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Mar 31
Bigbear.Ai Q1 2025 Earnings Report
BigBear.ai reported a year-over-year revenue increase but continued to operate at a net loss in Q1 2025.
Key Takeaways
BigBear.ai saw a modest revenue increase to $34.8M in Q1 2025, driven by contracts in Homeland Security and Digital Identity. However, the company posted a net loss of $62M, impacted by higher non-cash derivative losses and SG&A costs. Cash position improved significantly from warrant exercises.
Revenue rose to $34.8M from $33.1M YoY, aided by DHS and Digital Identity awards.
Net loss narrowed to $62.0M from $127.8M YoY due to absence of prior goodwill impairments.
Adjusted EBITDA declined to -$7.0M due to higher R&D and SG&A expenses.
Cash balance improved to $107.6M after $64.7M in gross proceeds from warrant exercises.
Bigbear.Ai
Bigbear.Ai
Forward Guidance
BigBear.ai reaffirmed its 2025 outlook, targeting revenue between $160M and $180M, with negative single-digit millions in adjusted EBITDA.
Positive Outlook
- Revenue outlook remains in the $160M–$180M range.
- Cash position significantly strengthened by warrant exercises.
- No goodwill impairment charges expected like in prior year.
- Execution focus in core markets like national security remains strong.
- Growth anticipated from DHS and Digital Identity contracts.
Challenges Ahead
- Adjusted EBITDA is expected to remain negative.
- Higher SG&A due to excess resource capacity pressures margins.
- Government funding delays may continue to impact execution.
- Derivative losses could persist and affect net results.
- No update on achieving positive net income in near term.