The revenue beat and raised guidance signal improving operational momentum, but the large goodwill impairment and GAAP EPS miss warrant caution. Monitor the Q4 2026 earnings call for clarity on the impairment's cause and any impact on future guidance.
Price Chart
Executive Summary
BigBear.ai reported Q3 2026 revenue of $43.6M, up 31% YoY, and raised FY 2026 revenue guidance to $150M-$165M. However, GAAP net loss was $(91.9)M driven by a $76.7M non-cash goodwill impairment, and the company reported a GAAP diluted EPS of $(0.19) versus consensus of $(0.06).
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $43.6M, up 31% YoY from $33.1M
- GAAP net loss of $(91.9)M, including a $76.7M non-cash goodwill impairment
- GAAP diluted EPS of $(0.19), versus consensus estimate of $(0.06)
- Raised FY 2026 revenue guidance to $150M-$165M from $135M-$165M
- Gross margin expanded 878 bps YoY to 31.2%
- Backlog grew 22% from Q2 2026 to $330M
- 25 new contract wins since Q2 2026 worth more than $225M in contract value
- Adjusted EBITDA improved slightly to $(9.1)M from $(9.4)M YoY
- Cash and investments totaled $286.8M as of September 30, 2026
Financial Impact
Revenue growth of 31% YoY and raised guidance are positive; however, a $76.7M goodwill impairment and a GAAP EPS miss of $(0.19) vs $(0.06) consensus create significant negative noise.
Risk Factors
- Goodwill impairment of $76.7M suggests potential overpayment for past acquisitions or deteriorating outlook for acquired assets
- GAAP EPS of $(0.19) significantly missed consensus of $(0.06), driven by non-cash charges
- Company remains unprofitable on both GAAP and adjusted EBITDA basis
- Backlog of $330M includes unexercised options and ceiling values; only 23% was funded
- Heavy reliance on government contracts subject to budget constraints and termination risk
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001836981-26-000088 |
| Document: bbai-20261027.htm | 0001836981-26-000088 |
| Document: 0001836981-26-000088-index-headers.html | 0001836981-26-000088 |
| Document: 0001836981-26-000088-index.html | 0001836981-26-000088 |
| Document: 0001836981-26-000088.txt | 0001836981-26-000088 |
| 8-K Data (Synthetic) | 0001836981-26-000088 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 4d ago | 8-K | No price | awaiting T+20 | awaiting T+20 | No price |
Oct 27, 2026 4d ago | 8-K | $2.46 | awaiting T+20 | awaiting T+20 | $2.60 (+5.69%) |
Aug 12, 2026 11w ago | Institutional Cluster | $3.26 $2.82 | ▼ −13.50% | ▼ −11.60% | $2.60 (−20.25%) |
Jun 11, 2026 20w ago | Institutional Cluster | $4.14 $3.32 | ▼ −19.81% | ▼ −21.70% | $2.60 (−37.20%) |
May 8, 2026 25w ago | 144 | No price | awaiting T+20 | awaiting T+20 | No price |
May 5, 2026 25w ago | 8-K | No price | awaiting T+20 | awaiting T+20 | No price |
Apr 10, 2026 29w ago | DEFA14A | No price | awaiting T+20 | awaiting T+20 | No price |
Mar 20, 2026 32w ago | DEFA14A | $3.68 $3.79 | ▲ +2.99% | ▼ −4.43% | $2.60 (−29.35%) |
Mar 19, 2026 32w ago | DEFA14A | $3.58 $3.84 | ▲ +7.26% | ▼ −2.06% | $2.60 (−27.37%) |
US Market Status
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