BigBear.ai Revenue Rises 31% to $43.581 Million in Third Quarter
Key Facts
BigBear.ai reported a 31% increase in third-quarter 2026 revenue to $43.581 million, compared with $33.143 million in the same period a year earlier. The company said growth came largely from generative AI platform Ask Sage, which it acquired at the end of 2025. In results published after an event held on October 27, the company posted a net loss of $91.854 million, compared with net income of $2.521 million a year earlier. Basic and diluted loss per share was $0.19. The results pair rapid revenue growth with a large accounting loss, as the company raised its annual revenue outlook.
Gross margin rose to 31.2% in the third quarter from 22.4% a year earlier, an increase of 878 basis points. The company attributed the improvement to results from its generative AI platform, while cost of revenue fell to 69% of revenue from 78% in the year-earlier quarter. The company said the inclusion of higher-margin Ask Sage revenue contributed to the decline in that ratio. The platform generated revenue of $8.929 million during the quarter, but also posted a net loss of $1.889 million. The platform therefore contributed to revenue growth and margin improvement while continuing to record a net loss.
Pressure extended beyond the net loss: adjusted earnings before interest, taxes, depreciation and amortization, a non-GAAP measure, showed a loss of $9.080 million, compared with a loss of $9.401 million a year earlier. The company also used $49.758 million in cash in operating activities during the first nine months of 2026, compared with $20.117 million in the same period of 2025. Research and development expenses rose 59.6% to $5.385 million in the third quarter from $3.375 million a year earlier. The company attributed the increase to higher headcount and fewer projects eligible for capitalization of software costs. These items reflect continued spending and cash outflows despite improved margins and a narrower adjusted earnings loss compared with the previous year.
On the demand side, BigBear.ai announced more than 25 new contract wins since the second quarter, with a contract value exceeding $225 million. Backlog stood at $330 million as of September 30, up 22% since the second quarter. The company cited contract growth in raising its 2026 revenue outlook range to between $150 million and $165 million. The midpoint of the new range is 5% above the midpoint of the previous outlook range, according to the results statement. Backlog provides an indication of existing contracts, while the company’s full-year revenue remains within a range it has estimated.
The company’s shares, listed under ticker BBAI, closed at $2.46 on October 28, according to EL7 data. The company held an event announcing its third-quarter results on October 27 at 4:30 p.m. Eastern time. Its events page showed no scheduled upcoming dates at the time of review. The raised outlook was part of the results announcement, alongside revenue, margin and contract data. The available information did not specify a date for a subsequent event or new financial update.