BigBear.ai (BBAI) Q1 2025 earnings summary

Executive summary

• Revenue grew 5% year-over-year to $34.8 million in Q1 2025, driven by Department of Homeland Security and Digital Identity awards.

• Net loss narrowed to $62.0 million from $127.8 million in Q1 2024, mainly due to the absence of prior year goodwill impairment and higher revenues.

• Pangiam acquisition completed, expanding AI capabilities in vision and digital identity; integration costs and increased SG&A impacted expenses.

• Significant capital raised through $64.7 million in warrant exercises and ATM equity offerings, strengthening liquidity.

• Backlog grew 30% year-over-year to $385 million, reflecting strong customer confidence.

Financial highlights

• Gross profit increased to $7.4 million, with gross margin at 21.3%.

• Adjusted EBITDA was $(7.0) million, down from $(1.6) million, impacted by higher R&D and SG&A.

• SG&A expenses rose to $22.7 million, partly due to Pangiam integration and higher resource costs.

• R&D spend increased by $3 million year-over-year, with a 264% rise to $4.2 million.

• Net increase in fair value of derivatives was $33.3 million, up 40% year-over-year due to warrant and note conversions.

Outlook and guidance

• Full-year 2025 guidance reaffirmed, projecting $160–$180 million in revenue and negative single-digit millions Adjusted EBITDA.

• Management expects continued revenue growth from federal contracts and digital identity solutions.