BigBear.ai Holdings (BBAI) shares plummeted 20.36% in intraday trading on Friday, following the company's disappointing fourth-quarter earnings report and weaker-than-expected guidance for 2025.
The AI-powered decision intelligence solutions provider reported Q4 revenue of $43.8 million, up 8% year-over-year but falling short of analysts' estimates of $53.84 million. BigBear.ai also reported an adjusted loss per share of $0.43 for the quarter, significantly wider than the expected loss of $0.06.
Compounding investor concerns, the company issued underwhelming revenue guidance for the full year 2025. BigBear.ai projected revenue between $160 million and $180 million, well below the consensus estimate of $193.9 million. The firm also anticipates negative single-digit millions in adjusted EBITDA for 2025.
While BigBear.ai highlighted some positive developments, such as improved gross margins and a growing backlog, the weak Q4 results and lackluster outlook raised doubts about the company's growth prospects, leading to a steep sell-off in the stock.
In response, several analysts lowered their price targets and ratings on BBAI shares. Cantor Fitzgerald cut its target to $6 from $8 but maintained an "Overweight" rating, while Northland downgraded the stock to "Market Perform" from "Outperform" with a $4 target.
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