BigBear.ai Holdings (BBAI) shares tumbled 7.74% in pre-market trading on Tuesday following the company's announcement that it would need to restate several years of financial statements. The artificial intelligence software provider disclosed that it will have to revise its audited consolidated financial statements for the fiscal years ended December 31, 2022, and 2023, as well as interim financial statements for each quarterly period in 2023 and 2024.

The restatement is due to a change in the company's position on the interpretation and application of accounting guidance, particularly related to the accounting presentation of convertible debt due in 2026. Despite the extensive nature of the restatement, BigBear.ai emphasized that these changes are not expected to impact revenues, gross margin, adjusted EBITDA, or operating cash flows in any prior period. The company also stated that it is not revising its guidance for 2025, which was issued on March 6.

This news comes as another setback for BigBear.ai, whose stock has already declined by 59% in the past month amid a broader selloff in highly valued AI stocks. The company now expects to report revenues of about $158.2 million for 2024, slightly higher than the $155.2 million reported in 2023. However, BigBear.ai also anticipates a significant increase in its pre-tax loss, projecting approximately $296.1 million for 2024, compared to $71.3 million in 2023. The company has filed for a non-timely 10-K with the U.S. SEC, indicating it needs more time to complete its annual report for 2024.