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BigBear.ai to Buy Ask Sage for $250 Million as Stock Rally Cools After Q3 Beat

Investors are weighing a $250 million Ask Sage purchase to deepen BigBear.ai’s role in secure generative AI for government clients.

Overview

  • BigBear.ai announced a definitive deal to acquire Ask Sage for $250 million, targeting close by the first quarter of 2026 with no material impact expected on 2025 results.
  • Ask Sage reports about 100,000 users across 16,000 government teams and hundreds of commercial customers, with ARR projected to reach roughly $25 million in 2025.
  • The company posted Q3 revenue of $33.1 million and a loss of $0.03 per share, beating consensus despite a roughly 20% year-over-year revenue decline.
  • Underlying metrics remained pressured, including gross margin compression to 22.4% and adjusted EBITDA of about negative $9.4 million.
  • Shares spiked as much as roughly 22% earlier in the week before pulling back Thursday, as management reaffirmed 2025 revenue guidance of $125 million to $140 million and an analyst highlighted the deal as a potential 2026 swing factor.