Butterfly Network (NYSE:BFLY) Posts Earnings Results

Key Points

• Q1 financials beat expectations — revenue rose 25% YoY to $26.5M and EPS was ($0.03) versus consensus ($0.04), with gross margin improving to 69%, adjusted EBITDA loss narrowing to $6.1M, $138M cash on hand, and management reaffirming 2026 revenue guidance of $117M–$121M.
• FDA clearance of the Gestational Age (GA) blind‑sweep AI enables a 2‑minute fetal dating capability that can be pushed via cloud updates to cleared devices and is expected to facilitate relationships with ministries of health and global deployments.
• Product commercialization is accelerating — Embedded revenue grew 147% YoY to $5.7M with an expanding partner base and an Apollo chip roadmap as a future catalyst, while the rebranded Butterfly Home commercialization targets initial agreements in H1 and a statewide deployment in Q3 with revenue beginning in H2 2026.

Butterfly Network (NYSE:BFLY - Get Free Report) released its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.04) by $0.01, FiscalAI reports. Butterfly Network had a negative net margin of 73.63% and a negative return on equity of 33.61%. The business had revenue of $26.53 million for the quarter, compared to the consensus estimate of $26.08 million.

Here are the key takeaways from Butterfly Network's conference call:

• Q1 financials beat expectations — revenue was $26.5M (up 25% YoY), gross margin improved to 69%, adjusted EBITDA loss narrowed to $6.1M, cash was $138M, and the company reaffirmed 2026 revenue guidance of $117M–$121M with an adjusted EBITDA loss target of $21M–$25M.
• FDA clearance of the Gestational Age (GA) blind-sweep AI tool enables a 2‑minute fetal dating capability that can be pushed via cloud update to cleared devices and is expected to open relationships with ministries of health and global deployments.
• Butterfly Embedded is accelerating — Embedded revenue grew 147% YoY to $5.7M driven by the Midjourney partnership, the partner count is increasing (9 announced) and the Apollo chip roadmap is positioned as a major future revenue catalyst.
• Home & Community Care commercialization underway (rebranded Butterfly Home) with a first commercial agreement expected H1 and an initial statewide deployment targeted for Q3, with anticipated revenue contribution starting in H2 2026 and broader expansion in 2027.
• EU RoHS update leaves uncertainty — a third‑party review recommended reapproval of the lead exemption for handheld ultrasound but only for two years, delaying an immediate ban and keeping lead‑based piezo devices in use while the longer-term outcome remains uncertain.

Butterfly Network Stock Performance

Shares of BFLY stock opened at $5.39 on Friday. Butterfly Network has a fifty-two week low of $1.32 and a fifty-two week high of $5.72. The company has a 50 day moving average price of $4.22 and a 200 day moving average price of $3.56. The stock has a market capitalization of $1.37 billion, a P/E ratio of -17.40 and a beta of 2.28.

Hedge Funds Weigh In On Butterfly Network

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. purchased a new stake in shares of Butterfly Network during the first quarter worth $85,000. Goldman Sachs Group Inc. boosted its holdings in Butterfly Network by 4.1% in the first quarter. Goldman Sachs Group Inc. now owns 756,426 shares of the company's stock valued at $1,725,000 after purchasing an additional 29,958 shares during the period. JPMorgan Chase & Co. boosted its holdings in Butterfly Network by 9,055.9% in the second quarter. JPMorgan Chase & Co. now owns 92,017 shares of the company's stock valued at $184,000 after purchasing an additional 91,012 shares during the period. Legal & General Group Plc grew its stake in Butterfly Network by 136.5% during the 2nd quarter. Legal & General Group Plc now owns 206,985 shares of the company's stock worth $414,000 after purchasing an additional 119,455 shares in the last quarter. Finally, Rhumbline Advisers acquired a new position in Butterfly Network during the 2nd quarter worth $475,000. Hedge funds and other institutional investors own 37.85% of the company's stock.

Butterfly Network News Summary

Here are the key news stories impacting Butterfly Network this week:

• Positive Sentiment: Company reaffirmed FY‑2026 revenue guidance of $117M–$121M and gave Q2 revenue guidance of $27M–$31M (near consensus), signaling management confidence in the recovery and growth cadence. Article Title
• Positive Sentiment: Q1 revenue beat estimates: reported revenue ~$26.5M vs. consensus ~$26.1M, and the GAAP loss per share narrowed year‑over‑year (Zacks noted a $0.03 loss vs. a $0.04 expected loss), which supports the upside narrative. Article Title
• Positive Sentiment: Unusually large options activity with a notable uptick in call purchases (3,652 calls), indicating some traders are positioning for further upside or event‑driven moves. (Internal trading summary)
• Neutral Sentiment: Earnings call transcript provides color on product adoption, cloud/AI strategy and go‑to‑market execution — useful for judging whether management cadence can sustain guidance. Article Title
• Negative Sentiment: MarketBeat/BusinessWire report an EPS miss versus some consensus measures (reported ($0.05) vs. consensus ($0.04)), and the company remains unprofitable with a wide negative net margin and negative ROE — risks for investors focused on near‑term profitability. Article Title
• Negative Sentiment: Some investors sold into the print: coverage notes the stock fell initially despite the revenue beat, indicating sensitivity to the EPS miss and ongoing losses (MSN coverage). Article Title

Wall Street Analyst Weigh In

BFLY has been the subject of several research reports. TD Cowen lifted their target price on shares of Butterfly Network from $4.50 to $6.00 and gave the company a "buy" rating in a report on Friday, February 27th. Zacks Research upgraded Butterfly Network from a "strong sell" rating to a "hold" rating in a research note on Friday, March 27th. Craig Hallum restated a "buy" rating and set a $5.25 price target on shares of Butterfly Network in a research report on Wednesday, January 21st. Lake Street Capital lifted their price objective on Butterfly Network from $4.00 to $5.50 and gave the company a "buy" rating in a research note on Tuesday, January 20th. Finally, Loop Capital set a $5.50 price objective on Butterfly Network in a report on Monday, March 2nd. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Butterfly Network has an average rating of "Hold" and an average price target of $5.56.

About Butterfly Network

Butterfly Network, Inc is a medical technology company focused on democratizing access to diagnostic imaging through its proprietary ultrasound-on-chip platform. The company's flagship device, the Butterfly iQ, leverages semiconductor technology to deliver whole-body ultrasound imaging in a handheld form factor. This portable system connects to a compatible smart device, enabling point-of-care scanning across a variety of clinical settings.

Beyond its hardware offering, Butterfly Network provides a cloud-based software suite that supports image storage, analysis and remote collaboration.