BigBear.ai Holdings, Inc. Q2 FY2025 earnings call

• Passage of the One Big Beautiful Bill provides $170 billion to DHS and $150 billion to DoD, with significant funding for border security, defense autonomy, shipbuilding, etc.
• Deployed biometric solutions at over 500 gates and 25 airports, and made progress with defense autonomy technology like ConductorOS.
• Supply chain management solutions like Shipyard AI are transforming industrial bases. International partnerships established in UAE and Panama.
• Strong balance sheet with $391 million in cash as of end of Q2 2025, first time total cash exceeds total debt.

Second quarter revenue was $32.5 million, a decrease of $7.3 million year-over-year, primarily driven by disruptions in Army programs. Gross margin for the second quarter of 2025 was 25% versus 27.8% for the comparable period. SG&A expenses decreased from $23.4 million in Q2 2024 to $21.5 million in Q2 2025. Net loss was $228.6 million, driven by changes in fair value of derivatives and a goodwill impairment charge. Adjusted EBITDA was negative $8.5 million versus negative $3.7 million in the comparable period.

• For full year 2025, revenue is projected between $125 million and $140 million.
• Adjusted EBITDA guidance is withdrawn due to reduced revenue outlook and increased investment spend profile for the second half of 2025.
• Plan to invest aggressively in organic growth, marketing, talent, innovation, partnerships, and strategic acquisitions.

• Contract disruptions from federal efficiency efforts, particularly with the U.S. Army as they consolidate and modernize data architecture.
• Government contracting timing risks impacting revenue outlook.