Shares of BigBear.ai Holdings (NYSE: BBAI) tumbled 7.19% in pre-market trading on Friday, as investors reacted to the company's disappointing first-quarter 2025 financial results released after the market close on Thursday.

The artificial intelligence company reported a quarterly loss of $0.25 per share, significantly wider than the analyst consensus estimate of a $0.06 loss. This represents a 316.67% miss compared to expectations and a 13.64% decline from the same period last year. Revenue for the quarter came in at $34.76 million, missing the analyst estimate of $36.26 million by 4.15%. Despite the miss, this still represents a 4.94% increase from the $33.12 million reported in the same quarter of the previous year.

BigBear.ai's financial performance was further marred by a net loss of $61.986 million, substantially worse than the estimated loss of $15.1 million. Operating income also disappointed, coming in at a loss of $21.208 million compared to the expected loss of $11.8 million. Despite these challenges, the company affirmed its outlook for 2025, projecting revenue between $160 million and $180 million.

Kevin McAleenan, CEO of BigBear.ai, commented on the results, stating, "As we enter the second quarter, we are seeing early and encouraging signs that our strategic focus is resonating, particularly in sectors where we've built deep relationships, have a clear understanding of the mission, and are deploying proven technologies." However, investors seem to be focusing more on the current quarter's underperformance, as reflected in the sharp stock price decline in pre-market trading.