$BBAI · BigBear.ai Holdings, Inc.
BigBear.ai filed its Q3 FY2026 10-Q, reporting revenue of $43.6M (+31.5% YoY) and a net loss of $91.9M, swinging from a $2.5M profit in Q3 2025. The loss was driven primarily by a $76.7M goodwill impairment charge. Gross margin improved to 31.2% from 22.4% YoY, while operating loss widened to $100.0M from $21.9M.
- Q3 revenue $43.6M, +31.5% YoY, driven by Ask Sage acquisition inclusion
- Q3 net loss $91.9M vs. $2.5M profit in prior-year quarter, including $76.7M goodwill impairment
- Gross margin improved to 31.2% from 22.4% YoY; cost of revenues as % of revenue fell to 69% from 78%
- Nine-month operating cash burn $49.8M vs. $20.1M in prior year; cash and equivalents $77.1M at quarter-end
- Basic and diluted EPS both $(0.19); weighted-average basic shares outstanding rose to 480.3M from 396.6M YoY
Extended-hours trading shows BBAI at $2.39, down 2.85% from the $2.46 regular close, indicating mild negative reaction to the large goodwill impairment and operating loss despite revenue growth.
A $76.7M goodwill impairment wiping out a quarter's revenue growth signals acquisition integration trouble at an AI defense name with a $1.18B market cap.
AI defense contractors remain under scrutiny for profitability vs. growth tradeoffs. BigBear.ai's 31.5% revenue growth contrasts with peers showing more balanced margin profiles; the goodwill impairment echoes sector-wide acquisition integration risks.
Goodwill impairment of $76.7M in Q3 signals overpayment risk from the Ask Sage acquisition; remaining goodwill stands at $161.7M. Derivative liabilities of $6.2M and accumulated deficit of $1.04B add balance-sheet pressure.