BigBear.ai Holdings, Inc. Liquidation Value

BigBear.ai Holdings (BBAI) presents a deeply negative liquidation posture as of March 31, 2026. Total assets are $861.7M, but the vast majority consists of assets that carry zero recovery under a liquidation framework: goodwill of $238.7M and finite-lived intangibles of $137.4M together represent approximately 44% of total assets and are haircut to zero under the lens. Available-for-sale debt securities total $330.7M at fair value (100% recovery given short duration, U.S. Treasury and high-grade corporate composition, and policy cap of 24-month maturities), and cash and equivalents are $100.7M. Restricted cash is $6.0M. Accounts receivable net is $22.8M (90-95% recovery, approximately $21-22M). PP&E net is only $1.7M (50-70% recovery, approximately $0.9-1.2M). Operating lease ROU assets of $6.8M are excluded from recovery. Contract assets are $0.9M and are not independently realizable.

On the liability side, total liabilities are $71.3M at face. The dominant obligation is the 2026 Convertible Notes with $17.7M principal outstanding (maturing December 2026, classified current), plus current accrued liabilities of $15.6M, employee-related liabilities of $14.0M, contract liabilities (deferred revenue) of $11.3M, and derivative liabilities of $10.0M. Operating lease liabilities total $7.5M ($12.3M undiscounted). All stay at face value in liquidation.

Key structural change versus prior filing (10-K, December 31, 2025): The $124.6M of 2029 Convertible Notes were entirely converted to equity in Q1 2026, eliminating the senior secured liability and the associated $35.2M of unamortized discount. This materially improved the liability stack — total debt dropped from $142.3M to $17.7M. Simultaneously, the Ask Sage acquisition closed December 31, 2025 ($267.6M cash paid), injecting $137.4M of finite-lived intangibles and goodwill into the asset base with zero liquidation recovery. The MFFAIS CLV of $29.4M and LLV of $52.3M reflect the dominance of liquid assets offset by face-value liabilities; the gap between reported book equity ($790.4M) and any plausible liquidation recovery is enormous, driven entirely by the intangible and goodwill stack ($376M combined, all zeroed) and accumulated deficit of $922.3M. Operating cash burn is $18.0M for Q1 2026, up significantly from $6.7M in Q1 2025, and the AFS portfolio is being drawn down (from $374.4M to $330.7M QoQ). The filing does not separately tag goodwill impairment or individual intangible asset fair values in XBRL beyond amortization schedules.