BigBear.ai has agreed to acquire Ask Sage, a generative artificial intelligence platform designed for secure deployment of AI models and agentic systems across defense, national security and other highly regulated sectors, for approximately $250 million.
In an earnings statement published Monday, BigBear.ai said it expects the transaction to close late in the fourth quarter of 2025 or early in the first quarter of 2026.
Ask Sage is projected to deliver approximately $25 million in non-GAAP annual recurring revenue in 2025, representing a sixfold increase from 2024.
What Are the Focus Areas of BigBear.ai’s Acquisition Framework?
During the quarterly earnings call, BigBear.ai CEO Kevin McAleenan said the planned Ask Sage acquisition aligns directly with the company’s disciplined, thesis-driven merger and acquisition framework, which targets three core areas of strategic growth:
- Disruptive AI mission solutions for national security, enabling secure, scalable AI tools that solve real operational problems.
- Smart, secure travel and trade, with technologies like biometrics and threat detection improving efficiency and safety.
- Platform-level AI technologies, including foundational AI tooling, orchestration systems and data infrastructure that ensure rapid, secure deployment at scale.
“Our M&A framework is designed so that the decisions we make sharpen our competitive edge, deepen our mission impact, and position us for scalable and durable growth. The acquisition of Ask Sage is a clear example of this framework in action,” McAleenan, a two-time Wash100 awardee, told analysts.
The chief executive stated that the addition of Ask Sage aligns directly with this strategy, citing its model-agnostic architecture and FedRAMP High accreditation as key differentiators in serving classified and sensitive environments.
Who Is Nicolas Chaillan?
During the call, McAleenan announced that Nicolas Chaillan, CEO and founder of Ask Sage, will join BigBear.ai as chief technology officer as part of the transaction.
In his new role, Chaillan will oversee technology integration, accelerate innovation across BigBear.ai’s product portfolio and drive the company’s evolution into an AI-first enterprise.
“Nick is one of the most respected voices in secure mission-grade AI, having served as the former Chief Software Officer for both the U.S. Air Force and Space Force and founded multiple companies over the past 25 years. He has proven that he can build technology the Pentagon actually uses rapidly and iteratively to support critical missions,” McAleenan said of Chaillan.
What Are the Key Synergies with Ask Sage Following the Agreement?
McAleenan outlined several synergies expected from the acquisition. BigBear.ai will cross-sell Ask Sage’s platform to its existing federal and commercial clients; introduce BigBear.ai’s products to Ask Sage’s extensive user base; and integrate mission services to improve adoption and performance.
According to the CEO, the Ask Sage application marketplace will also serve as a new distribution channel for future AI offerings, accelerating time to market.
What Are BigBear.ai’s Q3 2025 Financial Results?
In addition to announcing the planned acquisition of Ask Sage, BigBear.ai reported its third-quarter financial results for fiscal 2025. BigBear.ai recorded Q3 revenue of $33.1 million, down 20 percent from $41.5 million in the same quarter of 2024, largely due to lower volumes on certain Army programs.
The company logged $2.5 million in Q3 net income, reversing a net loss of $15.1 million in Q3 2024, primarily driven by non-cash changes in derivative liabilities.
Q3 gross margin was 22.4 percent, while non-GAAP adjusted EBITDA was $9.4 million during the third quarter.
BigBear.ai ended the quarter with a backlog of $376 million. The company said it continues to project revenue between $125 million and $140 million for the full year 2025.
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