Greetings, and welcome to the BigBear.ai Holdings, Inc. fourth quarter 2025 and full year earnings call and webcast. Please note this conference is being recorded. I will now turn the conference over to Sean Ricker, CFO. Thank you. You may begin. Good afternoon.

Thank you all for joining us today for our fourth quarter 2025 earnings call. I am Sean Ricker, CFO of BigBear.ai Holdings, Inc., and I am joined today by our CEO, Kevin McAleenan. Statements made in today's call that are not historical facts are considered forward-looking statements that are made pursuant to the safe harbor provisions of the federal securities laws. Actual results may differ materially from those projected in the forward-looking statements. Please see today's press release and our SEC filings for a description of some of the factors that may cause actual results to differ materially from those in the forward-looking statements. We have posted charts on our website today that we plan to address during the call to supplement our comments. These charts also include information regarding non-GAAP measures that may be used in today's call. Please access our website at www.bigbear.ai and click on the Investor Relations link to view and follow the charts. With that, I would like to turn the call over to Kevin.

Good afternoon. Before we begin, I would like to express our appreciation and gratitude to all our servicemen and women and their leaders who are currently engaged here and overseas in the conflict with Iran. You will continue to have BigBear.ai Holdings, Inc.'s full support as you carry out your challenging missions. We also want to send well wishes to our allies and partners in the region who are in harm's way and our BigBear.ai Holdings, Inc. employees. 01/15/2026 marked one year since I stepped into the CEO role. It was a dynamic year on all fronts for BigBear.ai Holdings, Inc. I would like to thank our shareholders for their trust and support, our customers for their partnership, and the outstanding BigBear.ai Holdings, Inc. team for their hard work. Our first objective for 2025 was to strengthen the foundations and fundamentals of the business, starting with rebuilding our financial position. To address the growing and rapidly evolving needs of our government and commercial customers, we needed to strengthen our balance sheet and establish financial flexibility that would allow us to invest in technology, retain and attract top talent, and take advantage of emerging opportunities in a dynamic marketplace. We knew we needed to do this to enable BigBear.ai Holdings, Inc. to move quickly and decisively, and we made remarkable progress. As of year-end 2025, BigBear.ai Holdings, Inc. is in the strongest financial position in the company's history. As Sean will speak to in more detail, we have significantly reduced our debt, and we have record liquidity. This is a big achievement by the team, and it is a clear signal to our shareholders that BigBear.ai Holdings, Inc. is building momentum, is positioned to move fast, and is laying the tracks for lasting returns. I would also like to highlight here…

Thanks, Kevin. I will start by highlighting key accomplishments from 2025, and we will then move to our results for the fourth quarter. This year, we raised $693,000,000 in proceeds from our ATM facilities and warrant exercises, and we were able to close on the acquisition of Essage. The momentum has not stopped in 2026. In the first quarter, we closed on the acquisition of CarveSeer and fully settled the 2029 notes by exercising our right to force conversion of the notes into common stock, which will save almost $9,000,000 of annualized interest expense through 2029. We intend to settle the remaining $17,000,000 on our 2026 notes when those mature at the end of this year. These milestones have not only strengthened our balance sheet but have also put us on a trajectory for sustainable growth. We have also made meaningful progress strengthening our internal controls. Earlier this year, we transitioned out of emerging growth company status, which brought with it the added rigor of SOX 404(b) compliance, including an independent auditor attestation on our internal controls. I am pleased to report that our auditor has issued a clean, unqualified opinion, reflecting well on the work our team has put into building a more mature control environment. As you will see in today's 10-K filing, we are also pleased to report that the material weakness that we disclosed in last year's filing has been fully remediated as of 12/31/2025. Now let us turn to our operating results for the fourth quarter. Fourth quarter revenue was $27,300,000, a decrease of $16,500,000 year over year, which was primarily driven by lower volume on Army programs, which we referenced on previous earnings calls and which was accounted for in our RISE guidance, which we provided in our second quarter earnings call. Gross margins…

Thanks, Sean. I would like to close on a note that highlights why I am excited about the year ahead and our ability to support our customers in this intense strategic moment globally. And that is the fact that as a company, we have a huge core of former operators. We deeply understand our customers' missions. We have augmented that expertise with cutting-edge technologies that we can apply understanding the reality of the use cases that our customers deal with every day. Mission-ready technology by operators for operators. That is distinct from companies who primarily integrate others' capabilities and from startups who do not understand the operational context. What our national security customers and global partners need is the ability to apply emerging tech securely, to move rapidly and with greater flexibility than ever before to address emerging threats and challenges, and that is what we intend to do for them this year. Thank you very much for your time today and your continuing support of BigBear.ai Holdings, Inc.

Thank you, ladies and gentlemen. And with that, this does conclude today's teleconference. Thank you for your participation. You may now disconnect, and have a wonderful day.