BigBear.ai (NYSE:BBAI) shares tumbled after the company’s second quarter earnings fell short of estimates and it lowered its full year outlook.
The provider of AI-powered intelligence solutions posted Q2 revenue of $32.47 million, which missed estimates of $41.17 million. This marked an 18% year-over-year revenue decline driven mainly by lower volume on certain US Army programs.
The company also reported a loss per share of $0.71, far wider than the Street consensus of a loss per share of $0.06.
BigBear.ai cut its full-year 2025 revenue outlook to a range of $125 million to $140 million, down from its earlier guidance range of $160 million to $180 million. This was also below analyst estimates of around $167.95 million.
Further, the company withdrew its adjusted EBITDA guidance due to uncertainty surrounding federal contracts, especially disruptions tied to US Army efficiency initiatives aimed at consolidating and modernizing their data systems.
“While we are very optimistic with these significant investments and growth opportunities, we have also seen disruptions in federal contracts from efficiency efforts this quarter, most notably in programs that support the US Army, as they seek to consolidate and modernize their data architecture and in turn, we have adjusted our full-year guidance this quarter to reflect these disruptions,” BigBear.ai CEO Kevin McAleenan said in a statement.
Shares of BigBear.ai traded down 22% at about $5.50 following the release of its earnings report.