NEW YORK – BigBear.ai Holdings, Inc. (NYSE: BBAI), a provider of AI-powered decision intelligence solutions, said on Tuesday it has signed a definitive agreement to acquire Ask Sage, a generative AI platform tailored for defense and national security applications.
The acquisition, expected to close in late Q4 2025 or early Q1 2026, marks a strategic expansion into secure, agentic AI capabilities. Ask Sage currently supports over 100,000 users across 16,000 government teams and hundreds of commercial entities.
“By integrating Ask Sage with BigBear.ai, we are creating what the market has been asking for: a secure, integrated AI platform that connects software, data, and mission services in one place,” said CEO Kevin McAleenan.
The company also reported third-quarter financial results, posting net income of $2.5 million compared to a net loss of $15.1 million a year earlier. The swing was driven by non-cash changes in derivative liabilities, offset by an $8 million increase in SG&A expenses.
Revenue fell 20% year-over-year to $33.1 million, primarily due to lower volume on certain Army programs. Gross margin narrowed to 22.4% from 25.9%. Adjusted EBITDA came in at a loss of $9.4 million, compared to a gain of $0.9 million in the prior-year quarter.
BigBear.ai cited delays from the recent government shutdown but reaffirmed its outlook for full-year revenue between $125 million and $140 million. Backlog stood at $376 million as of September 30.
CFO Sean Ricker said the company remains focused on executing its M&A strategy to drive growth, with Ask Sage expected to bolster its position in defense and regulated sectors.