Liquidity is under significant pressure, with free cash flow reaching -$18.3M in 2026Q1 and cash reserves declining from $456.6M in 2025Q3 to $100.7M in 2026Q1.
| Cash from Operations | -53.29M | -41.95M | -38.12M | -18.31M | -48.92M | -19.78M | 1.2M | 4.12M |
| Operating CF Margin % | - | -32.86% | -24.09% | -11.8% | -31.56% | -13.59% | 1.31% | 5.6% |
| Operating CF Growth % | -577.93% | -10.05% | -108.22% | 62.58% | -147.29% | -1751.25% | -70.93% | - |
| Net Income | -288.69M | -293.91M | -295.55M | -70.66M | -111.37M | -123.55M | -2.55M | 6.25M |
| Depreciation & Amortization | 18.89M | 15.28M | 11.87M | 7.9M | 7.76M | 7.26M | 1.1M | 50K |
| Stock-Based Compensation | 19.35M | 23.33M | 21.13M | 18.67M | 10.87M | 60.62M | 80K | 104K |
| Deferred Taxes | -21.66M | -21.66M | -328K | -235K | -1.92M | 1.04M | 0 | 0 |
| Other Non-Cash Items | 219.22M | 230.05M | 238.31M | 22.4M | 45.24M | 36.93M | -1.4M | -351K |
| Working Capital Changes | -405K | 4.96M | -13.55M | 3.61M | 505K | -2.08M | 3.97M | -1.93M |
| Change in Receivables | 11.24M | 17.91M | -7.83M | 2.89M | -1.08M | -5.23M | 2.39M | -2.62M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -3.52M | -5.7M | -4.03M | -4.38M | 9.94M | 2.74M | 0 | 0 |
| Cash from Investing | -572.34M | -606.68M | 2.82M | -3.83M | -5.23M | -863K | -184.99M | -18K |
| Capital Expenditures | -764K | -525K | -484K | -2K | -769K | -645K | -276K | -18K |
| CapEx % of Revenue | 0.6% | 0.41% | 0.31% | 0% | 0.5% | 0.44% | 0.3% | 0.02% |
| Acquisitions | -239.21M | -229.03M | 13.94M | 0 | -4.46M | -224K | -184.71M | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -259.69M | -2.88M | -10.63M | -3.83M | 0 | 6K | 0 | 0 |
| Cash from Financing | 624.59M | 691.31M | 52.46M | 42.06M | -103.14M | 180.86M | 192.22M | -2.84M |
| Debt Issued (Net) | -452K | -818K | -412K | -830K | -2.17M | 94.23M | 107.25M | 0 |
| Equity Issued (Net) | 623.04M | 698.96M | 0 | 44.28M | -100.9M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -9.77M | -839K |
| Share Repurchases | 0 | 0 | 0 | -5.72M | -100.9M | 0 | 0 | 0 |
| Other Financing | 2M | -6.82M | 52.87M | -1.38M | -67K | 86.63M | 94.74M | -2M |
| Net Change in Cash | -904K | 42.51M | 17.58M | 19.93M | -157.29M | 160.22M | 8.42M | 1.26M |
| Free Cash Flow | -56.35M | -42.48M | -49.23M | -22.14M | -49.69M | -20.42M | 922K | 4.1M |
| FCF Margin % | -44.25% | -33.27% | -31.11% | -14.27% | -32.05% | -14.03% | 1.01% | 5.57% |
| FCF Growth % | -47.36% | 13.72% | -122.4% | 55.45% | -143.31% | -2314.86% | -77.53% | - |
| FCF per Share | -0.01 | -0.01 | -0.21 | -0.15 | -0.39 | -0.19 | 0.01 | 0.04 |
| FCF Conversion (FCF/Net Income) | 0.20x | 0.14x | 0.13x | 0.26x | 0.44x | 0.16x | -0.47x | 0.66x |
| Interest Paid | 2.3M | 0 | 12.55M | 12.19M | 12.41M | 6.24M | 384K | 127K |
| Taxes Paid | 0 | 0 | 0 | 0 | 9K | 68K | 0 | 0 |
Persistent operating cash burn
According to historical financial data, BBAI consistently reports negative net income that fails to convert into positive operating cash flow, with the OCF/NI ratio frequently showing extreme volatility, such as the 0.32 observed in 2026Q1, highlighting a fundamental disconnect between accounting losses and actual cash generation.
The persistent inability to generate positive operating cash flow suggests that the company's accrual-based losses are not merely accounting artifacts but reflect a genuine cash-consuming operational structure. Investors should monitor whether the reliance on stock-based compensation and other non-cash adjustments masks a deeper structural inability to fund operations through core service delivery.
As reported in quarterly filings, BBAI's free cash flow remains deeply negative, reaching -$18.3M in 2026Q1, which underscores a deteriorating trajectory where the company consistently burns through its cash reserves to sustain its current service-heavy business model without achieving the necessary scale for self-funding.
The consistent FCF margin contraction, which hit -53.2% in the most recent quarter, indicates that the company is far from reaching an inflection point. This trend suggests that the current business model requires continuous external capital or cash balance depletion to maintain operations, which may limit strategic flexibility.
Based on reported cash flow statements, working capital fluctuations have been erratic, including a significant -$9.6M drag in 2025Q4, suggesting that the timing of government contract payments and project milestones creates unpredictable liquidity pressures that exacerbate the company's underlying cash burn issues.
The inconsistency in working capital changes implies that BBAI lacks a stable cash conversion cycle, likely due to the lumpy nature of federal contract billing and collection. This volatility warrants further investigation into whether the company is facing extended payment terms from its primary government counterparties.
Data from recent financial statements reveals that BBAI has utilized its limited cash resources for significant acquisitions, such as the -$229.0M outflow in 2025Q4, rather than focusing on organic operational improvements, which appears to have accelerated the depletion of the company's available cash cushion.
The aggressive use of cash for acquisitions in a period of negative operating cash flow suggests a strategy focused on buying scale rather than building it internally. This approach may increase execution risk, as the company must now integrate these assets while simultaneously managing its core cash burn.
As evidenced by the recurring stock-based compensation figures, which reached $3.4M in 2026Q1, the company relies heavily on equity-based incentives to manage its cost structure, effectively obscuring the true cash cost of retaining the specialized engineering talent required for its government-focused service model.
While SBC is a non-cash expense, it represents a significant dilution risk that is not captured in the cash flow statement but is essential for understanding the company's total cost of operations. Investors should consider the long-term impact of this dilution on shareholder value relative to the company's inability to generate positive free cash flow.
Quick answers to the most common questions about buying BBAI stock.
BigBear.ai Holdings, Inc. (BBAI) generated $-42.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
BigBear.ai Holdings, Inc. (BBAI) reported negative free cash flow of $42.5M in 2025, indicating capital requirements exceeded cash from operations.
BigBear.ai Holdings, Inc. (BBAI) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.