BBAI · BigBear.ai Holdings, Inc.

BigBear.ai's first quarter 2026 results reflect a mixed performance. Revenue declined 1% year-over-year to $34.4 million, primarily due to lower volume on Army programs, substantially offset by the Ask Sage acquisition. However, gross margin expanded dramatically from 21.3% to 34.0%, driven by higher-margin Generative AI revenue from Ask Sage. Net loss improved to $56.8 million from $62.0 million, benefiting from a $13.2 million decrease in non-cash derivative losses, a $4.8 million reduction in interest expense following the conversion of the 2029 Notes, and higher interest income. These gains were partially offset by a $6.5 million increase in SG&A expenses (including amortization from Ask Sage, legal/proxy costs, and sales/marketing) and a $13.2 million non-cash loss on debt extinguishment. Non-GAAP Adjusted EBITDA worsened to -$9.9 million from -$7.0 million, reflecting the SG&A increase. Management highlighted significant Q1 wins totaling nearly $75 million, a 14% QoQ backlog increase to $281.9 million, and a strengthened pipeline. The company affirmed its full-year 2026 revenue guidance of $135-$165 million, signaling confidence in its growth trajectory. The balance sheet was strengthened by the debt-to-equity conversion, leaving only $16.5 million in debt (2026 Notes) to be settled by year-end, and total available cash and investments of $431.5 million. The launch of a retail shareholder voting program aims to broaden shareholder engagement ahead of the June 9 annual meeting.