Shares of BigBear.ai Holdings (BBAI) are plunging 29.76% in pre-market trading on Tuesday, following the release of disappointing second-quarter 2025 financial results and a drastically lowered full-year guidance. The artificial intelligence and analytics firm reported earnings that fell far short of analyst expectations, triggering a significant sell-off.

BigBear.ai reported a quarterly loss of $0.71 per share, substantially wider than the analyst consensus estimate of a $0.06 loss. Revenue for the quarter came in at $32.47 million, missing analyst estimates of $41.17 million by 21.13% and representing an 18.38% decrease from the previous year. The company's net loss for the quarter widened dramatically to $228.6 million, compared to a $14.4 million loss in the same quarter last year, primarily due to derivative liabilities and goodwill impairment.

Adding to investor concerns, BigBear.ai slashed its financial outlook for the full year 2025, projecting revenue between $125 million and $140 million, down from the previous range of $160 million to $180 million. This forecast falls considerably short of Wall Street expectations of $167.7 million. Furthermore, the company withdrew its full-year Adjusted EBITDA guidance, citing uncertainty surrounding an Army program and anticipated growth investments in the second half of the year. CEO Kevin McAleenan attributed the revenue decline primarily to lower volume on certain Army programs, highlighting the challenges faced by the company in its federal contracts segment.