BigBear.ai Holdings' stock plummeted 7.48% in after-hours trading on Tuesday after the company reported its first quarter 2026 financial results.

The artificial intelligence and analytics provider reported revenue of $34.435 million for the quarter, which exceeded analyst expectations of $33.60 million. However, the company posted a net loss of $56.763 million, or $0.12 per share, and an operating loss of $24.255 million.

While the company affirmed its full-year revenue guidance of $135 million to $165 million and highlighted an increased backlog including more than $60 million in national security contracts, investors appeared focused on the significant quarterly losses. Revenue declined 1% year-over-year due to lower volume on Army programs, though gross margin improved to 34% from 21.3% driven by higher-margin generative AI products.