BigBear.ai Shares Plummet After Disappointing Earnings Report

BigBear.ai Holdings Inc. (BBAI) saw its stock price collapse by 20% following a disastrous Q2 earnings miss. The defense-focused AI company posted a $0.71 per-share loss on $32.5 million revenue - far below Wall Street's expectations of $0.06 loss on $40.6 million revenue. Year-over-year sales declined 18%.

Management slashed full-year guidance dramatically, now projecting $125-$140 million revenue versus prior $160-$180 million estimates. CEO Kevin McAleenan blamed federal contract disruptions, though pointed to potential growth from new Department of Homeland Security funding authorizations.

The selloff highlights growing divergence in AI markets. While infrastructure providers like Nvidia and Microsoft thrive, end-user applications face mounting execution risks. BigBear's deteriorating financial position - with mounting losses, negative cash flows, and concerning debt levels - makes this one of the sector's more speculative plays.