BigBear.ai Holdings, Inc. reported its financial results for the third quarter of 2025, revealing a decline in revenue and a significant net loss. For the three months ended September 30, 2025, the company generated revenues of $33.1 million, a decrease of 20.1% from $41.5 million in the same period last year. The nine-month revenue figures also reflected a decline, totaling $100.4 million compared to $114.4 million in 2024. The gross margin for the quarter was $7.4 million, down from $10.8 million a year earlier, indicating challenges in maintaining profitability amid reduced sales volume.
The company's operating expenses increased significantly, with selling, general, and administrative (SG&A) expenses rising to $25.3 million from $17.5 million in the prior year, largely due to increased marketing and strategic initiatives. Research and development expenses decreased slightly to $3.4 million from $3.8 million. The company also incurred restructuring charges of $660,000, reflecting costs associated with strategic realignment efforts. Overall, BigBear.ai reported an operating loss of $21.9 million for the quarter, compared to a loss of $10.5 million in the same quarter of 2024.
In terms of strategic developments, BigBear.ai announced a definitive agreement to acquire Ask Sage, Inc. for a total purchase price of $250 million, which includes $140 million in cash and an option for additional cash or stock. This acquisition is expected to enhance BigBear.ai's capabilities in decision intelligence solutions. The company also reported a significant increase in cash and cash equivalents, which rose to $456.6 million as of September 30, 2025, compared to $50.1 million at the end of 2024, primarily due to proceeds from its at-the-market (ATM) offerings.
Operationally, BigBear.ai's backlog decreased to $376.4 million from $418.3 million at the end of 2024, with funded backlog increasing slightly while unfunded backlog saw a notable decline. The company attributed the revenue decline to lower volumes on certain Army programs, which impacted overall performance. Despite these challenges, BigBear.ai remains focused on leveraging its advanced AI tools to meet the growing demand for decision intelligence solutions in both government and commercial sectors.
Looking ahead, BigBear.ai anticipates that the ongoing U.S. government shutdown may impact its operations, particularly regarding contract awards and funding for programs. The company is closely monitoring the situation and remains committed to its strategic initiatives, including the integration of Ask Sage, which it believes will drive future growth.
About BigBear.ai Holdings, Inc.
BigBear.ai Holdings, Inc. provides AI-driven technology solutions that enable organizations to operationalize artificial intelligence for faster, data-driven decision-making. Its core offerings include software and services in Edge AI, Vision AI, digital identity, predictive analytics, and digital twin modeling. Serving primarily U.S. defense, intelligence, and critical infrastructure sectors, BigBear.ai leverages deep domain expertise and secure, mission-focused technology to support complex operational environments and national security objectives.
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