BigBear.ai (BBAI, Financial) has entered into a partnership with Hardy Dynamics to contribute to a U.S. Army project under the banner of Project Linchpin. This collaboration is set to occur as part of a Direct-to-Phase II SBIR contract awarded to Hardy Dynamics, with BigBear.ai acting as a subcontractor.
The aim of this partnership is to create AI technologies that enhance secure communication and cooperation among UAS swarms. BigBear.ai will utilize its ConductorOS platform in this development effort, aiming to provide advanced solutions for the Army's needs.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for BigBear.ai Holdings Inc (BBAI, Financial) is $4.00 with a high estimate of $6.00 and a low estimate of $1.50. The average target implies an upside of 29.45% from the current price of $3.09. More detailed estimate data can be found on the BigBear.ai Holdings Inc (BBAI) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, BigBear.ai Holdings Inc's (BBAI, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BigBear.ai Holdings Inc (BBAI, Financial) in one year is $1.26, suggesting a downside of 59.22% from the current price of $3.09. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BigBear.ai Holdings Inc (BBAI) Summary page.
BBAI Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BigBear.ai Holdings Inc (BBAI, Financial) reported a 5% year-on-year increase in revenue for Q1 2025, driven by additional revenue from the Department of Homeland Security and digital identity awards.
- The company secured a significant new contract with the Department of Defense, validating its AI capabilities and alignment with mission-critical needs.
- BigBear.ai Holdings Inc (BBAI) has a strong financial position with $108 million in cash and cash equivalents, providing financial flexibility for strategic investments.
- The company's backlog increased by 30% to $385 million, indicating continued customer confidence in its solutions.
- BigBear.ai Holdings Inc (BBAI) is strategically expanding into international markets and new domestic adjacencies, leveraging its core competencies and technologies.
Negative Points
- The company reported a net loss of $62 million for Q1 2025, although this was an improvement from the previous year's net loss of $127.8 million.
- Adjusted EBITDA was negative $7 million for Q1 2025, primarily due to increased R&D expenses and government funding delays.
- Gross margin showed only a slight improvement, with adjusted gross margin decreasing from 29.1% in Q1 2024 to 28.6% in Q1 2025.
- There are potential short-term risks due to changes in federal procurement processes and government efficiency efforts, causing temporary variability and delays in funding.
- The company faces challenges in maintaining consistent revenue growth due to the lumpiness and fluctuation in contract awards and milestone achievements.
