BigBear.AI (BBAI) reported its first-quarter results after Tuesday's closing bell, and while the numbers topped analyst expectations, the market wasn't entirely impressed. Shares slipped about 3.9% in after-hours trading to $3.98.
The company posted revenue of $34.44 million, beating the $33.60 million analysts were looking for. That's down about 1% from the same quarter last year, mainly due to lower volume on Army programs. But the bottom line looked better: BigBear.AI reported a loss of $0.04 per share, narrower than the $0.08 loss Wall Street had penciled in.
Gross margin improved significantly to 34% from 21.3% in the first quarter of 2025. The company ended the quarter with about $100.7 million in cash and equivalents.
Backlog — a key metric for future revenue — jumped 14% from the previous quarter, helped by a sole-source prime classified award. That's the kind of win CEO Kevin McAleenan likes to highlight. "It is great to report significant wins in Q1 amounting to close to $75 million that prove our thesis that national security, and trade and travel are two markets that we are right to stay laser-focused on serving," he said in the earnings release.
McAleenan added that these wins "keep us on track to meet our topline revenue target for 2026" and that the pipeline is strengthening. The company affirmed its full-year revenue guidance of $135 million to $165 million, which brackets the analyst consensus of $142.55 million.
So why the after-hours dip? It could be profit-taking after the stock had run up ahead of earnings, or maybe investors wanted a bigger beat. But for a company that's still losing money, the improving margins and growing backlog are steps in the right direction.
