BigBear.ai Stock Surges 20% Following Acquisition and Strong Quarterly Results
BigBear.ai Holdings, Inc. (BBAI) saw its stock jump 20% on Wednesday, reaching $7.28 after reporting strong third-quarter results and announcing a major acquisition. The company posted a loss of 3 cents per share, outperforming analyst expectations of a 7-cent loss. Revenue was $33.1 million, surpassing the estimated $31.8 million.
This quarter marked BigBear.ai’s second-ever profitability, with a net income of $2.5 million—the first profit since 2023. Despite these positives, revenue declined 20% compared to the previous year. The company reaffirmed its full-year revenue guidance of $125 million to $140 million.
Stock Performance and Market Reaction
- Tuesday saw a 6.1% increase to $6.06, following an 18% rise in premarket trading.
- Wednesday’s trading session added an additional 20% surge to the share price.
Acquisition of Ask Sage
On Monday, BigBear.ai announced it would acquire Ask Sage for $250 million. Ask Sage is known for its generative AI platform tailored to defense and national security agencies, serving more than 100,000 users.
CEO Kevin McAleenan stated, "Ask Sage supports 16,000 government teams and hundreds of commercial companies."
The Ask Sage platform offers secure access to AI models from providers such as OpenAI and Anthropic, delivering outputs based on verified data from government databases. It is projected to generate approximately $25 million in annual recurring revenue by 2025.
Summary
BigBear.ai’s strategic acquisition and better-than-expected earnings signal growth potential despite recent revenue declines.
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