Shares of artificial intelligence (AI) company BigBear.ai Holdings (BBAI) are up 23% in pre-market trading after the release of solid Q3FY25 results and news of its acquisition of Ask Sage. BBAI agreed to acquire the generative AI platform for $250 million on November 10, aiming to strengthen BigBear.ai’s ability to provide secure AI solutions, especially for defense and national security.
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At the same time, BigBear.ai reported that Q3 revenue fell 20% year-over-year to $33.1 million because of reduced work on some U.S. Army projects. However, that figure exceeded analysts’ expectations of $31.81 million. Net loss was $0.03 per share, narrower than both the expected $0.07 loss and last year’s $0.06 loss, signaling improving operational efficiency.
Merger Synergies from the Ask Sage Deal
The Ask Sage merger is expected to close by early 2026. Ask Sage is projected to generate about $25 million in annual recurring revenue in 2025. BigBear.ai believes the merger will expand its addressable market and strengthen its foothold in regulated sectors such as defense and border security. The company now expects full-year 2025 revenue between $125 million and $140 million.
BigBear.ai focuses on providing AI-powered decision intelligence solutions for defense and national security sectors. This acquisition strengthens BigBear.ai’s AI platform by integrating Ask Sage’s secure, generative AI capabilities used by many government and defense teams, positioning the company for faster growth and better contract opportunities in regulated sectors.
What Is the Future of BBAI Stock?
Analysts remain divided on BigBear.ai’s long-term outlook. On TipRanks, BBAI stock has a Moderate Buy consensus rating based on two Buys and one Hold rating. The average BigBear.ai price target of $5.83 implies 2.1% upside potential from current levels. Year-to-date, BBAI stock has gained 28.3%.
Please note that these ratings were issued before the Q3 print and the Ask Sage news and are subject to change once analysts reassess the company’s financial and strategic outlook.
