BigBear.AI Stock Is Tumbling Tuesday: Here's Why

BigBear.ai Inc BBAI shares are tumbling Tuesday after the company reported second-quarter financial results that fell short of analyst expectations and cut its 2025 outlook.

What Happened: BigBear.ai reported second-quarter revenue of $32.47 million, missing estimates of $41.17 million, according to Benzinga Pro. The company reported a second-quarter loss of 71 cents per share, missing expectations for a loss of 6 cents per share.

Revenue fell 18% on a year-over-year basis due to lower volume on certain Army programs. BigBear.ai also withdrew its adjusted EBITDA guidance for 2025 due to uncertainty on Army programs and increased spending expectations.

Further pressuring shares, BigBear.ai cut its full-year revenue outlook from a range of $160 million to $180 million to a new range of $125 million to $140 million versus estimates of $167.95 million.

“While we are very optimistic with these significant investments and growth opportunities, we have also seen disruptions in federal contracts from efficiency efforts this quarter, most notably in programs that support the U.S. Army, as they seek to consolidate and modernize their data architecture,” said Kevin McAleenan, CEO of BigBear.ai.

Following the company’s quarterly results, HC Wainwright & Co. analyst Scott Buck maintained BigBear.ai with a Buy rating and lowered the price target from $9 to $8.

BBAI Price Action: BigBear.ai shares were down 32.3% at $4.82 at the time of publication Tuesday, according to Benzinga Pro.

BigBear.ai shares were up nearly 125% over the past three months and close to 500% over the past year leading up to the print, which may have set the bar higher for earnings. The wide earnings miss and weak outlook appear to be dragging shares lower on Tuesday.

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