BigBear.ai Holdings, Inc. (NYSE: BBAI) is building a stronger foundation of contracted business as demand for specialized AI solutions grows across national security, trade, and travel sectors.
The company ended the second quarter with a $270 million backlog, representing a 9% increase from year-end, signaling expanding customer adoption across its core markets.
BigBear.ai secured more than 20 new contracts during the quarter, with individual values of up to $5 million, adding to the momentum established earlier in the year.
A $53 million total contract value intelligence contract announced in the first quarter provided a significant boost to the company’s revenue pipeline and forward visibility.
This accumulating contract base supports BigBear.ai’s full-year 2026 top-line guidance of $135 million to $165 million, giving investors a clearer picture of near-term revenue potential.
Second-quarter revenues rose 13% year over year to $36.7 million, driven by growth in Gen AI platforms and products, offering an early sign that backlog conversion is underway.
Gross margin expanded to 32.8%, up 781 basis points, as the revenue mix shifted toward higher-margin Gen AI offerings, pointing to improving underlying business quality.
However, adjusted EBITDA came in at negative $11.6 million, compared with negative $8.5 million a year earlier, reflecting heavier investment in sales, go-to-market capabilities, and research and development.
BigBear.ai operates in a crowded competitive landscape, with Palantir Technologies (NASDAQ: PLTR) and C3.ai (NYSE: AI) representing the most directly comparable peers across defense, intelligence, and enterprise AI markets.
Palantir’s secure AI and platform capabilities overlap significantly with BigBear.ai’s mission-focused government applications, while C3.ai competes across a broader range of enterprise and government AI deployments.
Shares of BBAI have fallen 22.3% over the past six months, underperforming the Zacks Computers – IT Services industry by a notable margin amid broader investor caution.
The stock currently trades at a forward 12-month price-to-sales ratio of 8.93, representing a discount relative to its industry peers on that valuation metric.
The Zacks Consensus Estimate for BBAI’s 2026 loss per share has widened over the past 60 days, though the projected figure still reflects a narrower loss than the year-ago loss of 82 cents per share.
BigBear.ai currently carries a Zacks Rank of 4, which corresponds to a Sell rating, reflecting near-term caution around execution and profitability improvement timelines.
The pace at which the company’s $270 million backlog converts into recognized revenues will ultimately determine whether BigBear.ai can sustain and build on its current top-line growth trajectory.
