BigBear.ai Holdings' stock fell 5.07% in after-hours trading on Tuesday following the release of the company's first quarter 2026 financial results.
The artificial intelligence and analytics provider reported revenue of $34.435 million for the quarter, which exceeded analyst expectations. However, the company posted a significant net loss of $56.763 million, or $0.12 per share, and an operating loss of $24.255 million. Revenue declined 1% year-over-year due to lower volume on Army programs, despite gross margin improving to 34% from 21.3% driven by higher-margin generative AI products.
While BigBear.ai affirmed its full-year revenue guidance of $135 million to $165 million and highlighted an increased backlog including more than $60 million in national security contracts, investors appeared focused on the substantial quarterly losses and the year-over-year revenue decline.
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