BigBear.ai Stock Plummets After Filing Delay, But Says Revenue Won’t Be Affected – Retail’s Skeptical

BigBear.ai (BBAI) shares fell as much as 13% in midday trading Tuesday after the artificial intelligence software provider announced it would delay filing its 2024 annual report and restate several years’ financials.

The company said the restatements are related to the accounting treatment of convertible debt due in 2026. 

However, it noted that the adjustments would not impact revenue, gross margin, or operating cash flows from prior periods.

BigBear.ai expects to report 2024 revenue of $158.2 million, up from $155.2 million in 2023, which aligns with its previous forecast. 

The company also projects a pretax loss of $296.1 million for 2024, wider than the $257.1 million loss it had previously reported. In 2023, it posted a pretax loss of $71.3 million.

The delay adds to a difficult period for the stock, which has lost 59% over the past month as traders have rotated out of high-valuation AI stocks.

BigBear.ai secured a significant government contract last week. The company announced a $13.2 million sole-source contract from the U.S. Department of Defense to support the chairman of the Joint Chiefs of Staff's Directorate for Force Management. 

The 3.5-year agreement will see BigBear.ai deliver and maintain the DoD Joint Staff J-35's ORION Decision Support Platform, which provides automated force management capabilities and data analytics for military planning.

On Stocktwits, retail sentiment around BigBear.ai’s stock remained in ‘bearish’ territory. 

One user argued the stock’s decline was unwarranted given BigBear’s recent contract wins and strong market positioning. 

Another suggested uncertainty in the U.S. could drive renewed demand for AI-related defense services.

BigBear.ai’s stock is down 33% this year, with gains of 25% over the past year. 

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