BigBear.ai has announced its financial results for the third quarter of 2025, as well as an important acquisition. The company confirmed its agreement to acquire Ask Sage, a platform specializing in Generative AI for defense and national security. This strategic move aims to enhance BigBear.ai’s offerings in AI-powered decision intelligence.
Q3 2025 Financial Results
During the third quarter of 2025, BigBear.ai reported a revenue decrease of 20%, totaling $33.1 million. In comparison, the revenue for the same period in 2024 was $41.5 million. This drop was mainly attributed to decreased activity in certain Army programs.
Gross Margin and Income
- Gross margin was 22.4%, down from 25.9% year-over-year.
- Net income improved to $2.5 million, a significant turnaround from a net loss of $15.1 million in Q3 2024.
- The decrease in net loss was largely influenced by non-cash changes in derivative liabilities.
Operational Costs
In Q3 2025, the company’s SG&A expenses increased to $25.3 million from $17.5 million in the previous year. This rise was primarily due to additional marketing costs and strategic initiatives.
Notable Acquisition of Ask Sage
BigBear.ai’s acquisition of Ask Sage is a pivotal development for the company. Ask Sage already operates within 16,000 government teams and more than 100,000 users, focusing on secure AI model distribution and capabilities.
Kevin McAleenan, CEO of BigBear.ai, stated that the integration would provide a comprehensive platform connecting software, data, and mission services effectively. This acquisition emphasizes the company’s commitment to developing secure solutions, particularly in border security and defense.
Future Outlook
Looking ahead, BigBear.ai estimates its 2025 revenue will range between $125 million and $140 million. The completion of the Ask Sage acquisition is slated for late Q4 2025 or early Q1 2026, but it is not expected to significantly impact the 2025 financial results.
Conclusion
BigBear.ai continues to position itself strongly in the AI-driven defense sector, leveraging strategic acquisitions and aiming for robust revenue growth. As the landscape evolves, the company remains focused on delivering innovative technology solutions.
