BigBear.ai Holdings Inc. (NYSE: BBAI) reported first quarter 2026 revenue of $34.4 million, essentially flat compared to $34.8 million in the prior year period. The defense technology company saw its backlog increase 14% from the fourth quarter to $281.9 million, driven primarily by a $53 million sole-source prime classified contract awarded during the quarter.

Gross margin expanded significantly to 34.0% from 21.3% in the first quarter of 2025, a gain of 1,278 basis points. The company attributed this improvement to increased revenue from higher-margin generative AI platforms and products following its acquisition of Ask Sage, which closed in the fourth quarter of 2025.

BigBear.ai settled the remaining $124.6 million of its 2029 convertible notes during the quarter, primarily through debt-to-equity conversion features exercised in January 2026. This resulted in a $4.8 million reduction in interest expense compared to the first quarter of 2025.

The company reported a net loss of $56.8 million for the quarter, compared to a net loss of $62.0 million in the prior year period. Operating expenses increased, with selling, general and administrative expenses rising $6.5 million to $29.2 million, primarily due to increased intangible asset amortization from the Ask Sage acquisition and higher legal and proxy expenses.

BigBear.ai maintained total available cash and investments of $431.5 million as of March 31, 2026. The company affirmed its full-year 2026 revenue guidance range of $135 million to $165 million.

The company also announced the launch of a retail shareholder voting program designed to increase participation in its annual meeting scheduled for June 9, 2026.