BigBear.ai Stock Surges on Acquisition and Earnings Beat

BigBear.ai Holdings Inc. saw its stock soar 23% in pre-market trading following a dual announcement of stronger-than-expected Q3 earnings and a strategic $250 million acquisition of generative AI platform Ask Sage. The deal, expected to close by early 2026, brings $25 million in annual recurring revenue and prompted upward revision of 2025 guidance to $125-$140 million.

Despite a 20% year-over-year revenue decline to $33.1 million—attributed to reduced U.S. Army projects—the results surpassed analyst estimates of $31.81 million. The company narrowed its net loss to $0.03 per share, outperforming both consensus expectations of $0.07 and prior-year losses of $0.06.

Ask Sage's secure AI solutions for government clients complement BigBear.ai's defense sector focus, creating immediate market enthusiasm. The acquisition signals aggressive expansion into generative AI capabilities while maintaining Core government contracting revenue streams.