BigBear.ai (BBAI +3.76%) is among the many artificial intelligence (AI) stocks that have been soaring in 2025. Its shares are up around 300% over the past 12 months through Oct. 22.
On Nov. 10, the company is scheduled to report third-quarter earnings results. If its Q3 performance proves exceptional, the stock could rise. So is now the time to buy shares?
Some key considerations suggest otherwise. Here's a look at the reasons why now isn't the time to buy.
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Factors to consider with BigBear.ai stock
Although AI is a hot sector, BigBear.ai's business saw sales slump in the second quarter. Revenue plunged a substantial 18% year over year to $32.5 million.
The culprit for the decline was spending cuts by the Trump administration. BigBear.ai generates the bulk of its revenue from the federal government.
On top of the drop in sales, the company isn't profitable. It suffered a net loss of $228.6 million in Q2.
NYSE: BBAI
Key Data Points
Despite the poor financials, BigBear.ai's stock price is elevated, as seen in its price-to-sales (P/S) ratio of 13. This is significantly higher than the sales multiple of 4 at the end of Q1, when the company's revenue increased 5% year over year to $34.8 million.
Given the decline in BigBear.ai's sales coupled with a high net loss and share price valuation, it's best to wait for the company's Q3 financial results to see signs of revenue recovery before deciding whether to buy the stock.
