BigBear.ai Reports 18.4% Revenue Decline and $90.3 Million Operating Loss in Q2 2025

BigBear.ai Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a significant decline in revenue and a substantial net loss. For the three months ended June 30, 2025, the company generated revenues of $32.5 million, a decrease of 18.4% from $39.8 million in the same period last year. The six-month revenue figures also reflected a decline, totaling $67.2 million compared to $72.9 million in 2024. The company's gross margin for the quarter was $8.1 million, down from $11.1 million a year earlier, primarily due to lower volumes on certain Army programs.

The company's operating loss for the second quarter was $90.3 million, a significant increase from a loss of $16.7 million in the prior year. This loss was exacerbated by a goodwill impairment charge of $70.6 million, reflecting a reassessment of the company's asset values amid changing market conditions. Additionally, the company incurred restructuring charges of $1.9 million, up from $457,000 in the previous year, as part of its strategic cost-saving initiatives. Interest expenses also decreased to $4.4 million from $6.5 million, attributed to a lower average outstanding balance of debt.

In terms of operational developments, BigBear.ai's customer base and engagement metrics showed mixed results. The company reported a total of 370.7 million shares of common stock outstanding as of August 8, 2025, reflecting an increase from 251.6 million shares at the end of 2024. The company has also been active in the market, raising approximately $354.8 million through various financing activities, including the exercise of warrants and an at-the-market offering program. This influx of capital has bolstered the company's cash reserves, which stood at $390.8 million at the end of the quarter, compared to $50.1 million at the end of 2024.

Looking ahead, BigBear.ai's management expressed cautious optimism about future growth, emphasizing the importance of its recent acquisition of Pangiam, which is expected to enhance its capabilities in vision AI and predictive analytics. However, the company remains vigilant regarding potential impacts from the global economic environment and U.S. government funding priorities, which could affect its operations and financial performance. The company anticipates that the majority of its remaining performance obligations, valued at approximately $86.1 million, will be recognized as revenue within the next 12 months, contingent on the successful execution of its contracts.