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BigBear.ai (NYSE:BBAI) shares sank 20% during early post-market trading after its second quarter 2025 financial results and outlook came in much worse than expected.
The Virginia-based company reported a loss per share of $0.71 versus the consensus estimate calling for a loss per share of $0.06.
Revenue for the quarter ended June 30 totaled $32.5M, which was a year-over-year decline of 18% and less than the estimate of $40.58M.
The company also reduced its full-year 2025 revenue forecast to range from $125M to $140M. The company had expected annual revenue ranging from $160M to $180M.
The company cited issues with federal government contracting as part of the reason for the adjusted outlook.
“Our capital raising activities this quarter coincide with the tremendous opportunities we see coming from the One Big Beautiful Bill, particularly in the Department of Homeland Security, and several of which are uniquely aligned to our core capabilities,” said BigBear.ai CEO Kevin McAleenan.
“While we are very optimistic with these significant investments and growth opportunities, we have also seen disruptions in federal contracts from efficiency efforts this quarter, most notably in programs that support the U.S. Army, as they seek to consolidate and modernize their data architecture and in turn, we have adjusted our full-year guidance this quarter to reflect these disruptions,” he added.
BigBear.ai utilizes artificial intelligence-powered software and other tools to help government and business clients make better decisions through analyzing data, identifying blind spots, and predicting outcomes.