments.
•Expanding digital identity and biometric verification solutions into new commercial verticals, such as travel and trade hubs.
•Strategic acquisitions, such as CargoSeer, to add niche AI technologies for customs and border security missions.
•Continuing to convert prototype pilots into long-term, funded contract awards with major government customers.

Recent Developments

•Acquired CargoSeer Ltd in January 2026 for $5.0 million to enhance trade and customs AI capabilities.
•Completed the voluntary conversion of all outstanding 2029 Convertible Notes into common stock by January 16, 2026.
•Managing operations through recent federal government partial shutdown and subsequent funding extensions for key departments.
•Continuing to integrate Ask Sage, acquired in December 2025, into the existing platform-agnostic generative AI offering.
•Retired 9.95 million shares of treasury stock in Q1 2026, reclassifying $57.4 million to additional paid-in capital.

Catalysts

•Winning new high-value task orders or contracts under existing government contract vehicles by the end of FY 2026.
•Successful cross-selling of the Ask Sage platform to existing defense and intelligence customers throughout 2026.
•Updates on the U.S. government budget appropriation process that could release funding for paused or new defense projects.
•Announcement of new strategic partnerships that could expand the reach of the company's Edge AI and identity verification technologies.

Acquisitions & Strategy

•Acquired CargoSeer Ltd in January 2026 for $5.0 million to expand its unified AI decision support technology for customs and border operations.
•Acquired Ask Sage, Inc. in December 2025 for approximately $272.1 million to integrate a secure, multi-modal generative AI platform into its product suite.

Share Repurchase / Buyback Program

•The company retired 9,952,803 shares of treasury stock during the first quarter of 2026.

RPO & Key Performance Indicators

•Funded backlog increased to $79.1 million as of March 31, 2026, from $54.9 million at December 31, 2025.
•Unfunded backlog increased to $81.0 million as of March 31, 2026, compared to $57.5 million at year-end 2025.
•Priced, unexercised options decreased to $116.7 million as of March 31, 2026, from $130.6 million as of December 31, 2025.
•Total backlog reached $281.9 million as of March 31, 2026, up from $248.1 million at December 31, 2025.

Strengths

•Strong balance sheet position with over $431 million in available liquidity (cash and investments) as of March 31, 2026.
•Deep-rooted relationships with mission-critical U.S. government and defense customers with high security clearance requirements.
•Pioneering FedRAMP authorization for the Ask Sage platform, providing a competitive advantage in the secure generative AI market.
•Successful reduction of debt burden through the conversion of convertible notes, significantly de-risking the capital structure.
•Portfolio of proven Edge AI and decision intelligence software tailored for unique, complex operating environments.

AI Benefits & Opportunities

•The Ask Sage platform provides a proprietary, secure generative AI solution tailored for highly regulated environments like defense and intelligence, driving new revenue streams.
•AI-powered edge computing allows customers to perform split-second inference and analysis in disconnected or low-bandwidth environments, providing a unique mission capability.

Risks & Concerns for BigBear.ai Holdings Inc ($BBAI)

You're one step away

Unlock the full risk analysis

See business risks, AI filing insights, and deeper research for this stock. Create a free account to continue — includes a 14-day Pro trial.

No card required • Free plan stays after trial

About this summary

Summary generated on May 28, 2026.