Shares of BigBear.ai Holdings (BBAI) nosedived 29.48% in after-hours trading on Monday following the release of its disappointing second-quarter 2025 financial results and drastically lowered full-year guidance. The artificial intelligence and analytics firm reported earnings that fell far short of analyst expectations, triggering a significant sell-off in the stock.
BigBear.ai reported a quarterly loss of $0.71 per share, substantially wider than the analyst consensus estimate of a $0.06 loss. This marks a considerable decline from the $0.05 loss per share reported in the same period last year. Revenue for the quarter came in at $32.47 million, missing analyst estimates of $41.17 million by 21.13% and representing an 18.38% decrease from the previous year's $39.78 million.
Adding to investor concerns, BigBear.ai significantly lowered its financial outlook for the full year 2025, projecting revenue between $125 million and $140 million, down from the previous range of $160 million to $180 million. This forecast falls considerably short of the Wall Street expectations of $167.7 million. Furthermore, the company withdrew its full-year Adjusted EBITDA guidance, citing uncertainty surrounding an Army program and anticipated growth investments in the second half of the year. CEO Kevin McAleenan attributed the revenue decline primarily to lower volume on certain Army programs, highlighting the challenges faced by the company in its federal contracts segment.