BigBear.ai raises 2026 revenue outlook to $165 million after third-quarter growth of 31%
Key Facts
BigBear.ai raised its fiscal 2026 revenue outlook to a range of $150–165 million, saying the midpoint of the new range is 5% above the midpoint of its previous guidance. The update came as the company reported third-quarter revenue of $43.581 million, up 31% year over year. The company said revenue growth was driven largely by its generative AI platform. It also reported more than 25 new contracts since the second quarter, with a contract value exceeding $225 million. But results included a net loss of $91.854 million, compared with net income of $2.521 million in the same period a year earlier.
Third-quarter revenue was $43.581 million, compared with $33.143 million in the third quarter of 2025, according to the company's statement published via Business Wire. Revenue for the nine months ended September 30, 2026, reached $114.765 million, compared with $100.372 million in the same period of 2025. The figures show revenue continued to grow during the year, while the earnings release did not cite comparisons with analyst estimates or forecasts. The company reported second-quarter revenue of $36.7 million, up 13% year over year. It also maintained 2026 revenue guidance of $135–165 million at the time, before raising the lower end to $150 million in the new update.
BigBear.ai attributed much of its revenue growth to its generative AI platform, which it acquired as Ask Sage in December 2025. The company said the platform's results also supported a wider gross margin, which reached 31.2% in the third quarter, compared with 22.4% a year earlier. That represents an increase of 878 basis points year over year. In the second quarter, gross margin was 32.8%, compared with 25.0% in the corresponding quarter of 2025. This sequence reflects annual margin improvement in both quarters, while the third-quarter margin remained below the level recorded in the previous quarter.
On contracts, the company said it had won more than 25 new contracts since the second quarter of 2026, with a contract value exceeding $225 million. Among the customers it named were the FBI, the Coast Guard and the U.S. Department of Energy, as well as classified entities. Backlog rose 22% since the second quarter to $330 million as of September 30, 2026. The company presented the contracts and backlog growth alongside its higher annual outlook, linking the update to an increase in contracted business as well as revenue growth. After its second-quarter results, management had said the second half of 2026 would focus on execution discipline and preparing for synergistic acquisitions, while building momentum for greater growth in 2027.
Revenue growth and margin expansion were accompanied by a third-quarter net loss of $91.854 million, compared with net income of $2.521 million a year earlier. The company said the loss was mainly due to a non-cash goodwill impairment charge of $76.7 million. Selling, general and administrative expenses totaled $31.308 million during the quarter. The increase included $2.4 million in amortization of intangible assets related to the Ask Sage acquisition, $2.5 million in higher labor spending and $1.4 million for sales and marketing. The report therefore combined revenue growth and improved gross margin on one hand, with a large loss and expenses tied to the acquisition and expansion on the other.
BBAI shares closed at $2.12 on October 26, 2026, according to EL7 data. The earnings call was scheduled for October 27 at 4:30 p.m. Eastern Time. When reporting second-quarter results, the chief executive had said the focus for the second half of 2026 would be on executing plans and preparing for synergistic acquisitions. The executive added that the company was seeking to build momentum for greater growth in 2027. The updated revenue guidance and new contracts came with the third-quarter results, while the company's call was the next scheduled forum for presenting them.