BigBear.ai to Restate Financial Statements Amid Accounting Review
The company adjusts prior financials following reevaluation of convertible notes accounting.
March 19, 2025
BigBear.ai is making adjustments to its past financial statements after reassessing how it accounts for convertible notes. Working with its independent auditor, Grant Thornton LLP, the company determined that financial reports from 2021 through 2024 need to be restated. The changes stem from a revised interpretation of the accounting treatment for embedded conversion options in its 2026 Notes.
Financial Restatement and Key Adjustments
The company’s board and audit committee concluded that previous financial statements should no longer be relied upon. As part of this process, BigBear.ai is conducting additional valuations to quantify the impact of the adjustments. The company emphasized that these changes will not affect key financial metrics such as:
- Revenue
- Gross margins
- Adjusted EBITDA
- Operating cash flow
Additionally, the company reaffirmed that its 2025 guidance, issued earlier this month, remains unchanged.
Convertible Notes and Debt Structure
In December 2024, BigBear.ai retired over 90% of the 2026 Notes’ principal through an exchange for newly issued 2029 Notes. This restructuring means the adjustments will not impact the company’s latest debt instruments.
Ongoing Audit and Next Steps
As BigBear.ai finalizes the restatement process, it remains focused on ensuring accuracy and transparency. While the audit for 2024 is still in progress, the company acknowledged that further refinements could emerge. Investors and analysts can expect continued updates as BigBear.ai works toward publishing its revised financials.
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