BigBear.ai Holdings, Inc. (NYSE: BBAI) Faces Challenges Despite AI Innovations
- Dorothy D. Hayes, a director at BigBear.ai, sold 16,000 shares amid a significant share price drop and a wider-than-expected net loss reported in Q4 2024.
- The company projects revenues between $160 million and $180 million for 2025, with a negative adjusted EBITDA, raising concerns about its profitability trajectory.
- Despite the challenges, HC Wainwright analyst Scott Buck maintains a Buy rating for BigBear.ai, highlighting the company's potential in defense and intelligence sectors.
BigBear.ai Holdings, Inc. (NYSE:BBAI) is a key player in the field of AI-powered decision intelligence solutions. The company focuses on providing advanced analytics and AI-driven insights to enhance decision-making processes across various sectors, including government and defense. Despite its innovative offerings, BigBear.ai faces stiff competition from other technology firms in the AI and analytics space.
On March 12, 2025, Dorothy D. Hayes, a director at BigBear.ai, sold 16,000 shares of the company's common stock at $3.29 each. This transaction comes amid a challenging period for the company, as highlighted by a significant 25.2% drop in share price following the release of their fourth-quarter 2024 earnings. The earnings report revealed a wider-than-expected net loss of $108 million, a substantial increase from the previous year's loss of $21.3 million.
Despite securing key government AI contracts, BigBear.ai's outlook for 2025 remains concerning. The company projects revenues between $160 million and $180 million, with a negative adjusted EBITDA in the single-digit millions. This raises questions about its profitability trajectory, especially given the current financial metrics. The company's price-to-earnings (P/E) ratio is approximately -3.19, indicating negative earnings, while the price-to-sales ratio stands at about 5.89.
In the fourth quarter of 2024, BigBear.ai reported revenues of $43.8 million, which fell short of the Zacks Consensus Estimate by 19.09%. However, this still marked an 8% increase year over year. The company's shares have plummeted 30.8% year-to-date, contrasting with the Zacks Computer & Technology sector's decline of 9.7% and the Zacks Computers - IT Services industry's rise of 11% during the same period.
Despite these challenges, HC Wainwright analyst Scott Buck maintains a Buy rating for BigBear.ai, albeit with a reduced price target from $7 to $6. Buck remains optimistic about the company's long-term prospects, citing potential benefits from increased investments in sectors like border security, defense, and intelligence. Additionally, BigBear.ai has improved its financial position by de-leveraging through corporate actions, holding approximately $115 million in cash and reducing its debt-to-cash ratio from 4.0x to 1.2x.
| Symbol | Price | %chg |
|---|---|---|
| DCII.JK | 158400 | 0 |
| MLPT.JK | 32500 | 0 |
| TCS.BO | 3620.3 | 0 |
| TCS.NS | 3626.5 | 2.17 |
BigBear.ai Holdings, Inc. (NYSE:BBAI) Insider Sale and Financial Overview
- Chief Accounting Officer Ricker Sean Raymond sold 9,515 shares at $3.12 each, still holding 284,124 shares.
- Wall Street analysts have an average brokerage recommendation (ABR) of 2.00, indicating a Buy rating for BigBear.ai.
- Despite a negative P/E ratio of -3.99, BigBear.ai has a price-to-sales ratio of 5.59 and a low debt-to-equity ratio of 0.054.
BigBear.ai Holdings, Inc. (NYSE:BBAI) is a key player in the field of AI-powered decision intelligence solutions. The company is known for its innovative approach to enhancing defense capabilities, as demonstrated by its recent collaboration with Hardy Dynamics. This partnership aims to improve AI orchestration for U.S. Army drone swarm operations under Project Linchpin, highlighting BigBear.ai's commitment to national security.
On May 6, 2025, Ricker Sean Raymond, the Chief Accounting Officer of BigBear.ai, sold 9,515 shares of the company's common stock at $3.12 each. Despite this sale, he still holds 284,124 shares. This transaction is publicly documented on the SEC website. Such insider activities can sometimes influence investor sentiment, especially when combined with analyst ratings.
Wall Street analysts have shown optimism towards BigBear.ai, with an average brokerage recommendation (ABR) of 2.00, indicating a Buy rating. Among the four contributing brokerage firms, two have given a Strong Buy recommendation. This positive sentiment could potentially impact the stock's price, as media reports about rating changes often do.
Despite a negative price-to-earnings (P/E) ratio of -3.99, BigBear.ai's price-to-sales ratio of 5.59 suggests that investors are willing to pay $5.59 for every dollar of sales. The enterprise value to sales ratio is 4.98, providing insight into the company's valuation relative to its revenue. However, the enterprise value to operating cash flow ratio is significantly negative at -26.17, indicating challenges in generating positive cash flow.
BigBear.ai's financial metrics reveal some difficulties, with a negative earnings yield of -25.05%. However, the company maintains a low debt-to-equity ratio of 0.054, indicating a relatively low level of debt compared to equity. Additionally, a current ratio of 1.66 suggests that BigBear.ai has a good level of liquidity to cover its short-term liabilities, providing some financial stability amidst its challenges.
BigBear.ai Holdings, Inc. (NYSE:BBAI) Faces Financial Challenges Amid Investigations
- BigBear.ai's Chief Accounting Officer sold 2,066 shares, amidst ongoing investigations into potential federal securities law violations.
- The company announced a delay in filing its annual 10-K report and will restate financial results for fiscal years 2022 and 2023, leading to a 14.9% drop in stock price.
- Financial metrics reveal significant challenges, including a negative price-to-earnings (P/E) ratio of approximately -2.88 and potential liquidity concerns with a current ratio of approximately 0.46.
BigBear.ai Holdings, Inc. (NYSE:BBAI) operates in the artificial intelligence and machine learning sector, offering data-driven decision-making solutions across various industries. Despite its innovative services, the company is currently facing significant financial challenges, highlighted by recent events and investigations.
On April 1, 2025, Ricker Sean Raymond, the Chief Accounting Officer of BigBear.ai, sold 2,066 shares of the company's common stock at $2.90 each. This transaction occurs amid ongoing investigations by Levi & Korsinsky and Pomerantz LLP into potential violations of federal securities laws by BigBear.ai. These investigations were triggered by the company's announcement on March 18, 2025, that it would delay filing its annual 10-K report and restate financial results for fiscal years 2022 and 2023.
The restatement of financial results is due to issues related to the accounting treatment of BigBear.ai's convertible notes due in 2026. This disclosure led to a 14.9% drop in the company's stock price, closing at $2.97 per share on March 18, 2025. The negative impact on the stock price reflects investor concerns about the company's financial health and transparency.
BigBear.ai's financial metrics further highlight its challenges. The company has a negative price-to-earnings (P/E) ratio of approximately -2.88, indicating a lack of profitability. Its price-to-sales ratio is about 5.39, suggesting that investors are paying a premium for each dollar of sales. The enterprise value to sales ratio is slightly lower at 5.14, reflecting the company's valuation, including debt.
Additionally, BigBear.ai's enterprise value to operating cash flow ratio is significantly negative at around -21.34, underscoring difficulties in generating positive cash flow from operations. The negative earnings yield of approximately -34.78% and a negative debt-to-equity ratio of about -4.24 further emphasize the company's financial struggles. The current ratio of approximately 0.46 suggests potential liquidity concerns, as it falls below the standard threshold of 1.
BigBear.ai (NYSE:BBAI) Earnings Preview: What to Expect
- BigBear.ai is projected to report a 33.54% increase in revenue year-over-year, with expectations set at approximately $54.17 million for Q4 2024.
- The company is expected to post an earnings per share (EPS) of -$0.05, showing an improvement from the previous year's loss.
- Despite revenue growth, BigBear.ai's financial health indicators such as the negative price-to-earnings (P/E) ratio and negative enterprise value to operating cash flow ratio highlight ongoing profitability and cash flow challenges.
BigBear.ai (NYSE:BBAI) is a company that specializes in artificial intelligence solutions, catering to both commercial and government sectors. As the company prepares to release its fourth-quarter 2024 earnings on March 6, 2025, Wall Street anticipates an earnings per share (EPS) of -$0.05 and revenue of approximately $54.6 million.
The company's revenue is projected to be $54.17 million, a 33.54% increase from the same quarter last year, as highlighted by Zacks. This growth is attributed to an expanding client base and increased government investment in AI solutions. Despite this, the expected loss per share remains at 5 cents, an improvement from the previous year's 14 cents per share loss.
Historically, BigBear.ai has had mixed results, missing the Zacks Consensus Estimate in two of the last four quarters, while exceeding it in the other two. This has resulted in an average negative earnings surprise of 60.72%. The company's negative price-to-earnings (P/E) ratio of -6.91 indicates ongoing losses, while a price-to-sales ratio of 7.65 suggests investors are willing to pay $7.65 for every dollar of sales.
The enterprise value to sales ratio is 8.55, reflecting the company's valuation in relation to its revenue. However, the enterprise value to operating cash flow ratio is significantly negative at -56.67, highlighting challenges in generating cash flow from operations. The earnings yield is -14.47%, further emphasizing the company's current unprofitability.
BBAI's debt-to-equity ratio of 2.09 indicates a higher level of debt compared to equity, while a current ratio of 2.06 suggests the company has a good level of liquidity to cover its short-term liabilities. As the earnings release approaches, investors will be keen to see if the company can meet or exceed expectations.
BigBear.ai's Financial and Stock Performance Analysis
- BigBear.ai has experienced significant stock price volatility since its SPAC merger, with a notable decline from its peak in April 2022.
- The company's financial metrics, including a negative P/E ratio of -6.65 and a debt-to-equity ratio of 2.00, highlight its financial challenges and reliance on debt.
- Despite these challenges, there's an optimistic outlook from some analysts predicting a potential rise in stock price to $7, amidst ongoing volatility and financial difficulties.
BigBear.ai, trading on the NYSE under the symbol BBAI, specializes in AI-oriented analytics tools. The company went public through a SPAC merger three years ago. Initially, the stock traded at $9.84 per share, reaching a high of $12.69 in April 2022. However, it later fell below $1 by the end of that year, raising concerns about its investment potential.
On January 3, 2025, Ricker Sean Raymond, the Chief Accounting Officer of BBAI, sold 2,067 shares at $4.03 each. Despite this sale, he still holds 247,903 shares. This transaction occurred amid a 7.48% decline in BBAI's stock price, reflecting ongoing volatility. The stock is currently trading around $5, with some analysts predicting a rise to $7.
BBAI's financial metrics reveal challenges. The company has a negative P/E ratio of -6.65, indicating losses. Its price-to-sales ratio is 7.32, showing investors pay $7.32 for every dollar of sales. The enterprise value to sales ratio is 8.23, reflecting its valuation relative to revenue. The negative enterprise value to operating cash flow ratio of -54.55 highlights cash flow issues.
Despite these challenges, BBAI's current ratio of 2.06 suggests it can cover short-term liabilities with short-term assets. However, the debt-to-equity ratio of 2.00 indicates reliance on debt for financing. The earnings yield of -15.04% further emphasizes financial difficulties. These factors contribute to the stock's volatility and investment uncertainty.
A Wall Street analyst's optimistic outlook, suggesting a potential rise to $7, contrasts with BBAI's current financial struggles. This mixed sentiment reflects the broader uncertainty surrounding the company's future performance and investment potential.
BigBear.ai (NYSE:BBAI) Experiences Stock Surge Amid Shareholder Sale
- BigBear.ai (NYSE:BBAI) sees a 19.3% increase in stock price despite significant shareholder sale.
- The company's financial metrics indicate challenges, with a negative P/E ratio of -6.53 and a price-to-sales ratio of 7.20.
- Investor optimism may be driven by external factors, including industry moves by competitors like Palantir and a broader market recovery for speculative stocks.
BigBear.ai (NYSE:BBAI) is a software company that specializes in artificial intelligence and machine learning solutions. It operates in a competitive landscape with companies like Palantir, which also focuses on AI-driven data analytics. Recently, BBAI Ultimate Holdings, LLC, a significant shareholder, sold 6,075,697 shares at $4.15 each, yet still retains a substantial holding of 64,157,821 shares.
Despite the sale, BBAI's stock is experiencing a notable surge, with a 19.3% increase as of Thursday afternoon. This rise is significant, especially when compared to the flat performance of the S&P 500 and a modest 0.1% increase in the Nasdaq Composite. The stock's rebound is part of a broader recovery among meme stocks, which faced bearish pressures due to macroeconomic concerns.
The recent surge in BBAI's stock price is likely influenced by news related to Palantir's defense industry plans, as highlighted by The Motley Fool. This development has positively impacted BBAI's valuation, despite the company's financial challenges. BBAI has a negative P/E ratio of -6.53, indicating ongoing losses, and a price-to-sales ratio of 7.20, showing investor willingness to pay a premium for its sales.
BBAI's financial metrics reveal some challenges. The enterprise value to sales ratio is 8.10, and the enterprise value to operating cash flow ratio is significantly negative at -53.69, indicating difficulties in generating cash flow. The earnings yield is -15.31%, further emphasizing financial struggles. However, the company maintains a strong liquidity position with a current ratio of 2.06.
The debt-to-equity ratio of 2.00 suggests that BBAI relies heavily on debt financing. Despite these financial hurdles, the recent stock price surge indicates investor optimism, possibly driven by external factors like Palantir's industry moves and a broader market recovery for speculative stocks.
BigBear.ai and SoundHound AI: A Comparative Analysis of Stock Performance
- BBAI Ultimate Holdings, LLC sold 2.86 million shares of BigBear.ai (NYSE:BBAI), leaving it with 70.39 million shares.
- BigBear.ai's stock price has seen a modest increase of 13.71% over the year, with a current market capitalization of approximately $784.3 million.
- SoundHound AI's stock price has surged approximately eightfold in 2024, significantly outperforming BigBear.ai with a market cap nearing $7 billion.
On December 18, 2024, BBAI Ultimate Holdings, LLC, a significant stakeholder in BigBear.ai (NYSE:BBAI), sold 2.86 million shares of the company's common stock at $3.59 each. This transaction leaves BBAI Ultimate Holdings, LLC with around 70.39 million shares. BigBear.ai operates in the competitive artificial intelligence sector, alongside companies like SoundHound AI.
BigBear.ai's stock price currently stands at $3.13, reflecting a decrease of 7.94% or $0.27. The stock has fluctuated between $2.99 and $3.82 today. Over the past year, it has seen a high of $4.80 and a low of $1.17. Despite these fluctuations, BigBear.ai's market capitalization is approximately $784.3 million.
In comparison, SoundHound AI has experienced a significant increase in its stock price, approximately eightfold throughout 2024, boosting its market cap to nearly $7 billion. BigBear.ai, on the other hand, has seen a more modest increase of 13.71% in its stock price. Both companies started the year with market caps below $1 billion.
BigBear.ai's trading volume on the NYSE is 70.3 million shares, indicating active investor interest. As the competition between BigBear.ai and SoundHound AI intensifies, investors are keenly observing their performance. Both companies are striving for superior market performance as they head into 2025.
