BigBear.ai Acquires Ask Sage, Adding $25M Annual Revenue Stream
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: Fool
- Limited Market Opportunities: With a market cap of less than $3 billion, BigBear.ai garners attention among small-cap AI stocks, yet investors remain cautious about its growth prospects, particularly regarding the unrealistic expectation of doubling by 2026.
- Key Contract: The company's contract with the U.S. Army for the GFIM-OE system aims to ensure that military personnel are properly manned, equipped, and resourced for missions, highlighting its significance in government clientele.
- Acquisition Strategy: In Q3, BigBear.ai acquired Ask Sage, a generative AI platform focused on national security, which is expected to contribute approximately $25 million in annual recurring revenue, enhancing its competitive position in the market.
- Revenue Growth Challenges: Despite soaring demand for AI, BigBear.ai's revenue declined by 20% year-over-year in Q3 2025, raising significant red flags for investors and indicating the company's struggle to capitalize on the current AI boom.
BBAI
$5.73+Infinity%1D
Analyst Views on BBAI
Wall Street analysts forecast BBAI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BBAI is 6.50 USD with a low forecast of 5.00 USD and a high forecast of 8.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 6.030
Low
5.00
Averages
6.50
High
8.00
Current: 6.030
Low
5.00
Averages
6.50
High
8.00
About BBAI
BigBear.ai Holdings, Inc. is a provider of artificial intelligence (AI)-powered decision intelligence solutions for national security, supply chain management and digital identity. The Company is a technology-led solutions organization, providing both software and services to its customers. It combines subject-matter expertise with technology to connect the enterprise, provide insights on process performance and recommendations for managing risk. It offers computer vision, anomaly/event detection, and descriptive and predictive analytics to support operations and break down silos between vendors and systems. The Company’s customers span the public and private sector, including the United States defense and intelligence agencies, border protection, transportation security, manufacturing, distribution and logistics, as well as travel, entertainment and tourism. It also offers software assets that are tailored for digital identity and biometrics, leveraging advanced vision AI technology.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
