BigBear.ai(BBAI) - 2025 Q1 - Quarterly Report

Financial Performance - BigBear.ai reported revenues of $34.8 million for the three months ended March 31, 2025, representing a year-over-year increase of$ 1.6 million or 4.9% compared to $33.1 million in the same period of 2024[196][197]. - The operating loss for Q1 2025 was$ 21.2 million, an improvement from a loss of $98.1 million in Q1 2024[196]. - BigBear.ai's net loss for the three months ended March 31, 2025, was$ 62.0 million, compared to a net loss of $127.8 million in the same period of 2024[196]. - Free cash flow for Q1 2025 was a negative$ 8.3 million, an improvement from negative $16.0 million in Q1 2024, indicating better cash generation capabilities[215]. - The company reported a net loss before depreciation, amortization, and other non-cash items of$ 12.0 million for the three months ended March 31, 2025, compared to a net loss of $7.8 million in the same period of 2024[245][246]. Revenue and Cost Analysis - Cost of revenues for the same period was$ 27.4 million, up $1.2 million or 4.7% from$ 26.1 million in 2024, maintaining a cost of revenues as a percentage of total revenues at 79%[196][199]. - SG&A expenses increased to $22.7 million for the three months ended March 31, 2025, up 34.1% from$ 16.9 million in the same period of 2024, with SG&A as a percentage of revenues rising to 65% from 51%[200]. - Research and development expenses surged by $3.0 million to$ 4.2 million in Q1 2025, representing a 264.2% increase compared to $1.1 million in Q1 2024, driven by increased headcount and project timing[201]. - Restructuring charges rose to$ 1.7 million in Q1 2025, a 97.4% increase from $860,000 in Q1 2024, related to employee separation costs for strategic cost-saving initiatives[202]. Cash Flow and Financing Activities - The net cash provided by financing activities for the three months ended March 31, 2025, was$ 65.9 million, an increase of 29% from $51.0 million in the same period of 2024[248][249]. - The company sold 1,936,000 shares under the ATM Program for an aggregate offering price of$ 6.6 million during the three months ended March 31, 2025[228]. - The net proceeds from the exercise of the 2024 PIPE warrants and 2024 RDO warrants contributed $64.7 million to financing activities in Q1 2025[248]. - The company incurred capitalized software development costs of$ 1.5 million in Q1 2025, compared to $1.6 million in Q1 2024[247]. Debt and Backlog - Total debt decreased to$ 143.1 million as of March 31, 2025, down from $200.8 million as of December 31, 2024, reflecting a reduction of approximately 29%[230]. - Funded backlog represents the remaining contract value of goods and services to be delivered under existing contracts, providing insight into future revenue potential[219]. - As of March 31, 2025, total backlog was$ 384.9 million, down from $418.3 million as of December 31, 2024, representing a decrease of approximately 8%[221]. Strategic Initiatives and Acquisitions - The company completed the acquisition of Pangiam on February 29, 2024, enhancing its capabilities in vision AI and positioning it as a leader in operationalizing AI at the edge[176]. - The company anticipates that the global economic and geopolitical environment will drive long-term adoption of its AI offerings, despite potential funding shifts affecting defense spending[185]. Other Financial Metrics - Interest expense for the three months ended March 31, 2025, was$ 5.1 million, down from $6.4 million in the same period of 2024[196]. - Other income improved to a net loss of$ 276,000 in Q1 2025, a 39.3% reduction from a loss of $455,000 in Q1 2024, mainly due to increased interest income[207]. - A favorable change in net working capital of$ 5.4 million in Q1 2025 was driven by a decrease in accounts receivable of $4.3 million and an increase in accrued expenses of$ 4.4 million[245]. - Cash and cash equivalents at the end of the period for Q1 2025 were $107.6 million, up from$ 81.4 million at the end of Q1 2024, reflecting a 32% increase[244].