Can BigBear.ai Monetize Growth in Travel & Border Security AI?

BigBear.ai Holdings, Inc. BBAI is increasingly positioning itself at the intersection of AI, border security and global trade modernization. The key question for investors is whether its expanding footprint in travel and border security AI can translate into durable, monetizable growth.

Expanding Into Travel & Trade AI

In December, BigBear.ai announced the opening of its first Middle East office in Abu Dhabi, highlighting frictionless travel and trade as national security imperatives. The company has already established regional partnerships and signaled its intent to deploy AI-driven identity, screening and security solutions in the UAE and beyond.

This geographic expansion aligns with management’s articulated M&A focus on “Smart & Secure Travel & Trade,” targeting biometrics, computer vision and threat detection capabilities. As governments modernize border infrastructure and invest in AI-enabled passenger and cargo processing, BigBear.ai is seeking to capture early-mover advantage in a fragmented but fast-growing market.

Border Security Partnerships & Platform Leverage

The recent strategic partnership with C Speed integrates BigBear.ai’s ConductorOS with advanced radar systems to deliver AI-enabled border surveillance and real-time threat detection. This positions BigBear.ai at the edge of homeland security modernization, where AI orchestration and sensor fusion can enhance operational response times.

The acquisition of CargoSeer further strengthens its customs and cargo inspection capabilities by combining computer vision and trade data analytics to identify high-risk shipments. Together with the $250 million Ask Sage acquisition, which adds a secure, scalable generative AI platform already deployed across thousands of government teams, BigBear.ai now offers an integrated stack spanning data, AI agents and mission services.

Monetization will hinge on contract wins and scaling recurring revenue within DHS, defense and international border agencies. With backlog at $376 million as of third-quarter 2025 and a strengthened balance sheet following significant debt reduction, BigBear.ai appears better positioned to convert its travel and border AI strategy into sustained top-line growth—provided execution matches ambition.

Key Rivals in Travel & Border Security AI

Two major competitors relevant to BigBear.ai’s push into travel modernization and border security AI are Palantir Technologies PLTR and Leidos Holdings LDOS.

Palantir has built a strong position in government-focused AI analytics through platforms like Gotham, supporting intelligence, border enforcement, and threat detection missions. The company benefits from deep federal relationships and large-scale deployments, making Palantir a formidable rival as BigBear.ai expands its secure travel and trade solutions.

Leidos is another heavyweight in homeland security and defense technology, with extensive contracts across customs, border protection, and surveillance infrastructure. Leidos combines systems integration expertise with advanced AI-enabled security tools, placing Leidos in direct competition for next-generation border modernization programs.

Both Palantir and Leidos highlight the competitive intensity BigBear.ai faces as it works to monetize growth opportunities in travel, customs, and border security AI markets.

BBAI Stock’s Price Performance & Valuation Trend

Shares of this Virginia-based AI-powered decision intelligence solutions provider have trended downward by 23.5% in the past six months, underperforming the Zacks Computers - IT Services industry, the Zacks Computer and Technology sector, and the S&P 500 Index, as shown below.

BBAI’s 6-Month Price Performance

BBAI stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 10.58, as evidenced by the chart below.

BBAI’s P/S Ratio (Forward 12-Month) vs. Industry

EPS Trend of BBAI

BBAI’s bottom-line estimates for 2026 have remained unchanged at a loss per share of 25 cents over the past 60 days, indicating a year-over-year improvement, as shown below.
 

BigBear.ai stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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