TLDR
- BigBear.ai stock climbed 23% in pre-market trading after releasing Q3 earnings and announcing a $250 million acquisition.
- Third-quarter revenue declined 20% to $33.1 million but surpassed Wall Street estimates of $31.81 million.
- The company’s quarterly loss of $0.03 per share beat expectations of a $0.07 loss.
- BigBear.ai will acquire Ask Sage, bringing $25 million in annual recurring revenue to the business.
- The company increased its 2025 revenue forecast to $125 million-$140 million following the acquisition news.
BigBear.ai shares soared 23% in pre-market activity on November 11, 2025. The AI company reported third-quarter financial results while unveiling plans for a game-changing acquisition.
The company announced it will purchase Ask Sage for $250 million. BigBear.ai disclosed the deal on November 10 with an expected close date in early 2026.
BigBear.ai Holdings, Inc., BBAI
Third-quarter revenue totaled $33.1 million. This represented a 20% decrease compared to $41.51 million in the year-ago period.
The revenue decline stemmed from reduced activity on several U.S. Army contracts. However, results still exceeded Wall Street’s forecast of $31.81 million.
BigBear.ai posted a loss of $0.03 per share for the quarter. This came in better than analyst predictions of a $0.07 loss.
The year-ago quarter saw a loss of $0.06 per share. The narrower loss demonstrates improving financial efficiency across operations.
Strategic Acquisition Targets Government Sector
Ask Sage generates roughly $25 million in annual recurring revenue. The generative AI platform specializes in secure solutions for government and defense customers.
The purchase strengthens BigBear.ai’s capabilities in regulated industries. Ask Sage currently works with numerous government agencies and defense organizations.
This established client network opens doors to fresh contract possibilities. The merger combines Ask Sage’s secure AI technology with BigBear.ai’s existing platform.
BigBear.ai updated its 2025 revenue projection after the announcement. The company now anticipates full-year revenue ranging from $125 million to $140 million.
Market Performance and Wall Street Outlook
BBAI stock has gained 28.3% so far this year. The performance beats the S&P 500’s 14.4% increase during the same stretch.
Wall Street analysts assign a Moderate Buy rating to the shares. The consensus stems from two Buy recommendations and one Hold rating.
Analysts set an average price target of $5.83. This implies approximately 2.1% upside potential from recent price levels.
These ratings were issued before the latest earnings and acquisition announcement. Analyst updates will likely arrive as they digest the new developments.
Looking ahead, Wall Street expects a $0.05 per share loss next quarter on revenue of $34.19 million. Full-year estimates call for a $1.10 loss per share with $132.54 million in revenue.
BigBear.ai has topped revenue forecasts in two of the last four quarters. The company competes in the Computers – IT Services industry, ranked in the top 28% of all sectors.
Transaction Details and Business Focus
The Ask Sage deal should finalize by early 2026. BigBear.ai provides AI-powered decision intelligence specifically for defense and national security clients.
The acquisition adds generative AI tools designed for highly regulated environments. These capabilities align with BigBear.ai’s core focus on government work.
Ask Sage’s technology operates in defense and border security applications. The combined company will pursue larger contracts in these specialized markets.
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