BigBear.ai Stock Soars 23% on Strong Q3 Earnings Beat and $250M Ask Sage Acquisition

Why BigBear.ai stock surging so sharply today? BBAI shares skyrocket 23% after strong Q3 earnings and Ask Sage acquisition - Is BigBear.ai a buy?

BigBear.ai stock (NASDAQ: BBAI) is soaring today. Shares jumped 23% in pre-market trading. The company posted strong Q3 results. Revenue came in at $33.1 million. That's down 20% year-over-year but beat estimates of $31.81 million. Net loss was $0.03 per share. Analysts expected a $0.07 loss. Last year's loss was $0.06. The beat boosted investor confidence. BigBear.ai also announced a $250 million Ask Sage acquisition. The deal adds $25 million in recurring revenue. The company raised 2025 guidance to $125-$140 million. BigBear.ai (NASDAQ: BBAI) stock is rocketing higher in pre-market trading after the AI company delivered a stronger-than-expected Q3 earnings report and revealed a $250 million acquisition of Ask Sage, a generative AI platform serving defense and government clients. The stock jumped 23% early Tuesday as investors cheered the combination of an earnings beat, improved margins, and an ambitious expansion move that positions the company more firmly in the national security AI space. The AI-driven decision intelligence company said revenue for Q3 2025 came in at $33.1 million, a 20% decline from $41.5 million a year earlier due to reduced U.S. Army project activity, but still above analyst estimates of $31.81 million. The company posted a net loss of $0.03 per share, far better than the expected $0.07 loss and narrower than last year's $0.06 loss, signaling clear progress in cost efficiency and profitability efforts. The upbeat earnings report and strategic acquisition news sent BigBear.ai stock soaring 23% in early trade as investors cheered the company's improving fundamentals and aggressive growth push in the generative AI defense sector. Ask Sage, which currently generates about $25 million in annual recurring revenue, will significantly strengthen BigBear.ai's AI portfolio by adding secure, government-grade generative AI capabilities used by defense and intelligence teams. The acquisition, announced on November 10, is expected to close by early 2026. BigBear.ai said the merger would expand its total addressable market and deepen its reach in regulated sectors such as defense, border security, and national intelligence systems. Following the acquisition announcement, the company raised its full-year 2025 revenue forecast to between $125 million and $140 million, underscoring growing confidence in future deal flow and contract wins. Despite the 20% revenue drop from last year, BigBear.ai's Q3 beat analysts' expectations for the second time in the past four quarters, showcasing improving revenue quality and tighter operational discipline. The company's loss per share narrowed, showing a marked turnaround in efficiency amid a broader AI investment cycle. Its core strength lies in AI-powered decision intelligence platforms designed for military, defense, and homeland security applications. The integration of Ask Sage's secure generative AI systems will give BigBear.ai a technological edge in delivering real-time, classified data processing and intelligence modeling to federal clients. The company also noted that Ask Sage's strong government relationships will help unlock immediate cross-contract synergies and future defense AI opportunities. BigBear.ai's strong momentum is also reflected in its stock performance. Year-to-date, BBAI stock has gained 28.3%, easily outperforming the S&P 500's 14.4% gain. Analysts currently maintain a "Moderate Buy" rating on the stock based on two Buy and one Hold ratings on TipRanks, with an average price target of $5.83 -- implying roughly 2.1% upside from current levels. These ratings were issued before the new Q3 earnings and Ask Sage deal, and are likely to be revised upward as Wall Street recalibrates projections based on the company's upgraded guidance. For the next quarter, analysts expect BigBear.ai to post revenue of $34.19 million and a per-share loss of $0.05, while the full-year forecast stands at $132.54 million in revenue and a $1.10 loss per share. But with stronger-than-expected Q3 results, raised revenue guidance, and a high-value generative AI acquisition that enhances its defense capabilities, the sentiment around BigBear.ai has turned sharply bullish. The market reaction signals investor optimism that the Ask Sage merger could be a turning point for the company's long-term growth story, cementing BigBear.ai as one of the emerging players in the defense-grade AI intelligence ecosystem. In the third quarter of fiscal 2025, BigBear.ai reported revenue of $33.1 million, down 20% year-over-year from $41.5 million a year earlier due to reduced U.S. Army project work. Despite the decline, the figure beat Wall Street's consensus estimate of $31.81 million. The company posted a net loss of $0.03 per share, better than both the expected loss of $0.07 and last year's $0.06 loss per share. The narrower loss indicates improving operational efficiency and tighter cost control. This marks BigBear.ai's second revenue beat in four quarters. However, its earnings surprise was smaller than expected, missing profit estimates by roughly 16.7%. The Ask Sage acquisition is expected to expand BigBear.ai's reach into secure, high-value AI contracts. The company said the merger will "enhance our generative AI and secure decision intelligence offerings" and deepen its footprint in defense, border security, and other regulated markets. Ask Sage's existing client base across government agencies gives BigBear.ai a direct entry into new federal AI programs. The company expects the combined platforms to improve real-time intelligence and automated data processing for military and national security operations. With the acquisition, BigBear.ai raised its full-year 2025 revenue guidance to between $125 million and $140 million, citing the potential impact of the merger on future growth. Before the Q3 earnings and Ask Sage announcement, analysts rated BBAI stock as a "Moderate Buy" on TipRanks, based on two Buy and one Hold ratings. The average price target of $5.83 implies a modest 2.1% upside from current levels. Analysts are now expected to revisit their models following the earnings beat and strategic acquisition. The company's improving margins, recurring AI revenue, and expanding defense portfolio may lead to upward revisions in the coming weeks. Year-to-date, BigBear.ai shares are up 28.3%, outperforming the S&P 500's 14.4% gain in the same period. Looking ahead, analysts expect Q4 revenue of $34.19 million and a loss of $0.05 per share, according to consensus estimates. For fiscal 2025, the company is projected to post $132.54 million in revenue and a net loss of $1.10 per share. BigBear.ai's focus on defense-grade AI and secure decision intelligence continues to differentiate it from other AI companies. With the Ask Sage deal adding a strong layer of generative AI capability and government integrations, investors see this as a potential inflection point for the firm's long-term growth trajectory. If the merger delivers expected synergies and cost efficiencies, BigBear.ai could emerge as one of the leading players in defense-oriented artificial intelligence heading into 2026. (You can now subscribe to our Economic Times WhatsApp channel)

Why Is BigBear.ai Stock Skyrocketing Tuesday? - BigBear.ai Hldgs (NYSE:BBAI)

BigBear.ai Holdings Inc. (NYSE:BBAI) shares continue to surge in premarket trading after the company reported better-than-expected third-quarter 2025 results, reinforcing bullish sentiment following a string of positive developments in recent months. The company delivered revenue of $33.14 million, surpassing estimates of $31.82 million, and posted a net loss of just 3 cents per share, handily beating expectations for a 7-cent loss. While revenue declined 20% year-over-year due to lower Army program volumes, the gross margin remained healthy at 22.4%. BigBear.ai also ended the quarter with a strong liquidity position -- $456.6 million in cash and cash equivalents -- and a $376 million backlog, underscoring operational stability and sustained demand. Also Read: BigBear.ai Stock Roars Back On Naval AI Demo After Army Contract Setbacks Acquisition Of Ask Sage Expands GenAI Capabilities In a major strategic move, BigBear.ai announced it has signed a definitive agreement to acquire Ask Sage, a fast-growing generative AI platform focused on secure model distribution and agentic AI capabilities. The deal, expected to close in the late fourth quarter of 2025 or early first quarter of 2026, will broaden BigBear.ai's reach in the defense, national security, and regulated enterprise sectors. CEO Kevin McAleenan stated that the integration will create a secure, unified AI ecosystem that connects software, data, and mission services, thereby enhancing the company's value proposition across both government and enterprise clients. Biometric Deployment Drives Operational Momentum Operationally, BigBear.ai continues to scale its veriScan biometric platform, recently deployed at Chicago O'Hare International Airport in partnership with U.S. Customs and Border Protection, where it has cut passenger processing times from 60 seconds to just 10 seconds. Full-Year Outlook Reaffirmed The company reaffirmed its full-year revenue outlook of $125-$140 million, maintaining confidence in its growth trajectory. BBAI has a 52-week high of $10.36 and a 52-week low of $1.51. The stock experienced a sharp pullback of nearly 45% from its highs earlier this year to its midsummer lows before rebounding strongly in recent weeks. Price Action: BBAI shares were trading higher by 18.56% to $6.770 premarket at last check Tuesday. Read Next: Shell Drags Venture Global To New York Supreme Court Over Disputed LNG Contracts Photo by PJ McDonnell via Shutterstock BBAIBigBear.ai Holdings Inc$6.8019.1%OverviewMarket News and Data brought to you by Benzinga APIs

Why BigBear.ai Stock Popped Today | The Motley Fool

A game-changing acquisition should strengthen the company's position in the artificial intelligence (AI) race. Shares of BigBear.ai Holdings (BBAI +5.69%) rallied on Tuesday after the provider of artificial intelligence (AI)-powered decision solutions announced an exciting acquisition in conjunction with its third-quarter financial report. By the close of trading, BigBear.ai's stock price was up almost 6% after climbing as much as 22% earlier in the day. BigBear.ai struck a deal to acquire defense-focused generative AI platform Ask Sage for $250 million. Ask Sage provides secure access to a range of advanced AI models, such as those offered by OpenAI and Anthropic. It's designed to provide dependable, fact-based outputs derived from verified information in government-operated databases. Ask Sage also offers AI assistants and other automation tools. BigBear.ai expects the acquisition to expand its customer base and provide cross-selling opportunities. Ask Sage has a strong presence among national security agencies and other highly regulated organizations. "Ask Sage already supports more than 100,000 users on 16,000 government teams and across hundreds of commercial companies," CEO Kevin McAleenan said in a press release. Moreover, the generative AI upstart is expanding at a rapid clip. Ask Sage anticipates that its annual recurring revenue will grow roughly sixfold to $25 million in 2025. BigBear.ai also affirmed its full-year 2025 revenue forecast of $125 million to $140 million. The Ask Sage acquisition is projected to close by the first quarter of 2026, so management does not expect the deal to contribute meaningfully to these results. However, BigBear.ai is confident that Ask Sage will help to bolster its growth prospects in the years ahead. "By integrating Ask Sage with BigBear.ai, we are creating what the market has been asking for: a secure, integrated AI platform that connects software, data, and mission services in one place," McAleenan said.

Great News: BigBear.ai Just Landed Two Game-Changing Deals

BigBear.ai just landed two major deals in defense and biometric tech -- and Wall Street might be missing how big this opportunity really is. BigBear.ai (BBAI +0.62%) is proving that military-grade artificial intelligence (AI) can power real-world innovation. With new partnerships across defense and airports, this company is expanding faster than analysts expected -- and it could redefine how AI operates at the edge of national security and commercial infrastructure. Stock prices used were the market prices of Nov. 5, 2025. The video was published on Nov. 10, 2025.

BigBear.ai soars after earnings beat, acquisition announcement By Investing.com

Investing.com -- BigBear.ai Holdings, Inc. (NYSE:BBAI), an AI-powered decision intelligence solutions provider, saw its shares surge 13.3% in after-hours trading Monday after reporting better-than-expected third quarter results and announcing a significant acquisition. The company reported a third quarter adjusted loss of $0.03 per share, beating analyst expectations of a $0.05 loss. Revenue came in at $33.14 million, exceeding the consensus estimate of $31.82 million, despite representing a 20% decrease from $41.5 million in the same quarter last year. The revenue decline was primarily attributed to lower volume on certain Army programs. BigBear.ai announced a definitive agreement to acquire Ask Sage, a Generative AI platform built for defense and national security agencies, for $250 million. Ask Sage is expected to generate approximately $25 million in annual recurring revenue in 2025, representing a six-fold increase from its 2024 performance. "By integrating Ask Sage with BigBear.ai, we are creating what the market has been asking for: a secure, integrated AI platform that connects software, data, and mission services in one place," said Kevin McAleenan, CEO of BigBear.ai. The company reported a record cash balance of $456.6 million as of September 30, positioning it for accelerated growth. BigBear.ai maintained its full-year 2025 revenue guidance of $125-140 million, in line with the consensus estimate of $133.5 million. Gross margin decreased to 22.4% from 25.9% in the year-ago quarter, primarily due to higher margin programs in the third quarter of 2024 that were not repeated this year. The company reported net income of $2.5 million, compared to a net loss of $15.1 million in the same period last year, largely driven by non-cash changes in derivative liabilities. "Despite delays resulting from the government shutdown, we believe the potential for new business in the field of border security and defense remains strong," McAleenan added, noting that the company expects to see opportunities materialize into contracts next year. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.