BigBear.ai Raises 2026 Revenue Guidance as Third Quarter Revenue Climbs 31%

BigBear.ai Holdings, Inc. (NYSE: BBAI), an AI software company serving defense, intelligence and federal civilian agencies, announced on October 27, 2026 third quarter revenue of $43.6 million, up 31% from a year earlier. The company also raised the low end of its full-year 2026 revenue guidance, pointing to demand for its generative AI platform across federal agencies.

Third Quarter Results

Revenue rose to $43.6 million from $33.1 million in the third quarter of 2025, bringing nine-month revenue to $114.8 million. At the same time, gross margin widened to 31.2% from 22.4%, and gross profit nearly doubled to $13.6 million.

BigBear.ai reported a net loss of $91.9 million, compared with net income of $2.5 million a year earlier. Most of that loss came from a $76.7 million non-cash goodwill impairment. Adjusted EBITDA was a loss of $9.1 million, slightly better than the $9.4 million loss in the prior-year quarter.

Selling, general and administrative expenses rose $6.1 million to $31.3 million. According to the company, the increase reflected amortization of intangible assets from its Ask Sage acquisition, along with higher labor and sales and marketing costs.

Guidance and the Generative AI Platform

BigBear.ai now expects 2026 revenue of $150 million to $165 million. By comparison, the company affirmed a range of $135 million to $165 million in July, so the new outlook lifts the bottom of the range while leaving the top unchanged. The company described the change as a 5% increase from the previous midpoint, and it did not provide adjusted EBITDA guidance.

The company attributed the revenue growth substantially to the BigBear Generative AI Platform, which it acquired as Ask Sage in December 2025. Notably, the gross margin gain in the second quarter also reflected higher-margin volume from that platform.

“We’re raising our full-year revenue guidance after another strong quarter of revenue growth,” said Kevin McAleenan, Chief Executive Officer of BigBear.ai. “Just as important, we achieved the wins while growing margins and keeping our strong cash position.”

Contract Wins, Backlog and Balance Sheet

Earlier this month, BigBear.ai reported more than 25 new generative AI awards with a total contract value of more than $225 million since July. New customers include the FBI and the U.S. Coast Guard, while NASA, the Department of Energy and the Department of Veterans Affairs also issued awards. In addition, the company won two U.S. Customs and Border Protection recompetes with partners and added contracts with U.S. Central Command and U.S. Southern Command.

Those figures include unexercised options and ceiling values, and the company noted that government contracts can be reduced, delayed or terminated. As of September 30, backlog stood at about $330 million, up 22% since the end of the second quarter, with about 23% of it funded.

On the balance sheet, BigBear.ai held $77.1 million in cash and cash equivalents, plus $208.7 million in current and $113.2 million in non-current available-for-sale investments. Meanwhile, non-current long-term debt fell to zero from $90.5 million at the end of 2025 after voluntary conversions of its 2029 notes into common stock. “AI adoption in our markets is still in its early stages, and our recent wins show strong and growing demand,” said Sean Ricker, Chief Financial Officer.

Strategic Investment Summary

• Revenue Growth: BigBear.ai Holdings, Inc. (NYSE: BBAI) reported third quarter 2026 revenue of $43.6 million on October 27, 2026, up 31% year over year.
• Guidance Raised: The company now expects 2026 revenue of $150 million to $165 million, up from a prior range of $135 million to $165 million.
• Margins: Gross margin widened to 31.2% from 22.4%, and gross profit rose to $13.6 million from $7.4 million.
• Net Loss: The net loss of $91.9 million included a $76.7 million non-cash goodwill impairment, while adjusted EBITDA was a loss of $9.1 million.
• Backlog: Backlog reached about $330 million as of September 30, up 22% since the second quarter, with about 23% funded.
• Contract Awards: More than 25 new generative AI awards since July carry a total contract value of more than $225 million, including first awards from the FBI and U.S. Coast Guard.

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