BigBear.ai Shares Plunge on Drastic Forecast Downgrade

Shares of defense artificial intelligence specialist BigBear.ai experienced a severe selloff after the company delivered disappointing quarterly results and slashed its annual outlook. The crisis appears to be driven primarily by issues with key U.S. Army contracts.

The most significant development came with BigBear.ai’s dramatically reduced forecast for fiscal year 2025. Management now anticipates revenue between $125 million and $140 million?a substantial cut from the previously projected range of $160 million to $180 million. The midpoint of this revised guidance suggests an annual decline of approximately 16 percent, signaling significant operational challenges ahead.

Q2 Performance Falls Short

The company’s second quarter 2025 financial results revealed mounting difficulties. BigBear.ai reported revenue of $32.5 million, which not only missed analyst expectations Read more...