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BigBear.ai Expands Defense AI Contracts as Losses Weigh on Shares

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BBAI$2.16 −7.30%

BigBear.ai Holdings, Inc. (BBAI) is accelerating its military technology push behind new software releases and defense contracts. The company recently won a contract with Naval Air Systems Command for Navy and Marine Corps applications while expanding its Ask Sage platform for secure AI deployments. Meanwhile, its ConductorOS platform allows operators to manage autonomous systems from multiple manufacturers during military exercises.

In the second quarter of 2026, BigBear.ai signed more than 20 contracts, pushing its total backlog up 9% from the end of 2025 to $269.6 million. Revenue grew 13% year over year to $36.7 million, supported by gross margins that expanded 781 basis points to 32.8%. Management maintained its full-year revenue outlook of $135 million to $165 million, backed by $409.8 million in cash and investments.

Despite top-line gains, profitability remains elusive. BigBear.ai reported a quarterly net loss of $25.7 million and an adjusted EBITDA loss of $11.6 million due to rising expenses and negative operating cash flow. The financial strains have contributed to a 39.5% decline in stock price over six months, as the firm faces aggressive rivalry from rivals such as Palantir Technologies Inc. (PLTR) and C3.ai, Inc. (AI).

Key points

  • BigBear.ai Holdings, Inc. (BBAI) recorded second-quarter 2026 revenue of $36.7 million, up 13% year over year.
  • Contract wins pushed the company backlog up 9% from year-end 2025 to $269.6 million.
  • Net loss reached $25.7 million for the quarter while adjusted EBITDA loss expanded to $11.6 million.
  • Management reaffirmed full-year 2026 revenue guidance between $135 million and $165 million.
  • Shares have declined 39.5% over the past six months as negative operating cash flow persists.

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Questions and answers

What were BigBear.ai's financial results for Q2 2026?

BigBear.ai generated $36.7 million in revenue, up 13% year over year, with gross margins expanding to 32.8%. However, the company posted a net loss of $25.7 million and an adjusted EBITDA loss of $11.6 million.

What is BigBear.ai's backlog and full-year revenue outlook?

The company reported a contract backlog of $269.6 million, up 9% from year-end 2025. Management reaffirmed its 2026 revenue guidance of $135 million to $165 million.

What defense AI platforms does BigBear.ai offer?

BigBear.ai operates the Ask Sage generative AI platform for secure deployment in classified environments and ConductorOS software for coordinating multi-vendor autonomous systems.