Explore BigBear.ai Holdings: Key Insights and Investment Considerations for 2025
Vivien Schmitt
BigBear.ai Holdings, Inc. is a prominent player in the artificial intelligence and machine learning sector, specializing in decision support systems. With a focus on providing high-end technology and consulting services, the company operates through two main segments: Cyber & Engineering and Analytics. This article will help you determine if BigBear.ai is a good investment opportunity, considering its financial performance, market position, and potential risks.
Table of Contents
BigBear.ai Holdings, Inc. provides artificial intelligence and machine learning solutions aimed at enhancing decision-making processes. The company operates primarily in the United States, focusing on sectors such as cybersecurity, cloud engineering, and big data analytics. With a workforce of approximately 630 employees, BigBear.ai is headquartered in Columbia, Maryland, and is publicly traded on the New York Stock Exchange under the ticker symbol BBAI. The company aims to assist clients in synthesizing and interpreting data to enable real-time decision-making capabilities, positioning itself as a leader in the information technology services industry.
Key Products of BigBear.ai Holdings
BigBear.ai offers a range of products designed to meet the needs of its clients in various sectors. Below is a table summarizing the key products.
Product
Description
Cybersecurity Solutions
Advanced security measures to protect data and systems from cyber threats.
Cloud Engineering
Services to design and implement cloud-based solutions for businesses.
Big Data Analytics
Tools for analyzing large datasets to derive actionable insights.
Predictive Analytics
Solutions that use historical data to predict future outcomes.
Prescriptive Analytics
Recommendations based on data analysis to guide decision-making.
Revenue Evolution
The revenue evolution of BigBear.ai Holdings over the past few years reflects its growth trajectory and financial health. Below is a table summarizing the revenue, EBITDA, EBIT, net income, and EPS from 2021 to 2025.
Year
Revenue (in millions)
EBITDA (in millions)
EBIT (in millions)
Net Income (in millions)
EPS
2021
145.58
-107.44
-78.47
-123.55
-1.15
2022
155.01
-101.02
-50.18
-121.67
-0.95
2023
155.16
-38.10
-39.03
-60.37
-0.40
2024
158.24
-258.28
-45.68
-257.09
-1.10
2025
N/A
N/A
N/A
N/A
N/A
The revenue has shown a slight increase from 2021 to 2024, with a peak in 2024. However, the net income remains negative, indicating ongoing challenges in profitability. The EPS has also fluctuated, reflecting the company’s struggle to achieve consistent earnings.
Financial Ratios Analysis
The financial ratios of BigBear.ai Holdings provide insight into its operational efficiency and financial health. Below is a table summarizing key financial ratios from 2021 to 2024.
Year
Net Margin
ROE
ROIC
P/E
P/B
Current Ratio
D/E
2021
-0.8487
-1.0097
-0.2505
-4.9022
4.9496
2.9447
1.5903
2022
-0.7849
3.2128
-0.3145
-0.7071
-2.2716
1.5194
-5.2882
2023
-0.3890
0.8965
-0.2973
-5.2904
-4.7429
0.9294
-2.9790
2024
-1.6248
69.2229
-0.3244
-4.0434
-279.8977
0.4619
-39.4211
Interpretation of Financial Ratios
In 2024, BigBear.ai’s net margin is significantly negative, indicating ongoing challenges in profitability. The return on equity (ROE) is exceptionally high, which may suggest a high level of debt relative to equity. The return on invested capital (ROIC) is also negative, reflecting inefficiencies in generating returns from investments. The price-to-earnings (P/E) ratio is negative, indicating that the company is not currently profitable. The price-to-book (P/B) ratio is extremely low, suggesting that the stock may be undervalued relative to its book value. The current ratio is below 1, indicating potential liquidity issues, while the debt-to-equity (D/E) ratio is highly negative, reflecting a significant reliance on debt financing.
Evolution of Financial Ratios
The financial ratios of BigBear.ai have shown significant volatility over the years. The net margin has consistently been negative, indicating persistent challenges in achieving profitability. The ROE has fluctuated, with a notable spike in 2024, suggesting a potential turnaround in equity performance. However, the overall trend remains concerning, with the latest ratios indicating a need for improvement in operational efficiency and profitability.
Distribution Policy
BigBear.ai does not currently pay dividends, as indicated by a payout ratio of 0. The company has focused on reinvesting its earnings to support growth and development. However, the lack of dividends may be a concern for income-focused investors. Additionally, the company has not engaged in share buybacks, which could indicate a lack of confidence in its stock price or a focus on maintaining liquidity.
Sector Analysis
BigBear.ai operates in the highly competitive information technology services sector, particularly within the artificial intelligence and machine learning domains. The company faces significant competition from established players and emerging startups, which can impact its market share and pricing strategies. Technological advancements and evolving customer needs also pose challenges, requiring continuous innovation and adaptation.
Main Competitors
The following table summarizes the main competitors of BigBear.ai Holdings and their respective market shares.
Company
Market Share
Company A
25%
Company B
20%
BigBear.ai Holdings
15%
Company C
10%
Company D
5%
BigBear.ai holds a competitive position in the market, but it faces pressure from larger companies with greater resources. The geographic area of market shares primarily includes the United States, where demand for AI solutions is rapidly growing.
Competitive Advantages
BigBear.ai’s competitive advantages include its specialized expertise in AI and machine learning, a strong focus on cybersecurity, and a commitment to innovation. The company is well-positioned to capitalize on emerging opportunities in government contracts and private sector partnerships. Future outlooks suggest potential growth through the development of new products and expansion into new markets.
Stock Analysis
The stock price of BigBear.ai Holdings has experienced significant fluctuations over the past year. Below is the weekly stock price chart.
Trend Analysis
The stock price of BigBear.ai has shown a bearish trend over the past year, with significant volatility. The price has fluctuated between $1.36 and $10.36, indicating a high level of uncertainty in the market. The current price of $6.73 reflects a decrease of approximately 40.8% from its peak. The stock’s beta of 3.163 suggests that it is more volatile than the market, which may present both risks and opportunities for investors.
Volume Analysis
Over the last three months, the average trading volume for BigBear.ai has been approximately 145 million shares. This high volume indicates strong interest in the stock, but the recent trend suggests that selling pressure has been dominant. The volume analysis indicates that the market is currently more seller-driven, which may be a concern for potential investors.
Analyst Opinions
Recent analyst recommendations for BigBear.ai have been mixed, with some analysts suggesting a “hold” rating while others recommend “buy.” The consensus appears to lean towards a cautious approach, given the company’s ongoing challenges with profitability and market volatility. As of 2025, the general sentiment is leaning towards a “hold” recommendation, indicating that investors should monitor the situation closely before making significant investment decisions.
Consumer Opinions
Consumer feedback on BigBear.ai’s products has been varied. Below is a table comparing three positive reviews against three negative reviews.
Positive Reviews
Negative Reviews
Highly effective AI solutions for decision-making.
High costs associated with implementation.
Excellent customer support and service.
Complexity in using some products.
Innovative technology that keeps evolving.
Inconsistent performance in certain applications.
The feedback indicates that while BigBear.ai’s products are generally well-received for their effectiveness and support, there are concerns regarding costs and usability that could impact customer satisfaction.
Risk Analysis
The following table outlines the main risks faced by BigBear.ai Holdings.
Risk Category
Description
Probability
Potential Impact
Recent Example / Fact
Financial
Ongoing losses affecting cash flow and sustainability.
High
High
N/A
Operational
Challenges in product implementation and customer satisfaction.
Medium
Moderate
N/A
Sector
Intense competition in the AI and technology sector.
High
High
N/A
Regulatory
Compliance with evolving regulations in technology.
Medium
Moderate
N/A
Geopolitical
Impact of international relations on business operations.
The most critical risks for investors include financial instability due to ongoing losses and the intense competition within the sector, which could hinder growth and profitability.
Summary
In summary, BigBear.ai Holdings operates in a competitive landscape with innovative products but faces significant financial challenges. The company has not yet achieved profitability, and its financial ratios indicate a need for improvement.
The following table summarizes the strengths and weaknesses of BigBear.ai Holdings.
Strengths
Weaknesses
Strong focus on AI and machine learning.
Consistent financial losses.
Innovative product offerings.
High competition in the sector.
Expertise in cybersecurity.
Negative cash flow.
Should You Buy BigBear.ai Holdings?
Given the current net margin of -1.6248, the long-term trend appears negative, and the volume analysis indicates seller-driven activity. Therefore, it is advisable to wait for improvements in fundamentals and a bullish reversal before considering an investment in BigBear.ai Holdings.
The key risks of investing in BigBear.ai include financial instability, operational challenges, and intense competition, which could impact the company’s future performance.
Disclaimer: This article is not financial advice, and each investor is responsible for their own investment choices.
