BigBear.ai Holdings, Inc. stock research
FY2025 Q2
BigBear.ai Holdings (BBAI) Gross Margin — Quarter Ended Jun 30, 2025
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit improved sequentially but declined year-over-year. Cost of revenue fell more sharply than revenue on a sequential basis, leading to an improved gross margin versus the prior quarter, though the margin weakened compared to the same quarter a year ago.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit improved sequentially but declined year-over-year. Cost of revenue fell more sharply than revenue on a sequential basis, leading to an improved gross margin versus the prior quarter, though the margin weakened compared to the same quarter a year ago.
- The sequential improvement in gross margin was driven by a proportionally larger reduction in cost of revenue relative to the decline in revenue. This indicates that the cost structure adjusted more favorably than revenue in the current quarter.
- Compared to the prior quarter, gross margin improved as cost of revenue fell faster than revenue. Versus the same quarter last year, gross margin weakened as revenue declined while cost of revenue decreased at a slower pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
25.0%
Gross profit
$8.1M
Revenue
$32.5M
Cost of revenue
$24.4M
Quarter-over-quarter change
+3.7 pts
Year-over-year change
-2.8 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $32.5M | $8.1M | $24.4M | 25.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+3.7 pts
Year-over-year change
Jun 30, 2024
-2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a proportionally larger reduction in cost of revenue relative to the decline in revenue. This indicates that the cost structure adjusted more favorably than revenue in the current quarter.
Compared to the prior quarter, gross margin improved as cost of revenue fell faster than revenue. Versus the same quarter last year, gross margin weakened as revenue declined while cost of revenue decreased at a slower pace.
Monitor the trajectory of cost of revenue relative to revenue, as the current quarter's favorable cost leverage may not persist if revenue continues to decline.