BigBear.ai Acquires Ask Sage, Projected Annual Revenue to Reach $25 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Fool
- Market Potential: Analysts are cautiously optimistic about BigBear.ai, with a 12-month target price set at $6.67, implying nearly 22% upside potential and up to 45% in bullish scenarios, reflecting confidence in the growing demand for its AI solutions in national security.
- Acquisition Impact: Following the acquisition of Ask Sage, BigBear.ai is projected to see annual recurring revenue increase sixfold to $25 million, which not only improves the company's revenue mix but also enhances its long-term margin profile and competitiveness in the government and defense sectors.
- Financial Position: BigBear.ai exited Q3 with $715 million in cash, demonstrating strong financial flexibility that allows for future platform development investments while managing macroeconomic volatility in 2026, ensuring sustained growth.
- Risk Factors: However, the company's heavy reliance on U.S. federal funding cycles and an expanded cost structure pose risks to the optimistic outlook, as management noted that parts of intelligence contracts were paused during the 2025 government shutdown, leading to temporary revenue and personnel losses, which could negatively affect investor sentiment if challenges persist.
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: 6.170
Low
5.00
Averages
6.50
High
8.00
Current: 6.170
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.
