BigBear.ai Holdings, Inc. Q1 FY2026 earnings call

• Appreciation for servicemen and women and well wishes for allies and partners. - Focus on national security and trade and travel markets, with Q1 customer wins including a large classified sole source contract, contracts in trade and travel market, contracts in shipbuilding market, and generative AI platform contracts. - Priority of focusing on the operator, with realignment of teams and launch of integrated marketing campaign. - Priority of enhancing executional rigor, with strengthening of leadership team. - Priority of capitalizing on strategic acquisitions, with integrations of AskSAGE and CargoSeer on track and new capabilities launched by them.

Revenue for the first quarter of 2026 was $34.4 million, comparable to the first quarter of 2025. It was driven by increased revenue from Gen AI platforms and products resulting from the Assage acquisition, offset by lower volume on Army programs in the first quarter of 2025. Gross margin was 34% in the first quarter of 2026, an increase of almost 1,300 basis points compared to the first quarter of 2025. SG&A expenses in the first quarter of 2026 were $29.2 million versus $22.7 million in the comparable period. R&D expenses increased from $4.2 million in the first quarter of 2025 to $5.5 million in the first quarter of 2026. Net loss for the first quarter of 2026 was $56.8 million versus a net loss of about $62 million in the comparable period. Adjusted EBITDA for the first quarter of 2026 was negative $9.9 million versus negative $7 million in the comparable period. Ending backlog of about $282 million was closed in the first quarter of 2026, roughly a 14% increase from the fourth quarter of 2025.

Affirming outlook for 2026 of revenue between $135 million and $165 million.