BigBear.ai Raises Revenue Outlook After 31% Growth, Books $76.7 Million Goodwill Charge

BigBear.ai raised its full-year revenue forecast after a third quarter of double-digit growth, but the defense-focused AI software company's bottom line swung to a steep loss on a large goodwill write-down.

The McLean, Virginia, company reported third-quarter revenue of $43.6 million, up 31% from $33.1 million a year earlier, according to the earnings release attached to an amended 8-K it filed Tuesday evening. The company called it the third straight quarter of organic growth.

Guidance goes up

BigBear.ai now expects 2026 revenue of $150 million to $165 million. The company said the new range's midpoint is 5% higher than the midpoint of its previous guidance.

"We're raising our full-year revenue guidance after another strong quarter of revenue growth, a series of contract wins, and improved margins," CEO Kevin McAleenan said. He said the company won more than 25 new contracts with customers including the FBI, the U.S. Coast Guard, the Department of Energy, and classified awards.

The company said those wins since the second quarter carry more than $225 million in contract value, a measure it describes as non-GAAP. Backlog grew 22% from the end of the second quarter to $330 million.

Margins improve, impairment hits the bottom line

Gross margin widened to 31.2% from 22.4% a year earlier, an improvement of 878 basis points. BigBear.ai said revenue growth was driven substantially by its Generative AI Platform, acquired as Ask Sage in December 2025, which also supported the margin gains.

Selling, general and administrative expenses rose $6.1 million to $31.3 million, reflecting higher amortization tied to the Ask Sage deal, more headcount and higher sales and marketing spending.

The company reported a net loss of $91.9 million, or 19 cents a share, compared with net income of $2.5 million a year earlier. The main driver was a non-cash goodwill impairment charge of $76.7 million. A smaller change in the fair value of derivatives also weighed on the comparison, partly offset by the gross margin improvement and lower interest expense.

Adjusted EBITDA, a non-GAAP measure, was a loss of $9.1 million, an improvement of $0.3 million from a year earlier.

Balance sheet

BigBear.ai ended September with $77.1 million in cash and cash equivalents and $208.7 million in available-for-sale investments, according to its balance sheet. McAleenan said the company achieved its contract wins "while growing margins and keeping our strong cash position."

The takeaway

The quarter puts two different stories side by side. On the operating side, the company is growing revenue, widening margins and building backlog. On the accounting side, the goodwill impairment signals that the carrying value of some previously acquired assets was written down, even as management raised its sales outlook.

CFO Sean Ricker said AI adoption in the company's markets is "still in its early stages," pointing to recent wins as evidence of growing demand. The earnings release was filed as an exhibit to the amended 8-K.

Sources

1. BigBear.ai Form 8-K/A with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 27, 2026 (accession 0001836981-26-000088)

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