BigBear.ai (BBAI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $34.4 million, with gross margin expanding to 34% from 21.3% year-over-year, driven by higher-margin GenAI platforms and the Ask Sage acquisition.

• Backlog increased 14% sequentially to approximately $282 million, fueled by a $53 million classified national security contract and other major wins in federal, airport, and shipyard sectors.

• Net loss narrowed to $56.8 million from $62 million year-over-year, aided by lower interest expense, improved gross margin, and the conversion of $124.6 million of 2029 Convertible Notes to equity.

• Integration of Ask Sage and CargoSeer acquisitions expanded AI capabilities, contributed to results, and supported new product launches.

• Enhanced leadership team and organizational realignment to accelerate growth and innovation, including new executive hires and internal initiatives.

Financial highlights

• Revenue for Q1 2026 was $34.4 million, with year-over-year change ranging from flat to a 1% decrease, as growth in GenAI platforms offset lower Army program volume.

• Gross margin expanded to 34%, up from 21.3% in Q1 2025, driven by higher-margin GenAI and Ask Sage revenues.

• SG&A expenses rose to $29.2 million, mainly due to increased amortization, legal, marketing, and sales costs.

• R&D expenses increased to $5.5 million, reflecting continued investment in new technologies and fewer projects qualifying for software capitalization.

• Adjusted EBITDA was $(9.9) million, down from $(7.0) million, due to higher investment in sales and R&D.

Outlook and guidance

• Affirmed full-year 2026 revenue guidance of $135 million to $165 million.

• Management expects continued gross margin expansion and operational execution, with a focus on national security and trade & travel markets.

• Sufficient liquidity is projected for at least the next 12 months.