BigBear (BBAI) Soars 18% on Swing to Profit, AI Expansion

We recently published Market Beaters: 10 Stocks Defying the Odds. BigBear.ai Holdings, Inc. (NYSE:BBAI) is one of the best-performing stocks on Wednesday.

BigBear AI extended its winning streak to a fourth straight day on Wednesday, jumping 18.32 percent to close at $7.17 apiece after swinging to profitability in the third quarter and announcing plans to ramp up artificial intelligence adoption with the acquisition of a new company.

In a statement, BigBear.ai Holdings, Inc. (NYSE:BBAI) said it swung to a net income of $2.5 million in the third quarter of the year, reversing a net loss of $15 million in the same period last year, amid $26.1 million non-cash changes in derivative liabilities associated with changes in the fair value of the convertible features of the 2029 Notes and warrants.

Revenues, however, dropped by 20 percent to $33.14 million from $41.5 million year-on-year, primarily due to lower volume on certain Army programs.

For the full-year period, BigBear.ai Holdings, Inc. (NYSE:BBAI) reaffirmed its outlook of $125 million to $140 million in revenues.

In other developments, BigBear.ai Holdings, Inc. (NYSE:BBAI) announced plans to acquire Ask Sage, a generative AI platform designed specifically for defense and national security agencies and other highly-regulated sectors, for $250 million.

The new platform is expected to deliver non-GAAP annual recurring revenues of approximately $25 million this year.

“Ask Sage already supports more than 100,000 users on 16,000 government teams and across hundreds of commercial companies. It is a turnkey platform that’s in production today, at scale, in the environments that matter most,” said CEO Kevin McAleenan.

While we acknowledge the potential of BBAI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.