From Yahoo Finance: 2025-06-14 04:25:00

BigBear.ai, an AI software company, has struggled since its SPAC-backed market debut, citing macro and competitive challenges. Despite some recent positive signs, its future remains uncertain. The company’s revenue rose from $146 million in 2021 to $158 million in 2024, while net losses increased from $124 million to $257 million.

The company provides AI modules that analyze data and predict outcomes for edge networks. Challenges included a major customer bankruptcy, competition from larger firms, and fixed-price contracts limiting pricing adjustments. BigBear.ai had three CEOs in three years, with the latest, Kevin McAleenan, taking over in 2025.

Under new leadership, BigBear.ai secured more government contracts, leading to a backlog of $385 million. Analysts expect a 9% revenue growth rate from 2024 to 2026, but competition from larger AI companies like Palantir remains a concern. With a market cap of $1.1 billion, the stock may not be a bargain.

To achieve growth, BigBear.ai must navigate macroeconomic challenges and secure new contracts. Analysts project a 10% revenue growth rate over the next four years, potentially increasing the market cap by 25% by 2030. However, uncertainties remain, and the company’s weaknesses currently outweigh its strengths.

Read more: Where Will BigBear.ai Stock Be in 5 Years?