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BigBear.ai Faces Potential Financial Restatements Amid Accusations of Misreporting

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 12/26/2025, 4:18 pm ET 12/26/2025, 4:18 pm ET | 4 min 4 min read
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On Wednesday, BigBear.ai Inc.’s stocks have been trading down by -4.64 percent amid concerning impact from recent news sentiment.

Technology industry expert:

Analyst sentiment – negative

  1. BigBear.ai Holdings, Inc. (BBAI) is currently positioned in a turbulent financial landscape, as evidenced by its key financial metrics. The company’s financial performance is concerning, with profitability margins such as EBIT margin and profit margin cont at -281.3% and -301.37%, respectively. Despite generating revenue of $158.2 million, investor confidence is likely shaken by a high price-to-sales ratio of 18.26 and a negative price-to-cash flow ratio of -68.7. A significant cash injection from stock issuance has bolstered the cash position, now at $542 million, but the company’s overall return metrics and ongoing operational losses pose a critical challenge to its future trajectory and competitive standing.

  2. A review of BigBear.ai’s recent technical patterns suggests a bearish trend. The stock has shown a consistent decline, with weekly closing prices moving from $6.41 to a low of $5.75. This is combined with low trading volumes, indicating declining investor interest. These price patterns, including lower highs and lows, suggest potential further downside. A trading strategy under such conditions might involve short-selling, particularly if the price breaks below key support at $5.71, with volume confirming bearish sentiment. Consider targeting the $5.00 level as a potential price target while keeping stop-loss orders tight around $5.90 to mitigate unexpected reversals.

  3. Recent developments highlight significant risks for BigBear.ai, including allegations of deficient accounting practices and potential misstatements in financial reporting. This subjects the firm to regulatory scrutiny with uncertain ramifications for investor confidence and market positioning. In comparison to the broader Technology and Software & IT Services sectors, BBAI’s financial health is relatively weak. The potential need for financial restatements undermines its outlook. Price resistance is expected around $6.41, while support may tentatively hold around $5.71. However, given these catalysts and sector benchmarks, the outlook remains negative until transparency and solid governance are demonstrably restored.

Candlestick Chart

Weekly Update Dec 22 – Dec 26, 2025: On Friday, December 26, 2025 BigBear.ai Inc. stock [NYSE: BBAI] is trending down by -4.64%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

BigBear.ai’s financial data reflects a complex picture, influenced by recent news of potential misreporting. The revenue stands at $158.24M, yet the company’s profitability ratios present stark challenges. For instance, the EBIT margin is notably negative at -281.3%, and the net profit margin is reported at a daunting -301.37%. These figures indicate that the company is struggling to achieve operational efficiency and profitability despite generating substantial revenue.

Evaluating the income statement, BigBear.ai recorded a net income of $2.52M from continuing operations for the quarter ending September 30, 2025. This figure seems modest against the backdrop of total expenses amounting to $51.47M. The operating income was negative, at -$21.86M, suggesting the company is incurring substantial costs that overshadow its earnings capabilities.

In the balance sheet, BigBear.ai’s total assets are valued at $919.76M, with current liabilities amounting to $197.92M. The company maintains a relatively healthy current ratio of 3.1, implying that it has sufficient short-term assets to cover its immediate liabilities. However, the troubling allegations of misreporting could prompt a more conservative assessment of these figures by investors.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”