BigBear Bets on AI to Fortify Defence and National Security Operations

Important for Defence & National Security

BigBear.ai, a decision intelligence solutions provider, announced during its third-quarter 2025 earnings presentation that it had signed a definitive agreement to acquire Ask Sage. The latter boasts a cutting-edge and fast-growing generative AI platform for government agencies and highly regulated industries.

The deal is important for US defence and national security. Kevin McAleenan, CEO of BigBear.ai, said, 'Ask Sage already supports more than 100,000 users on 16,000 government teams and across hundreds of commercial companies. It is a turnkey platform that's in production today, at scale, in the environments that matter most.'

Turnaround Quarter

In Q3 2025 (three months ended 30 September 2025), revenue declined 20% to $33.1 million due to lower volume across some Army programs. However, BigBear.ai posted net income of $2.5 million, compared with a net loss of $15.1 million in Q3 2024. The company's backlog stood at $376 million at the quarter's end.

For the year, BigBear.ai's revenue guidance is between $125 million and $140 million, about11.5% below 2024 levels. Management expects to close the acquisition of Ask Sage in Q4 2025 or Q1 2026, but it will not yet affect this year's financial results.

High Value AI Contracts

BigBear is buying the entire Ask Sage business for approximately $250 million. The projected contribution is $25 million in annual recurring revenues (ARR). According to McAleenan, this is a thesis-driven merger with a strategic acquisition framework.

The strategic growth will come from three core areas. First, disruptive AI mission solutions for national security will deliver secure, scalable AI tools to solve real operational problems.

Second, smart, secure travel and trade technologies—such as biometrics and threat detection—will strengthen travel and trade while improving efficiency and safety. Third, platform-level AI technologies, including foundational AI tooling, orchestration systems, and data infrastructure, will enable rapid and secure deployment at scale.

On 13 March 2025, Ask Sage received Federal Risk and Authorization Management Program (FedRAMP) High authorization. McAleenan said the model-agnostic architecture and FedRAMP High accreditation are key differentiators for BigBear.ai as it serves in classified and sensitive environments.

"Despite delays resulting from the government shutdown, we believe the potential for new business in the field of border security and defense remains strong, and we expect to see those opportunities, including accelerated spending resulting from the One Big Beautiful Bill—materialize into contracts next year,' McAleenan added.

The Big Push

The near-term plan is for BigBear.ai to cross-sell Ask Sage's platform to its existing federal and commercial clients. BigBear.ai will introduce its products to Ask Sage's extensive user base to integrate mission services, improving adoption and performance.

Meanwhile, the Ask Sage marketplace will be BigBear.ai's distribution channel for future AI offerings. The deal was well received by investors, pushing shares up 19% in pre-market trading to $6.80 on 11 November.

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to integrate mission services, improving adoption and performance.