BigBear.ai Stock Is Trading Lower Today: What's Happening?

BigBear.ai BBAI shares are trading lower Tuesday after the company said it identified the need to restate certain prior financial statements.

What Happened: In a new regulatory filing Tuesday morning, BigBear.ai disclosed the need to restate its financial results for the fiscal years ended December 31, 2022 and 2023 and the interim financial statements for each quarterly period in 2023 and in 2024.

The company said prior financial statements should no longer be relied upon after reviewing the accounting for the embedded conversion option of its convertible notes due in 2026.

BigBear.ai said it will need additional time to determine the impact on the company’s historical financial statements. As a result, the company requires more time to file its annual report for the fiscal year ended December 31, 2024.

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BigBear.ai said it estimates that it will need to restate 2023 income before taxes to negative $71.3 million, down from negative $60.3 million. The company expects to change 2024 income before taxes to negative $296.1 million, down from negative $257.1 million.

BigBear.ai noted that it doesn’t expect any changes to impact its revenue, gross margin, adjusted EBITDA or operating cash flows in any prior period. The company anticipates full-year 2024 revenue of approximately $158.2 million, up from $155.2 million year-over-year. BigBear.ai also expects to report 2024 gross margin of approximately $45.2 million, up from $40.6 million in 2023.

As of December 31, 2024, the outstanding principal balance of the company’s 2026 Notes was $17.7 million. 

BBAI Price Action: BigBear.ai shares were down 12% at $3.07 at the time of publication Tuesday, according to Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.