We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BigBear.ai Q2 Earnings Call Puts Growth Execution and M&A in Focus
Read MoreHide Full Article
Key Takeaways
BigBear.ai kept 2026 revenue guidance at $135M-$165M as Q2 revenues rose 13% to $36.7M.
Backlog hit $269.6M, up 9% from year-end, after more than 20 new contracts during the quarter.
Management plans to scale Ask Sage and CargoSeer while pursuing accretive M&A with $410M in cash.
BigBear.ai Holdings, Inc. (BBAI - Free Report) used its second-quarter 2026 earnings call to emphasize execution, contract momentum and wider deployment of its AI products. Management also maintained full-year revenue guidance while highlighting backlog growth and margin expansion.
The second-half focus is on converting wins into revenues, scaling acquired capabilities and pursuing accretive M&A from a strong cash position.
BBAI Keeps 2026 Revenue Target Intact
The company remains on track for 2026 revenues of $135 million to $165 million, supported by customer wins and product traction.
BBAI’s second-quarter revenues rose 13% year over year to $36.75 million, topping the Zacks Consensus Estimate of $36.4 million. The reported loss of 4 cents per share came narrower than the consensus loss of 5 cents, producing a 20% surprise.
BigBear.ai Holdings, Inc. Price, Consensus and EPS Surprise
Gross margin reached 32.8%, up 781 basis points year over year, as higher-margin GenAI platforms and products represented a larger revenue mix.
BigBear.ai Points to Contract Momentum
CEO Kevin McAleenan said BigBear.ai won more than 20 new contracts in the quarter, with values ranging up to $5 million each. He also referenced the $53 million intelligence-customer contract announced in the first quarter.
Backlog reached $269.6 million at June 30, up 9% from year-end. CFO Sean Ricker tied the increase to wins across the company’s portfolio.
Management’s emphasis remained on specialized AI for complex, secure environments where mission knowledge and deployment capability are important to customers.
BBAI Leans Into Product Deployment
McAleenan highlighted CargoSeer’s five-year commercial deployment agreement in El Salvador following a 12-month pilot. The project is CargoSeer’s first deployment in Central America and combines cargo X-ray imagery, trade documents and structured data.
For Ask Sage, management cited a new win with Naval Air Systems Command and an expanded option for air-gapped and locally connected environments up to the top-secret level. The platform can support multiple AI models and data types without an external network.
The CEO also cited ConductorOS exercises in which one soldier controlled multiple drones from different vendors. At the Army’s Jailbreak event, the software connected a sensor and missile system that had not previously communicated.
BigBear.ai Keeps M&A at the Center
McAleenan said his two main second-half priorities are topline growth and finding accretive M&A targets with technologies that can be deployed rapidly at scale. He said Ask Sage and CargoSeer are fully integrated and performing well.
Ricker said BigBear.ai ended the quarter with about $410 million of cash and investments. Management plans to use that capital for new capabilities and acquisitions that can accelerate growth.
The CEO said the company will be deliberate with cash while remaining prepared to move aggressively when opportunities fit its strategy.
BBAI Absorbs Higher Growth Spending
Ricker said adjusted EBITDA was negative $11.6 million, versus negative $8.5 million a year earlier. The decline reflected investment in sales, go-to-market capabilities and research and development, partly offset by higher gross margin.
Selling, general and administrative expenses increased $10.4 million to $31.8 million. The company attributed the increase to Ask Sage amortization, legal and proxy costs, and higher sales and marketing spending.
The CFO also highlighted the July achievement of CMMC Level 2 certification ahead of schedule, presenting it as part of BigBear.ai’s broader push for execution rigor and customer trust.
BigBear.ai Emphasizes Execution in 2H 2026
McAleenan closed by reiterating the company’s focus on national security and trade and travel, supported by applied AI, mission expertise and deployment flexibility.
The second-half message centered on delivering revenue targets, scaling recent product wins and pursuing M&A without losing execution discipline. Management also wants to build momentum for stronger top-line growth in 2027.
BBAI’s Zacks Signals Remain Weak
BBAI currently carries a Zacks Rank #4 (Sell), while its Value, Growth, Momentum and VGM Score are each an F. Under the Zacks framework, F is the weakest grade in the A-to-F Style Score hierarchy, while a Zacks Rank of 4 indicates an unfavorable near-term earnings-estimate revision profile.
The Style Scores complement the Zacks Rank, with the strongest combinations generally involving a Zacks Rank #1 (Strong Buy) or 2 (Buy) and A or B Style Scores. BBAI’s current combination is therefore weak within that framework. The Zacks Rank can change as analysts revise earnings estimates following the newly reported results.
View the Zacks #1 Rank List
Image: Shutterstock
BigBear.ai Q2 Earnings Call Puts Growth Execution and M&A in Focus
Key Takeaways
BigBear.ai Holdings, Inc. (BBAI - Free Report) used its second-quarter 2026 earnings call to emphasize execution, contract momentum and wider deployment of its AI products. Management also maintained full-year revenue guidance while highlighting backlog growth and margin expansion.
The second-half focus is on converting wins into revenues, scaling acquired capabilities and pursuing accretive M&A from a strong cash position.
BBAI Keeps 2026 Revenue Target Intact
The company remains on track for 2026 revenues of $135 million to $165 million, supported by customer wins and product traction.
BBAI’s second-quarter revenues rose 13% year over year to $36.75 million, topping the Zacks Consensus Estimate of $36.4 million. The reported loss of 4 cents per share came narrower than the consensus loss of 5 cents, producing a 20% surprise.
BigBear.ai Holdings, Inc. Price, Consensus and EPS Surprise
BigBear.ai Holdings, Inc. price-consensus-eps-surprise-chart | BigBear.ai Holdings, Inc. Quote
Gross margin reached 32.8%, up 781 basis points year over year, as higher-margin GenAI platforms and products represented a larger revenue mix.
BigBear.ai Points to Contract Momentum
CEO Kevin McAleenan said BigBear.ai won more than 20 new contracts in the quarter, with values ranging up to $5 million each. He also referenced the $53 million intelligence-customer contract announced in the first quarter.
Backlog reached $269.6 million at June 30, up 9% from year-end. CFO Sean Ricker tied the increase to wins across the company’s portfolio.
Management’s emphasis remained on specialized AI for complex, secure environments where mission knowledge and deployment capability are important to customers.
BBAI Leans Into Product Deployment
McAleenan highlighted CargoSeer’s five-year commercial deployment agreement in El Salvador following a 12-month pilot. The project is CargoSeer’s first deployment in Central America and combines cargo X-ray imagery, trade documents and structured data.
For Ask Sage, management cited a new win with Naval Air Systems Command and an expanded option for air-gapped and locally connected environments up to the top-secret level. The platform can support multiple AI models and data types without an external network.
The CEO also cited ConductorOS exercises in which one soldier controlled multiple drones from different vendors. At the Army’s Jailbreak event, the software connected a sensor and missile system that had not previously communicated.
BigBear.ai Keeps M&A at the Center
McAleenan said his two main second-half priorities are topline growth and finding accretive M&A targets with technologies that can be deployed rapidly at scale. He said Ask Sage and CargoSeer are fully integrated and performing well.
Ricker said BigBear.ai ended the quarter with about $410 million of cash and investments. Management plans to use that capital for new capabilities and acquisitions that can accelerate growth.
The CEO said the company will be deliberate with cash while remaining prepared to move aggressively when opportunities fit its strategy.
BBAI Absorbs Higher Growth Spending
Ricker said adjusted EBITDA was negative $11.6 million, versus negative $8.5 million a year earlier. The decline reflected investment in sales, go-to-market capabilities and research and development, partly offset by higher gross margin.
Selling, general and administrative expenses increased $10.4 million to $31.8 million. The company attributed the increase to Ask Sage amortization, legal and proxy costs, and higher sales and marketing spending.
The CFO also highlighted the July achievement of CMMC Level 2 certification ahead of schedule, presenting it as part of BigBear.ai’s broader push for execution rigor and customer trust.
BigBear.ai Emphasizes Execution in 2H 2026
McAleenan closed by reiterating the company’s focus on national security and trade and travel, supported by applied AI, mission expertise and deployment flexibility.
The second-half message centered on delivering revenue targets, scaling recent product wins and pursuing M&A without losing execution discipline. Management also wants to build momentum for stronger top-line growth in 2027.
BBAI’s Zacks Signals Remain Weak
BBAI currently carries a Zacks Rank #4 (Sell), while its Value, Growth, Momentum and VGM Score are each an F. Under the Zacks framework, F is the weakest grade in the A-to-F Style Score hierarchy, while a Zacks Rank of 4 indicates an unfavorable near-term earnings-estimate revision profile.
The Style Scores complement the Zacks Rank, with the strongest combinations generally involving a Zacks Rank #1 (Strong Buy) or 2 (Buy) and A or B Style Scores. BBAI’s current combination is therefore weak within that framework. The Zacks Rank can change as analysts revise earnings estimates following the newly reported results.
You can see the complete list of today’s Zacks #1 Rank stocks here.