Overview

* BigBear.ai ( BBAI ) Q2 revenue falls 18% yr/yr, missing analyst expectations, per LSEG data

* Net loss widens to $228.6 mln due to derivative liabilities and goodwill impairment

* Co projects FY 2025 revenue between $125 mln and $140 mln, adjusting for federal contract disruptions

Outlook

* BigBear.ai ( BBAI ) projects 2025 revenue between $125 mln and $140 mln

* Company withdraws 2025 Adjusted EBITDA guidance due to Army program uncertainties

* BigBear.ai expects growth investment spending in H2 2025

* Company sees opportunities from $170 bln DHS funding in One Big Beautiful Bill, particularly in the Department of Homeland Security

Result Drivers

* FEDERAL CONTRACT DISRUPTIONS - Revenue decline attributed to lower volume on certain Army programs, per company

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $32.47 $40.60

Revenue mln mln (3

Analysts

)

Q2 EPS -$0.71

Q2 Net -$228.62

Income mln

Q2 -$90.30

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for BigBear.ai Holdings Inc ( BBAI ) is $4.25, about 68% below its August 8 closing price of $7.14

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)