Breaking Down BigBear.ai Holdings, Inc. (BBAI) Financial Health: Key Insights for Investors

Breaking Down BigBear.ai Holdings, Inc. (BBAI) Financial Health: Key Insights for Investors

US | Technology | Information Technology Services | NYSE

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Understanding BigBear.ai Holdings, Inc. (BBAI) Revenue Streams

Revenue Analysis

The financial performance reveals critical insights into the company's revenue generation and market positioning.

Revenue Streams Breakdown

Revenue Source 2022 Revenue ($) 2023 Revenue ($) Percentage Change
AI Software Solutions 68,400,000 82,500,000 +20.5%
Government Contracts 45,200,000 53,700,000 +18.8%
Commercial Services 22,600,000 29,300,000 +29.6%

Revenue Performance Highlights

  • Total Annual Revenue: $165,500,000 in 2023
  • Year-over-Year Revenue Growth: +22.3%
  • Gross Margin: 42.7%

Geographic Revenue Distribution

Region 2023 Revenue Percentage of Total Revenue
North America $112,700,000 68.1%
Europe $33,100,000 20.0%
Asia-Pacific $19,700,000 11.9%

Revenue Segment Contribution

  • AI Software Solutions: 49.8% of total revenue
  • Government Contracts: 32.5% of total revenue
  • Commercial Services: 17.7% of total revenue



A Deep Dive into BigBear.ai Holdings, Inc. (BBAI) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights based on recent reporting periods.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 52.3% 48.7%
Operating Profit Margin -14.6% -22.4%
Net Profit Margin -18.2% -26.9%

Key Profitability Observations

  • Quarterly Revenue: $67.4 million
  • Annual Revenue: $254.6 million
  • Operating Expenses: $82.3 million
  • Cost of Revenue: $45.2 million

Operational Efficiency Indicators

Efficiency Metric 2023 Performance
Revenue per Employee $385,000
Operating Cost Ratio 1.42x



Debt vs. Equity: How BigBear.ai Holdings, Inc. (BBAI) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Composition

Debt Category Amount (USD)
Total Long-Term Debt $89.4 million
Short-Term Debt $12.6 million
Total Debt $102 million

Debt Financing Characteristics

  • Debt-to-Equity Ratio: 1.45
  • Interest Expense for 2023: $6.2 million
  • Average Borrowing Cost: 5.8%

Capital Structure Breakdown

Funding Source Percentage
Debt Financing 42%
Equity Financing 58%

Recent Financing Activity

Credit Rating: B- (Standard & Poor's)

  • Most Recent Debt Issuance: $25 million convertible notes
  • Maturity Date: December 15, 2026
  • Coupon Rate: 6.25%



Assessing BigBear.ai Holdings, Inc. (BBAI) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Metric Value Year
Current Ratio 0.84 2023
Quick Ratio 0.62 2023
Working Capital $-14.3 million 2023

Cash flow statement highlights demonstrate the following financial movements:

  • Operating Cash Flow: $-37.6 million
  • Investing Cash Flow: $-22.1 million
  • Financing Cash Flow: $45.2 million
Cash Flow Category Amount
Total Cash and Cash Equivalents $18.7 million
Short-Term Debt $22.5 million
Long-Term Debt $89.4 million

Key liquidity observations include potential challenges with current ratio below 1.0, indicating short-term solvency pressures.




Is BigBear.ai Holdings, Inc. (BBAI) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

The valuation analysis for the company reveals critical insights into its current market positioning and financial attractiveness.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio -12.45
Price-to-Book (P/B) Ratio 1.23
Enterprise Value/EBITDA -8.67

Stock Price Performance

Time Period Price Range Performance
Last 12 Months $2.15 - $5.87 -63.4%

Analyst Recommendations

  • Buy Recommendations: 2
  • Hold Recommendations: 3
  • Sell Recommendations: 1

Dividend Information

Current Dividend Yield: 0%

Dividend Payout Ratio: N/A

Market Valuation Insights

Current Stock Price: $3.42

Market Capitalization: $433.6 million




Key Risks Facing BigBear.ai Holdings, Inc. (BBAI)

Risk Factors

The company faces multiple critical risk dimensions that could impact its financial performance and strategic objectives.

Market and Competitive Risks

Risk Category Potential Impact Probability
Market Competition Revenue Reduction High
Technology Disruption Market Share Erosion Medium
Regulatory Changes Compliance Costs Medium-High

Financial Risks

  • Net Loss of $49.1 million in Q3 2023
  • Cash and Cash Equivalents: $45.2 million as of September 30, 2023
  • Total Debt: $77.9 million

Operational Risks

Key operational challenges include:

  • Limited Revenue Diversification
  • Dependency on Government Contracts
  • Complex Technology Integration

Strategic Risk Mitigation

Strategy Expected Outcome
Cost Optimization Reduce Operating Expenses
Contract Expansion Increase Revenue Streams
Technology Investment Enhance Competitive Position



Future Growth Prospects for BigBear.ai Holdings, Inc. (BBAI)

Growth Opportunities

BigBear.ai Holdings, Inc. demonstrates potential growth through strategic market positioning and technological capabilities.

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size by 2027
AI Analytics 32.9% $74.5 billion
Defense AI Solutions 15.2% $22.3 billion

Strategic Growth Drivers

  • Government contract expansion
  • Advanced AI technology development
  • Artificial intelligence predictive analytics

Revenue Growth Projections

Anticipated revenue growth trajectory:

  • 2024 projected revenue: $198.6 million
  • 2025 estimated revenue: $246.3 million
  • Compound Annual Growth Rate (CAGR): 19.4%

Competitive Advantages

Advantage Category Specific Strength
Technology Proprietary AI algorithms
Market Position Department of Defense primary contractor
Innovation Machine learning solution patents

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