BigBear.ai Holdings, Inc. stock research
FY2025 Q3
BigBear.ai Holdings (BBAI) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to the prior quarter but declined relative to the same quarter last year. Gross profit and gross margin both decreased versus the prior quarter and the year-ago period, as cost of revenue rose more than revenue on a sequential basis and fell less than revenue on an annual basis.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to the prior quarter but declined relative to the same quarter last year. Gross profit and gross margin both decreased versus the prior quarter and the year-ago period, as cost of revenue rose more than revenue on a sequential basis and fell less than revenue on an annual basis.
- The change in cost of revenue was the primary factor affecting gross margin, as its increase outpaced revenue growth sequentially and its decline was smaller than the revenue decline year over year.
- Sequentially, revenue was higher while gross profit was lower, resulting in a weakened gross margin. Compared to the same quarter last year, both revenue and gross profit were lower, with gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.4%
Gross profit
$7.4M
Revenue
$33.1M
Cost of revenue
$25.7M
Quarter-over-quarter change
-2.6 pts
Year-over-year change
-3.5 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $33.1M | $7.4M | $25.7M | 22.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-2.6 pts
Year-over-year change
Sep 30, 2024
-3.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in cost of revenue was the primary factor affecting gross margin, as its increase outpaced revenue growth sequentially and its decline was smaller than the revenue decline year over year.
Sequentially, revenue was higher while gross profit was lower, resulting in a weakened gross margin. Compared to the same quarter last year, both revenue and gross profit were lower, with gross margin also weakened.
Monitor the trajectory of cost of revenue relative to revenue, as its growth outpaced revenue growth in the current quarter.