Shares of BigBear.ai Holdings (BBAI) 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 and delay filing its annual report for 2024. This development has raised concerns among investors about the artificial intelligence software provider's financial reporting and accountability.

BigBear.ai disclosed that it will need to restate 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 company attributed this restatement to a change in position on the interpretation and application of accounting guidance, particularly related to the accounting presentation of convertible debt due in 2026. Despite the restatements, BigBear.ai emphasized that these changes are not expected to impact revenues, gross margin, adjusted EBITDA, or operating cash flows in any prior period.

While the company attempts to reassure investors, the market reaction suggests ongoing concerns. BigBear.ai expects to report revenues of approximately $158.2 million for 2024, slightly up from $155.2 million in 2023. However, the company also anticipates a significant increase in its pre-tax loss, projecting $296.1 million for 2024 compared to $71.3 million in 2023. This substantial widening of losses, combined with the need for financial restatements, has likely contributed to the sharp pre-market decline. As BigBear.ai works to address these accounting issues and file its delayed annual report, investors will be closely monitoring the situation for any further developments that could impact the company's financial standing and market position.