BigBear.ai Backlog Jumps 14% to $281.9M with $53M Intelligence Contract
BBAI•BigBear.ai's backlog climbed 14% to $281.9 million, propelled by a new $53 million sole-source intelligence contract, while gross margin surged 1,300 basis points to 34%. LTM revenue of $127 million remained flat year-over-year; operating margin deepened to -68.3%, yet management reaffirmed 2026 revenue guidance of $135 million to $165 million.
1. Backlog Growth and New Contracts
BigBear.ai’s backlog increased by 14% to $281.9 million, highlighted by a new $53 million sole-source contract with an intelligence agency, signaling stronger future revenue visibility. Management views this contract as a key milestone in building recurring, high-value engagements within national security and commercial sectors.
2. Margin Improvements
Gross margin expanded by 1,300 basis points year-over-year to 34%, driven by software integrations from recent acquisitions such as Ask Sage and a renewed focus on high-margin AI offerings. This margin expansion underscores management’s initiative to shift from scale-driven revenue to profitability-focused growth.
3. Financial Performance and Outlook
Last twelve months revenue held at $127 million, reflecting a 0.9% year-over-year decline, while operating margin stayed deeply negative at -68.3%. Despite these challenges, management reaffirmed full-year 2026 revenue guidance of $135 million to $165 million, aiming to deliver 17% growth at the midpoint and compress the forward P/S multiple to 14x.
