BigBear.ai's stock has taken a sharp dive, dropping about 24% over four days, raising investor concerns about its performance and future prospects. This comes as the company revealed financial losses and insider sales that seem to overshadow the opportunity for investment. Money Morning brought attention to this notable decline, pointing out the company's recent financial disclosures.
The financials paint a concerning picture. In Q4 2024, BigBear.ai reported a hefty net loss of $108 million, largely due to a $93.3 million non-cash charge related to derivatives. Although the revenue rose by 8% to $43.8 million compared to the previous year, it still fell short of analyst expectations. The full-year 2024 figures are similarly grim, with the net loss ballooning to $257.1 million from just $60.4 million in 2023, as per reports from Nasdaq.
Looking to the future, BigBear.ai forecasts a full-year 2025 revenue between $160 million and $180 million, which misses the analyst projections of nearly $193.9 million. Additionally, the firm expects negative single-digit million figures in adjusted EBITDA, suggesting further operational losses. Moreover, insider selling following the earnings announcement has drawn concern, with entities linked to AE Industrial Partners offloading over 8.24 million shares, indicating a potential lack of confidence. This sentiment is echoed by several analysts, with Northland Capital Markets and Cantor Fitzgerald adjusting their ratings and price targets, respectively.