Latest news with #KevinMcAleenan
Business Wire
4 days ago
- Business
- Business Wire
BigBear.ai and Narval Holding Corp. Launch AI-Powered Cargo Security Management Solution in Panama
MCLEAN, Va.--(BUSINESS WIRE)-- (NYSE: BBAI), a leading provider of mission-ready AI for national security, today announced the launch of a next-generation cargo security management solution in partnership with Narval Holding Corp., through Narval's subsidiary International Shipping Compliance, S.A. (ISC), in Panama. Designed to protect the global supply chain, advance transparency, and counter illicit trafficking, the initiative will begin in Panama with planned expansion across the region and worldwide in key international corridors. 'Securing the global supply chain requires innovation, trust, and the ability to verify each handoff along the way,' said Kevin McAleenan, CEO of 'Securing the global supply chain requires innovation, trust, and the ability to verify each handoff along the way,' said Kevin McAleenan, CEO of 'By partnering with Narval Holding Corp. in Panama – a critical gateway for global trade – we will deliver an AI-driven solution to strengthen cargo security today, while laying the foundation for broader regional adoption and collaborations with the international shipping lines,' he continued. Panama's unique position as a hub linking the Pacific and Atlantic Oceans via the Panama Canal makes it an ideal launch point for innovation in supply chain security. The en route cargo chain-of-custody application uses biometric verification to link drivers and transport vehicles to a cargo container and its corresponding security seal, helping ensure full accountability of the cargo contents from origin to destination. 'The Panama Canal is one of the most important arteries of global trade, and protecting the integrity of cargo that moves through our ports is essential to economic stability and national security,' said Mario E. Pérez Balladares, Chairman of Narval Holding Corp. 'Our collaboration with will set a new global standard for cargo security—one that combines advanced AI, biometrics, and real-time monitoring to give governments, operators, and shipping lines unprecedented visibility and control from port to final delivery.' The solution integrates real-time driver and tracking monitoring with a centralized management platform, presenting fleet, vehicle, and driver data in an operations center. This capability enables operators to oversee cargo flows with greater precision, detect anomalies, and generate actionable insights to help disrupt smuggling networks and other illicit activities across international shipping corridors. To learn more about expertise in homeland and border security, visit About is a leading provider of mission-ready AI solutions and services for defense, national security, and critical infrastructure. Customers and partners rely on artificial intelligence and predictive analytics capabilities in highly complex, distributed, mission-based operating environments. Headquartered in McLean, Virginia, is a public company traded on the NYSE under the symbol BBAI. For more information, visit and follow on LinkedIn: @ and X: @BigBearai. To receive email communications from register here. About The Narval Group The Narval Group is a diversified investment and logistics holding company committed to driving sustainable, innovative ventures. Through its subsidiaries, the Group delivers world-class logistics solutions—including Tier-1 transshipment and temperature-controlled shipping—powered by advanced technology to ensure secure, efficient, and fully compliant supply chains. Forward-Looking Statements This press release contains 'forward-looking statements.' Such statements include, but are not limited to, statements regarding the intended use of proceeds from the private placement and may be preceded by the words 'intends,' 'may,' 'will,' 'plans,' 'expects,' 'anticipates,' 'projects,' 'predicts,' 'estimates,' 'aims,' 'believes,' 'hopes,' 'potential' or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; risks related to the uncertainty of the projected financial information (including on a segment reporting basis); risks related to delays caused by factors outside of our control, including changes in fiscal or contracting policies or decreases in available government funding; changes in government programs or applicable requirements; budgetary constraints, including automatic reductions as a result of 'sequestration' or similar measures and constraints imposed by any lapses in appropriations for the federal government or certain of its departments and agencies; influence by, or competition from, third parties with respect to pending, new, or existing contracts with government customers; our ability to successfully compete for and receive task orders and generate revenue under Indefinite Delivery/Indefinite Quantity contracts; potential delays or changes in the government appropriations or procurement processes, including as a result of events such as war, incidents of terrorism, natural disasters, and public health concerns or epidemics; and increased or unexpected costs or unanticipated delays caused by other factors outside of our control, such as performance failures of our subcontractors; risks related to the rollout of the business and the timing of expected business milestones; the effects of competition on our future business; our ability to issue equity or equity-linked securities in the future, and those factors discussed in the Company's reports and other documents filed with the SEC, including under the heading 'Risk Factors.' More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise, except as required by law.
Business Wire
5 days ago
- Business
- Business Wire
BigBear.ai and Smiths Detection Complete Testing and Integration
MCLEAN, Va.--(BUSINESS WIRE)-- (NYSE: BBAI), a leader in mission-ready AI for national security, today announced the successful integration of its Pangiam ® Threat Detection solution with Smiths Detection's HI-SCAN 6040 CTiX computed tomography screening systems. This integration – now available for airports worldwide – delivers real-time detection of prohibited items in luggage, enhancing security operations across aviation, port, and border environments. The integrated solution completed testing and is being trialed at multiple international airports, providing airport operators with a powerful, flexible tool to modernize checkpoint security. 'Our ability to interoperate with Smiths Detection equipment brings together best-in-class technologies to accelerate threat detection and streamline screening workflows,' said Kevin McAleenan, CEO of 'By connecting platform with Smiths Detection's advanced CT scanners, we're helping airports adopt open architecture solutions that adapt quickly to emerging threats, while also improving throughput and the passenger experience.' The interoperability between both companies' technology marks the latest step in expanding open architecture solutions within aviation security, giving operators more flexibility to select capabilities for their unique operational needs. 'This deepened collaboration demonstrates our shared commitment to delivering smarter, open, and interoperable security solutions, aligning with the principles of the Ada initiative,' said Cymoril Metivier, Global Director Digital, Smiths Detection. 'Combining and validating interoperability between the clarity of Smiths Detection CT imaging with AI analytics and algorithms is an important step forward in supporting our customers in executing Open Architecture responsibly.' Pangiam ® Threat Detection platform was originally developed under the 'Project Dartmouth' initiative and features an open architecture that supports integration with a range of third-party scanning hardware, detection algorithms, and decision support tools. Its flexible design positions airport operators and federal security partners to rapidly evolve alongside today's complex threat environment. To learn more about computer vision and screening products, visit: To learn more about Smiths Detection's aviation security technologies, visit: About is a leading provider of mission-ready AI solutions and services for defense, national security, and critical infrastructure. Customers and partners rely on artificial intelligence and predictive analytics capabilities in highly complex, distributed, mission-based operating environments. Headquartered in McLean, Virginia, is a public company traded on the NYSE under the symbol BBAI. For more information, visit and follow on LinkedIn: @ and X: @BigBearai. To receive email communications from register here. About Smiths Detection Smiths Detection, a business of Smiths Group, is a global leader in inspection and detection technologies for the air transport, ports and borders, armed forces and urban security markets. With more than 70 years of experience in the field, we offer the necessary solutions to protect society from the threats posed by explosives, prohibited weapons, contraband, toxic chemical agents, biological threats and narcotics – helping to make the world a safer place. Forward-Looking Statements This press release contains 'forward-looking statements.' Such statements include, but are not limited to, statements regarding the intended use of proceeds from the private placement and may be preceded by the words 'intends,' 'may,' 'will,' 'plans,' 'expects,' 'anticipates,' 'projects,' 'predicts,' 'estimates,' 'aims,' 'believes,' 'hopes,' 'potential' or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; risks related to the uncertainty of the projected financial information (including on a segment reporting basis); risks related to delays caused by factors outside of our control, including changes in fiscal or contracting policies or decreases in available government funding; changes in government programs or applicable requirements; budgetary constraints, including automatic reductions as a result of 'sequestration' or similar measures and constraints imposed by any lapses in appropriations for the federal government or certain of its departments and agencies; influence by, or competition from, third parties with respect to pending, new, or existing contracts with government customers; our ability to successfully compete for and receive task orders and generate revenue under Indefinite Delivery/Indefinite Quantity contracts; potential delays or changes in the government appropriations or procurement processes, including as a result of events such as war, incidents of terrorism, natural disasters, and public health concerns or epidemics; and increased or unexpected costs or unanticipated delays caused by other factors outside of our control, such as performance failures of our subcontractors; risks related to the rollout of the business and the timing of expected business milestones; the effects of competition on our future business; our ability to issue equity or equity-linked securities in the future, and those factors discussed in the Company's reports and other documents filed with the SEC, including under the heading 'Risk Factors.' More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise, except as required by law.
Yahoo
6 days ago
- Business
- Yahoo
Why BigBear.ai Stock Is Cratering Today
Key Points missed big in its second quarter as sales fell significantly. Management cut full-year revenue guidance as federal contracts are delayed or downsized. With continued losses, shrinking revenue, and a meaningful debt load, looks risky. 10 stocks we like better than › Shares of (NYSE: BBAI) are falling hard on Tuesday, down 20% as of 1:36 p.m. ET. The drop comes as the S&P 500 and Nasdaq Composite has gained 0.9% and 1.1%, respectively. The defense-focused artificial intelligence company reported its second-quarter earnings Monday after market close, falling well short of Wall Street's expectations. Q2 earnings collapse BigBear reported a $0.71 loss per share on $32.5 million in revenue, missing analyst forecasts by a wide margin and representing an 18% year-over-year loss. Consensus estimates for the quarter had been for a $0.06 loss on $40.6 million in revenue. The company also lowered its full-year revenue guidance to between $125 million and $140 million, down significantly from the previous range of $160 million to $180 million. CEO Kevin McAleenan cited disruptions in the company's federal contracts as the primary cause, though he did point to future contract growth potential from newly authorized Department of Homeland Security (DHS) funding. While the big tech firms like Microsoft and Alphabet that power AI had blowout recent quarters, BigBear is the latest end-user AI company to show weakness. also missed expectations by a mile, though Palantir still continues to fire on all cylinders. remains a risky bet BigBear's sales trajectory is concerning, and its losses are growing. The company has a non-negligible amount of debt already and negative cash flows. Despite this, the stock still carries a hefty premium, granted not nearly as high as Palantir's, but still significant for its current sales and earnings trajectories. I would avoid the stock. Should you buy stock in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 11, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Palantir Technologies. The Motley Fool recommends and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Why Stock Is Cratering Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
BigBear.ai Cuts 2025 View After Weak Q2
(NYSE:BBAI) sank about 20% after hours as a tough Q2 and a sharp guidance cut swamped the company posted a loss per share of $0.71 versus a consensus loss of $0.06. Revenue was $32.5 million, down 18% year over year and below the $40.58 million estimate. Warning! GuruFocus has detected 4 Warning Signs with BBAI. Full year 2025 revenue is now pegged at $125 million to $140 million, cut from $160 million to $180 million. Management blamed federal contracting disruptions and said recent capital raising lines up with opportunities tied to the One Big Beautiful Bill, especially at the Department of Homeland Security. CEO Kevin McAleenan said efficiency efforts have disrupted programs that support the U.S. Army as it consolidates and modernizes data architecture. That backdrop drove the guide down. sells AI powered software that helps clients analyze data, spot blind spots and predict outcomes, but near term visibility just got tougher. a big earnings miss and a sizable guide cut refocus investors on execution, award timing and next proof points are federal award flow and Q3 pacing updates that can reset confidence in 2025 targets. This article first appeared on GuruFocus.
Business Wire
11-08-2025
- Business
- Business Wire
BigBear.ai Announces Second Quarter 2025 Results; Updates Financial Outlook
MCLEAN, Va.--(BUSINESS WIRE)-- Holdings, Inc. (NYSE: BBAI) (' ' or the ' Company '), a leader in AI-powered decision intelligence solutions, today announced financial results for the second quarter of 2025 and issued an investor presentation that has been posted to the Investor Relations section of the Company's website. "Our robust balance sheet allows us to make significant transformational investments to shape the future of 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. This legislation will bring a generational investment and provides over $170 billion in supplemental funding to the Department of Homeland Security, and $150 billion to the Department of Defense for disruptive defense technology. This is not incremental funding for innovation - this is a transformative level of investment. As a Mission Ready AI company with a national and border security focus, it's directly in our lane,' said Kevin McAleenan, CEO of "Beyond the opportunities that we're pursuing in the U.S., this quarter, we signed a transformative partnership with leading companies in the UAE under the IHC umbrella focused on accelerating the development and adoption of AI across several domains and applications. This is just the beginning of our international expansion and demonstrates the need for technology and solutions across the globe,' he continued. '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 concluded. 'Our record cash balance will enable us to make significant investments, both organically and inorganically, in an order of magnitude that was not possible before,' said Sean Ricker, CFO of Financial Highlights Revenue decreased 18% to $32.5 million for the second quarter of 2025, compared to $39.8 million for the second quarter of 2024 primarily due to lower volume on certain Army programs. Gross margin was 25.0% in the second quarter of 2025, compared to 27.8% in the second quarter of 2024. Net loss in the second quarter of 2025 was $228.6 million, compared to a net loss of $14.4 million for the second quarter of 2024. The increase in net loss was primarily driven by non-cash changes in derivative liabilities of $135.8 million associated with changes in the fair value of the convertible features of the 2029 Notes and warrants, as well as a non-cash goodwill impairment charge of $70.6 million. Non-GAAP Adjusted EBITDA* of $(8.5) million for the second quarter of 2025 compared to $(3.7) million for the second quarter of 2024, primarily driven by decreased gross margin as well as an increase in research and development expenses. SG&A of $21.5 million for the second quarter of 2025 compared to $23.4 million for the second quarter of 2024. The year-over-year decrease was primarily driven by lower legal expenses ($1.7 million), and lower bonus expense ($1.1 million). Backlog of $380 million as of June 30, 2025. Financial Outlook For the year-ended December 31, 2025, the Company now projects: Revenue between $125 million and $140 million Due to uncertainty on certain Army programs as well as new anticipated growth investment spending in the second half of the year, at this time, the Company is withdrawing its previously provided Adjusted EBITDA guidance for the year-ended December 31, 2025. The Company expects to provide updated Adjusted EBITDA guidance at a later date. The above information on financial outlook, and other sections of this release contain forward-looking statements, which are based on the Company's current expectations. Actual results may differ materially from those projected. It is the Company's practice not to incorporate adjustments into its financial outlook for proposed acquisitions, divestitures, changes in law, or new accounting standards until such items have been consummated, enacted, or adopted, as the case may be. For additional factors that may impact the Company's actual results, refer to the 'Forward-Looking Statements' section in this release. Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 (Unaudited) $ in thousands (except per share amounts) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 390,845 $ 50,141 Accounts receivable, less allowance for credit losses 28,342 38,953 Contract assets 701 895 Prepaid expenses and other current assets 4,395 3,768 Total current assets 424,283 93,757 Non-current assets: Property and equipment, net 1,425 1,566 Goodwill 48,446 119,081 Intangible assets, net 115,621 119,119 Right-of-use assets 8,639 9,263 Other non-current assets 958 990 Total assets $ 599,372 $ 343,776 Liabilities and stockholders' equity (deficit) Current liabilities: Accounts payable $ 3,440 $ 8,455 Short-term debt, including current portion of long-term debt 367 818 Accrued liabilities 16,555 19,496 Contract liabilities 4,466 2,541 Current portion of long-term lease liability 1,096 1,068 Derivative liabilities 193,199 170,515 Other current liabilities 2,522 73 Total current liabilities 221,645 202,966 Non-current liabilities: Long-term debt, net 102,683 135,404 Long-term lease liability 8,494 9,120 Total liabilities 332,822 347,490 Stockholders' equity (deficit) Common stock, par value $0.0001; 500,000,000 shares authorized and 369,171,608 shares issued and outstanding at June 30, 2025 and 251,554,378 shares issued and outstanding at December 31, 2024 39 26 Additional paid-in capital 1,186,256 625,130 Treasury stock, at cost 9,952,803 shares at June 30, 2025 and December 31, 2024 (57,350 ) (57,350 ) Accumulated deficit (862,246 ) (571,641 ) Accumulated other comprehensive (loss) income (149 ) 121 Total stockholders' equity (deficit) 266,550 (3,714 ) Total liabilities and stockholders' equity (deficit) $ 599,372 $ 343,776 Expand Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and June 30, 2024 (Unaudited) Three Months Ended June 30, Six Months Ended June 30, $ in thousands 2025 2024 2025 2024 Cash flows from operating activities: Net loss $ (228,619 ) $ (14,439 ) $ (290,605 ) $ (142,231 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization expense 3,451 2,907 6,921 5,346 Amortization of debt issuance costs and discount 2,026 3,407 4,790 6,743 Equity-based compensation expense 4,319 5,749 11,719 10,906 Goodwill impairment 70,636 — 70,636 85,000 Non-cash lease expense 254 269 624 363 Provision for doubtful accounts 311 5 351 176 Deferred income tax benefit — (14 ) — (37 ) Loss on extinguishment of debt — — 2,577 — Net increase (decrease) in fair value of derivatives 135,751 (8,081 ) 169,087 15,726 Changes in assets and liabilities: Decrease (increase) in accounts receivable 5,919 2,725 10,267 (6,232 ) (Increase) decrease in contract assets (189 ) 1,338 194 3,781 Decrease (increase) in prepaid expenses and other assets 1,203 293 (592 ) 1,243 (Decrease) increase in accounts payable (876 ) 913 (5,039 ) (5,047 ) Increase (decrease) in accrued expenses 319 (947 ) 4,765 1,652 Increase (decrease) in contract liabilities 1,449 (357 ) 1,925 1,469 Increase (decrease) in other liabilities 178 (826 ) 1,848 (275 ) Net cash used in operating activities (3,868 ) (7,058 ) (10,532 ) (21,417 ) Cash flows from investing activities: Acquisition of business, net of cash acquired — — — 13,935 Purchases of property and equipment (5 ) (129 ) (85 ) (167 ) Capitalized software development costs (1,159 ) (1,582 ) (2,699 ) (3,225 ) Net cash (used in) provided by investing activities (1,164 ) (1,711 ) (2,784 ) 10,543 Cash flows from financing activities: Proceeds from issuance of shares for exercised RDO and PIPE warrants — — 64,673 53,809 Payment of RDO and PIPE transaction costs — — (551 ) — Proceeds from at-the-market offering 293,431 — 300,000 — Payment of transaction costs for at-the-market offering (5,135 ) — (5,250 ) — Repayment of short-term borrowings (85 ) (409 ) (451 ) (812 ) Payment of debt issuance costs to third parties (337 ) — (4,679 ) — Proceeds from exercise of options 240 33 1,633 119 Issuance of common stock upon ESPP purchase 1,069 607 1,069 607 Payments of tax withholding from the issuance of common stock (361 ) (608 ) (1,679 ) (3,140 ) Net cash provided by (used in) financing activities 288,822 (377 ) 354,765 50,583 Effect of foreign currency rate changes on cash and cash equivalents (555 ) — (745 ) — Net increase (decrease) in cash and cash equivalents 283,235 (9,146 ) 340,704 39,709 Cash and cash equivalents at the beginning of period 107,610 81,412 50,141 32,557 Expand EBITDA* and Adjusted EBITDA* for the Second Quarter Ended June 30, 2025 and June 30, 2024 (Unaudited) Three Months Ended June 30, Six Months Ended June 30, $ thousands 2025 2024 2025 2024 Net loss $ (228,619 ) $ (14,439 ) $ (290,605 ) $ (142,231 ) Interest expense 4,419 6,452 9,535 12,837 Interest income (1,704 ) (725 ) (2,260 ) (1,172 ) Income tax expense 14 15 39 1 Depreciation and amortization 3,451 2,907 6,921 5,346 EBITDA (222,439 ) (5,790 ) (276,370 ) (125,219 ) Adjustments: Equity-based compensation 4,319 5,749 11,719 10,906 Employer payroll taxes related to equity-based compensation (1) 611 48 1,626 712 Loss on extinguishment of debt (9) — — 2,577 — Net increase (decrease) in fair value of derivatives (2) 135,751 (8,081 ) 169,087 15,726 Restructuring charges (3) 1,899 457 3,597 1,317 Non-recurring strategic initiatives (4) 717 2,040 1,611 3,374 Non-recurring litigation (5) 8 666 30 545 Transaction expenses (6) — 347 — 1,450 Non-recurring integration costs (7) — 883 — 883 Goodwill impairment (8) 70,636 — 70,636 85,000 Expand (1) Includes employer payroll taxes due upon the vesting of equity awards granted to employees. (2) The change in fair value of derivatives during the three months ended June 30, 2025 relates to the remeasurement of the 2025 warrants, IPO warrants and the 2026 and 2029 Notes Conversion Options derivative liabilities. The change during the six months ended June 30, 2025, relates to the $14.0 million loss recorded upon the exercise of the 2024 RDO and 2024 PIPE Warrants (the '2024 Warrants') and issuance of the warrants in 2025 (the '2025 Warrants') in connection with the warrant exercise agreements entered into on February 5, 2025. During the six months ended June 30, 2025, there was loss related to a mark-to-market adjustment of $59.9M adjustment for the debt to equity conversions during the period. There was an offsetting gain related to the fair market value adjustment on the 2025 warrants and the private warrants of $2.6 million. Additionally, there was an loss of $7.0 million fair market value adjustment of the 2026 and 2029 Notes Conversion Option, during the six months ended June 30, 2025. The decrease in fair value of derivatives during the three months ended June 30, 2024 relates to remeasurement of the 2024 Warrants and IPO Warrant's fair value. The increase in fair value of derivatives during the six months ended June 30, 2024, relates to the $42.3 million loss recorded upon the exercise of the 2023 RDO and 2023 PIPE Warrants (the '2023 Warrants') in connection with the warrant exercise agreements entered into on February 27, 2024 and March 4, 2024. This loss was offset by gains of $10.6 million, net of cash proceeds received, related to the issuance of warrants in 2024 (the '2024 Warrants'). In addition, an $18.3 million reduction in fair value was recorded on the 2024 Warrants issued in connection with the warrant exercise agreements as the fair value decreased from the issue date to quarter end. (3) During the three and six months ended June 30, 2025 and June 30, 2024, the Company incurred employee separation costs associated with a strategic review of the Company's capacity and future projections to better align the organization and cost structure and improve the affordability of its products and services. (4) Non-recurring professional fees related to the execution of certain strategic initiatives of the Company. (5) Non-recurring litigation consists primarily of legal settlements and related fees for specific proceedings that we have determined arise outside of the ordinary course of business based on the following considerations which we assess regularly: (1) the frequency of similar cases that have been brought to date, or are expected to be brought within two years; (2) the complexity of the case; (3) the nature of the remedy(ies) sought, including the size of any monetary damages sought; (4) offensive versus defensive posture of us; (5) the counterparty involved; and (6) our overall litigation strategy. (6) Transaction expenses during the quarter ended March 31, 2024 consist primarily of diligence, legal and other related expenses incurred associated with the Pangiam acquisition. (7) Non-recurring internal integration costs related to the Pangiam acquisition. (8) During the three months ended March 31, 2024, the Company recognized a non-cash goodwill impairment charge primarily driven by a decrease in share price during the quarter compared to the share price of the equity issued as consideration for the purchase of Pangiam. During the six months ended June 30, 2025, the company recognized a non-cash goodwill impairment charge of $70.6 million, primarily driven by a change in forecast during the second quarter of 2025. (9) Loss on extinguishment of debt is related to voluntary conversions of the 2029 Notes to common stock and the related extinguishment of unamortized debt discount and debt costs. *EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP financial measures. See the 'Non-GAAP Financial Measures' section in this press release for additional information and reconciliations. Expand Adjusted EBITDA* Reconciliation for the Second Quarter Ended June 30, 2025 and June 30, 2024 (Unaudited) Three Months Ended June 30, Six Months Ended June 30, $ in thousands 2025 2024 2025 2024 Revenue $ 32,472 $ 39,783 $ 67,229 $ 72,904 Net loss (228,619 ) (14,439 ) (290,605 ) (142,231 ) Interest expense 4,419 6,452 9,535 12,837 Interest income (1,704 ) (725 ) (2,260 ) (1,172 ) Income tax expense 14 15 39 1 Depreciation and amortization 3,451 2,907 6,921 5,346 EBITDA* $ (222,439 ) $ (5,790 ) $ (276,370 ) $ (125,219 ) Adjustments: Equity-based compensation 4,319 5,749 11,719 10,906 Employer payroll taxes related to equity-based compensation (1) 611 48 1,626 712 Net increase in fair value of derivatives (2) 135,751 (8,081 ) 169,087 15,726 Restructuring charges (3) 1,899 457 3,597 1,317 Non-recurring strategic initiatives (4) 717 2,040 1,611 3,374 Non-recurring litigation (5) 8 666 30 545 Transaction expenses (6) — 347 — 1,450 Non-recurring integration costs (7) — 883 — 883 Goodwill impairment (8) 70,636 — 70,636 85,000 Loss on extinguishment of debt (9) — — 2,577 — Adjusted EBITDA* $ (8,498 ) $ (3,681 ) $ (18,064 ) $ (5,306 ) Gross Margin 25.0 % 27.8 % 23.1 % 24.8 % Net Loss Margin (704.0 )% (36.3 )% (432.3 )% (195.1 )% Adjusted EBITDA* Margin (26.2 )% (9.3 )% (26.9 )% (7.3 )% Expand (1) Includes employer payroll taxes due upon the vesting of equity awards granted to employees. (2) The change in fair value of derivatives during the three months ended June 30, 2025 relates to the remeasurement of the 2025 warrants, IPO warrants and the 2026 and 2029 Notes Conversion Options derivative liabilities. The change during the six months ended June 30, 2025, relates to the $14.0 million loss recorded upon the exercise of the 2024 RDO and 2024 PIPE Warrants (the '2024 Warrants') and issuance of the warrants in 2025 (the '2025 Warrants') in connection with the warrant exercise agreements entered into on February 5, 2025. During the six months ended June 30, 2025, there was loss related to a mark-to-market adjustment of $59.9M adjustment for the debt to equity conversions during the period. There was an offsetting gain related to the fair market value adjustment on the 2025 warrants and the private warrants of $2.6 million. Additionally, there was an loss of $7.0 million fair market value adjustment of the 2026 and 2029 Notes Conversion Option, during the six months ended June 30, 2025. The decrease in fair value of derivatives during the three months ended June 30, 2024 relates to remeasurement of the 2024 Warrants and IPO Warrant's fair value. The increase in fair value of derivatives during the six months ended June 30, 2024, relates to the $42.3 million loss recorded upon the exercise of the 2023 RDO and 2023 PIPE Warrants (the '2023 Warrants') in connection with the warrant exercise agreements entered into on February 27, 2024 and March 4, 2024. This loss was offset by gains of $10.6 million, net of cash proceeds received, related to the issuance of warrants in 2024 (the '2024 Warrants'). In addition, an $18.3 million reduction in fair value was recorded on the 2024 Warrants issued in connection with the warrant exercise agreements as the fair value decreased from the issue date to quarter end. (3) During the three and six months ended June 30, 2025 and June 30, 2024, the Company incurred employee separation costs associated with a strategic review of the Company's capacity and future projections to better align the organization and cost structure and improve the affordability of its products and services. (4) Non-recurring professional fees related to the execution of certain strategic initiatives of the Company. (5) Non-recurring litigation consists primarily of legal settlements and related fees for specific proceedings that we have determined arise outside of the ordinary course of business based on the following considerations which we assess regularly: (1) the frequency of similar cases that have been brought to date, or are expected to be brought within two years; (2) the complexity of the case; (3) the nature of the remedy(ies) sought, including the size of any monetary damages sought; (4) offensive versus defensive posture of us; (5) the counterparty involved; and (6) our overall litigation strategy. (6) Transaction expenses during the quarter ended March 31, 2024 consist primarily of diligence, legal and other related expenses incurred associated with the Pangiam acquisition. (7) Non-recurring internal integration costs related to the Pangiam acquisition. (8) During the three months ended March 31, 2024, the Company recognized a non-cash goodwill impairment charge primarily driven by a decrease in share price during the quarter compared to the share price of the equity issued as consideration for the purchase of Pangiam. During the six months ended June 30, 2025, the company recognized a non-cash goodwill impairment charge of $70.6 million, primarily driven by a change in forecast during the second quarter of 2025. (9) Loss on extinguishment of debt is related to voluntary conversions of the 2029 Notes to common stock and the related extinguishment of unamortized debt discount and debt costs. *EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP financial measures. See the 'Non-GAAP Financial Measures' section in this press release for additional information and reconciliations. Expand Forward-Looking Statements This release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the 'Securities Act'), the Securities Exchange Act of 1934 (the 'Exchange Act') and the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as 'believe,' 'may,' 'will,' 'estimate,' 'continue,' 'anticipate,' 'intend,' 'expect,' 'should,' 'would,' 'plan,' 'predict,' 'project,' 'potential,' 'seem,' 'seek,' 'future,' 'outlook,' and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding our industry, future events, and other statements that are not historical facts. These statements are based on current expectations and beliefs concerning future developments and their potential effects on us and should not be relied upon as representing BigBear's assessment as of any date subsequent to the date of this release. There can be no assurance that future developments affecting us will be those that we have anticipated. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including those relating to: changes in domestic and foreign business, market, financial, political, and legal conditions; the uncertainty of projected financial information; delays caused by factors outside of our control, including changes in fiscal or contracting policies or decreases in available government funding, including as a result of events such as war, incidents of terrorism, natural disasters, and public health concerns or epidemics; changes in government programs or applicable requirements; budgetary constraints, including any potential constraints as a result of recent or future federal government layoffs, including automatic reductions as a result of 'sequestration' or similar measures and constraints imposed by any lapses in appropriations for the federal government or certain of its departments and agencies, including government shutdowns or the ability of the U.S. federal government to unilaterally cancel a contract with or without cause, and more specifically, the potential impact of the U.S. DOGE Service Temporary Organization on government spending and terminating contracts for convenience; the failure of contracts comprising backlog to result in revenue due to changes in funding, terminations for convenience, or option periods going unexercised; the impact of tariffs or other restrictive trade measures; implementation of spending limits or changes in budgetary constraints; influence by, or competition from, third parties with respect to pending, new, or existing contracts with government customers; changes in our ability to successfully compete for and receive task orders and generate revenue under Indefinite Delivery/Indefinite Quantity contracts; our ability to realize the benefits of the strategic partnerships; risks that the new businesses will not be integrated successfully or that the combined companies will not realize estimated cost savings; failure to realize anticipated benefits of the combined operations; potential delays or changes in the government appropriations or procurement processes; our ability to remediate a material weakness in our internal control over financial reporting; risks regarding the market and our customers accepting and adopting our products, including future new product offerings; the high degree of uncertainty of the level of demand for, and market utilization of, our solutions and products; our ability to successfully execute and realize the benefits of joint ventures, channel sales relationships, partnerships, strategic alliances, subcontracting opportunities, customer contracts and other commercial agreements to which we are a party; and those factors discussed in the Company's reports and other documents filed with the SEC, including under the heading ' Risk Factors. ' If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from those projected by these forward-looking statements. There may be additional risks that we presently do not know or that we currently believe are immaterial which could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views as of the date of this release. We anticipate that subsequent events and developments will cause our assessments to change. However, we specifically disclaim any obligation to do so. Accordingly, undue reliance should not be placed upon the forward-looking statements. Non-GAAP Financial Measures The financial information and data contained in this press release is unaudited. Some of the financial information and data contained in this press release, such as EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin have not been prepared in accordance with United States generally accepted accounting principles ('GAAP'). To supplement our unaudited condensed consolidated financial statements, which are prepared and presented in accordance with GAAP in our press release, we also report certain non-GAAP financial measures. A 'non-GAAP financial measure' refers to a numerical measure of a company's historical or future financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in such company's financial statements. Non-GAAP financial measures should not be considered in isolation or as a substitute for the relevant GAAP measures and should be read in conjunction with information presented on a GAAP basis. Because not all companies use identical calculations, our presentation of non-GAAP measures may not be comparable to other similarly titled measures of other companies. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should not be considered measures of liquidity. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of certain items, as defined in our non-GAAP definitions below, which are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, even where similarly titled, limiting their usefulness for comparison purposes and therefore should not be used to compare performance to that of other companies. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP financial measures. We believe these non-GAAP financial measures provide investors and analysts with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key measures used by management to operate and analyze our business over different periods of time. EBITDA is defined as net loss before interest expense, interest income, income tax expense (benefit) and depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted for equity-based compensation, employer payroll taxes related to equity-based compensation, net increase in fair value of derivatives, restructuring charges, non-recurring strategic initiatives, non-recurring integration costs, non-recurring litigation, transaction expenses, goodwill impairment, and loss on extinguishment of debt. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of Revenue. Similar excluded expenses may be incurred in future periods when calculating these measures. believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expense and income items are excluded or included in determining these non-GAAP financial measures. Management uses EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin as non-GAAP performance measures which are reconciled to the most directly comparable GAAP measure, in the tables included in this release. The Company does not reconcile forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure (or otherwise describe such forward-looking GAAP measure) because it is not able to forecast the most directly comparable measure calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP amounts are not predictable, making it impracticable for the Company to forecast. As a result, no guidance for the Company's net (loss) income or reconciliation of the Company's Adjusted EBITDA guidance is provided. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a potentially significant impact on its future net income (loss). We present reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in the tables included in this release. is a leading provider of AI-powered decision intelligence solutions and services for national security, defense, travel, trade, and enterprise. Customers and partners rely on predictive analytics capabilities in highly complex, distributed, mission-based operating environments. Headquartered in McLean, Virginia, is a public company traded on the NYSE under the symbol BBAI. For more information, visit and follow on LinkedIn: @ and X: @BigBearai.
