00018369812025Q2False12/310.75P3Doneonexbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:purebbai:daybbai:subleasebbai:votebbai:yearbbai:tranchebbai:employeebbai:segment00018369812025-01-012025-06-300001836981us-gaap:CommonStockMember2025-01-012025-06-300001836981bbai:RedeemableWarrantsMember2025-01-012025-06-3000018369812025-08-0800018369812025-06-3000018369812024-12-3100018369812025-04-012025-06-3000018369812024-04-012024-06-3000018369812024-01-012024-06-300001836981us-gaap:CommonStockMember2025-03-310001836981us-gaap:AdditionalPaidInCapitalMember2025-03-310001836981us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-310001836981us-gaap:TreasuryStockCommonMember2025-03-310001836981us-gaap:RetainedEarningsMember2025-03-3100018369812025-03-310001836981us-gaap:RetainedEarningsMember2025-04-012025-06-300001836981us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-04-012025-06-300001836981us-gaap:AdditionalPaidInCapitalMember2025-04-012025-06-300001836981us-gaap:CommonStockMember2025-04-012025-06-300001836981us-gaap:CommonStockMember2025-06-300001836981us-gaap:AdditionalPaidInCapitalMember2025-06-300001836981us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-300001836981us-gaap:TreasuryStockCommonMember2025-06-300001836981us-gaap:RetainedEarningsMember2025-06-300001836981us-gaap:CommonStockMember2024-03-310001836981us-gaap:AdditionalPaidInCapitalMember2024-03-310001836981us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001836981us-gaap:TreasuryStockCommonMember2024-03-310001836981us-gaap:RetainedEarningsMember2024-03-3100018369812024-03-310001836981us-gaap:RetainedEarningsMember2024-04-012024-06-300001836981us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001836981us-gaap:CommonStockMember2024-04-012024-06-300001836981us-gaap:CommonStockMember2024-06-300001836981us-gaap:AdditionalPaidInCapitalMember2024-06-300001836981us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300001836981us-gaap:TreasuryStockCommonMember2024-06-300001836981us-gaap:RetainedEarningsMember2024-06-3000018369812024-06-300001836981us-gaap:CommonStockMember2024-12-310001836981us-gaap:AdditionalPaidInCapitalMember2024-12-310001836981us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001836981us-gaap:TreasuryStockCommonMember2024-12-310001836981us-gaap:RetainedEarningsMember2024-12-310001836981us-gaap:RetainedEarningsMember2025-01-012025-06-300001836981us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-06-300001836981us-gaap:AdditionalPaidInCapitalMember2025-01-012025-06-300001836981bbai:ConversionOfConvertibleDebtMemberus-gaap:CommonStockMember2025-01-012025-06-300001836981bbai:ConversionOfConvertibleDebtMemberus-gaap:AdditionalPaidInCapitalMember2025-01-012025-06-300001836981bbai:ConversionOfConvertibleDebtMember2025-01-012025-06-300001836981us-gaap:CommonStockMember2023-12-310001836981us-gaap:AdditionalPaidInCapitalMember2023-12-310001836981us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001836981us-gaap:TreasuryStockCommonMember2023-12-310001836981us-gaap:RetainedEarningsMember2023-12-3100018369812023-12-310001836981us-gaap:RetainedEarningsMember2024-01-012024-06-300001836981us-gaap:AdditionalPaidInCapitalMember2024-01-012024-06-300001836981us-gaap:CommonStockMember2024-01-012024-06-300001836981srt:ScenarioPreviouslyReportedMember2024-04-012024-06-300001836981srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember2024-04-012024-06-300001836981srt:ScenarioPreviouslyReportedMember2024-01-012024-06-300001836981srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember2024-01-012024-06-300001836981srt:ScenarioPreviouslyReportedMember2023-12-310001836981srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember2023-12-310001836981srt:ScenarioPreviouslyReportedMember2024-06-300001836981srt:RevisionOfPriorPeriodErrorCorrectionAdjustmentMember2024-06-300001836981us-gaap:EmployeeSeveranceMember2025-04-012025-06-300001836981us-gaap:EmployeeSeveranceMember2024-04-012024-06-300001836981us-gaap:EmployeeSeveranceMember2025-01-012025-06-300001836981us-gaap:EmployeeSeveranceMember2024-01-012024-06-300001836981bbai:LiabilityReflectingUnpaidEmployeeSeparationCostsMember2025-06-300001836981bbai:LiabilityReflectingUnpaidEmployeeSeparationCostsMember2024-06-300001836981bbai:PangiamAcquisitionMember2024-02-292024-02-290001836981bbai:PangiamAcquisitionMember2024-02-290001836981bbai:PangiamAcquisitionMember2024-07-022024-07-020001836981bbai:PangiamAcquisitionMember2024-07-020001836981bbai:PangiamAcquisitionMember2024-03-312024-03-310001836981bbai:PangiamAcquisitionMember2024-04-012024-12-310001836981bbai:PangiamAcquisitionMember2024-12-312024-12-310001836981bbai:PangiamAcquisitionMember2024-03-310001836981bbai:PangiamAcquisitionMember2024-12-310001836981bbai:PangiamAcquisitionMemberus-gaap:TechnologyBasedIntangibleAssetsMember2024-02-292024-02-290001836981bbai:PangiamAcquisitionMemberus-gaap:TradeNamesMember2024-02-292024-02-290001836981bbai:PangiamAcquisitionMemberus-gaap:CustomerRelationshipsMember2024-02-292024-02-290001836981bbai:PangiamAcquisitionMember2025-04-012025-06-300001836981bbai:PangiamAcquisitionMember2024-04-012024-06-300001836981bbai:PangiamAcquisitionMember2025-01-012025-06-300001836981bbai:PangiamAcquisitionMember2024-01-012024-06-300001836981bbai:A2029NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2025-06-300001836981bbai:A2029NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2025-06-300001836981bbai:A2029NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981bbai:A2029NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMember2025-06-300001836981bbai:A2026NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2025-06-300001836981bbai:A2026NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2025-06-300001836981bbai:A2026NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981bbai:A2026NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMember2025-06-300001836981bbai:IPOPrivateWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2025-06-300001836981bbai:IPOPrivateWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2025-06-300001836981bbai:IPOPrivateWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981bbai:IPOPrivateWarrantsMemberus-gaap:FairValueMeasurementsRecurringMember2025-06-300001836981bbai:A2025RDOWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2025-06-300001836981bbai:A2025RDOWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2025-06-300001836981bbai:A2025RDOWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981bbai:A2025RDOWarrantsMemberus-gaap:FairValueMeasurementsRecurringMember2025-06-300001836981us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2025-06-300001836981us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2025-06-300001836981us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981us-gaap:FairValueMeasurementsRecurringMember2025-06-300001836981us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2025-06-300001836981us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2025-06-300001836981us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981us-gaap:FairValueMeasurementsNonrecurringMember2025-06-300001836981bbai:IPOPrivateWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-12-310001836981bbai:IPOPrivateWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-12-310001836981bbai:IPOPrivateWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981bbai:IPOPrivateWarrantsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001836981bbai:A2024PIPEWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-12-310001836981bbai:A2024PIPEWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-12-310001836981bbai:A2024PIPEWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981bbai:A2024PIPEWarrantsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001836981bbai:A2024RDOWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-12-310001836981bbai:A2024RDOWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-12-310001836981bbai:A2024RDOWarrantsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981bbai:A2024RDOWarrantsMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001836981bbai:A2029NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-12-310001836981bbai:A2029NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-12-310001836981bbai:A2029NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981bbai:A2029NotesConversionOptionMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001836981us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-12-310001836981us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-12-310001836981us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981us-gaap:FairValueMeasurementsRecurringMember2024-12-310001836981us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2024-12-310001836981us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel2Member2024-12-310001836981us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981us-gaap:FairValueMeasurementsNonrecurringMember2024-12-310001836981us-gaap:FairValueMeasurementsNonrecurringMember2024-03-310001836981us-gaap:FairValueMeasurementsNonrecurringMember2024-01-012024-03-310001836981us-gaap:FairValueMeasurementsNonrecurringMember2025-04-012025-06-300001836981bbai:IPOPrivateWarrantsMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981bbai:A2026NotesConversionOptionMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981bbai:A2024PIPEWarrantsMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981bbai:A2024RDOWarrantsMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981bbai:A2025RDOWarrantsMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981bbai:A2029NotesConversionOptionMemberus-gaap:FairValueInputsLevel3Member2024-12-310001836981bbai:IPOPrivateWarrantsMemberus-gaap:FairValueInputsLevel3Member2025-01-012025-06-300001836981bbai:A2026NotesConversionOptionMemberus-gaap:FairValueInputsLevel3Member2025-01-012025-06-300001836981bbai:A2024PIPEWarrantsMemberus-gaap:FairValueInputsLevel3Member2025-01-012025-06-300001836981bbai:A2024RDOWarrantsMemberus-gaap:FairValueInputsLevel3Member2025-01-012025-06-300001836981bbai:A2025RDOWarrantsMemberus-gaap:FairValueInputsLevel3Member2025-01-012025-06-300001836981bbai:A2029NotesConversionOptionMemberus-gaap:FairValueInputsLevel3Member2025-01-012025-06-300001836981bbai:IPOPrivateWarrantsMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981bbai:A2026NotesConversionOptionMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981bbai:A2024PIPEWarrantsMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981bbai:A2024RDOWarrantsMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981bbai:A2025RDOWarrantsMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981bbai:A2029NotesConversionOptionMemberus-gaap:FairValueInputsLevel3Member2025-06-3000018369812024-01-012024-03-310001836981us-gaap:IncomeApproachValuationTechniqueMember2024-03-310001836981us-gaap:MarketApproachValuationTechniqueMember2024-03-3100018369812025-01-012025-03-310001836981us-gaap:IncomeApproachValuationTechniqueMember2025-06-300001836981us-gaap:MarketApproachValuationTechniqueMember2025-06-300001836981us-gaap:CustomerRelationshipsMember2025-06-300001836981us-gaap:TechnologyBasedIntangibleAssetsMember2025-06-300001836981us-gaap:SoftwareDevelopmentMember2025-06-300001836981us-gaap:TradeNamesMember2025-06-300001836981us-gaap:CustomerRelationshipsMember2024-12-310001836981us-gaap:TechnologyBasedIntangibleAssetsMember2024-12-310001836981us-gaap:SoftwareDevelopmentMember2024-12-310001836981us-gaap:TradeNamesMember2024-12-310001836981bbai:A2026ConvertibleNotesMember2025-06-300001836981bbai:A2026ConvertibleNotesMember2024-12-310001836981bbai:A2029ConvertibleNotesMember2025-06-300001836981bbai:A2029ConvertibleNotesMember2024-12-310001836981bbai:DOFinancingLoanMember2025-06-300001836981bbai:DOFinancingLoanMember2024-12-310001836981bbai:A2026ConvertibleNotesMember2021-12-070001836981bbai:A2026ConvertibleNotesMemberus-gaap:CommonStockMember2021-12-070001836981bbai:A2026ConvertibleNotesMember2022-05-292022-05-290001836981bbai:A2026ConvertibleNotesMember2022-05-282022-05-280001836981bbai:A2026ConvertibleNotesMember2022-05-290001836981bbai:A2026ConvertibleNotesMemberus-gaap:CommonStockMember2022-05-290001836981bbai:A2026ConvertibleNotesMemberus-gaap:CommonStockMember2021-12-072021-12-070001836981bbai:A2026ConvertibleNotesMember2021-12-072021-12-070001836981bbai:ConvertibleDebtParValueMember2021-12-070001836981us-gaap:CommonStockMember2022-05-292022-05-290001836981bbai:A2026ConvertibleNotesMember2024-12-190001836981bbai:A2029ConvertibleNotesMember2024-12-192024-12-190001836981bbai:A2029ConvertibleNotesMember2024-12-190001836981bbai:A2029ConvertibleNotesMemberus-gaap:CommonStockMember2024-12-190001836981bbai:LiquidityConditionNotSatisfiedMemberbbai:A2029ConvertibleNotesMember2024-12-190001836981bbai:LiquidityConditionNotSatisfiedMemberus-gaap:CommonStockMemberbbai:A2029ConvertibleNotesMember2024-12-190001836981bbai:A2026And2029ConvertibleNotesMember2024-12-192024-12-190001836981bbai:A2029ConvertibleNotesMemberus-gaap:CommonStockMember2024-12-192024-12-190001836981bbai:ConvertibleDebtParValueMember2024-12-190001836981bbai:A2029ConvertibleNotesMember2025-01-012025-03-310001836981bbai:A2026ConvertibleNotesMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981bbai:A2029ConvertibleNotesMemberus-gaap:FairValueInputsLevel3Member2025-06-300001836981us-gaap:FairValueInputsLevel3Member2025-06-300001836981bbai:A2025DOFinancingLoanMember2024-12-130001836981bbai:A2024DOFinancingLoanMember2023-12-200001836981srt:MinimumMember2025-06-300001836981srt:MaximumMember2025-06-300001836981bbai:CantorSecuritiesIncMemberbbai:AtTheMarketOfferingsMember2024-05-310001836981bbai:AtTheMarketOfferingMember2024-05-012024-05-310001836981bbai:AtTheMarketOfferingMember2025-06-012025-06-300001836981us-gaap:CommonStockMemberbbai:May2024SalesAgreementMember2024-05-012024-05-310001836981us-gaap:CommonStockMemberbbai:June2025SalesAgreementMember2025-06-012025-06-300001836981bbai:May2024SalesAgreementMember2025-01-012025-06-300001836981bbai:June2025SalesAgreementMember2025-01-012025-06-300001836981bbai:May2024SalesAgreementMember2024-01-012024-06-300001836981bbai:June2025SalesAgreementMember2024-01-012024-06-300001836981bbai:A2026NotesConversionOptionMember2025-06-300001836981bbai:A2026NotesConversionOptionMember2024-12-310001836981bbai:A2026NotesConversionOptionMemberus-gaap:MeasurementInputExpectedTermMember2025-06-300001836981bbai:A2026NotesConversionOptionMemberus-gaap:MeasurementInputExpectedTermMember2024-12-310001836981bbai:A2026NotesConversionOptionMemberus-gaap:MeasurementInputPriceVolatilityMember2025-06-300001836981bbai:A2026NotesConversionOptionMemberus-gaap:MeasurementInputPriceVolatilityMember2024-12-310001836981bbai:A2026NotesConversionOptionMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2025-06-300001836981bbai:A2026NotesConversionOptionMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2024-12-310001836981bbai:A2026NotesConversionOptionMemberus-gaap:MeasurementInputExpectedDividendRateMember2025-06-300001836981bbai:A2026NotesConversionOptionMemberus-gaap:MeasurementInputExpectedDividendRateMember2024-12-310001836981bbai:A2026NotesConversionOptionMember2025-01-012025-06-300001836981bbai:A2029NotesConversionOptionMember2025-06-300001836981bbai:A2029NotesConversionOptionMember2024-12-310001836981bbai:A2029NotesConversionOptionMemberus-gaap:MeasurementInputExpectedTermMember2025-06-300001836981bbai:A2029NotesConversionOptionMemberus-gaap:MeasurementInputExpectedTermMember2024-12-310001836981bbai:A2029NotesConversionOptionMemberus-gaap:MeasurementInputPriceVolatilityMember2025-06-300001836981bbai:A2029NotesConversionOptionMemberus-gaap:MeasurementInputPriceVolatilityMember2024-12-310001836981bbai:A2029NotesConversionOptionMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2025-06-300001836981bbai:A2029NotesConversionOptionMemberus-gaap:MeasurementInputRiskFreeInterestRateMember2024-12-310001836981bbai:A2029NotesConversionOptionMemberus-gaap:MeasurementInputExpectedDividendRateMember2025-06-300001836981bbai:A2029NotesConversionOptionMemberus-gaap:MeasurementInputExpectedDividendRateMember2024-12-310001836981bbai:A2029NotesConversionOptionMember2025-01-012025-06-300001836981bbai:A2029ConvertibleNotesMemberbbai:A2029NotesConversionOptionMember2025-01-012025-06-300001836981bbai:A2023RegisteredDirectOfferingWarrantsMemberbbai:RegisteredDirectOfferingMember2023-06-130001836981bbai:A2023RegisteredDirectOfferingWarrantsMemberbbai:RegisteredDirectOfferingMember2023-06-132023-06-130001836981bbai:A2023RegisteredDirectOfferingWarrantsMember2024-02-270001836981bbai:A2023RegisteredDirectOfferingWarrantsMember2024-02-272024-02-270001836981bbai:A2023RegisteredDirectOfferingWarrantsMember2024-01-012024-06-300001836981bbai:A2024RDOWarrantsMember2024-02-280001836981bbai:A2024RDOWarrantsMember2024-02-082024-02-080001836981bbai:A2024RDOWarrantsMember2024-12-310001836981bbai:A2024RDOWarrantsMember2024-01-012024-12-310001836981bbai:A2024RDOWarrantsMember2025-02-050001836981bbai:A2024RDOWarrantsMember2025-02-052025-02-050001836981bbai:A2024RDOWarrantsMember2025-01-012025-06-300001836981bbai:A2025RDOWarrantsMember2025-02-050001836981bbai:A2025RDOWarrantsMember2025-02-052025-02-050001836981bbai:A2025RDOWarrantsMember2025-06-300001836981bbai:A2025RDOWarrantsMember2025-02-060001836981bbai:A2025RDOWarrantsMember2025-01-012025-06-300001836981bbai:A2025RDOWarrantsMember2025-02-062025-02-060001836981bbai:A2023PIPEWarrantsMemberus-gaap:PrivatePlacementMember2023-01-190001836981bbai:A2023PIPEWarrantsMemberus-gaap:PrivatePlacementMember2023-01-192023-01-190001836981bbai:A2023PIPEWarrantsMember2024-03-040001836981bbai:A2023PIPEWarrantsMember2024-03-042024-03-040001836981bbai:A2023PIPEWarrantsMember2024-01-012024-06-300001836981bbai:A2024PIPEWarrantsMember2024-03-050001836981bbai:A2024PIPEWarrantsMember2024-03-052024-03-050001836981bbai:A2024PIPEWarrantsMember2024-12-310001836981bbai:A2024PIPEWarrantsMember2024-01-012024-12-310001836981bbai:A2024PIPEWarrantsMember2025-02-100001836981bbai:A2024PIPEWarrantsMember2025-02-102025-02-100001836981bbai:A2024PIPEWarrantsMember2025-02-110001836981bbai:A2024PIPEWarrantsMember2025-02-112025-02-110001836981bbai:IPOPublicWarrantsMember2021-02-110001836981bbai:IPOPublicWarrantsMember2021-02-112021-02-110001836981bbai:IPOPublicWarrantsMembersrt:MinimumMember2021-02-112021-02-110001836981bbai:IPOPublicWarrantsMember2025-06-300001836981bbai:IPOPublicWarrantsMember2024-12-310001836981bbai:IPOPrivateWarrantsMember2025-06-300001836981bbai:IPOPrivateWarrantsMember2024-12-310001836981bbai:IPOPrivateWarrantsMember2025-01-012025-06-300001836981bbai:IPOPrivateWarrantsMember2024-01-012024-12-310001836981bbai:IPOPrivateWarrantsMember2025-04-012025-06-300001836981bbai:IPOPrivateWarrantsMember2024-04-012024-06-300001836981bbai:IPOPrivateWarrantsMember2024-01-012024-06-300001836981bbai:PrivateWarrantsMember2025-06-300001836981bbai:PrivateWarrantsMember2024-12-310001836981bbai:IPOPublicWarrantsMember2025-01-012025-06-300001836981bbai:ClassBUnitIncentivePlanMemberbbai:IncentiveUnitsMember2021-02-280001836981bbai:IncentiveUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMemberbbai:ClassBUnitIncentivePlanMember2021-02-012021-02-280001836981bbai:ClassBUnitsMember2021-02-162021-02-160001836981bbai:ClassBUnitIncentivePlanMember2021-07-292021-07-290001836981bbai:ClassBUnitIncentivePlanMemberbbai:IncentiveUnitsMember2021-07-292021-07-290001836981bbai:IncentiveUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2021-07-292021-12-310001836981bbai:IncentiveUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2022-01-012022-03-310001836981bbai:IncentiveUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2023-01-012023-03-310001836981bbai:IncentiveUnitsMember2023-01-012023-03-310001836981bbai:IncentiveUnitsMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2025-06-300001836981us-gaap:EmployeeStockOptionMember2025-06-300001836981us-gaap:EmployeeStockOptionMember2025-01-012025-06-300001836981us-gaap:EmployeeStockOptionMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2025-01-012025-06-300001836981us-gaap:EmployeeStockOptionMember2025-01-152025-01-150001836981us-gaap:EmployeeStockOptionMember2025-01-1500018369812024-01-012024-12-310001836981us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedPaymentArrangementEmployeeMember2025-01-012025-06-300001836981us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedPaymentArrangementNonemployeeMember2025-01-012025-06-300001836981us-gaap:RestrictedStockUnitsRSUMember2025-01-012025-06-300001836981us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2025-01-012025-06-300001836981us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2025-01-012025-06-300001836981us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2025-01-012025-06-300001836981us-gaap:RestrictedStockUnitsRSUMemberbbai:ShareBasedPaymentArrangementTrancheFourMember2025-01-012025-06-300001836981us-gaap:RestrictedStockUnitsRSUMemberus-gaap:ShareBasedCompensationAwardTrancheOneMemberbbai:NonEmployeeDirectorMember2025-01-012025-06-300001836981us-gaap:RestrictedStockUnitsRSUMember2024-12-310001836981us-gaap:RestrictedStockUnitsRSUMember2025-06-300001836981bbai:DiscretionaryPerformanceStockUnitsMember2025-01-012025-06-300001836981bbai:ShortTermIncentivePlanPerformanceStockUnitsMemberus-gaap:PerformanceSharesMember2025-01-012025-06-300001836981bbai:ShortTermIncentivePlanPerformanceStockUnits2024PlanMemberus-gaap:PerformanceSharesMember2025-01-012025-06-300001836981bbai:ShortTermIncentivePlanPerformanceStockUnits2025PlanMemberus-gaap:PerformanceSharesMember2025-01-012025-06-300001836981us-gaap:PerformanceSharesMember2024-12-310001836981us-gaap:PerformanceSharesMember2025-01-012025-06-300001836981us-gaap:PerformanceSharesMember2025-06-300001836981bbai:A2021EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2025-06-300001836981bbai:A2021EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2025-01-012025-06-300001836981bbai:A2021EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2025-06-010001836981us-gaap:EmployeeStockMembersrt:MinimumMemberbbai:A2021EmployeeStockPurchasePlanMember2024-12-310001836981us-gaap:EmployeeStockMembersrt:MaximumMemberbbai:A2021EmployeeStockPurchasePlanMember2024-12-310001836981bbai:A2021EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2025-06-012025-06-010001836981bbai:A2021EmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2024-01-012024-12-310001836981us-gaap:EmployeeStockMembersrt:MinimumMemberbbai:A2021EmployeeStockPurchasePlanMember2024-01-012024-12-310001836981us-gaap:EmployeeStockMembersrt:MaximumMemberbbai:A2021EmployeeStockPurchasePlanMember2024-01-012024-12-310001836981us-gaap:EmployeeStockMember2025-06-300001836981us-gaap:EmployeeStockMember2025-01-012025-06-300001836981us-gaap:SellingGeneralAndAdministrativeExpensesMember2025-04-012025-06-300001836981us-gaap:SellingGeneralAndAdministrativeExpensesMember2024-04-012024-06-300001836981us-gaap:SellingGeneralAndAdministrativeExpensesMember2025-01-012025-06-300001836981us-gaap:SellingGeneralAndAdministrativeExpensesMember2024-01-012024-06-300001836981us-gaap:CostOfSalesMember2025-04-012025-06-300001836981us-gaap:CostOfSalesMember2024-04-012024-06-300001836981us-gaap:CostOfSalesMember2025-01-012025-06-300001836981us-gaap:CostOfSalesMember2024-01-012024-06-300001836981us-gaap:ResearchAndDevelopmentExpenseMember2025-04-012025-06-300001836981us-gaap:ResearchAndDevelopmentExpenseMember2024-04-012024-06-300001836981us-gaap:ResearchAndDevelopmentExpenseMember2025-01-012025-06-300001836981us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-06-300001836981us-gaap:EmployeeStockOptionMember2025-04-012025-06-300001836981us-gaap:EmployeeStockOptionMember2024-04-012024-06-300001836981us-gaap:EmployeeStockOptionMember2025-01-012025-06-300001836981us-gaap:EmployeeStockOptionMember2024-01-012024-06-300001836981us-gaap:WarrantMemberbbai:PrivateWarrantsMember2025-04-012025-06-300001836981us-gaap:WarrantMemberbbai:PrivateWarrantsMember2024-04-012024-06-300001836981us-gaap:WarrantMemberbbai:PrivateWarrantsMember2025-01-012025-06-300001836981us-gaap:WarrantMemberbbai:PrivateWarrantsMember2024-01-012024-06-300001836981us-gaap:WarrantMemberbbai:IPOPublicWarrantsMember2025-04-012025-06-300001836981us-gaap:WarrantMemberbbai:IPOPublicWarrantsMember2024-04-012024-06-300001836981us-gaap:WarrantMemberbbai:IPOPublicWarrantsMember2025-01-012025-06-300001836981us-gaap:WarrantMemberbbai:IPOPublicWarrantsMember2024-01-012024-06-300001836981us-gaap:WarrantMemberbbai:A2025RDOWarrantsMember2025-04-012025-06-300001836981us-gaap:WarrantMemberbbai:A2025RDOWarrantsMember2024-04-012024-06-300001836981us-gaap:WarrantMemberbbai:A2025RDOWarrantsMember2025-01-012025-06-300001836981us-gaap:WarrantMemberbbai:A2025RDOWarrantsMember2024-01-012024-06-300001836981bbai:A2026ConvertibleNotesMember2025-04-012025-06-300001836981bbai:A2026ConvertibleNotesMember2024-04-012024-06-300001836981bbai:A2026ConvertibleNotesMember2025-01-012025-06-300001836981bbai:A2026ConvertibleNotesMember2024-01-012024-06-300001836981bbai:A2029ConvertibleNotesMember2025-04-012025-06-300001836981bbai:A2029ConvertibleNotesMember2024-04-012024-06-300001836981bbai:A2029ConvertibleNotesMember2025-01-012025-06-300001836981bbai:A2029ConvertibleNotesMember2024-01-012024-06-300001836981us-gaap:PerformanceSharesMember2025-04-012025-06-300001836981us-gaap:PerformanceSharesMember2024-04-012024-06-300001836981us-gaap:PerformanceSharesMember2025-01-012025-06-300001836981us-gaap:PerformanceSharesMember2024-01-012024-06-300001836981us-gaap:RestrictedStockUnitsRSUMember2025-04-012025-06-300001836981us-gaap:RestrictedStockUnitsRSUMember2024-04-012024-06-300001836981us-gaap:RestrictedStockUnitsRSUMember2025-01-012025-06-300001836981us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300001836981bbai:EmployeeStockPurchasePlanMember2025-04-012025-06-300001836981bbai:EmployeeStockPurchasePlanMember2024-04-012024-06-300001836981bbai:EmployeeStockPurchasePlanMember2025-01-012025-06-300001836981bbai:EmployeeStockPurchasePlanMember2024-01-012024-06-300001836981us-gaap:TimeAndMaterialsContractMember2025-04-012025-06-300001836981us-gaap:TimeAndMaterialsContractMember2024-04-012024-06-300001836981us-gaap:TimeAndMaterialsContractMember2025-01-012025-06-300001836981us-gaap:TimeAndMaterialsContractMember2024-01-012024-06-300001836981us-gaap:FixedPriceContractMember2025-04-012025-06-300001836981us-gaap:FixedPriceContractMember2024-04-012024-06-300001836981us-gaap:FixedPriceContractMember2025-01-012025-06-300001836981us-gaap:FixedPriceContractMember2024-01-012024-06-300001836981bbai:CostReimbursableMember2025-04-012025-06-300001836981bbai:CostReimbursableMember2024-04-012024-06-300001836981bbai:CostReimbursableMember2025-01-012025-06-300001836981bbai:CostReimbursableMember2024-01-012024-06-300001836981bbai:CustomerAMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-04-012025-06-300001836981bbai:CustomerAMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-01-012025-06-300001836981bbai:CustomerBMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-04-012025-06-300001836981bbai:CustomerBMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-01-012025-06-300001836981bbai:CustomerCMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-04-012025-06-300001836981bbai:CustomerCMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-01-012025-06-300001836981bbai:CustomerDMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-04-012025-06-300001836981bbai:CustomerDMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-01-012025-06-300001836981bbai:CustomerEMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-04-012025-06-300001836981bbai:CustomerEMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-01-012025-06-300001836981bbai:CustomerFMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-04-012025-06-300001836981bbai:CustomerFMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-01-012025-06-300001836981bbai:AllOthersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-04-012025-06-300001836981bbai:AllOthersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-01-012025-06-300001836981bbai:CustomerAMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-04-012024-06-300001836981bbai:CustomerAMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-01-012024-06-300001836981bbai:CustomerBMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-04-012024-06-300001836981bbai:CustomerBMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-01-012024-06-300001836981bbai:CustomerCMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-04-012024-06-300001836981bbai:CustomerCMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-01-012024-06-300001836981bbai:CustomerDMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-04-012024-06-300001836981bbai:CustomerDMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-01-012024-06-300001836981bbai:CustomerEMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-04-012024-06-300001836981bbai:CustomerEMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-01-012024-06-300001836981bbai:CustomerFMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-04-012024-06-300001836981bbai:CustomerFMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-01-012024-06-300001836981bbai:AllOthersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-04-012024-06-300001836981bbai:AllOthersMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2024-01-012024-06-300001836981us-gaap:ContractsAccountedForUnderPercentageOfCompletionMember2025-04-012025-06-300001836981us-gaap:ContractsAccountedForUnderPercentageOfCompletionMember2024-04-012024-06-300001836981us-gaap:ContractsAccountedForUnderPercentageOfCompletionMember2025-01-012025-06-300001836981us-gaap:ContractsAccountedForUnderPercentageOfCompletionMember2024-01-012024-06-3000018369812025-07-012025-06-300001836981bbai:ReportableSegmentMember2025-04-012025-06-300001836981bbai:ReportableSegmentMember2024-04-012024-06-300001836981bbai:ReportableSegmentMember2025-01-012025-06-300001836981bbai:ReportableSegmentMember2024-01-012024-06-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission file number 001-40031

BigBear.ai Holdings, Inc.

(Exact name of registrant as specified in its charter)


Delaware						85-4164597
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)
7950 Jones Branch Drive, 1st Floor North Tower, McLean, VA						22102
(Address of Principal Executive Offices)						(Zip Code)
(410) 312-0885
Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.0001 par value

BBAI

New York Stock Exchange

Redeemable warrants, each full warrant exercisable for one share of common stock at an exercise price of $11.50 per share

BBAI.WS

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:


Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o	Smaller reporting company	x
		Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x

There were 370,703,198 shares of our common stock, $0.0001 par value per share, outstanding as of August 8, 2025.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

Quarterly Report on Form 10-Q

June 30, 2025

TABLE OF CONTENTS


Item						Page
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)						3
Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024						3
Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024						4
Consolidated Statements of Stockholders’ Equity (Deficit) for the Three and Six Months Ended June 30, 2025 and 2024						6
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024						7
Notes to Consolidated Financial Statements (Unaudited)						8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations						37
Item 3. Quantitative and Qualitative Disclosures About Market Risk						52
Item 4. Controls and Procedures						52

PART II—OTHER INFORMATION						53
Item 1. Legal Proceedings						53
Item 1A Risk Factors						53
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.						53
Item 3. Defaults Upon Senior Securities.						53

Item 5. Other Information						53
Item 6. Exhibits						54

SIGNATURES						55

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

BIGBEAR.AI HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except share and per share data)


	June 30, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	390,845	$	50,141

Accounts receivable, less allowance for credit losses of $438 as of June 30, 2025 and $127 as of December 31, 2024	28,342		38,953
Contract assets	701		895
Prepaid expenses and other current assets	4,395		3,768
Total current assets	424,283		93,757
Non-current assets:
Property and equipment, net	1,425		1,566
Goodwill	48,446		119,081
Intangible assets, net	115,621		119,119
Right-of-use assets	8,639		9,263

Other non-current assets	958		990
Total assets	$	599,372	$	343,776

Liabilities and stockholders’ equity (deficit)
Current liabilities:
Accounts payable	$	3,440	$	8,455
Short-term debt, including current portion of long-term debt	367		818
Accrued liabilities	16,555		19,496
Contract liabilities	4,466		2,541
Current portion of long-term lease liability	1,096		1,068
Derivative liabilities	193,199		170,515
Other current liabilities	2,522		73
Total current liabilities	221,645		202,966
Non-current liabilities:
Long-term debt, net	102,683		135,404
Long-term lease liability	8,494		9,120


Total liabilities	332,822		347,490

Commitments and contingencies (Note 14)

Stockholders’ equity (deficit)
Common stock, par value $0.0001; 500,000,000 shares authorized and 369,171,608 shares issued and outstanding at June 30, 2025 and 251,554,378 shares issued and outstanding at December 31, 2024	39		26
Additional paid-in capital	1,186,256		625,130

Treasury stock, at cost 9,952,803 shares at June 30, 2025 and December 31, 2024	(57,350)		(57,350)
Accumulated deficit	(862,246)		(571,641)
Accumulated other comprehensive (loss) income	(149)		121
Total stockholders’ equity (deficit)	266,550		(3,714)
Total liabilities and stockholders’ equity (deficit)	$	599,372	$	343,776

The accompanying notes to the consolidated financial statements are an integral part of these statements.

BIGBEAR.AI HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited,in thousands, except share and per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Revenues	$	32,472	$	39,783	$	67,229	$	72,904
Cost of revenues	24,359		28,720		51,728		54,855
Gross margin	8,113		11,063		15,501		18,049
Operating expenses:
Selling, general and administrative	21,487		23,364		44,219		40,312
Research and development	4,393		3,565		8,559		4,709
Restructuring charges	1,899		457		3,597		1,317
Transaction expenses	—		347		—		1,450
Goodwill impairment	70,636		—		70,636		85,000
Operating loss	(90,302)		(16,670)		(111,510)		(114,739)
Interest expense	4,419		6,452		9,535		12,837
Net increase (decrease) in fair value of derivatives	135,751		(8,081)		169,087		15,726
Loss on extinguishment of debt	—		—		2,577		—
Other income, net	(1,867)		(617)		(2,143)		(1,072)
Loss before taxes	(228,605)		(14,424)		(290,566)		(142,230)
Income tax expense	14		15		39		1
Net loss	$	(228,619)	$	(14,439)	$	(290,605)	$	(142,231)

Basic net loss per share	$	(0.71)	$	(0.06)	$	(0.97)	$	(0.66)
Diluted net loss per share	$	(0.71)	$	(0.06)	$	(0.97)	$	(0.66)

Weighted-average shares outstanding:
Basic	320,591,204		246,303,139		299,666,133		216,754,082
Diluted	320,591,204		246,303,139		299,666,133		216,754,082

Other comprehensive loss
Foreign currency translation	(282)		—		(270)		—
Total other comprehensive loss	(282)		—		(270)		—
Total comprehensive loss	$	(228,901)	$	(14,439)	$	(290,875)	$	(142,231)

The accompanying notes to the consolidated financial statements are an integral part of these statements.

BIGBEAR.AI HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(unaudited; in thousands, except share data)


	Three Months Ended June 30, 2025
	Common stock			Additional		Acc. Other		Treasury		Accumulated		Total stockholders’
	Shares	Amount		paid in capital		Comprehensive Income		stock		deficit		equity
As of March 31, 2025	289,052,369	$	31	$	888,608	$	133	$	(57,350)	$	(633,627)	$	197,795
Net loss	—	—		—		—		—		(228,619)		(228,619)
Foreign currency translation adjustments, net of tax	—	—		—		(282)		—		—		(282)
Equity-based compensation expense	—	—		4,319		—		—		—		4,319
Exercise of options	141,780	—		240		—		—		—		240

Issuance of shares for paid-in-kind interest on 2029 Notes	1,084,119	—		4,095		—		—		—		4,095
Issuance of shares for equity-based compensation awards, net	3,004,152	—		(362)		—		—		—		(362)


Issuance of shares under ATM	75,317,313	8		288,287		—		—		—		288,295
Issuance of shares purchased under ESPP	571,875	—		1,069		—		—		—		1,069
As of June 30, 2025	369,171,608	$	39	$	1,186,256	$	(149)	$	(57,350)	$	(862,246)	$	266,550



	Three Months Ended June 30, 2024
	Common stock			Additional		Acc. Other		Treasury		Accumulated		Total stockholders’
	Shares	Amount		paid in capital		Comprehensive Income		stock		deficit		equity
As of March 31, 2024	246,061,379	$	25	$	604,384	$	—	$	(57,350)	$	(403,886)	$	143,173
Net loss	—	—		—		—		—		(14,439)		(14,439)
Equity-based compensation expense	—	—		5,749		—		—		—		5,749
Exercise of options	22,780	—		33		—		—		—		33

Issuance of shares for equity-based compensation awards, net	215,700	—		(378)		—		—		—		(378)

Issuance of shares purchased under ESPP	474,325	—		607		—		—		—		607
As of June 30, 2024	246,774,184	$	25	$	610,395	$	—	$	(57,350)	$	(418,325)	$	134,745

The accompanying notes to the consolidated financial statements are an integral part of these statements.

BIGBEAR.AI HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)

(unaudited, in thousands, except share data)


	Six Months Ended June 30, 2025
	Common stock			Additional		Acc. Other		Treasury		Accumulated		Total stockholders’
	Shares	Amount		paid in capital		Comprehensive Income		stock		deficit		deficit
As of December 31, 2024	251,554,378	$	26	$	625,130	$	121	$	(57,350)	$	(571,641)	$	(3,714)
Net loss	—	—		—		—		—		(290,605)		(290,605)
Foreign currency translation adjustments, net of tax	—	—		—		(270)		—				(270)
Equity-based compensation expense	—	—		11,719		—		—		—		11,719
Exercise of options	1,125,214	—		1,633		—		—		—		1,633
Issuance of shares for equity-based compensation awards, net	6,124,374	2		(1,681)		—		—		—		(1,679)
Issuance of shares for paid-in-kind interest on 2029 Notes	1,084,119	—		4,095		—		—		—		4,095
Proceeds from the exercise of the 2024 warrants	14,800,000	1		113,952		—		—		—		113,953
Issuance of shares upon conversion of 2029 Notes	16,658,335	2		135,597		—		—		—		135,599

Issuance of shares purchased under ESPP	571,875	—		1,069		—		—		—		1,069

Issuance of shares from at-the-market offering	77,253,313	8		294,742		—		—		—		294,750


As of June 30, 2025	369,171,608	$	39	$	1,186,256	$	(149)	$	(57,350)	$	(862,246)	$	266,550

	Six Months Ended June 30, 2024
	Common stock			Additional		Acc. Other		Treasury		Accumulated		Total stockholders’
	Shares	Amount		paid in capital		Comprehensive Income		stock		deficit		(deficit) equity
As of December 31, 2023	157,287,522	$	17	$	303,428	$	—	$	(57,350)	$	(276,094)	$	(29,999)
Net loss	—	—		—		—		—		(142,231)		(142,231)
Foreign currency translation adjustments, net of tax	—	—		—		—		—		—		—
Equity-based compensation expense	—	—		10,906		—		—		—		10,906
Exercise of options	87,324	—		119		—		—		—		119
Issuance of common shares as consideration for the acquisition of Pangiam	61,838,072	6		207,770		—		—		—		207,776
Proceeds from exercise of 2023 warrants	22,775,144	2		90,705		—		—		—		90,707
Issuance of shares for equity-based compensation awards, net	4,311,703	—		(3,140)		—		—		—		(3,140)
Issuance of shares for exercised convertible notes	94	—		—		—		—		—		—
Issuance of shares purchased under ESPP	474,325	—		607		—		—		—		607



As of June 30, 2024	246,774,184	$	25	$	610,395	$	—	$	(57,350)	$	(418,325)	$	134,745

The accompanying notes to the consolidated financial statements are an integral part of these statements.

BIGBEAR.AI HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)


	Six Months Ended June 30,
	2025		2024
Cash flows from operating activities:
Net loss	$	(290,605)	$	(142,231)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	6,921		5,346
Amortization of debt issuance costs and discount	4,790		6,743
Equity-based compensation expense	11,719		10,906
Goodwill impairment	70,636		85,000

Non-cash lease expense	624		363
Provision for doubtful accounts	351		176
Deferred income tax benefit	—		(37)
Loss on extinguishment of debt	2,577		—
Increase in fair value of derivatives	169,087		15,726

Changes in assets and liabilities:
Decrease (increase) in accounts receivable	10,267		(6,232)
Decrease in contract assets	194		3,781
(Increase) decrease in prepaid expenses and other assets	(592)		1,243
Decrease in accounts payable	(5,039)		(5,047)
Increase in accrued expenses	4,765		1,652
Increase in contract liabilities	1,925		1,469

Increase (decrease) in other liabilities	1,848		(275)
Net cash used in operating activities	(10,532)		(21,417)
Cash flows from investing activities:
Acquisition of business, net of cash acquired	—		13,935
Purchases of property and equipment	(85)		(167)
Capitalized software development costs	(2,699)		(3,225)
Net cash (used in) provided by investing activities	(2,784)		10,543
Cash flows from financing activities:

Proceeds from issuance of shares for exercised RDO and PIPE warrants	64,673		53,809

Payment of RDO and PIPE transaction costs	(551)		—





Repayment of short-term borrowings	(451)		(812)
Proceeds from at-the-market offering	300,000		—
Payment of transaction costs for at-the-market offering	(5,250)		—

Payment of debt issuance costs to third parties	(4,679)		—


Issuance of common stock upon ESPP purchase	1,069		607
Proceeds from exercise of options	1,633		119
Payments of tax withholding from the issuance of common stock	(1,679)		(3,140)


Net cash provided by financing activities	354,765		50,583
Effect of foreign currency rate changes on cash and cash equivalents	(745)		—
Net increase in cash and cash equivalents	340,704		39,709
Cash and cash equivalents at the beginning of period	50,141		32,557
Cash and cash equivalents at the end of the period	$	390,845	$	72,266

Cash paid during the period for:
Interest	$	2,299	$	—
Income taxes	$	(14)	$	—

Supplemental schedule of non-cash investing and financing activities:
Issuance of common stock upon conversion of 2029 Notes	$	135,597	$	—
Issuance of shares for paid-in-kind interest on 2029 Convertible Notes	$	4,095	$	—
Issuance of common stock as consideration for the acquisition of Pangiam	$	—	$	207,770

The accompanying notes to the consolidated financial statements are an integral part of these statements.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

Note 1—Description of the Business

BigBear.ai Holdings, Inc.’s (“BigBear.ai”, “BigBear.ai Holdings”, “BigBear” or the “Company”) mission is to help deliver clarity for the world’s most complex decisions. BigBear.ai is a leading provider of Edge AI-powered decision intelligence solutions for national security, supply chain management and digital identity. Customers and partners rely on BigBear.ai’s predictive analytics capabilities in highly complex, distributed, mission-based operating environments. We are a technology-led solutions organization, providing both software and services to our customers. Unless otherwise indicated, references to “we”, “us” and “our” refer collectively to BigBear.ai Holdings, Inc. and its consolidated subsidiaries.

Note 2—Summary of Significant Accounting Policies

Basis of Presentation

We prepared these accompanying unaudited consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, they do not include all information and notes required by GAAP for complete financial statements. Amounts presented within the consolidated financial statements and accompanying notes are presented in thousands of U.S. dollars unless stated otherwise, except for percentages, units, shares, per unit and per share amounts.

In the opinion of management, these consolidated financial statements reflect all adjustments that are of a normal recurring nature necessary for a fair presentation of our results of operations, financial condition and cash flows for the interim periods presented. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base these estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources.

Our actual results may differ materially from these estimates. Significant estimates inherent in the preparation of our consolidated financial statements include, but are not limited to, accounting for revenue and cost recognition; evaluation of goodwill; intangible assets; and other assets for impairment; income taxes; equity-based compensation; fair value measurements; and contingencies. We eliminate intercompany balances and transactions in consolidation.

The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the full year or future periods. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024.

Emerging Growth Company

Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.

We ceased to qualify as an emerging growth company as of June 30, 2025. This change in status is due to our classification as a large accelerated filer, as our public float exceeded $700 million as of June 30, 2025. Beginning with the current fiscal year, we will be subjected to increased disclosure and compliance obligations, including the requirement to obtain an auditor attestation of our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

Recent Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-09, Improvements to Income Tax Disclosures (“ASU 2023-09”). Under ASU 2023-09, public benefit entities must disclose specific categories and provide additional information in the tax rate reconciliation if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate. The amendments from ASU 2023-09 are effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company will adopt this ASU in 2025 and does not expect this guidance to have a material impact to its consolidated financial statements or related disclosures.

Note 3—Restatement of Previously Issued Financial Statements

As previously disclosed in Note 2—Restatement of Previously Issued Financial Statements to the Company’s consolidated financial statements as of and for the year ended December 31, 2024, management identified a material error in the previously reported financial statements related to its convertible notes issued in December 2021 and due in December 2026 (“2026 Notes”). The conversion option embedded within the 2026 Notes was incorrectly deemed to be eligible for a scope exception from the bifurcation requirements of ASC 815-15 and therefore required bifurcation as a derivative (“2026 Notes Conversion Option”). The 2026 Notes include certain adjustments to the conversion rate that violate the “fixed-for-fixed” criteria described in Accounting Standards Codification (“ASC”) 815-40. As a result, the prior period consolidated financial statements have been restated to reflect the issuance of the 2026 Notes Conversion Option at fair value as of December 7, 2021 and the subsequent remeasurement to fair value at each reporting date. Changes in the fair value of the 2026 Notes Conversion Option are recorded in the consolidated statements of operations. Bifurcation of the 2026 Notes Conversion Option from its host results in a discount to the 2026 Notes par value. The amortization of the discount to the par value of the 2026 Notes is recorded in the consolidated statements of operations as non-cash interest expense using the effective interest rate method.

The effect of the correction noted above on the Company’s consolidated statement of operations for the three and the six months ended June 30, 2024 was as follows:


	Three Months Ended June 30, 2024			Six Months Ended June 30, 2024
Unaudited consolidated statements of operations		As reported		Adjustment		Restated		As reported		Adjustment		Restated
Revenues		$	39,783	$	—	$	39,783	$	72,904	$	—	$	72,904
Cost of revenues		28,720		—		28,720		54,855		—		54,855
Gross margin		11,063		—		11,063		18,049		—		18,049
Operating expenses:
Selling, general and administrative		23,364		—		23,364		40,312		—		40,312
Research and development		3,565		—		3,565		4,709		—		4,709
Restructuring charges		457		—		457		1,317		—		1,317
Transaction expenses		347		—		347		1,450		—		1,450
Goodwill impairment		—		—		—		85,000		—		85,000
Operating loss		(16,670)		—		(16,670)		(114,739)		—		(114,739)
Interest expense		3,551		2,901		6,452		7,106		5,731		12,837
Net increase in fair value of derivatives		(7,882)		(199)		(8,081)		16,110		(384)		15,726

Other income		(617)		—		(617)		(1,072)		—		(1,072)
Loss before taxes:		(11,722)		(2,702)		(14,424)		(136,883)		(5,347)		(142,230)
Income tax benefit		15		—		15		1		—		1
Net loss		$	(11,737)	$	(2,702)	$	(14,439)	$	(136,884)	$	(5,347)	$	(142,231)

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The effect of the correction noted above on the Company’s consolidated statement of cash flows for the six months ended June 30, 2024 was as follows:


	Six Months Ended June 30, 2024
Unaudited consolidated statement of cash flows		As reported		Adjustment		Restated
Net loss		$	(136,884)	$	(5,347)	$	(142,231)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense		5,346		—		5,346
Amortization of debt issuance costs and discount		1,012		5,731		6,743
Equity-based compensation expense		10,906		—		10,906
Goodwill impairment		85,000		—		85,000

Non-cash lease expense		363		—		363
Provision for doubtful accounts		176		—		176
Deferred income tax benefit		(37)		—		(37)

Net increase in fair value of derivatives		16,110		(384)		15,726

Changes in assets and liabilities:
Increase in accounts receivable		(6,232)		—		(6,232)
Decrease in contract assets		3,781		—		3,781
Decrease in prepaid expenses and other assets		1,243		—		1,243
Decrease in accounts payable		(5,047)		—		(5,047)
Increase in accrued liabilities		1,652		—		1,652
Increase in contract liabilities		1,469		—		1,469

Increase in other liabilities		(275)		—		(275)
Net cash used in operating activities		(21,417)		—		(21,417)
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired		13,935		—		13,935
Purchases of property and equipment		(167)		—		(167)

Capitalized software development costs		(3,225)		—		(3,225)
Net cash provided by investing activities		10,543		—		10,543
Cash flows from financing activities:



Proceeds from issuance of shares for exercised RDO and PIPE warrants		53,809		—		53,809





Repayment of short-term borrowings		(812)		—		(812)

Issuance of common stock upon ESPP purchase		607		—		607
Proceeds from exercise of options		119		—		119
Payments of tax withholding from the issuance of common stock		(3,140)		—		(3,140)





Net cash provided by financing activities		50,583		—		50,583
Effect of foreign currency rate changes on cash and cash equivalents		—		—		—
Net increase in cash and cash equivalents		39,709		—		39,709
Cash and cash equivalents at the beginning of the period		32,557		—		32,557
Cash and cash equivalents at the end of the period		$	72,266	$	—	$	72,266

Note 4—Restructuring Charges

The following table presents the employee separation costs, net of tax, associated with the Company’s organizational restructuring for the following periods, as well as the unpaid employee separation costs remaining related to the organizational restructurings at the end of each period:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Employee separation costs	$	1,899	$	457	$	3,597	$	1,317

					As of
					June 30, 2025		June 30, 2024
Unpaid employee separation costs					$	2,129	$	—

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The table below presents the activity in accrued restructuring charges for the six months ended June 30, 2025:


	Total









As of December 31, 2024	$	—
Additions	3,597
Settlements	(1,468)
As of June 30, 2025	$	2,129

The restructuring expenses for all periods presented are recorded in the restructuring charges line on the consolidated statement of operations. The restructuring accrual is included in the accrued liabilities line in the consolidated balance sheet.

The total charges for the 2024 restructuring event were $1.3 million and as of June 30, 2024, there were no remaining payments to be made.

The total charges for the 2025 restructuring event were $3.6 million and as of June 30, 2025, there is $2.1 million left to be paid under the 2025 restructuring event, the final payment will be completed in the second fiscal quarter of 2025.

Note 5—Business Combinations

Pangiam Acquisition

On February 29, 2024, pursuant to the Agreement and Plan of Merger (the “Merger Agreement”), dated November 4, 2023, by and among BigBear.ai, Pangiam Merger Sub, Inc., a Delaware corporation and a direct wholly-owned subsidiary of the Company (“Merger Sub”), Pangiam Purchaser, LLC, a Delaware limited liability company and a direct wholly-owned subsidiary of the Company (“Pangiam Purchaser”), Pangiam Ultimate Holdings, LLC, a Delaware limited liability company (the “Seller”), and Pangiam Intermediate Holdings, LLC, a Delaware limited liability company (“Pangiam Intermediate”), (i) Merger Sub merged with and into Pangiam Intermediate, with Merger Sub ceasing to exist and Pangiam Intermediate surviving as a wholly-owned subsidiary of the Company (the “First Merger”), and (ii) immediately following the First Merger, Pangiam Intermediate merged with and into Pangiam Purchaser, with Pangiam Intermediate ceasing to exist and Pangiam Purchaser continuing as a wholly-owned subsidiary of the Company (the “Second Merger”, together with the First Merger, the “Mergers”).

As consideration for the Mergers and the related transactions contemplated by the Merger Agreement, BigBear.ai issued a total of 61,838,072 shares of the Company’s common stock to Seller based on the 20-day volume-weighted average price for common stock ending on the trading day immediately prior to the date of the Merger Agreement of $1.3439, representing an enterprise value of $70 million (which was subject to customary adjustments for indebtedness, cash, working capital and transaction expenses) (the “Purchase Price”), less $3.5 million that was held back from the Purchase Price at the time of the closing of the Mergers to cover any post-closing downward adjustments to the Purchase Price (the “Holdback Amount”). On July 2, 2024 (the “Finalization Date”), BigBear.ai issued 2,144,073 shares of common stock at $1.3905 per share (as determined according to the volume weighted average price over the 20 trading days ending immediately prior to the Finalization Date) as settlement of the final determination of the post-close adjusted Purchase Price.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The following table summarizes the final fair value of the consideration transferred and the fair values of the major classes of assets acquired and liabilities assumed as of the acquisition date.


	February 29, 2024, as reported at March 31, 2024		Measurement period adjustments		February 29, 2024, as reported at December 31, 2024
Holdback amount	$	3,500	$	(513)	$	2,987
Equity issued	207,776		(6)		207,770
Purchase consideration	$	211,276	$	(519)	$	210,757
Assets:
Cash	$	13,935	$	—	$	13,935
Accounts receivable	5,848		(369)		5,479
Prepaid expenses and other current assets	143		150		293
Property and equipment	635		—		635
Right-of-use assets	5,754		188		5,942
Intangible assets	39,100		(1,035)		38,065
Other non-current assets	1,772		—		1,772
Total assets acquired	$	67,187	$	(1,066)	$	66,121
Liabilities:
Accounts payable	1,137		—		1,137
Accrued expenses	2,454		36		2,490
Other current liabilities	69		(24)		45
Deferred revenue	1,148		—		1,148
Current portion of long-term lease liability	1,080		(874)		206
Long-term lease liability	6,109		(373)		5,736
Total liabilities acquired	$	11,997	$	(1,235)	$	10,762
Fair value of net identifiable assets acquired	55,190		169		55,359
Goodwill	$	156,086	$	(688)	$	155,398

The following table summarizes the intangible assets acquired by class and the weighted-average estimated useful lives:


	February 29 2024		Weighted-average estimated useful lives
Technology	$	14,835	7 years
Trade names	1,560		5 years
Customer relationships	21,670		20 years
Total intangible assets	$	38,065

The fair value of the acquired technology and trade name was determined using the relief from royalty (“RFR”) method. The fair value of the acquired customer relationships was determined using the excess earnings method.

The acquisition was accounted for as a business combination, whereby the excess of the purchase consideration over the fair value of identifiable net assets was allocated to goodwill. The goodwill reflects the potential synergies and expansion of the Company’s offerings across product lines and markets complementary to its existing products and markets. For tax purposes, the goodwill related to the acquisition is deductible.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The following table presents the net revenues, net loss and transaction expenses included in the results of operations for the following periods:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net revenue	$	10,761	$	10,551	$	21,485	$	13,990
Net loss	(4,233)		(89,056)		(8,306)		(87,929)

Transaction expenses related to the Pangiam Acquisition	—		—		—		1,450

Pro Forma Financial Data (Unaudited)

The following table presents the pro forma consolidated results of operations of BigBear.ai for the six months ended June 30, 2024 as though the acquisition of Pangiam had been completed as of January 1, 2024.


	Pro forma for the six months ended
		June 30, 2024
Net revenue		$	79,215
Net loss		$	(141,040)

The amounts included in the pro forma information are based on the historical results and do not necessarily represent what would have occurred if the business combination had taken place as of January 1, 2024, nor do they represent the results that may occur in the future. Accordingly, the pro forma financial information should not be relied upon as being indicative of the results that would have been realized had the acquisition occurred as of the date indicated or that may be achieved in the future.

Note 6—Fair Value of Financial Instruments

Cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, short-term debt, including the current portion of long-term debt, accrued liabilities and other current liabilities are reflected on the consolidated balance sheets at amounts that approximate fair value because of the short-term nature of these financial assets and liabilities.

Certain warrants that were issued at BigBear.ai’s initial public offering (“IPO Private Warrants”), warrants issued in BigBear.ai’s 2023 and 2024 private placement warrants (“PIPE Warrants”), and warrants issued in BigBear.ai’s 2023, 2024 and 2025 registered direct offering warrants (“RDO Warrants”) are valued using a modified Black-Scholes option pricing model (“OPM”). The conversion options of the 2026 Convertible Notes (“2026 Notes Conversion Option”) and 2029 Convertible Notes (“2029 Notes Conversion Option”) are valued using a binomial lattice convertible bond model and discounted cash flow method, considering the traded price of the 2026 Convertible Notes and 2029 Convertible Notes, respectively, and other unobservable input assumptions. The 2026 Notes Conversion Option, 2029 Notes Conversion Option, IPO Private Warrants, PIPE Warrants and RDO Warrants are considered to be Level 3 fair value measurements. See Note 17—Derivatives for information on the Level 3 inputs used to value the IPO Private Warrants, PIPE Warrants, RDO Warrants, 2026 Notes Conversion Option, and the 2029 Notes Conversion Option.

The table below presents the financial assets and liabilities measured at fair value :


		June 30, 2025
	Balance Sheet Caption	Level 1		Level 2		Level 3		Total
Recurring fair value measurements:
2029 Notes Conversion Option	Derivative liabilities	$	—	$	—	$	169,135	$	169,135
2026 Notes Conversion Option	Derivative liabilities	—		—		2,468		2,468
IPO Private Warrants	Derivative liabilities	—		—		220		220
2025 RDO Warrants	Derivative liabilities	—		—		21,376		21,376
Total recurring fair value measurements:		$	—	$	—	$	193,199	$	193,199

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)


		June 30, 2025
	Balance Sheet Caption	Level 1		Level 2		Level 3		Total
Nonrecurring fair value measurement:
Goodwill(2)	Goodwill	$	—	$	—	$	48,446	$	48,446


		December 31, 2024
	Balance Sheet Caption	Level 1		Level 2		Level 3		Total


Recurring fair value measurements:


IPO Private Warrants	Derivative liabilities	$	—	$	—	$	290	$	290
2024 PIPE Warrants	Derivative liabilities	—		—		32,760		32,760
2024 RDO Warrants	Derivative liabilities	—		—		21,634		21,634
2029 Notes Conversion Option	Derivative liabilities	—		—		115,831		115,831
Total recurring fair value measurements:		$	—	$	—	$	170,515	$	170,515

Nonrecurring fair value measurement:
Goodwill(1)	Goodwill	$	—	$	—	$	119,081	$	119,081

(1) As of March 31, 2024, in accordance with Subtopic 350-20, goodwill with a carrying amount of $204.8 million was written down to its implied fair value of $119.8 million, resulting in an impairment charge of $85.0 million, which was included in earnings during the first quarter of 2024. Differences between the implied fair value of $119.1 million and the balance as of December 31, 2024 relate to subsequent measurement period adjustments.

2) As of June 30, 2025, in accordance with Subtopic 350-20, goodwill with a carrying amount $119.1 million was written down to its implied fair value of $48.4 million, resulting in an impairment charge of $70.6 million, which was included in earnings during the second quarter of 2025.

The changes in the fair value of the Level 3 liabilities are as follows:



	IPO private warrants		2026 Notes Conversion Option		2024 PIPE warrants		2024 RDO Warrants		2025 RDO warrants		2029 Notes Conversion Option




















December 31, 2024	$	290	$	—	$	32,760	$	21,634	$	—	$	115,831
Additions	—		—		—		—		18,586		—
Changes in fair value	(70)		2,468		42,480		17,631		2,790		53,304
Settlements	—		—		(75,240)		(39,265)		—		—
June 30, 2025	$	220	$	2,468	$	—	$	—	$	21,376	$	169,135

Note 7—Goodwill

First Quarter of Fiscal 2024

During the first quarter of fiscal 2024, we performed a quantitative impairment analysis as a result of a decrease in the Company’s share price during the quarter compared to the share price of the equity issued as consideration for the purchase of Pangiam as described in Note 5. As a result of this testing, we recorded an $85.0 million non-cash goodwill impairment charge during the three months ended March 31, 2024. Our goodwill impairment test reflected an allocation of 50% and 50% between the income and market-based approaches, respectively. Significant inputs into the valuation models included the discount rate, EBITDA growth and estimated future cash flows. We used a discount rate of 30.7%, guideline peer group and their historical and forward-looking revenues in the goodwill impairment test. Subsequent to the impairment, there was no excess of reporting unit fair value over carrying value.

First Quarter of Fiscal 2025

There were no goodwill impairment charges recorded during the three months ended March 31, 2025.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

Second Quarter of Fiscal 2025

During the second quarter of fiscal 2025, we performed a triggering event analysis to determine if it was more likely than not that the fair value of the reporting unit was less than the carrying value. It was determined that there was a triggering event related to the downward revisions of the short and long-term forecasts. As a result of this assessment, we performed a quantitative impairment analysis and the Company recorded a $70.6 million non-cash impairment charge during the three months ended June 30, 2025. Our goodwill impairment test reflected an allocation of 50% and 50% between the income and market-based approaches, respectively. Significant inputs into the valuation models included the discount rate, EBITDA growth and estimated future cash flows. We used a discount rate of 12%, guideline peer group and their historical and forward-looking revenues in the goodwill impairment test. Subsequent to the impairment, there was no excess of reporting unit fair value over carrying value.

Accumulated impairment losses to goodwill were $209.2 million as of June 30, 2025.

The table below presents the changes in carrying amount of goodwill:


As of December 31, 2024	$	119,081
Impairment of Goodwill	(70,636)
As of June 30, 2025	$	48,446

Note 8—Intangible Assets, net

The intangible asset balances and accumulated amortization are as follows:



	June 30, 2025
	Gross carrying amount		Accumulated amortization		Impact of foreign currency translation		Net carrying amount		Weighted average useful life in years
Customer relationships	$	96,270	$	(18,472)	$	—	$	77,798	20
Technology	41,035		(19,596)		—		21,439		7
Software for sale	16,870		(2,166)		491		15,195		3
Trade name	1,560		(371)		—		1,189		5
Total	$	155,735	$	(40,605)	$	491	$	115,621


	December 31, 2024
	Gross carrying amount		Accumulated amortization		Impact of foreign currency translation		Net carrying amount		Weighted average useful life in years
Customer relationships	$	96,270	$	(16,064)	$	—	$	80,206	20
Technology	41,035		(16,665)		—		24,370		7
Software for sale	14,459		(927)		(289)		13,243		3
Trade name	1,560		(260)		—		1,300		5
Total	$	153,324	$	(33,916)	$	(289)	$	119,119

The table below presents all amortization expense related to all intangible assets as well as amortization expense related to capitalized software for the following periods:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Total amortization expense related to intangible assets	$	3,340	$	2,794	$	6,690	$	5,133

Amortization expense related to capitalized software	$	615	$	224	$	1,240	$	224

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The table below presents the estimated amortization expense on intangible assets for the next five years and thereafter as of June 30, 2025:


Remainder of 2025	$	11,710
2026	14,190
2027	10,979
2028	8,209
2029	6,835
Thereafter	63,698
Total estimated amortization expense	$	115,621

Note 9—Prepaid expenses and other current assets

The table below presents details on prepaid expenses and other current assets:



	June 30, 2025		December 31, 2024
Prepaid insurance	$	482	$	1,021
Prepaid taxes	1,523		249
Prepaid software and subscriptions	1,530		2,074
Other prepaid expenses	860		424

Total prepaid expenses and other current assets	$	4,395	$	3,768

Note 10—Accrued Liabilities

The table below presents details on accrued liabilities:



	June 30 2025		December 31 2024
Payroll accruals(1)	$	13,600	$	13,533
Accrued interest	408		231
Legal accruals	386		450
Other accrued expenses	2,148		5,283
Impact of foreign currency translation	13		(1)
Total accrued liabilities	$	16,555	$	19,496

(1) Inclusive of employer portion of taxes related to the vesting of equity awards and accrued subcontractor labor.

Note 11—Debt

The table below presents the Company’s debt balances:



	June 30 2025		December 31, 2024
2026 Convertible Notes	$	17,668	$	17,668
2029 Convertible Notes	124,605		182,332



D&O Financing Loan	367		818
Total debt	142,640		200,818


Less: unamortized debt issuance discount and costs	39,590		64,596
Total debt, net	103,050		136,222
Less: current portion	367		818
Long-term debt, net	$	102,683	$	135,404

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

2026 Convertible Notes

On December 7, 2021, the Company issued $200.0 million of unsecured convertible notes (the “2026 Convertible Notes”) to certain investors. The 2026 Convertible Notes bear interest at a rate of 6.0% per annum, payable semi-annually, and not including any interest payments that are settled with the issuance of shares, were initially convertible into 17,391,304 shares of the Company’s common stock at an initial conversion price of $11.50 (the “Conversion Price”). The Conversion Price is subject to adjustments. On May 29, 2022, pursuant to the 2026 Convertible Notes indenture, the conversion rate applicable to the 2026 Convertible Notes was adjusted to 94.2230 (previously 86.9565) shares of common stock per $1,000 principal amount of 2026 Convertible Notes because the average of the daily volume-weighted average price of the common stock during the preceding 30 trading days was less than $10.00 (the “Conversion Rate Reset”). After giving effect to the Conversion Rate Reset, the Conversion Price is $10.61 and the 2026 Convertible Notes are convertible into 18,844,600 shares, not including any interest payments that are settled with the issuance of shares. The 2026 Convertible Note financing matures on December 15, 2026.

The Company may, at its election and subject to certain conditions, force conversion of the 2026 Convertible Notes after December 15, 2022 and prior to October 7, 2026 if the trading price of the Company’s common stock exceeds 130% of the conversion price for 20 out of the preceding 30 trading days and the 30-day average daily trading volume ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to $3.0 million for the first two years after the initial issuance of the 2026 Convertible Notes and $2.0 million thereafter. In connection with such forced conversion, the conversion rate for the 2026 Convertible Notes will be increased but no Interest Make-Whole Payment (as defined below) will be made in connection with such forced conversion. In the event that a holder of the 2026 Convertible Notes elects to convert the 2026 Convertible Notes (a) prior to December 15, 2024, the Company will be obligated to pay an amount equal to twelve months of interest or (b) on or after December 15, 2024 but prior to December 15, 2025, any accrued and unpaid interest plus any remaining amounts that would be owed up to, but excluding, December 15, 2025 (such interest payments, an “Interest Make-Whole Payments”). The Interest Make-Whole Payments will be payable in cash or shares of the common stock, depending on the average of the daily volume-weighted average price per share of the Company’s common stock for a specified period immediately prior to such conversion, as set forth in the Indenture.

Following certain corporate events that occur prior to the maturity date or if the Company exercises its mandatory conversion right, the conversion rate will be increased in certain circumstances for a holder who elects, or has been forced, to convert its 2026 Convertible Notes in connection with such corporate events or such mandatory conversion.

If a Fundamental Change (as defined in the 2026 Convertible Notes indenture) occurs prior to the maturity date, holders of the 2026 Convertible Notes will have the right to require the Company to repurchase all or any portion of their 2026 Convertible Notes in principal amounts of one thousand dollars or an integral multiple thereof, at a repurchase price equal to the principal amount of the 2026 Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date.

On May 29, 2022, pursuant to the conversion rate adjustment provisions in the indenture, governing the 2026 Convertible Notes, the Conversion Price was adjusted to $10.61 (or 94.2230 shares of common stock per one thousand dollars of principal amount of Convertible Notes). Subsequent to the adjustment, the 2026 Convertible Notes are convertible into 18,844,600 shares, not including any interest payments that are settled with the issuance of shares.

The 2026 Convertible Notes contain conversion features that meet the definition of a derivative and require separate accounting treatment from the debt host. Refer to Note 17—Derivatives for more information on the 2026 Notes Conversion Option.

2029 Convertible Notes

On December 19, 2024, the Company entered into privately negotiated exchange agreements (each, an “Exchange Agreement”) with a limited number of holders of the Company’s 2026 Convertible Notes, to exchange the 2026 Convertible Notes for new senior secured convertible notes due 2029 (the “2029 Convertible Notes”, together with the 2026 Convertible Notes, the “Convertible Notes”). The Company exchanged (the “Exchange Transaction”) approximately $182.3 million principal amount of the 2026 Convertible Notes for $182.3 million in aggregate principal amount of the Company’s 2029 Convertible Notes and approximately $0.4 million in cash, with such cash payment representing the accrued and unpaid interest on the 2026 Convertible Notes at the time of the Exchange Transaction. The 2029 Convertible Notes bear interest at a rate of (i) 6.0% per annum, if interest is paid in cash and (ii) 7.0% per annum, if the Company elects, subject to certain conditions, to pay interest in kind with shares of its common stock. To the extent that the certain liquidity conditions of the Company and its subsidiaries is not satisfied as of the last business day of any calendar month, then with respect to the period applicable to the interest payment date

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

immediately following the month in which such liquidity condition is not satisfied, the interest rate will be (i) 9.00% per annum, if interest is paid in cash and (ii) 10.00% per annum, if the Company elects, subject to certain conditions, to pay interest in kind with shares of its common stock (it being understood that such increased rate shall apply solely for such six-month period applicable to such interest payment date). Interest is payable semi-annually. The conversion rate is 281.4491 shares of common stock per $1,000 principal amount of 2029 Convertible Notes, which represents an initial conversion price of $3.55 per share of the Company’s common stock. The conversion rate and the conversion price are subject to adjustments. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the 2029 Convertible Notes Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.

The exchange was accounted for as an extinguishment of the 2026 Convertible Notes and the 2029 Convertible Notes were recognized at fair value, which approximated the carrying amount of the principal balances exchanged. For the year ended December 31, 2024, the Company recognized a loss on extinguishment of $31.3 million on the consolidated statements of operations related to the unamortized debt issuance costs of the exchanged 2026 Convertible Notes. The Company was in compliance with all covenants through the extinguishment of the exchanged 2026 Convertible Notes.

The 2029 Convertible Notes were issued pursuant to, and are governed by, an indenture (the “2029 Convertible Notes Indenture”), dated as of December 27, 2024. The 2029 Convertible Notes will be fully and unconditionally guaranteed, on a senior, secured basis, by the Company and certain of its existing and future direct and indirect subsidiaries, subject to certain exceptions (the “Guarantors”), and will initially be secured on a first-priority basis by substantially all assets of the Company and such Guarantors, subject to certain exceptions.

Upon completion of the Exchange Transaction, the aggregate principal amount of the 2026 Convertible Notes outstanding was $17.7 million. The Company did not receive any cash proceeds from the issuance of the 2029 Convertible Notes pursuant to the Exchange Transactions.

Holders who convert their 2029 Convertible Notes will also be entitled to an interest make-whole payment of up to 7.5% of the aggregate principal amount of notes converted, subject to reduction as further described in the 2029 Convertible Notes Indenture. Interest make-whole payments are payable in cash or shares of common stock, depending on the average of the daily volume-weighted average price per share of the Company’s common stock for a specified period immediately prior to such conversion. Payment of the interest make-whole in shares will be at a price equal to 95% of such average of the daily volume-weighted average price.

The 2029 Convertible Notes will not be redeemable at the Company’s election before December 27, 2025. The 2029 Convertible Notes will be redeemable, in whole but not in part (subject to certain limitations), for cash at the Company’s option at any time, and from time to time, on or after December 27, 2025 and prior to the close of business on November 16, 2029, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for a specified period of time and certain other conditions are satisfied. The redemption price will be equal to the principal amount of the 2029 Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

If a Fundamental Change (as defined in the 2029 Convertible Notes Indenture) occurs, holders of the 2029 Convertible Notes will have the right to require the Company to repurchase their 2029 Convertible Notes for cash in principal amounts of the 2029 Convertible Notes to be repurchased of one thousand dollars, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date, plus any remaining amounts that would be owed to, but excluding, the maturity date.

The 2026 Convertible Notes and the 2029 Convertible Notes require the Company to meet certain financial and other covenants. As of June 30, 2025, the Company was in compliance with all covenants related to the Convertible Notes.

The 2029 Convertible Notes contain conversion features that meet the definition of a derivative and require separate accounting treatment from the debt host. Refer to Note 17—Derivatives for more information on the 2029 Notes Conversion Option.

During the three months ended March 31, 2025, $57.7 million of the 2029 Convertible Notes were voluntarily converted by noteholders following the Exchange Transaction. These conversions have resulted in the issuance of 16.7 million shares of common stock.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The following table presents the carrying amounts and fair values associated with the Convertible Notes as of June 30, 2025. The fair value of the Convertible Notes is considered to be a Level 3 fair value measurement.


	Outstanding balance		Unamortized issuance costs and debt discount		Carrying value		Fair value
2026 Convertible Notes	$	17,668	$	(1,792)	$	15,876	$	18,091
2029 Convertible Notes	124,605		(37,798)		86,807		261,066
Total	$	142,273	$	(39,590)	$	102,683	$	279,157

D&O Financing Loan

On December 13, 2024, the Company entered into a $1.1 million loan (the “2025 D&O Financing Loan”) with AFCO Credit Corporation to finance the Company’s directors and officers insurance premium through September 2025. The D&O Financing Loan has an interest rate of 5.99% per annum and a maturity date of September 8, 2025.

On December 20, 2023, the Company entered into a $1.2 million loan (the “2024 D&O Financing Loan”) with US Premium Finance to finance the Company’s directors and officers insurance premium through September 2024. The D&O Financing Loan had an interest rate of 6.99% per annum and a maturity date of September 8, 2024. The 2024 D&O Financing Loan was fully repaid at maturity.

Note 12—Leases

The Company is obligated under operating leases for certain real estate and office equipment assets. The Company’s finance leases are not material. Certain leases contained predetermined fixed escalation of minimum rents at rates ranging from 2.5% to 4.6% per annum and remaining lease terms of up to ten years, some of which include renewal options that could extend certain leases to up to an additional five years.

The following table presents supplemental information related to leases:


	June 30, 2025		June 30, 2024
Weighted average remaining lease term	7.79		5.09
Weighted average discount rate	13.62	%	13.43	%

The table below summarizes total lease costs for the following periods:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024



Operating lease expense	$	644	$	585	$	1,321	$	972
Variable lease expense	73		43		168		69
Short-term lease expense	—		10		—		14
Lease expense	$	717	$	638	$	1,489	$	1,055

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Sublease income recognized (1)	$	69	$	19	$	96	$	42

(1) As of June 30, 2025 and June 30, 2024, the Company has subleased four and two of its real estate leases, respectively.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The following table presents supplemental cash flow and non-cash information related to leases:


	Six Months Ended June 30,
		2025		2024
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from leases		$	1,193	$	1,003
Right-of-use assets obtained in exchange for lease obligations - non-cash activity		$	—	$	5,942

As of June 30, 2025, the future annual minimum lease payments for operating leases are as follows:


Remainder of 2025	$	1,164
2026	2,275
2027	1,695
2028	1,668
2029	1,713
Thereafter	7,352
Total future minimum lease payments	$	15,867
Less: amounts related to imputed interest	6,277
Present value of future minimum lease payments	9,590
Less: current portion of long-term lease liability	1,096
Long-term lease liability	$	8,494

Note 13—Income Taxes

The table below presents the effective income tax rate for the following periods:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024









Effective tax rate	—	%	(0.1)	%	(0.1)	%	—	%

The Company was taxed as a corporation for federal, state and local income tax purposes for the three months ended June 30, 2025 and June 30, 2024. The effective tax rate for the three month periods ended June 30, 2025 and June 30, 2024 differ from the U.S. federal income tax rate of 21.0% primarily due to foreign, state, and local income taxes, permanent differences between book and taxable income, certain discrete items, and the change in valuation allowance.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. We are currently assessing its impact on our financial statements and do not expect this to have a material impact on our financial statements.

Note 14—Commitments and Contingencies

Contingencies in the Normal Course of Business

Under certain contracts with the U.S. government and certain governmental entities, contract costs, including indirect costs, are subject to audit by and adjustment through negotiation with governmental representatives. Revenue is recorded in amounts expected to be realized on final settlement of any such audits.

Legal Proceedings

The Company is subject to litigation, claims, investigations and audits arising from time to time in the ordinary course of business. Although legal proceedings are inherently unpredictable, the Company intends to defend itself vigorously with respect to any matters currently pending against it. The outcome of these matters, individually and in the aggregate, is not expected to

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

have a material impact on the Company’s consolidated balance sheets, consolidated statements of operations, or cash flows. As of June 30, 2025, the Company has accrued $0.4 million related to various ongoing legal disputes. The $0.4 million balance as of June 30, 2025, reflects management’s best estimate as of that date and is net of any anticipated amounts recoverable through insurance.

Note 15—Stockholders’ Equity

Common Stock

The table below presents the details of the Company’s authorized common stock as of the following periods:



	June 30, 2025		December 31, 2024
Common stock:
Authorized shares of common stock	500,000,000		500,000,000
Common stock par value per share	$	0.0001	$	0.0001
Common stock outstanding at the period end	369,171,608		251,554,378

Treasury Stock

These shares are measured at cost and presented as treasury stock on the consolidated balance sheets and consolidated statements of stockholders’ equity (deficit).

Dividend Rights

Subject to applicable law and the rights, if any, of the holders of any outstanding series of the Company’s preferred stock or any class or series of stock having a preference over or the right to participate with the Company’s common stock with respect to the payment of dividends, dividends may be declared and paid ratably on the Company’s common stock out of the assets of the Company that are legally available for this purpose at such times and in such amounts as the Company’s Board of Directors (the “Board”) in its discretion shall determine.

Voting Rights

Each outstanding share of the Company’s common stock is entitled to one vote on all matters submitted to a vote of stockholders. Holders of shares of common stock do not have cumulative voting rights.

Conversion or Redemption Rights

The Company’s common stock is neither convertible nor redeemable.

Liquidation Rights

Upon the Company’s liquidation, the holders of the Company’s common stock are entitled to receive pro rata the Company’s assets that are legally available for distribution, after payment of all debts and other liabilities and subject to the prior rights of any holders of the Company’s preferred stock then outstanding.

Preferred Stock

The table below presents the details of the Company’s authorized preferred stock as of the following periods:



	June 30, 2025		December 31, 2024
Preferred stock:
Authorized shares of preferred stock	1,000,000		1,000,000
Preferred stock par value per share	$	0.0001	$	0.0001
Preferred stock outstanding at the period end	—		—

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The Company’s Board may, without further action by the Company’s stockholders, from time to time, direct the issuance of shares of preferred stock in series and may, at the time of issuance, determine the designations, powers, preferences, privileges and relative participating, optional or special rights as well as the qualifications, limitations or restrictions thereof, including dividend rights, conversion rights, voting rights, terms of redemption and liquidation preferences, any or all of which may be greater than the rights of the Company’s common stock. Satisfaction of any dividend preferences of outstanding shares of the Company’s preferred stock would reduce the amount of funds available for the payment of dividends on shares of the Company’s common stock. Upon the affirmative vote of a majority of the total number of directors then in office, the Company’s Board may issue shares of the Company’s preferred stock with voting and conversion rights which could adversely affect the holders of shares of the Company’s common stock.

Note 16—At-the-Market Offering

In April 2023, the Company filed an automatic shelf registration statement on Form S-3 (the “2023 Shelf Registration Statement”) with the SEC registering an indeterminate amount of its common stock, preferred stock, warrants, rights, and units (collectively, “Company securities”). which the SEC declared effective on April 21. 2023. Pursuant to the Company’s controlled equity offering agreement (the “Controlled Equity Offering Agreement”) dated as of May 10, 2024, with Cantor Fitzgerald & Co.. (“Cantor”), as sales agent, under an “at the market” offering program (the “ATM Program”), the Company agreed to pay commissions to Cantor as its sales agent for their service with respect to the sales of common stock through the ATM Program.

Pursuant to the Controlled Equity Offering Agreement, the Company may offer and sell common stock from time to time to or through Cantor, subject to the Company’s compliance with applicable laws and the applicable requirements of the Controlled Equity Offering Agreement. The Controlled Equity Offering Agreement stipulates that the Company will pay Cantor a commission of up to 3.0% of the gross offering proceeds of any shares of common stock sold to or through Cantor pursuant to the Controlled Equity Offering Agreement. The Company intends to use the net proceeds from sales of common stock issued under the ATM Program for general corporate and working capital purposes. The timing of any sales and the number of shares sold will depend on a variety of factors to be determined and considered by the Company. The Company is not obligated to sell any shares under the Controlled Equity Offering Agreement.

In May 2024, the Company filed a prospectus supplement to the 2023 Shelf Registration Statement which allows the Company to sell, from time to time and at its discretion, Company securities having an aggregate offering price of up to $150 million including shares of common stock that may be sold pursuant to the Company’s Controlled Equity Offering Agreement (the “May 2024 Sales Agreement”).

In June 2025, the Company filed a prospectus supplement to the 2023 Shelf Registration Statement which allows the Company to sell, from time to time and at its discretion, Company securities having an aggregate offering price of up to $150 million including shares of common stock that may be sold pursuant to the Company’s Controlled Equity Offering Agreement (the “June 2025 Sales Agreement”).

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The following table summarizes the terms and provisions of each sales agreement, and each Common Stock ATM Offering that was active during the three months ended March 31, 2025 and the year ended December 31, 2024. The maximum aggregate offering price and cumulative net proceeds (less sales commissions and expenses) for each Common Stock ATM Offering in the following table are reported in thousands.


	May 2024 Sales Agreement		June 2025 Sales Agreement
Agreement effective date
Maximum aggregate offering price ($ thousands)	$	150,000	$	150,000
Maximum commissions payable to sales agents on gross proceeds from sale of shares	3.0%		3.0%
Expiration date / date substantially depleted	May 28, 2025		June 16, 2025

As of June 30, 2025:
Cumulative gross proceeds received from shares sold under such sales agreement ($ thousands)	$	150,000	$	150,000
Maximum aggregate offering price remaining available for sale under such sales agreement.	$	—	$	—

The following table summarizes the sales activity of each sales agreement that was active during 2025 or 2024 for the periods indicated. The net proceeds (less sales commissions and expenses) for each Common Stock ATM Offering in the following table are reported in thousands.


	Six Months Ended June 30,
	2025		2024
Number of shares sold under such sales agreement:
May 2024 Sales Agreement	39,555,415		—
June 2025 Sales Agreement	37,697,898		—
Total shares sold pursuant to Common Stock ATM Offerings	77,253,313		—

Net proceeds received from shares sold under such sales agreement ($ thousands):
May 2024 Sales Agreement	$	147,375	$	—
June 2025 Sales Agreement	$	147,375	$	—
Total net proceeds received from shares sold pursuant to Common Stock ATM Offerings	$	294,750	$	—

The sales commissions and expenses related to each of the above Common Stock ATM Offerings are considered direct and incremental costs and are charged against “Additional paid-in capital” on the Consolidated Balance Sheets in the period in which the corresponding shares are issued and sold.

Note 17—Derivatives

2026 Notes Conversion Option

On December 7, 2021, the Company issued $200 million of unsecured convertible notes (the “2026 Convertible Notes”) to certain investors. The 2026 Convertible Notes contain conversion features that meet the definition of a derivative and require separate accounting treatment from the debt host.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The table below presents the value of the 2026 Notes Conversion Option under the Binomial Lattice Model using the following assumptions as of the following dates:


	June 30, 2025		December 31, 2024
Value of 2026 Notes Conversion Option	$	2,468	$	322
Conversion price	$	10.61	$	10.61
Common stock price	$	6.79	$	4.45
Expected option term (years)	1.5		1.9
Expected volatility	75.00%		40.00%
Risk-free rate of return	3.80%		4.25%
Expected annual dividend yield	—%		—%

As of June 30, 2025, the 2026 Notes Conversion Option had a fair value of $2.5 million and is presented on the consolidated balance sheets within derivative liabilities. A loss of $2.5 million was recognized during the six months ended June 30, 2025, and is presented in net increase (decrease) in fair value of derivatives on the consolidated statements of operations.

As of June 30, 2025, the remaining principal of the 2026 Convertible Notes outstanding was $17.7 million.

2029 Notes Conversion Option

On December 19, 2024, the Company entered into privately negotiated Exchange Agreements with a limited number of holders of the Company’s 2026 Convertible Notes, to exchange the 2026 Convertible Notes for 2029 Convertible Notes. The 2029 Convertible Notes contain conversion features that meet the definition of a derivative and require separate accounting treatment from the debt host.

The table below presents the value of the 2029 Notes Conversion Option under the Binomial Lattice Model using the following assumptions as of the following dates:


	June 30, 2025		December 31, 2024
Value of 2029 Notes Conversion Option ($ thousands)	$	169,135	$	115,831
Conversion price	$	3.55	$	3.55
Common stock price	$	6.79	$	4.45
Expected option term (years)	4.5		5.0
Expected volatility	75.00%		37.60%
Risk-free rate of return	3.70%		4.30%
Expected annual dividend yield	—%		—%

As of June 30, 2025, the 2029 Notes Conversion Option had a fair value of $169.1 million and is presented on the consolidated balance sheets within derivative liabilities. A loss of $149.9 million was recognized during the six months ended June 30, 2025, and is presented in net increase (decrease) in fair value of derivatives on the consolidated statements of operations.

During the six months ended June 30, 2025, $57.7 million of the 2029 Convertible Notes have been voluntarily converted by noteholders following the Exchange Transaction. These conversions resulted in the issuance of approximately 16.7 million shares of common stock in exchange for the retirement of the respective notes. During the six months ended June 30, 2025, upon conversion of the notes, there was a mark-to-market adjustment to increase the debt conversion option derivative liability, resulting in a loss of $59.9 million, which is included in the net increase (decrease) in fair value of derivatives and is presented in net increase (decrease) in fair value of derivatives on the consolidated statements of operations. In conjunction with the conversion, a loss of $2.6 million was recognized for the three months ended March 31, 2025 related to the convertible debt discount and unamortized deferred financing costs, and is presented in loss on extinguishment of debt on the consolidated statements of operations.

As of June 30, 2025, the remaining principal of the 2029 Convertible Notes outstanding was $124.6 million.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

2023 RDO Warrants

On June 13, 2023, the Company consummated the closing of a registered direct offering pursuant to an Underwriting Agreement with Cowen and Company, LLC, as representative of the underwriters, for the sale and purchase of an aggregate of 11,848,341 shares of common stock at par value and accompanying common warrants (“RDO warrants”). Each share of common stock is accompanied by a common warrant to purchase three-quarters of a share of common stock at an exercise price of $2.32 per share. The RDO warrants were initially exercisable for up to 8,886,255 shares of common stock and became exercisable six months after issuance and had a five-year term.

On February 27, 2024, the Company entered into a warrant exercise agreement (the “RDO Warrant Exercise Agreement”) with an existing accredited investor (the “RDO Investor”) to exercise in full the outstanding RDO warrants to purchase up to an aggregate of 8,886,255 shares of the Company’s common stock for gross proceeds of $20.6 million. Upon settlement of the RDO warrants, a loss of $10.1 million was recognized for the six months ended June 30, 2024 and is presented in net increase (decrease) in fair value of derivatives on the consolidated statements of operations.

2024 RDO Warrants

In consideration for the immediate and full exercise of the RDO warrants, on February 28, 2024, the RDO Investor received a new unregistered common stock purchase warrant to purchase up to an aggregate of 5,800,000 of the Company’s common stock (the “2024 RDO warrants”) in a private placement. The 2024 RDO warrants became exercisable six months after issuance and had a five-year term, with an exercise price per share equal to $3.78.

The table below presents the value of the 2024 RDO warrants under the Black-Scholes OPM using the following assumptions as of the following dates:


	December 31 2024
Value of each 2024 RDO warrant	$	3.73
Exercise price	$	3.78
Common stock price	$	4.45
Expected option term (years)	4.7
Expected volatility	120.00%
Risk-free rate of return	4.31%
Expected annual dividend yield	—%

On February 5, 2025, the Company entered into a warrant exercise agreement (the “RDO Warrant Exercise Agreement”) with an existing accredited investor (the “RDO Investor”) to exercise in full the outstanding 2024 RDO warrants to purchase up to an aggregate of 5,800,000 shares of the Company’s common stock for gross proceeds of $21.9 million. Upon settlement of the RDO warrants, a loss of $14.3 million was recognized for the six months ended June 30, 2025 and is presented in net increase (decrease) in fair value of derivatives on the consolidated statements of operations.

2025 RDO Warrants

In consideration for the immediate and full exercise of the 2024 RDO warrants, on February 5, 2025, the RDO Investor received a new unregistered common stock purchase warrant to purchase up to an aggregate of 3,770,000 of the Company’s common stock (the “2025 RDO warrants”) in a private placement. The 2025 RDO warrants will become exercisable six months after issuance and have a five-year term, with an exercise price per share equal to $9.00.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The table below presents the value of the 2025 RDO warrants under the Black-Scholes OPM using the following assumptions as of the following dates:


	June 30, 2025		February 6, 2025
Value of each 2025 RDO warrant	$	5.67	$	4.93
Exercise price	$	9.00	$	9.00
Common stock price	$	6.79	$	6.77
Expected option term (years)	5.1		5.5
Expected volatility	125.00%		95.00%
Risk-free rate of return	3.76%		4.25%
Expected annual dividend yield	—%		—%

As of June 30, 2025, the 2025 RDO warrants had a fair value of $21.4 million and is presented on the consolidated balance sheets within derivative liabilities. A loss of $2.8 million, which includes transaction costs associated with the issuance of the RDO warrants, was recognized during the six months ended June 30, 2025 and are presented in net increase (decrease) in fair value of derivatives on the consolidated statements of operations.

As of June 30, 2025, there were 3,770,000 2025 RDO warrants issued and outstanding.

2023 PIPE Warrants

On January 19, 2023, the Company consummated the closing of a private placement (the “Private Placement”) by and among the Company and Armistice Capital Master Fund Ltd (the “Purchaser”). At the closing of the Private Placement, the Company issued 13,888,889 shares of the Company’s common stock at par value and warrants to purchase up to an additional 13,888,889 shares of common stock (the “PIPE warrants”). The PIPE warrants became exercisable six months after issuance and had a five-year term, with an exercise price of $2.39 per share. The PIPE warrants were subject to a 4.99% beneficial ownership limitation.

On March 4, 2024, the Company entered into a warrant exercise agreement (the “PIPE Warrant Exercise Agreement”) with an existing accredited investor (the “PIPE Investor”) to exercise in full the outstanding PIPE warrants to purchase up to an aggregate of 13,888,889 shares of the Company’s common stock for gross proceeds of $33.2 million. Upon settlement of the PIPE warrants, a loss of $32.2 million was recognized as a result of the change in fair value for the six months ended June 30, 2024 and is presented in net increase (decrease) in fair value of derivatives on the consolidated statements of operations.

2024 PIPE Warrants

In consideration for the immediate and full exercise of the 2023 PIPE warrants, on March 5, 2024, the PIPE Investor received a new unregistered common stock purchase warrant to purchase up to an aggregate of 9,000,000 shares of the Company’s common stock (the “2024 PIPE warrant”) in a private placement. The 2024 PIPE warrants became exercisable six months after issuance and had a five-year term, with an exercise price per share equal to $4.75.

The table below presents the value of the 2024 PIPE warrants under the Black-Scholes OPM using the following assumptions as of the following dates:


	December 31, 2024
Value of each 2024 PIPE warrant	$	3.64
Exercise price	$	4.75
Common stock price	$	4.45
Expected option term (years)	4.7
Expected volatility	120.00%
Risk-free rate of return	4.32%
Expected annual dividend yield	—%

On February 10, 2025, the Company entered into a warrant exercise agreement (the “PIPE Warrant Exercise Agreement”) with an

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

existing accredited investor (the “PIPE Investor”) to exercise 4,500,000 of the outstanding PIPE warrants to purchase up to an aggregate of 9,000,000 shares of the Company’s common stock for gross proceeds of $21.4 million. Upon settlement of the PIPE warrants, a gain of $0.2 million was recognized as a result of the change in fair value for the six months ended June 30, 2025 and is presented in net increase (decrease) in fair value of derivatives on the consolidated statements of operations.

On February 11, 2025, the Company entered into an additional PIPE Warrant Exercise Agreement with the same PIPE Investor to exercise the remaining 4,500,000 of the outstanding PIPE warrants to purchase up to an aggregate of 9,000,000 shares of the Company’s common stock for gross proceeds of $21.4 million. Upon settlement of the PIPE warrants, a gain of $0.1 million was recognized as a result of the change in fair value for the six months ended June 30, 2025 and is presented in net increase (decrease) in fair value of derivatives on the consolidated statements of operations.

IPO Public Warrants

Each warrant issued in connection with the Company’s initial public offering (the “IPO public warrants”) entitles the registered holder to purchase one share of common stock at a price of $11.50 per share, subject to adjustment. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of shares of common stock. This means only a whole warrant may be exercised at a given time by a warrant holder. The warrants will expire on December 7, 2026, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.

The Company may call the IPO public warrants for redemption as follows: (1) in whole and not in part; (2) at a price of $0.01 per warrant; (3) upon a minimum of 30 days’ prior written notice of redemption; (4) if there is an effective registration statement covering the shares of common stock issuable upon exercise of the warrants and a current prospectus available throughout the 30-day notice period; and (5) only if the last reported closing price of the common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.

If the Company calls the IPO public warrants for redemption, management will have the option to require all holders that wish to exercise the Company IPO public warrants to do so on a “cashless basis.”

The exercise price and number of shares of common stock issuable upon exercise of the IPO public warrants may be adjusted in certain circumstances including stock dividends, stock splits, extraordinary dividends, consolidation, combination, reverse stock split or reclassification of shares of the Company’s common stock or other similar event. In no event will the Company be required to net cash settle the warrant shares.

The table below presents the Company’s IPO public warrants issued and outstanding as of the following periods:


	June 30, 2025	December 31, 2024
IPO public warrants issued	12,251,606	12,168,378
IPO public warrants outstanding	12,251,606	12,168,378

IPO Private Warrants

The terms and provisions of the IPO public warrants above also apply to the private warrants issued by the Company (“IPO private warrants”). If the IPO private warrants are held by holders other than GigAcquisitions4, LLC (“Sponsor”), Oppenheimer & Co. Inc. and Nomura Securities International, Inc. (together, the “Underwriters”), or any respective permitted transferees, the IPO private warrants will be redeemable by the Company and exercisable by the holders on the same basis as the IPO public warrants. The Sponsor, the Underwriters and any respective permitted transferees have the option to exercise the IPO private warrants on a cashless basis.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The table below presents the value of the IPO private warrants under the Black-Scholes OPM using the following assumptions as of the following dates:


	June 30, 2025		December 31, 2024
Fair value of each IPO private warrant	$	2.97	$	1.84
Exercise price	$	11.50	$	11.50
Common stock price	$	6.79	$	1.46
Expected option term (in years)	1.4		2.2
Expected volatility	125.00%		93.30%
Risk-free rate of return	3.82%		3.60%
Expected annual dividend yield	—%		—%

As of June 30, 2025 and December 31, 2024, the IPO private warrants have a fair value of $0.2 million and $0.3 million and are presented on the consolidated balance sheets within derivative liabilities. The following was recognized as a result of the change in fair value for the three and the six months ended June 30, 2025 and June 30, 2024 and is presented in net increase (decrease) in fair value of derivatives on the consolidated statements of operations:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Gain (loss) on change in fair value of IPO private warrants	$	151	$	(35)	$	(69)	$	(35)

The table below presents the Company’s IPO private warrants issued and outstanding as of the following periods:


	June 30, 2025	December 31, 2024
IPO private warrants issued	74,166	157,394
IPO private warrants outstanding	74,166	157,394

Note 18—Equity-Based Compensation

Class B Unit Incentive Plan

In February 2021, the Company’s parent, BBAI Ultimate Holdings, LLC (“Parent”) adopted a compensatory benefit plan (the “Class B Unit Incentive Plan”) to provide incentives to directors, managers, officers, employees, consultants, advisors and/or other service providers of the Company’s Parent or its Subsidiaries in the form of the Parent’s Class B Units (“Incentive Units”). Incentive Units have a participation threshold of $1.00 and are divided into three tranches (“Tranche I,” “Tranche II,” and “Tranche III”). Tranche I Incentive Units are subject to performance-based, service-based and market-based conditions. The grant date fair value for the Incentive Units was $5.19 per unit.

The assumptions used in determining the fair value of the Incentive Units at the grant date are as follows:


			February 16, 2021
Volatility			57.0%
Risk-free interest rate			0.1%
Expected time to exit (in years)			1.6

On July 29, 2021, the Company’s Parent amended the Class B Unit Incentive Plan so that the Tranche I and the Tranche III Incentive Units immediately became fully vested, subject to continued employment or provision of services, upon the closing of the transaction stipulated in the Agreement and Plan of Merger (the “Gig Business Combination Agreement”) dated June 4, 2021. The Company’s Parent also amended the Class B Unit Incentive Plan so that the Tranche II Incentive Units will vest on any liquidation event, as defined in the Class B Unit Incentive Plan, rather than only upon the occurrence of an Exit Sale, subject to the market-based condition stipulated in the Class B Unit Incentive Plan prior to its amendment.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

Equity-based compensation for awards with performance conditions is based on the probable outcome of the related performance condition. The performance conditions required to vest per the amended Incentive Plan remain improbable until they occur due to the unpredictability of the events required to meet the vesting conditions. As such events are not considered probable until they occur, recognition of equity-based compensation for the Incentive Units is deferred until the vesting conditions are met. Once the event occurs, unrecognized compensation cost associated with the performance-vesting Incentive Units (based on their modification date fair value) will be recognized based on the portion of the requisite service period that has been rendered.

The modification date fair value of the Incentive Units was $9.06 per unit. The assumptions used in determining the fair value of the Incentive Units at the modification date are as follows:


			July 29, 2021
Volatility			46.0%
Risk-free interest rate			0.2%
Expected time to exit (in years)			1.2

The volatility used in the determination of the fair value of the Incentive Units was based on analysis of the historical volatility of guideline public companies and factors specific to the Company.

On December 7, 2021, the previously announced Gig Business Combination was consummated. As a result, the Tranche I and Tranche III Incentive Units immediately became fully vested and the performance condition for the Tranche II Incentive Units was met. The fair value determined at the date of the amendment of the Class B Unit Incentive Plan was immediately recognized as compensation expense on the vesting date for Tranches I and III. Compensation expense for the Tranche II Incentive Units is recognized over the derived service period of 30 months from the modification date. The remaining compensation expense for the Tranche II Incentive Units will be recognized over the remaining service period of approximately 25 months from the date of the amendment. During the year ended December 31, 2022, the Company’s Parent modified the vesting conditions for four former employees. Under the original terms of the grant agreements, Incentive Units are forfeited upon separation. Due to the amended agreement, the Incentive Units held by the former employees are no longer contingent upon service and are considered vested as of the separation dates. The former employees will not receive the awards until the market condition is achieved. The result of the amended agreement is an accounting modification that resulted in 100% of the compensation expense being recognized for the former employees based on the modification date fair value. The incremental compensation cost recognized as a result of the modification was $1.5 million during the year ended December 31, 2022.

As of June 30, 2025, there was no unrecognized compensation cost related to Tranche II Incentive Units and 1,155,000 units remain unvested.

Stock Options

On December 7, 2021, the Company adopted the BigBear.ai Holdings, Inc. 2021 Long-Term Incentive Plan (the “Plan”). The purpose of the Plan is to promote the long-term success of the Company and the creation of stockholder value by providing eligible employees, prospective employees, consultants and non-employee directors of the Company the opportunity to receive stock- and cash-based incentive awards.

During the six months ended June 30, 2025, pursuant to the Plan, the Company’s Board of Directors granted certain grantees Stock Options to purchase shares of the Company’s common stock at a weighted-average exercise price of $3.39. The Stock Options vest over four years with 25% vesting on the one year anniversary of the grant date and 6.25% vesting on the last day of each calendar quarter thereafter until the grant is fully vested. Vesting is contingent upon continued employment or service to the Company and is accelerated in the event of death, disability, or a change in control, subject to certain conditions; both the vested and unvested portion of a Grantee’s Stock Options will be immediately forfeited and cancelled if the Grantee ceases employment or service to the Company. The Stock Options expire on the 10th anniversary of the grant date.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The table below presents the fair value of Stock Options that were granted during the six months ended June 30, 2025 using the Black-Scholes OPM and the following assumptions:



						January 15, 2025
Number of Stock Options granted						671,141
Price of common stock on the grant date						$3.39
Expected option term (in years)						6.1
Expected volatility(1)						120%
Risk-free rate of return						4.45%
Expected annual dividend yield						—%

Fair value of the Stock Options on the grant date						$2.98

(1) Expected volatility is based on a combination of implied and historical equity volatility of selected reasonably similar publicly traded companies.

The table below presents the activity and other information on the outstanding stock options:


	Stock Options Outstanding	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value























Outstanding as of December 31, 2024	3,930,602	$	2.12	8.01	$	10,138
Granted	671,141	3.18
Vested	—	—
Exercised	(1,319,949)	1.70
Forfeited	(769,982)	1.54
Expired	—	—
Outstanding as of June 30, 2025	2,511,812	$	2.81	6.61	$	10,426

Vested and exercisable as of June 30, 2025	1,476,721	$	2.62	6.28	$	6,484

					As of
					June 30, 2025
Unrecognized compensation costs related to the stock options					$	2,494
Weighted average recognition period for unrecognized compensation costs					2.88 years

Restricted Stock Units

During the six months ended June 30, 2025, pursuant to the Plan, the Company’s Board communicated the key terms and committed to grant Restricted Stock Units (“RSUs”) to certain employees and certain nonemployee directors and consultants. The Company granted 7,452,143 RSUs to employees and no RSUs to nonemployee directors during the six months ended June 30, 2025. RSUs granted to employees generally vest over four years, with 25% vesting on the one year anniversary of the grant date and then 6.25% per each quarter thereafter on the two, three and four year anniversary of the grant date. RSUs granted to nonemployee directors vest 25% each quarter following the grant date or 100% upon the first anniversary of the grant date. Vesting of RSUs is accelerated in the event of death, disability, or a change in control, subject to certain conditions.

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The table below presents the activity and other information on the outstanding RSUs:


	RSUs Outstanding	Weighted-Average Grant Date Fair Value Per Share
















Unvested as of December 31, 2024	13,870,402	$	1.94
Granted	7,452,143	3.02
Vested	(4,105,068)	2.59
Forfeited	(2,985,257)	1.87
Unvested as of June 30, 2025	14,232,220	$	2.50

		As of
		June 30, 2025
Unrecognized compensation costs related to the RSUs		$	34,065
Weighted average recognition period for unrecognized compensation costs		1.46 years

Performance Stock Units

Pursuant to the Plan, the Company’s Board communicated the key terms and granted Performance Stock Units (“PSUs”) to certain employees. The Company grants PSUs to certain employees with performance measures specific to the role of that employee or as a retention incentive (“Discretionary PSUs”). During the six months ended June 30, 2025, the Company granted zero Discretionary PSUs. The Company granted 991,548 Short-term Incentive PSUs (“STI PSUs”) to employees, which contain performance measures based on a combination of Company’s financial performance as well as the individual’s personal performance. The number of STI PSUs that will vest is based on the achievement of the performance criteria during each respective annual measurement period, provided that the employees remain in continuous service on each vesting date. Vesting will not occur unless a minimum performance criteria threshold is achieved.

During the six months ended June 30, 2025, the Board approved grants of 991,548 and 1,708,283 PSUs to certain employees related to STIP PSUs for the 2024 and 2025 plan years, respectively. The 2024 STIP PSUs were granted in lieu of cash payouts and were fully vested upon award.

The table below presents the activity and other information on the outstanding PSUs:


	PSUs Outstanding	Weighted-Average Grant Date Fair Value Per Share
















Unvested as of December 31, 2024	2,933,616	$	2.88
Granted	2,699,831	3.68
Vested	(2,795,576)	2.97
Forfeited	(47,619)	3.46
Unvested as of June 30, 2025	2,790,252	$	3.37

		As of
		June 30, 2025
Unrecognized compensation costs related to the PSUs		$	3,940
Weighted average recognition period for unrecognized compensation costs		2.47 years

Employee Share Purchase Plan (“ESPP”)

Concurrently with the adoption of the Plan, the Company’s Board adopted the 2021 Employee Stock Purchase Plan (the “ESPP”), which authorizes the grant of rights to purchase common stock of the Company to employees, officers and directors (if they are otherwise employees) of the Company. As of June 30, 2025, the Company reserved an aggregate of 5,832,221 common shares (subject to annual increases on January 1 of each year and ending in 2031) of the Company’s common stock for grants under the ESPP. During the six months ended June 30, 2025, 571,875 shares were sold under the ESPP. As of June 30, 2025, the Company has withheld employee contributions of $0.2 million for future ESPP purchases, which are presented on the consolidated balance

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

sheets within other current liabilities.

Equity-based compensation expense related to purchase rights issued under the ESPP is based on the Black-Scholes OPM fair value of the estimated number of awards as of the beginning of the offering period. Equity-based compensation expense is recognized using the straight-line method over the offering period.

The table below presents the assumptions used to estimate the grant date fair value of the purchase rights under the ESPP:


	June 1, 2025		December 31, 2024

Price of common stock on the grant date	$	3.95	$1.50 to $2.20
Expected term (in years)	0.50		0.50
Expected volatility(1)	130.0%		122.9% to 101.0%
Risk-free rate of return	4.3%		5.3% to 4.3%
Expected annual dividend yield	—%		—%

Fair value of the award on the grant date	$	1.99	$0.74 to $2.15

(1) Expected volatility is based on a combination of implied and historical equity volatility of selected reasonably similar publicly traded companies.

As of June 30, 2025, there was approximately $0.1 million of unrecognized compensation costs related to the ESPP, which is expected to be recognized over the remaining weighted average period of 0.50 years.

Equity-based Compensation Expense

The table below presents the total equity-based compensation expense recognized for Class B Units, Stock Options, RSUs, PSUs, and ESPP in selling, general and administrative expense, cost of revenues, and research and development for the following periods:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Equity-based compensation expense in selling, general and administrative	$	2,439	$	3,980	$	6,526	$	6,151
Equity-based compensation expense in cost of revenues	1,349		970		3,885		3,452
Equity-based compensation expense in research and development	531		799		1,308		1,303
Total equity-based compensation expense	$	4,319	$	5,749	$	11,719	$	10,906

Note 19—Net Loss Per Share

The numerators and denominators of the basic and diluted net loss per share are computed as follows (in thousands, except per share, unit and per unit data):


	Three Months Ended June 30,				Six Months Ended June 30,
Basic and diluted net loss per share	2025		2024		2025		2024
Numerator:
Net loss	$	(228,619)	$	(14,439)	$	(290,605)	$	(142,231)
Denominator:
Basic	320,591,204		246,303,139		299,666,133		216,754,082
Diluted	320,591,204		246,303,139		299,666,133		216,754,082

Basic net loss per share	$	(0.71)	$	(0.06)	$	(0.97)	$	(0.66)
Diluted net loss per share	$	(0.71)	$	(0.06)	$	(0.97)	$	(0.66)

Table of Contents

BIGBEAR.AI HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited, thousands of U.S. dollars unless stated otherwise)

The following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive:


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024
Stock options	2,139,040	4,126,975	2,143,037	4,172,994
Private warrants	74,166	—	74,166	—
Public warrants	12,251,606	—	12,251,606	—




2025 RDO warrants	3,770,000	—	3,770,000	—
2026 Convertible notes	1,664,939	—	1,664,939	—
2029 Convertible notes	35,100,000	—	35,100,000	—
PSUs	525,170	208,157	1,638,892	1,024,579
RSUs	11,897,674	5,919,487	12,044,401	3,628,819
ESPP	420,465	1,365,919	497,884	1,247,297
Total	67,843,060	11,620,538

BigBear.ai Holdings, Inc. 10-Q