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AI Firm BigBear.ai Stumbles as Contracts Dry Up
21 Aug
Summary
- BigBear.ai's shares plunged 375% in the past year
- Q2 revenue fell 18%, earnings missed expectations
- Company lost contract work with U.S. Army
As of August 21, 2025, the shares of artificial intelligence (AI) firm BigBear.ai have taken a significant hit, plunging 375% over the past 12 months. The company, which specializes in AI-powered analytics software for defense, security, travel, and logistics applications, had previously seen a surge in investor interest amid the growing demand for AI solutions.
However, BigBear.ai's second-quarter results have brought the rally to a screeching halt. The company's revenue fell 18% compared to the same period last year, and its earnings missed analysts' expectations by a wide margin. Additionally, the firm revealed that it had lost some contract work with the U.S. Army, further dampening its growth prospects.
Despite the setback, BigBear.ai's CEO, Kevin McAleenan, remains optimistic, insisting that President Donald Trump's "big, beautiful bill" presents a massive opportunity for the company. He believes that BigBear.ai is in a prime position to capitalize on this opportunity. However, the company's poor business fundamentals, including its meager 2% revenue growth in 2024 and the 8% decline in revenue during the first six months of 2025, have cast doubt on its long-term growth potential.
