BigBear.ai Announces Fourth Quarter, And Full Year 2024 Results, And Provides 2025 Outlook

• 4Q 24 revenue of $43.8 million (4Q 23 $40.6 million) +8% year-over-year
• Exchanged $182.3 million in 6.00% convertible senior notes due in 2026 for 6.00% convertible senior secured notes due in 2029; $58 million has already converted into equity since the end of 4Q 24 resulting in $142.3 million remaining debt on convertible notes.
• Cash balance of $50.1 million, as of December 31, 2024; During 1Q 25, received gross proceeds of $64.7 million of cash, following the exercise of previously issued warrants; combined with $58 million of conversions on convertible debt, net debt1 has decreased from $150 million to $27 million and debt-to-cash ratio2 has decreased from 4.0 to 1.2 since the end of 4Q 24.
• 2025 Outlook provided between $160 million - $180 million revenue, and negative single digit Adjusted EBITDA*

MCLEAN, Va.: BigBear.ai Holdings, Inc. (NYSE: BBAI) (“BigBear.ai” or the “Company”), a leader in AI-powered decision intelligence solutions, today announced financial results for the fourth quarter of 2024 and issued an investor presentation that has been posted to the Investor Relations section of the Company’s website.

“2024 was a pivotal year for the business. We demonstrated momentum through major contract wins, expanding our backlog and growing our pipeline, maturing our technology portfolio, and restructuring our debt to strengthen our financial position for the long term. These efforts were driven by strong execution from our team,” said Kevin McAleenan, Chief Executive Officer, BigBear.ai.

“On the financial front, we’ve kicked off the first quarter of 2025 by significantly deleveraging our balance sheet. Through a combination of cash proceeds from warrant exercises and debt reductions resulting from conversions on our convertible notes, we’re in a strong position for growth in 2025 and beyond,” said Julie Peffer, Chief Financial Officer, BigBear.ai.

Financial Highlights

• Revenue increased 8% to $43.8 million for the fourth quarter of 2024, compared to $40.6 million for the fourth quarter of 2023 primarily due to additional revenue related to Department of Homeland Security and Digital Identity awards.
• Gross margin was 37.4% in the fourth quarter of 2024 as compared to 32.1% in the fourth quarter of 2023, primarily driven by year-end fringe and overhead true-up allocation adjustments in 4Q 24 of $2.7 million with an offsetting increase in SG&A expenses.
• Primarily driven by the non-cash changes in fair value of $93.3 million from derivative liabilities related to the 2029 convertible notes and warrants, net loss in the fourth quarter of 2024 was $108.0 million, compared to $21.3 million for the fourth quarter of 2023.
• Non-GAAP Adjusted EBITDA* of $2.0 million for the fourth quarter of 2024 compared to $3.7 million for the fourth quarter of 2023, primarily driven by increased Recurring SG&A*.
• SG&A of $22.2 million for the fourth quarter of 2024 compared to $18.2 million for the fourth quarter of 2023 and Recurring SG&A* of $18.0 million in the fourth quarter of 2024 compared to $12.3 million in the fourth quarter of 2023. The year-over-year increases include Pangiam’s headcount and operating expenses not included in the fourth quarter of 2023 as well as year-end fringe and overhead true-up allocation adjustments of $2.7 million in the fourth quarter of 2024 which are offset in improved gross profit.
• Ending backlog was $418 million as of December 31, 2024, an increase of $250 million or 2.5x ending backlog as of December 31, 2023.
• The consolidated year-to-date results include results from Pangiam from the acquisition date of February 29, 2024 to December 31, 2024.

Financial Outlook

For the year-ended December 31, 2025, the Company projects:

• Revenue between $160 million and $180 million
• Adjusted EBITDA* — negative single digit millions

In the event that some form of US Government shutdown was to take place in 2025, or a substantial shift in government national security priorities, BigBear.ai would review its guidance as part of prudent financial planning and its efforts to build a long-term sustainable business.

The above information on Outlook, and other sections of this release contain forward-looking statements, which are based on the Company’s current expectations. Actual results may differ materially from those projected. It is the Company’s practice not to incorporate adjustments into its financial outlook for proposed acquisitions, divestitures, changes in law, or new accounting standards until such items have been consummated, enacted, or adopted, as the case may be. For additional factors that may impact the Company’s actual results, refer to the “Forward-Looking Statements” section in this release.