Is BigBear.ai Stock a Buy Now?

• BigBear.ai's banal is up considerably implicit the past year, adjacent though its income person declined.

• Federal spending cuts person shrunk the company's revenue, but absorption expects its apical enactment to caput backmost up adjacent year.

• BigBear.ai's equilibrium expanse is solid, but it inactive isn't profitable.

• 10 stocks we similar amended than BigBear.ai ›

Businesses progressive successful the artificial quality (AI) inclination saw their stock prices emergence for overmuch of 2025 arsenic a big of factors drove dense spending connected the technology. Among the companies propelled by that tailwind was BigBear.ai (NYSE: BBAI); with its government-focused AI solutions, it appeared peculiarly good positioned to benefit.

As of Friday, the company's shares were trading successful the vicinity of $5.40 -- up astir 160% implicit the past 12 months. However, the banal is besides good disconnected the 52-week precocious of $10.36 it reached successful February, and down by astir 40% from wherever it peaked successful October.

Does this selloff contiguous a buying opportunity? Or are the issues that drove the shares down coagulated reasons to enactment distant from BigBear.ai?

The national government's pledge aboriginal this twelvemonth to enactment home tech maturation helped boost BigBear.ai shares to their 52-week precocious successful February, but the banal terms has suffered since President Donald Trump made important cuts to national spending. As a effect of those cutbacks, BigBear.ai's gross plunged by 18% twelvemonth implicit twelvemonth to $32.5 cardinal successful the 2nd quarter, past dropped by 20% twelvemonth implicit twelvemonth successful Q3 to $33.1 million.

Now, though, determination are hopes for a top-line rebound. In November, BigBear.ai announced it was acquiring Ask Sage, a generative AI level built for nationalist information agencies and customers successful different highly regulated industries. That woody is expected to adjacent by aboriginal 2026.

Ask Sage supports 160,000 authorities teams, allowing them a unafraid mode to usage AI connected their delicate data. It's connected way to scope $25 cardinal successful yearly recurring gross this year, which volition beryllium a sixfold summation implicit 2024. BigBear.ai plans to merchantability Ask Sage solutions to its existing lawsuit basal and connection its ain solutions to Ask Sage's clientele.

Management besides sees opportunities to usage this acquisition to assistance it propulsion up of the competition.

"With unprecedented authorities AI investments expected successful 2026 and 2027, Ask Sage's existing accreditations and operational level volition springiness america a cardinal competitory advantage," explained BigBear.ai CEO Kevin McAleenan.

McAleenan besides expects much authorities spending "to materialize into contracts adjacent year" based connected Trump's "big, beauteous bill." That authorities provided monolithic backing increases to the Department of Homeland Security, which is simply a BigBear.ai customer.