Shares of BigBear.ai Holdings (NYSE: BBAI) tumbled 11.68% in after-hours trading on Thursday, following the release of the company's disappointing first-quarter 2025 financial results. The artificial intelligence company reported earnings that fell far short of analyst expectations, triggering a sell-off in the stock.

BigBear.ai reported a quarterly loss of $0.25 per share, significantly wider than the analyst consensus estimate of a $0.06 loss. This represents a 316.67% miss compared to expectations. Revenue for the quarter came in at $34.76 million, missing the analyst estimate of $36.26 million by 4.15%. The company's financial performance was further marred by a net loss of $61.986 million, substantially worse than the estimated loss of $15.1 million. Operating income also disappointed, coming in at a loss of $21.208 million compared to the expected loss of $11.8 million.

Despite these challenges, BigBear.ai affirmed its outlook for 2025, projecting revenue between $160 million and $180 million. The company's CEO, Kevin McAleenan, stated, "As we enter the second quarter, we are seeing early and encouraging signs that our strategic focus is resonating, particularly in sectors where we've built deep relationships, have a clear understanding of the mission, and are deploying proven technologies." However, investors seemed to focus more on the current quarter's underperformance, as reflected in the sharp stock price decline.