BigBear (BBAI) Soars 18% on Swing to Profit, AI Expansion

We recently published Market Beaters: 10 Stocks Defying the Odds. BigBear.ai Holdings, Inc. (NYSE:BBAI) is one of the best-performing stocks on Wednesday.

BigBear AI extended its winning streak to a fourth straight day on Wednesday, jumping 18.32 percent to close at $7.17 apiece after swinging to profitability in the third quarter and announcing plans to ramp up artificial intelligence adoption with the acquisition of a new company.

In a statement, BigBear.ai Holdings, Inc. (NYSE:BBAI) said it swung to a net income of $2.5 million in the third quarter of the year, reversing a net loss of $15 million in the same period last year, amid $26.1 million non-cash changes in derivative liabilities associated with changes in the fair value of the convertible features of the 2029 Notes and warrants.

Revenues, however, dropped by 20 percent to $33.14 million from $41.5 million year-on-year, primarily due to lower volume on certain Army programs.

For the full-year period, BigBear.ai Holdings, Inc. (NYSE:BBAI) reaffirmed its outlook of $125 million to $140 million in revenues.

In other developments, BigBear.ai Holdings, Inc. (NYSE:BBAI) announced plans to acquire Ask Sage, a generative AI platform designed specifically for defense and national security agencies and other highly-regulated sectors, for $250 million.

The new platform is expected to deliver non-GAAP annual recurring revenues of approximately $25 million this year.

“Ask Sage already supports more than 100,000 users on 16,000 government teams and across hundreds of commercial companies. It is a turnkey platform that’s in production today, at scale, in the environments that matter most,” said CEO Kevin McAleenan.

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Disclosure: None. This article is originally published at Insider Monkey.