BB

BigBear.ai Holdings, Inc. stock research

Dec 31, 2024

FY2024 Q4

BigBear.ai Holdings (BBAI) Gross Margin — Quarter Ended Dec 31, 2024

Revenue and gross profit were higher than both the preceding quarter and the same quarter one year earlier, while cost of revenue was lower than the preceding quarter and broadly stable compared with the year-ago period. As a result, gross margin improved from both comparison periods.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue and gross profit were higher than both the preceding quarter and the same quarter one year earlier, while cost of revenue was lower than the preceding quarter and broadly stable compared with the year-ago period. As a result, gross margin improved from both comparison periods.

  • The strongest observable margin driver is the decline in cost of revenue relative to revenue from the preceding quarter, which combined with revenue growth to lift gross margin well above the prior level.
  • Compared with the preceding quarter, revenue was higher, cost of revenue was lower, gross profit was higher, and gross margin improved. Compared with the same quarter one year earlier, revenue was higher, cost of revenue was roughly similar, gross profit was higher, and gross margin also improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

37.4%

Gross profit

$16.4M

Revenue

$43.8M

Cost of revenue

$27.4M

Quarter-over-quarter change

+11.5 pts

Year-over-year change

+5.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$33.1M$7.0M$26.1M21.1%
Jun 30, 2024$39.8M$11.1M$28.7M27.8%
Sep 30, 2024$41.5M$10.8M$30.7M25.9%
Dec 31, 2024$43.8M$16.4M$27.4M37.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2024

+11.5 pts

Year-over-year change

Dec 31, 2023

+5.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the decline in cost of revenue relative to revenue from the preceding quarter, which combined with revenue growth to lift gross margin well above the prior level.

Compared with the preceding quarter, revenue was higher, cost of revenue was lower, gross profit was higher, and gross margin improved. Compared with the same quarter one year earlier, revenue was higher, cost of revenue was roughly similar, gross profit was higher, and gross margin also improved.

Monitor the trend in cost of revenue, as it decreased sequentially but remained near the year-ago level.

BBAI Gross Margin — Quarter Ended Dec 31, 2024