BigBear.ai (BBAI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 13% year-over-year to $36.7 million, driven by GenAI platforms, Ask Sage acquisition, and over 20 new contracts, including a five-year CargoSeer deployment in El Salvador and new U.S. defense customers.

• Gross margin expanded by 781 basis points to 32.8%–33%, reflecting higher-margin GenAI and Ask Sage contributions.

• Backlog increased 9% since year-end, reaching $269.6–$270 million, indicating strong demand and a healthy pipeline.

• Integration of Ask Sage and CargoSeer acquisitions is complete and contributing to performance.

• Achieved CMMC Level 2 cybersecurity certification ahead of schedule, enhancing credibility for federal and international contracts.

Financial highlights

• Q2 2026 revenue: $36.7 million, up 13% year-over-year.

• Gross margin: 32.8%–33%, up 781 bps from Q2 2025.

• Net loss narrowed to $25.7 million from $228.6 million in Q2 2025, mainly due to lower non-cash charges and goodwill impairment.

• Adjusted EBITDA was $(11.6) million, reflecting increased investment in sales, R&D, and go-to-market.

• Cash and investments totaled $409.8–$410 million at quarter end.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $135 million–$165 million, targeting 17% year-over-year growth.

• Leadership is focused on topline growth, execution discipline, and accretive M&A opportunities.

• Management expects continued growth driven by federal contracts and AI adoption.