BigBear.ai Reports Wider Net Loss and Revenue Decline in Q2 2025, Updates Full-Year Outlook

BigBear.ai (BBAI.US) reported a significant net loss and a decrease in revenue for Q2 2025. The company's Adjusted EBITDA for the second quarter was $(8.5) million, a decline from $(3.7) million in Q2 2024. Revenue for the quarter was $32.5 million, an 18% decrease compared to $39.8 million in the second quarter of 2024, falling short of the analyst estimate of $40.6 million. The net loss for the quarter was $(228.6) million, a substantial increase from a net loss of $(14.4) million in Q2 2024, resulting in an Adjusted EPS of $(0.71), significantly lower than the analyst estimate of $(0.07).

Key Business Drivers

The decrease in revenue was primarily due to lower volume on certain Army programs. Gross margin also declined to 25.0% in Q2 2025, compared to 27.8% in Q2 2024.

The increase in net loss was mainly driven by non-cash changes in derivative liabilities of $135.8 million and a non-cash goodwill impairment charge of $70.6 million. Despite the financial setbacks, BigBear.ai reported a record cash balance of $390.8 million as of June 30, 2025, positioning the company to accelerate growth.

Management Outlook

For the full year 2025, BigBear.ai now projects revenue between $125 million and $140 million. The company highlighted that its robust balance sheet allows for significant transformational investments, particularly in response to opportunities arising from the "One Big Beautiful Bill" for the Department of Homeland Security and Department of Defense.

CEO Kevin McAleenan noted that while pursuing these growth opportunities, disruptions in federal contracts, especially within U.S. Army programs, led to an adjustment in full-year guidance. The company also announced a transformative partnership with leading companies in the UAE under the IHC umbrella, aimed at accelerating AI development and adoption globally.