In recent weeks, I’ve been using Chat GPT to hunt for small, promising companies. Palantir has shown that data analytics is an excellent business, and these companies are indeed collaborating.
Gpt:
“Yes, Palantir Technologies (PLTR) and BigBear.ai (BBAI) are collaborating. The companies announced a strategic partnership in 2021 to integrate their products. The goal is to combine Palantir’s Foundry platform with BigBear.ai’s AI solutions, such as forecasting, optimization, and decision-making support.”
In 2024, BBAI has received the following significant orders:
U.S. Army: $165 million contract for the development of the GFIM system.
FAA: Part of a $2.4 billion framework for IT services.
Denver Airport: Biometric veriScan™ system (price not disclosed).
Canadian Port Authority: Biometric passenger system (price not disclosed).
Melbourne Airport: AI trial “Project Dartmouth” (price not disclosed).
BBAI rose ~45% yesterday after the news below, and another deal came a week earlier. Earlier this year, the CEO also changed; Mandy Long previously and now Kevin McAleenan
The DOD contract involves BigBear.ai developing a Virtual Anticipation Network (VANE) prototype for the Chief Digital and Artificial Intelligence Office (CDAO).
BigBear.ai’s prototype will use custom AI models to improve the assessment of news originating from potential foreign adversaries.
BigBear.ai has been awarded an indefinite-delivery/indefinite-quantity (IDIQ) contract under the U.S. Navy’s SeaPort Next Generation (SeaPort NxG) program.
SeaPort NxG is the U.S. Navy’s contracting platform used for the procurement of technical, engineering, and professional services.
BigBear.ai will offer U.S. Navy systems and process engineering services as well as other technology solutions. However, it did not disclose the value of the contract.
I don’t know this company very well, and even for this answer, I had to Google more and check X, etc.
Of course, it’s a company focused on AI. It provides analytics and forecasting services for military and intelligence operations, so could this be its time?
The company is growing, but at least these latest figures were weaker than expected, especially regarding revenue and profit. The order book did grow significantly, but profitability has been a challenge and continues to be so. According to the company, it is investing in developing its technology and expanding its customer base, which they believe can create long-term opportunities.
Financially, BigBear.ai is in the midst of significant restructuring and more. Debt has been successfully reduced considerably by exchanging debt securities for longer maturities (I don’t know the specifics of these) and converting some into shares. With a stronger balance sheet, however, the company has the capacity for better growth, but people, especially regarding this company, seem to be monitoring its profitability.
This company appears on X and in industry-specific articles.
Big Bear Ai’s revenue grew slightly from the previous year. At the same time, the company managed to significantly reduce its long-term debt through a voluntary debt exchange program.
The company’s CEO, Kevin McAleenan, stated that the early signs of strategic focus are encouraging, especially in sectors where the company has strong relationships, a clear understanding of operations, and proven technologies.
The company reportedly continues to focus on leveraging market dynamics and executing planned operations.
BigBear AI’s revenue fell 18 percent from a year ago and also missed expectations, EPS significantly declined, in addition, this year’s revenue guidance was lowered, and furthermore, EBITDA guidance was canceled due to uncertainties.
Net loss increased despite one-time items, but the company emphasized in its statements a strong cash position and growth opportunities in the defense sector and international markets.
BigBear.ai:n osake nousi reippaasti, kun yhtiö kertoi esittelevänsä kehittyneitä tekoälyratkaisuja Yhdysvaltain laivaston Southern Commandille syys–lokakuussa järjestettävässä UNITAS 2025 -harjoituksessa.
Teknologia tukee päätöksentekoa, uhkien tunnistusta ja myös laajojen merialueiden valvontaa.
The company will collaborate with digital solutions provider SMX to showcase AI-powered capabilities designed to improve coordination, decision-making, and threat detection in maritime operations. UNITAS 2025, scheduled for September 15 through October 6, will bring together approximately 8,000 personnel from 26 nations, including participants from all branches of the U.S. military.
BigBear.ai’s stock rose just under 20 percent after the company announced a partnership with Tsecond to develop AI-powered edge infrastructure for military and critical operations.
By combining the ConductorOS and BRYCK platforms, the companies bring faster, secure data processing to the field, apparently even without a network connection, improving threat detection and decision-making.
Sahil Chawla, CEO of Tsecond, noted that the partnership “brings AI capabilities closer to the mission” by enabling faster situational awareness and more reliable operations at the edge.
BigBear.ai’s revenue decreased, but earnings turned from loss to profit thanks to cost savings and changes in some financial items (?). It went very well and expectations were exceeded.
The company announced it is acquiring Ask Sage, a rapidly growing generative AI platform that specifically serves the security and defense sector. According to the CEO, the acquisition creates a secure, integrated AI platform that combines data, software, and services… thereby strengthening BigBear.ai’s position at the core of defense technology.
This ask Sage is completely unknown to me. I need to delve deeper into that company and platform to understand its potential. Thanks for the summary @Sijoittaja-alokas
BigBear.ai stock rose as the company announced a memorandum of understanding (MOU) to develop Malaysia’s first AI-driven aerospace hub.
With various partners, the company will focus on AI-powered border security solutions and predictive analytics. The project supports the construction of Pahang Aerospace City and strengthens Malaysia’s aerospace sector.
BigBear.ai has been riding the AI hype, but the numbers aren’t all that great.
The company’s revenue fell by 20 percent in the third quarter, and at the same time, margins also weakened.
Free cash flow is deep in the red, and no real growth is in sight. The stock is expensive relative to the company’s performance, and based on the article below, one could conclude that it is better for an investor to stay on the sidelines at this point.
Not only does BigBear.ai appear to be a good stock to avoid right now, but I also think it’s a good example of how some investors are getting too caught up in the artificial intelligence boom. There are numerous companies generating substantial revenue and earnings from AI. By all means, buy some of those AI stocks and hold for the long term.
However, be cautious of investing in AI companies that sound promising but lack the financial fundamentals to support their rapidly rising share prices.
Key Points
BigBear.ai’s revenue fell 20% in the third quarter, following a pattern of declines.
The company’s margins are falling, and it has a negative free cash flow of $9.8 million.
To make matters worse, shares of the data analytics company are looking expensive.
BigBear.ai’s stock fell because members of the management team “disposed of their shares.” However, it was not a wave of selling; according to the article, shares were automatically withheld for tax payments in connection with the taxation of awards.
At the same time, the company is strengthening its finances by cutting its debt by well over a hundred million dollars, leaving only a fraction of the previous total debt amount.
The company expects to eliminate approximately $125 million of debt through a combination of voluntary conversions by noteholders and redemption of any remaining notes, reducing its total note-related debt from approximately $142 million to about $17 million.
The article below reports that BigBear.ai is attracting investor interest but carries significant risk factors; despite aiming for Palantir-like growth specifically from government clients, its revenue still declined and profitability weakened last year.
Customized solutions are keeping margins low.
The Ask Sage acquisition reportedly offers hope for more scalable technology, but for now, the investment remains risky due to weak growth and deepening losses.
BigBear.ai’s revenue fell, particularly as military projects decreased, and margins declined because exceptionally profitable contracts like those of the previous year were no longer secured.
Management highlights debt reduction, a strong cash position, internationalization, acquisitions, and growth expectations for next year.
The company believes its position is strengthening, especially in AI solutions where the public sector and security operators need help and support in a rapidly changing operating environment. According to management, demand is specifically targeted at practical + safely deployable solutions, where the company feels it is strong compared to many other competitors operating in the field.
Personally, I find it a major disappointment that no revenue growth is visible while the AI hype is ongoing. On a positive note, the backlog grew, but I would have hoped for even stronger growth there as well.
Growth is slow or non-existent in terms of revenue, but I think I’ll hold the stock in my portfolio for another year and see if the engine ever starts running.
