BigBear.ai Holdings, Inc. stock research
FY2025 Q1
BigBear.ai Holdings (BBAI) Gross Margin — Quarter Ended Mar 31, 2025
Revenue declined compared to the immediately preceding quarter, while cost of revenue remained unchanged, resulting in a lower gross profit and a weaker gross margin. Relative to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was slightly improved.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue declined compared to the immediately preceding quarter, while cost of revenue remained unchanged, resulting in a lower gross profit and a weaker gross margin. Relative to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was slightly improved.
- The strongest observable margin driver is the relationship between revenue and cost of revenue. Revenue decreased from the prior quarter while cost of revenue stayed flat, directly compressing gross margin.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was unchanged, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.3%
Gross profit
$7.4M
Revenue
$34.8M
Cost of revenue
$27.4M
Quarter-over-quarter change
-16.2 pts
Year-over-year change
+0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $39.8M | $11.1M | $28.7M | 27.8% |
| Sep 30, 2024 | $41.5M | $10.8M | $30.7M | 25.9% |
| Dec 31, 2024 | $43.8M | $16.4M | $27.4M | 37.4% |
| Mar 31, 2025 | $34.8M | $7.4M | $27.4M | 21.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-16.2 pts
Year-over-year change
Mar 31, 2024
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue. Revenue decreased from the prior quarter while cost of revenue stayed flat, directly compressing gross margin.
Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was unchanged, and gross margin weakened. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly improved.
Monitor whether revenue growth resumes or cost of revenue changes, as the current quarter's margin was sensitive to revenue fluctuations against a fixed cost base.