BigBear.ai Holdings experienced a significant boost in its stock price on Tuesday, climbing nearly 6% by the end of trading after the company announced a major acquisition alongside its third-quarter financial results. The stock witnessed a remarkable peak earlier in the day, soaring by up to 22%.
The acquisition, valued at $250 million, involves Ask Sage, a generative AI platform focused on the defense sector. This platform specializes in providing secure access to various advanced AI models, including those from prominent providers like OpenAI and Anthropic. Ask Sage is designed to deliver trustworthy and data-driven outputs using verified information from government databases and also offers AI assistants and automation tools.
CEO Kevin McAleenan highlighted that this acquisition is expected to significantly expand BigBear.ai’s customer base and create cross-selling opportunities. Ask Sage already has a robust presence within national security agencies and various highly regulated organizations, boasting over 100,000 users across 16,000 government teams and hundreds of commercial companies. Moreover, the company is on a growth trajectory, projecting its annual recurring revenue to reach approximately $25 million by 2025—an impressive sixfold increase.
In terms of broader financials, BigBear.ai reaffirmed its revenue forecast for 2025, anticipating earnings between $125 million and $140 million. Although the impact of the Ask Sage acquisition is not expected to be realized until after its closure, which is anticipated by the first quarter of 2026, the management remains optimistic about the long-term growth prospects that this integration will bring.
McAleenan emphasized the strategic importance of this deal, stating, “By integrating Ask Sage with BigBear.ai, we are creating what the market has been asking for: a secure, integrated AI platform that connects software, data, and mission services in one place.” This acquisition not only enhances BigBear.ai’s technological capabilities but also positions the company to leverage opportunities in the growing field of artificial intelligence for national security and beyond.