BigBear.ai (BBAI -5.51%) is an artificial intelligence (AI) company that provides digital intelligence solutions. In other words, it uses AI and machine learning to help humans make faster, more accurate decisions. Its primary focus areas include defense and national security, supply chain management, cybersecurity, and digital authentication.
BigBear.ai went public in December 2021 via a special purpose acquisition company (SPAC) merger with GigCapital4 Inc. It trades on the New York Stock Exchange (NYSE) under the ticker BBAI. The company earns most of its revenue through government contracts but remains unprofitable. Like many AI companies, its stock is highly volatile.
Stock
We'll break down what you need to know if you're interested in investing in BigBear.ai. You'll learn how to add the stock to your portfolio, whether it pays a dividend, who should consider investing, and more.
How to buy
How to buy BigBear.ai stock
Adding BigBear.ai stock to your portfolio is easy and takes just a few minutes if you have a brokerage account. Follow these six steps to invest in stocks for any publicly traded company.
- Step 1: Open your brokerage app. Log in to your brokerage account where you handle your investments.
- Step 2: Search for the stock. Enter the ticker (BBAI) or company name into the search bar to bring up the stock's trading page.
- Step 3: Decide how many shares to buy. Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Step 4: Select the order type. Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Step 5: Submit your order. Confirm the details and submit your buy order.
- Step 6: Review your purchase. Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest?
Should I invest in BigBear.ai?
BigBear.ai stock may present a high-risk, high-reward opportunity, but it's not right for every investor. Consider investing in BigBear.ai if:
You think the AI revolution is in its nascent stages. If you believe AI technology is still in its infant stages and that demand for predictive analytics, machine learning, and data-driven decision-making will continue, it may make sense to invest in BigBear.ai and other AI start-ups. However, you should also consider whether you believe BigBear.ai has a competitive advantage over other AI companies.
You believe the government will continue to invest in AI technologies. Most of BigBear.ai's revenue currently comes from government contracts, so if you expect the government to continue to make large investments in AI technology, particularly in the defense sector, you may want to consider BigBear.ai stock.
You think it could be an attractive acquisition candidate. Small AI companies like BigBear.ai could be attractive acquisition candidates for larger companies, particularly a major defense contractor. Should this occur, BigBear.ai shareholders could benefit from a premium buyout price.
You already own a well-diversified portfolio and are seeking AI exposure. You must own a well-diversified mix of investments before you put money into risky stocks like BigBear.ai.
A small investment in the stock could make sense if your portfolio consists primarily of S&P 500 index funds or other well-diversified mutual funds and exchange-traded funds (ETFs). But if you're heavily invested in AI stocks or other high-growth tech stocks, you might want to pass to increase your exposure to other sectors.
Exchange-Traded Fund (ETF)
Consider avoiding BigBear.ai if:
You're investing money you can't afford to lose. BigBear.ai has a beta of 2.92, which means it moves almost three times as much as the overall stock market. Because it's extremely volatile and not yet profitable, you should treat it as a speculative investment. Stay away if you can't afford to lose your entire investment.
You don't understand AI, believe it's overhyped, or have ethical concerns about its uses. Any time you don't understand a technology or a company's business model or are bearish about its industry, it's a good sign you should stay away.
You're seeking investment income. BigBear.ai doesn't pay a dividend because it is not yet profitable and is highly unlikely to become profitable any time in the near future. If you're seeking investment income, look for blue chip stocks or dividend ETFs to add to your portfolio.
You believe the company is vulnerable to cuts in government spending. Companies that derive most of their revenue from government contracts, like BigBear.ai, could be especially vulnerable to the massive federal spending cuts the Trump administration has pledged.
Profitability
Is BigBear.ai profitable?
BigBear.ai was not profitable as of early 2025. In its earnings release for the third quarter of 2024, BigBear.ai reported $41.51 million in revenue, a 22.1% year-over-year increase from the third quarter of 2023. However, it still fell short of the $45.04 forecast by analysts.
The company reported a net loss of $12.2 million for the quarter. While net losses are certainly not unusual for AI start-ups, the fact that they are widening could be cause for concern.
BigBear.ai achieved a net income of $4 million for the same quarter in 2023. The company attributed this sharp change of direction to a drop in the fair value of its stock warrants, which can signal a drop in investor confidence.
BigBear.ai has almost $200 million in debt and recently restructured a large portion by exchanging around $182 million in convertible notes. The move gives the company a bit of breathing room by extending the maturity date from 2026 to 2029.
The company's losses, large debt load, and negative operating cash flow should give investors pause. However, its growing revenue and debt restructuring provide a few bright spots.
Dividends
Does BigBear.ai pay a dividend?
BigBear.ai has never paid a dividend. Its latest 10-K filing states that the company has "no current plans to pay cash dividends on shares of common stock for the foreseeable future."
This isn't surprising, considering BigBear.ai has yet to achieve profitability. Even if BigBear.ai does eventually become profitable, it's unlikely to start paying a generous dividend. Tech start-ups usually need to reinvest any profits they earn into the business to fuel their growth, so they don't tend to be reliable dividend payers.
ETF options
ETFs with exposure to BigBear.ai
Investing in an ETF that includes BigBear.ai in its holdings is less risky than investing in the stock itself because you're spreading the risk across many different companies. Here are a few ETFs that offer BigBear.ai exposure:
1. Themes Generative Artificial Intelligence ETF (NASFAQ:WISE)
The Themes Generative Artificial Intelligence ETF consists of 40 holdings that specialize in AI and AI-driven services, data analytics/big data, and natural language processing. BigBear.ai has a weight of about 12%, making it the fund's largest holding.
Other major holdings include Soundhound AI (SOUN -1.84%), Palantir Technologies (PLTR 2.59%), and Amazon (AMZN -0.33%). The ETF's expense ratio of 0.35% means that for a $1,000 investment, $3.50 would go toward fees.
2. Global X Defense Tech ETF (SHLD 0.28%)
The Global X Defense Tech ETF has 37 holdings positioned to benefit from the wider adoption of defense technologies. These include companies that focus on cybersecurity, AI, big data, and building advanced military systems and hardware. Its largest holdings include Palantir, along with aerospace and defense companies RTX (RTX 1.07%) and Northrop Grumman (NOC 0.19%).
The fund offers a small amount of exposure to BigBear.ai, with the stock accounting for 0.32% of its holdings. The ETF has an expense ratio of 0.50%.
3. iShares Micro-Cap ETF (IWC -0.26%)
The iShares Micro-Cap ETF offers broad exposure to micro-cap companies by investing in companies with a market capitalization of between $4 million and $4.6 billion. The fund has more than 1,400 holdings, with its largest concentrations in financial stocks (24%), healthcare (22%), and information technology (15%).
BigBear.ai accounts for 0.22% of its holdings. The fund has an ETF expense ratio of 0.60%.
Stock splits?
Will BigBear.ai stock split?
BigBear.ai doesn't appear on the list of upcoming stock splits and is unlikely to split its stock anytime soon. After share prices have climbed into the three- or four-figure range, companies often split their stock to make it more palatable to retail investors. As of this writing, the company's shares traded for about $9, making it an unlikely contender for a stock split.
The bottom line on BigBear.ai
Investing in BigBear.ai is highly risky, given its widening losses, high level of debt, and heavy reliance on federal government contracts for most of its revenue. The company stands to benefit if federal spending on AI in the defense sector increases, but it's also vulnerable to the big military spending cuts the Trump administration has promised.
Related investing topics
BigBear.ai is working to diversify its operations by expanding into sectors like healthcare, retail supply chain management, and the travel industry. But competition among AI companies is extremely fierce, and BigBear.ai doesn't appear to have a significant economic moat.
Investing in the stock could present an opportunity to reap huge profits if the company can improve its financials, reduce its debt, and diversify its contracts. But investors should also be prepared for big losses.
FAQ
Investing in BigBear.ai FAQ
How can you buy BigBear.ai stock?
To buy BigBear.ai stock, log in to your brokerage account and enter the company's ticker (BBAI). Indicate how many shares you want to buy and whether you're placing a market order or a limit order. Review the confirmation order to make sure everything is correct before executing the order.
Is BigBear.ai a good stock to buy?
BigBear.ai could be a good stock to buy if you're comfortable with high volatility and are willing to accept big risks in exchange for big rewards. However, the company isn't profitable and faces heavy competition from other AI companies.
What is the ticker for BigBear.ai?
The ticker for Big Bear.ai is BBAI. The stock trades on the New York Stock Exchange.
Is BigBear.ai a good AI stock to buy?
BigBear.ai could be a good AI stock to buy if you believe the federal government will continue making large investments in AI technology for the defense sector. However, because the company derives most of its revenue from the federal government, it's vulnerable to spending cuts.
