BigBear.ai shares fall below US$3 as reverse-split concerns surface

BigBear.ai shares have fallen below US$3 after an 18% rise in the two weeks following the company’s 30 July earnings report. The stock has since declined 11.8%, prompting discussion about whether the artificial-intelligence security company could eventually pursue a reverse stock split.

The company reported second-quarter revenue of US$36.7 million, up 13% from a year earlier. Gross margin increased to 32.8% from 25%, while its net loss narrowed to US$25.7 million from US$228.6 million in the prior-year quarter.

BigBear.ai also burned US$68.6 million in cash during the quarter, and its share count continued to rise. Revenue for the quarter and trailing 12 months was higher than in 2025 but remained below levels reported in 2022, 2023 and 2024.

Chief executive Kevin McAleenan reaffirmed full-year revenue guidance and pointed to more than 20 new contracts. The source said those developments provided grounds for optimism, but left wider concerns over cash usage, dilution and the company’s longer-term revenue trajectory unresolved.

No reverse split has been announced or formally indicated. The source’s assessment is that one remains unlikely while BigBear.ai trades above the NYSE’s US$1 minimum listing threshold. The shares have previously fallen below US$3 without a reported reverse split, including a decline to US$2.59 in July and US$2.39 in April 2025, before later reaching US$9.78.

Reverse splits are commonly used to help companies maintain an exchange listing when share prices approach minimum thresholds. The source suggests the risk would become more relevant if BigBear.ai’s price fell below US$2, but that remains an assessment rather than company guidance.