BigBear.ai Holdings shares jumped 13% during early post-market trading on Monday after it reported better-than-expected third quarter financial results and announced the acquisition of Ask Sage.

Ask Sage is a generative artificial in platform for secure distribution of artificial intelligence models and agentic AI capabilities, built specifically for defense and national security agencies and other regulated sectors.

For the quarter ended September 30, BigBear.ai, the data and analysis solutions company, reported a GAAP loss per share of ($0.03) versus the consensus estimate of ($0.07).

Revenue for the quarter totaled $33.1M, which was more than the estimate of $31.82M. However, it reflected a year-over-year decline of $8.4M due to a lower volume of revenue from certain U.S. Army programs.

BigBear.ai said it has signed a definitive agreement to acquire Ask Sage for $250M. Ask Sage is expected to deliver $25M in annual recurring revenue in 2025, which is six times higher than its ARR one year prior.

"Today, I'm thrilled to announce that BigBear.ai has signed a definitive agreement to acquire Ask Sage, a cutting-edge and fast-growing Generative AI platform for secure distribution of AI models and agentic AI capabilities, built specifically for defense and national security agencies and other highly-regulated sectors," said BigBear.ai CEO Kevin McAleenan. "Ask Sage already supports more than 100,000 users on 16,000 government teams and across hundreds of commercial companies."

The acquisition is expected to close during the current quarter or the first quarter of 2026.

BigBear.ai CFO Sean Ricker said their company will continue to pursue its M&A strategy to drive growth.

Looking ahead, BigBear.ai reaffirmed its full-year guidance to range from $125M to $140M with a midpoint of $132.5M just below the $133M estimate.