$BBAI · BigBear.ai Holdings, Inc.
BigBear.ai reported Q3 2026 results with revenue of $43.6M (+31% YoY), gross margin of 31.2% (up 878 bps), and raised FY 2026 revenue guidance to $150M–$165M. However, a $76.7M non-cash goodwill impairment charge drove a GAAP net loss of $(91.9)M, or $(0.19) per share. Non-GAAP Adjusted EBITDA improved slightly to $(9.1)M from $(9.4)M a year ago. Backlog grew 22% sequentially to $330M.
- Revenue grew 31% YoY to $43.6M, the third straight quarter of organic growth.
- Gross margin expanded 878 bps to 31.2%, driven by the Generative AI Platform (Ask Sage acquisition).
- A $76.7M non-cash goodwill impairment charge pushed Q3 net loss to $(91.9)M vs. $2.5M profit a year ago.
- FY 2026 revenue guidance raised to $150M–$165M, a 5% increase at the midpoint.
- Backlog grew 22% sequentially to $330M; >25 new contract wins worth >$225M in contract value.
Extended-hours trading shows BBAI at $2.28, down 3.59% from the $2.37 regular-session close, suggesting the goodwill impairment and GAAP net loss are outweighing the revenue beat and guidance raise in initial after-hours reaction.
A defense AI pure-play delivering 31% organic growth and raising guidance while simultaneously taking a massive goodwill impairment creates a sharp bull-bear divide for investors.
BigBear.ai's 31% organic revenue growth and expanding backlog in defense AI contrast with broader government IT peers facing slower procurement cycles. The raised guidance signals confidence in federal AI adoption momentum heading into 2027.
The $76.7M goodwill impairment, attributed to a change in forecast during Q3 2026, signals potential overpayment risk from the Ask Sage acquisition. Derivative liability swings remain large: a $4.2M fair-value loss this quarter vs. a $26.1M gain last year, adding earnings volatility.