BigBear.ai Holdings, Inc. (BBAI) Stock: Soars 7.96% Following Positive Q3 Results and Acquisition Announcement

TLDR:

• BigBear.ai stock surges 7.96% after strong Q3 results and Ask Sage acquisition.
• BigBear.ai posts $2.5M Q3 profit, expanding AI capabilities with Ask Sage.
• Q3 revenue drops 20%, but BigBear.ai remains optimistic with $376M backlog.
• Ask Sage acquisition boosts BigBear.ai’s AI platform for defense & security.
• BigBear.ai maintains full-year revenue projection despite Q3 setbacks.

BigBear.ai Holdings, Inc. (BBAI) saw its stock surge 7.96%, reaching $6.16 after fluctuating throughout the day. 

BigBear.ai Holdings, Inc., BBAI

The boost comes after the company reported strong financial results for the third quarter of 2025 and announced the acquisition of Ask Sage, a cutting-edge AI platform. The announcement highlights BigBear.ai’s strategic efforts to solidify its position in the defense and national security sectors.

Q3 Financial Performance and Strategic Moves

BigBear.ai’s Q3 financial results reflected a mixed performance, with a 20% decline in revenue, down to $33.1 million from $41.5 million a year earlier. The decline was attributed to reduced volumes in certain Army programs, though the company maintains a positive outlook on its future growth.

Gross margin also fell to 22.4%, compared to 25.9% in the same period last year, due to lower-margin programs replacing higher-margin ones. Despite these challenges, BigBear.ai reported a net income of $2.5 million for Q3 2025, a significant improvement from the $15.1 million loss in Q3 2024.

The company also posted an increase in SG&A costs, which rose by $7.8 million year-over-year. This increase was largely driven by marketing efforts, non-recurring strategic initiatives, and higher labor costs. BigBear.ai’s focus on expanding its offerings and securing new contracts positions it for future growth. As of September 30, 2025, BigBear.ai’s backlog stood at $376 million, indicating a solid pipeline of future business.

Acquisition of Ask Sage to Strengthen AI Platform

In addition to its financial results, BigBear.ai announced the acquisition of Ask Sage, a rapidly growing Generative AI platform. Ask Sage specializes in secure AI model distribution and agentic AI capabilities, tailored for defense and national security sectors. The platform already supports over 100,000 users across 16,000 government teams and hundreds of commercial companies. The integration of Ask Sage with BigBear.ai is expected to create a robust, secure AI platform that connects software, data, and mission services in one unified system.

Kevin McAleenan, CEO of BigBear.ai, expressed excitement about the strategic acquisition, stating that it responds to market demand for secure, integrated AI solutions. The acquisition aims to be completed by the end of Q4 2025 or early Q1 2026. The company anticipates that this move will accelerate its position in national defense and highly regulated sectors, enhancing its portfolio with advanced AI technology.

Outlook for the Rest of 2025

BigBear.ai has maintained its revenue projection for the full year 2025, estimating between $125 million and $140 million. The company remains optimistic about its growth prospects, particularly in the areas of border security and defense, as government spending accelerates. BigBear.ai’s commitment to delivering innovative AI solutions for defense and national security continues to drive its strategic direction.

The company’s forward-looking statements emphasize the potential of its acquisition strategy and its ability to capitalize on emerging opportunities. With a strong backlog and a growing presence in critical sectors, BigBear.ai aims to maintain its momentum as it moves into 2026.

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