BigBear.ai (BBAI) Q4 2025 earnings summary

Executive summary

• Ended 2025 with the strongest financial position in company history, marked by record cash and investments, significant debt reduction, and robust liquidity.

• Completed major acquisitions of Ask Sage (Dec 2025) and CargoSeer (Jan 2026), expanding AI capabilities and international presence, particularly in the Middle East.

• Focused on delivering mission-ready AI solutions for national security, travel, and trade markets, with strategic partnerships and international expansion including a new UAE subsidiary.

• Raised $693 million from ATM facilities and warrant exercises, supporting strategic growth and acquisitions.

• Positioned for rapid growth and lasting returns, with momentum building into 2026.

Financial highlights

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

• Gross margin for Q4 2025 was 20.3%-20.4%, 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, driven by increased marketing investments.

• R&D expenses increased to $4.8 million from $2.3 million year-over-year, reflecting continued investment in new technologies.

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

Outlook and guidance

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

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

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