Key Highlights

  • Second quarter revenue rose 13% to $36.7 million, while the GAAP net loss narrowed to $25.7 million from $228.6 million.
  • Backlog grew 9% to $269.6 million, and the company reaffirmed full-year 2026 revenue guidance of $135 million to $165 million.
  • A sales agreement with Jefferies, announced July 31, allows sales of up to 100 million shares through an at-the-market program.
  • Cash and investments totaled $409.8 million at June 30, and all 2029 convertible notes converted into about 38.1 million shares.

BigBear.ai (NYSE:BBAI) shares were trading near their 52-week low at USD 2.12 on October 19, 2026, down 2.06%. The AI decision-intelligence provider reported its second quarter on July 30 with higher revenue and margins, a much smaller GAAP loss and continued operating cash outflow. Later filings added an equity sales program and two board changes.

Second quarter: margins improve, losses persist

Revenue for the quarter ended June 30, 2026 was $36.7 million, up from $32.5 million. Gross margin was $12.1 million, or 32.8% of revenue, against 25.0% a year earlier. The company credited higher volume from the Ask Sage generative AI platforms, acquired on December 31, 2025, which contributed $6.1 million of revenue. U.S. government customers accounted for $31.6 million of the total, and non-U.S. government and commercial revenue rose to $5.2 million from $2.8 million.

Costs grew too. Selling, general and administrative expense reached $31.8 million from $21.5 million, which the company tied to Ask Sage amortization, proxy costs for a special stockholder meeting and a new Retail Voting Program, and larger sales teams. Research and development expense was $7.6 million versus $4.4 million. The operating loss was $28.6 million, compared with $90.3 million, and the GAAP net loss was $25.7 million, or $0.05 per share, versus $228.6 million, or $0.71. The company attributed most of the improvement to a $135.3 million smaller derivative fair value loss and the absence of a $70.6 million goodwill impairment recorded a year earlier.

On a non-GAAP basis, adjusted EBITDA was a loss of $11.6 million, wider than the $8.5 million loss a year earlier.

Cash, convertible notes and share issuance capacity

Cash and cash equivalents were $36.3 million at June 30, down from $87.1 million at year-end, and available-for-sale investments of $373.5 million brought total available cash and investments to $409.8 million. Operating activities used $22.2 million in the quarter and $40.2 million in the first half.

Debt shrank in the first half. The $124.6 million of 2029 convertible notes converted ahead of a January 16 redemption date, adding about 38.1 million shares, and shares outstanding rose to 479.5 million from 437.0 million at year-end. Stockholders approved doubling authorized common stock to 1 billion shares on June 9. What remains is $17.7 million of 6.0% convertible notes due December 15, 2026, convertible at $10.61 per share, with covenants in compliance at June 30.

The quarterly report stated that no capacity remained under earlier at-the-market programs at June 30. A July 31 filing then described a new sales agreement under which Jefferies, as sales agent for a commission of up to 3.0% of gross proceeds, may sell up to 100 million shares of common stock. The filing gave no pricing or proceeds.

Guidance, backlog and leadership changes

BigBear.ai affirmed full-year 2026 revenue guidance of $135 million to $165 million, its own estimate, and said it is on track for its 17% revenue growth target. It gave no net income or adjusted EBITDA guidance. Backlog stood at $269.6 million on June 30, up 9% from December 31, and management reported more than 20 new contract wins in the quarter.

Management described the second half as focused on execution and positioning for accretive acquisitions, none of which has been announced.

On the board, retired Lt. Gen. Sean Gainey was elected a director on August 13. Director Kirk Konert resigned effective September 15, and the company said the departure was not due to any disagreement.