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BigBear.ai Q3 Earnings Miss Estimates, Revenues Top, Stock Up
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Key Takeaways
BBAI posted a Q3 loss of $0.07 per share, wider than expected, as revenues fell 20% year over year.
Shares climbed 12.4% after BBAI agreed to acquire Ask Sage, a generative AI platform for defense.
The deal strengthens BBAI's position in secure, end-to-end AI solutions for national security growth.
BigBear.ai Holdings, Inc. (BBAI - Free Report) reported third-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines declined on a year-over-year basis.
Despite the mixed results, the company’s shares climbed 12.4% in the after-hours trading session yesterday. Positive investor sentiments were witnessed as BigBear.ai announced a definitive agreement to acquire Ask Sage, a fast-growing generative AI platform designed for secure deployment across defense, national security and other highly regulated sectors.
The move is expected to enhance the company’s presence in the defense technology ecosystem by combining Ask Sage’s expansive user base and advanced agentic AI capabilities with BigBear.ai’s established decision intelligence framework. Management highlighted that this integration will create a secure, end-to-end AI platform uniting software, data and mission services, catering directly to evolving market needs. The transaction is expected to close by late 2025 or early 2026.
Despite delays tied to the recent government shutdown, BigBear.ai remains optimistic about future growth opportunities in border security and defense, anticipating new contracts and accelerated spending under the “One Big Beautiful Bill.” The company underscored its strong positioning to deliver next-generation, secure AI solutions in support of national defense objectives.
BigBear.ai’s Q3 Earnings & Revenues
In the third quarter of 2025, BigBear.ai reported an adjusted loss per share of 7 cents, wider than the Zacks Consensus Estimate of a loss of 6 cents. In the prior-year quarter, the company reported an adjusted loss per share of 5 cents.
BigBear.ai Holdings, Inc. Price, Consensus and EPS Surprise
Quarterly revenues came in at $33.1 million, beating the Zacks Consensus Estimate of $31.1 million. The figure declined 20% from the $41.5 million reported in the prior-year quarter. The downside was caused by lower volume on certain U.S. Army programs.
Q3 Margins & Profitability of BigBear.ai
SG&A expenses in the third quarter came in at $25.3 million compared with $17.5 million reported in the prior-year quarter. This was caused by increased marketing spend, strategic initiatives and labor costs tied to the company’s transformation efforts.
During the quarter, gross profit totaled $7.4 million, compared with $10.8 million reported in the prior-year quarter. Gross margin came in at 22.4%, down from 25.9% in the year-ago quarter. The contraction reflected the absence of higher-margin programs recorded in 2024.
On an adjusted basis, EBITDA stood at $9.4 million, against $0.9 million reported in the prior-year quarter. The downside was attributed to higher Selling, general and administrative expenses (SG&A) and softer gross margins. Adjusted EBITDA margin stood at 28.4% against 2.3% reported in the prior-year period.
The company reported GAAP net income of $2.5 million, marking a sharp turnaround from a net loss of $15.1 million in the year-ago quarter. The improvement was primarily driven by non-cash derivative revaluation gains associated with convertible notes and warrants.
BigBear.ai’s Balance Sheet & Liquidity
The company ended the third quarter with a cash balance of $456.6 million, significantly up from $50.1 million at the end of 2024. During the quarter, long-term debt came in at $104.9 million compared with $135.4 million, reported as of December end.
The backlog stood at $376 million as of Sept. 30, 2025.
BigBear.ai’s 2025 Revenue Outlook
Management reaffirmed its 2025 revenue outlook of $125-$140 million.
CACI International Inc. (CACI - Free Report) reported better-than-expected results for the first quarter of fiscal 2026. It reported first-quarter non-GAAP earnings of $6.85 per share, which beat the Zacks Consensus Estimate by 10.48%. The bottom line increased 15.5% on a year-over-year basis, primarily driven by higher revenues and efficient cost management.
CACI surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 16.67%. In the first quarter of fiscal 2026, contract awards totaled $5 billion, with approximately 60% for new business. For fiscal 2026, CACI continues to anticipate revenues between $9.2 billion and $9.4 billion.
Sabre Corporation (SABR - Free Report) reported mixed results for the third quarter of 2025, wherein the top line surpassed the Zacks Consensus Estimate, while the bottom line missed the same. During the quarter, Distribution revenues increased 4% to $575 million, primarily driven by an increase in air and hotel distribution bookings, a favorable travel supplier mix and rate impacts, while IT Solutions’ revenues were $140 million, flat on a year-over-year basis.
For 2025, Sabre now expects its pro-forma revenues (which excludes the recently divested Hospitality Solutions business) to be flat year over year, down from the earlier prediction of a low single-digit percentage increase. For the fourth quarter, Sabre anticipates pro-forma revenue growth in the low single-digit percentage range.
Paycom Software, Inc. (PAYC - Free Report) reported lower-than-expected third-quarter 2025 results. The online payroll and human resource technology provider reported non-GAAP earnings of $1.94 per share, which missed the Zacks Consensus Estimate of $1.96.
Paycom reported revenues of $493.3 million, which beat the consensus mark of $492.4 million. The top line increased 9.1% year over year, primarily benefiting from increased sales momentum, international expansion and artificial intelligence (AI) integration in its products. Paycom reiterated its revenue guidance for 2025, with revenues expected in the band of $2.045-$2.055 billion and adjusted EBITDA between $872 million and $882 million.
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BigBear.ai Q3 Earnings Miss Estimates, Revenues Top, Stock Up
Key Takeaways
BigBear.ai Holdings, Inc. (BBAI - Free Report) reported third-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The top and bottom lines declined on a year-over-year basis.
Despite the mixed results, the company’s shares climbed 12.4% in the after-hours trading session yesterday. Positive investor sentiments were witnessed as BigBear.ai announced a definitive agreement to acquire Ask Sage, a fast-growing generative AI platform designed for secure deployment across defense, national security and other highly regulated sectors.
The move is expected to enhance the company’s presence in the defense technology ecosystem by combining Ask Sage’s expansive user base and advanced agentic AI capabilities with BigBear.ai’s established decision intelligence framework. Management highlighted that this integration will create a secure, end-to-end AI platform uniting software, data and mission services, catering directly to evolving market needs. The transaction is expected to close by late 2025 or early 2026.
Despite delays tied to the recent government shutdown, BigBear.ai remains optimistic about future growth opportunities in border security and defense, anticipating new contracts and accelerated spending under the “One Big Beautiful Bill.” The company underscored its strong positioning to deliver next-generation, secure AI solutions in support of national defense objectives.
BigBear.ai’s Q3 Earnings & Revenues
In the third quarter of 2025, BigBear.ai reported an adjusted loss per share of 7 cents, wider than the Zacks Consensus Estimate of a loss of 6 cents. In the prior-year quarter, the company reported an adjusted loss per share of 5 cents.
BigBear.ai Holdings, Inc. Price, Consensus and EPS Surprise
BigBear.ai Holdings, Inc. price-consensus-eps-surprise-chart | BigBear.ai Holdings, Inc. Quote
Quarterly revenues came in at $33.1 million, beating the Zacks Consensus Estimate of $31.1 million. The figure declined 20% from the $41.5 million reported in the prior-year quarter. The downside was caused by lower volume on certain U.S. Army programs.
Q3 Margins & Profitability of BigBear.ai
SG&A expenses in the third quarter came in at $25.3 million compared with $17.5 million reported in the prior-year quarter. This was caused by increased marketing spend, strategic initiatives and labor costs tied to the company’s transformation efforts.
During the quarter, gross profit totaled $7.4 million, compared with $10.8 million reported in the prior-year quarter. Gross margin came in at 22.4%, down from 25.9% in the year-ago quarter. The contraction reflected the absence of higher-margin programs recorded in 2024.
On an adjusted basis, EBITDA stood at $9.4 million, against $0.9 million reported in the prior-year quarter. The downside was attributed to higher Selling, general and administrative expenses (SG&A) and softer gross margins. Adjusted EBITDA margin stood at 28.4% against 2.3% reported in the prior-year period.
The company reported GAAP net income of $2.5 million, marking a sharp turnaround from a net loss of $15.1 million in the year-ago quarter. The improvement was primarily driven by non-cash derivative revaluation gains associated with convertible notes and warrants.
BigBear.ai’s Balance Sheet & Liquidity
The company ended the third quarter with a cash balance of $456.6 million, significantly up from $50.1 million at the end of 2024. During the quarter, long-term debt came in at $104.9 million compared with $135.4 million, reported as of December end.
The backlog stood at $376 million as of Sept. 30, 2025.
BigBear.ai’s 2025 Revenue Outlook
Management reaffirmed its 2025 revenue outlook of $125-$140 million.
BBAI’s Zacks Rank & Peer Releases
BigBear.ai currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CACI International Inc. (CACI - Free Report) reported better-than-expected results for the first quarter of fiscal 2026. It reported first-quarter non-GAAP earnings of $6.85 per share, which beat the Zacks Consensus Estimate by 10.48%. The bottom line increased 15.5% on a year-over-year basis, primarily driven by higher revenues and efficient cost management.
CACI surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 16.67%. In the first quarter of fiscal 2026, contract awards totaled $5 billion, with approximately 60% for new business. For fiscal 2026, CACI continues to anticipate revenues between $9.2 billion and $9.4 billion.
Sabre Corporation (SABR - Free Report) reported mixed results for the third quarter of 2025, wherein the top line surpassed the Zacks Consensus Estimate, while the bottom line missed the same. During the quarter, Distribution revenues increased 4% to $575 million, primarily driven by an increase in air and hotel distribution bookings, a favorable travel supplier mix and rate impacts, while IT Solutions’ revenues were $140 million, flat on a year-over-year basis.
For 2025, Sabre now expects its pro-forma revenues (which excludes the recently divested Hospitality Solutions business) to be flat year over year, down from the earlier prediction of a low single-digit percentage increase. For the fourth quarter, Sabre anticipates pro-forma revenue growth in the low single-digit percentage range.
Paycom Software, Inc. (PAYC - Free Report) reported lower-than-expected third-quarter 2025 results. The online payroll and human resource technology provider reported non-GAAP earnings of $1.94 per share, which missed the Zacks Consensus Estimate of $1.96.
Paycom reported revenues of $493.3 million, which beat the consensus mark of $492.4 million. The top line increased 9.1% year over year, primarily benefiting from increased sales momentum, international expansion and artificial intelligence (AI) integration in its products. Paycom reiterated its revenue guidance for 2025, with revenues expected in the band of $2.045-$2.055 billion and adjusted EBITDA between $872 million and $882 million.