Butterfly Network (NYSE:BFLY) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Butterfly Network beat quarterly expectations: It reported an adjusted loss of $0.01 per share versus the expected $0.03 loss, while revenue reached $32.61 million, up 39% year over year and ahead of the $29.16 million consensus.
• Growth initiatives accelerated: Gross margin rose to a record 71%, Butterfly Embedded revenue surged 439% to $10.8 million, and management raised full-year 2026 revenue guidance to $119 million–$123 million.
• Profitability and cash-flow risks remain: The company posted a negative 73.63% net margin, used $13.3 million in cash during the quarter, expects a third-quarter adjusted EBITDA loss of $6 million–$9 million, and international revenue declined 14%.

Butterfly Network (NYSE:BFLY - Get Free Report) issued its quarterly earnings data on Thursday. The company reported ($0.01) earnings per share for the quarter, topping analysts' consensus estimates of ($0.03) by $0.02, FiscalAI reports. Butterfly Network had a negative net margin of 73.63% and a negative return on equity of 34.41%. The business had revenue of $32.61 million during the quarter, compared to analysts' expectations of $29.16 million.

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

• Record second-quarter results exceeded guidance, with revenue of $32.6 million, up 39% year over year, gross margin reaching a company-record 71%, and adjusted EBITDA loss improving 78% to $1.4 million.
• Butterfly Embedded revenue increased 439% year over year to $10.8 million, driven primarily by the Midjourney partnership; the company added two partnerships during the quarter, bringing its total to 11, with additional commercial milestones viewed as potential upside.
• Core growth initiatives gained traction, including six new Compass AI enterprise deals, provisional authorization to sell across the VA, expanded medical-school programs, and the VCOM agreement, which carries potential total contract value above $10 million over four years.
• Management raised full-year 2026 revenue guidance to $119 million–$123 million and expects Home and Community Care revenue to begin in the fourth quarter; the first commercial state is scheduled to launch October 1 with plans to pursue expansion in 2027.
• International revenue declined 14% year over year to $5 million, while cash usage increased to $13.3 million in the quarter and third-quarter guidance calls for an adjusted EBITDA loss of $6 million–$9 million amid planned investments in innovation and growth.

Butterfly Network Stock Performance

NYSE BFLY traded down $1.07 during mid-day trading on Friday, reaching $7.10. 7,485,210 shares of the stock were exchanged, compared to its average volume of 6,722,682. Butterfly Network has a 1-year low of $1.32 and a 1-year high of $9.69. The business's fifty day simple moving average is $6.61 and its 200 day simple moving average is $4.99. The stock has a market capitalization of $1.81 billion, a PE ratio of -23.75 and a beta of 2.05.

Insiders Place Their Bets

In related news, EVP John N. Doherty sold 57,136 shares of the company's stock in a transaction on Monday, July 20th. The stock was sold at an average price of $6.56, for a total value of $374,812.16. Following the completion of the transaction, the executive vice president directly owned 1,397,276 shares in the company, valued at approximately $9,166,130.56. This represents a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Joseph Devivo sold 211,798 shares of the stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $6.56, for a total value of $1,389,394.88. Following the transaction, the chief executive officer owned 7,672,046 shares in the company, valued at $50,328,621.76. This trade represents a 2.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 4,840,207 shares of company stock valued at $31,652,184. 21.99% of the stock is owned by company insiders.

Institutional Investors Weigh In On Butterfly Network

Hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Butterfly Network by 217.9% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 14,305 shares of the company's stock worth $54,000 after purchasing an additional 9,805 shares in the last quarter. Blair William & Co. IL raised its holdings in shares of Butterfly Network by 8.4% during the 3rd quarter. Blair William & Co. IL now owns 128,500 shares of the company's stock valued at $248,000 after buying an additional 10,000 shares during the period. ExodusPoint Capital Management LP acquired a new position in Butterfly Network during the 4th quarter worth approximately $38,000. California State Teachers Retirement System boosted its holdings in Butterfly Network by 10.0% in the 2nd quarter. California State Teachers Retirement System now owns 131,640 shares of the company's stock worth $263,000 after acquiring an additional 11,985 shares during the period. Finally, Bank of Montreal Can acquired a new position in shares of Butterfly Network during the fourth quarter worth $47,000. 37.85% of the stock is owned by institutional investors and hedge funds.

More Butterfly Network News

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

• Positive Sentiment: Q2 results exceeded expectations: Butterfly reported a loss of $0.01 per share, narrower than the $0.03 loss analysts expected and improved from a $0.06 loss a year earlier. Revenue rose to $32.61 million, topping the $29.16 million consensus estimate. Butterfly Network Q2 earnings report
• Positive Sentiment: Business momentum remained strong: Management said the company exceeded the high end of its quarterly guidance. Coverage also highlighted a Midjourney partnership as a factor supporting enthusiasm around Butterfly’s artificial-intelligence and ultrasound technology. Butterfly Network stock and Midjourney partnership article
• Neutral Sentiment: Full-year revenue guidance was maintained or updated to $119 million-$123 million, broadly consistent with the $119 million analyst consensus. Third-quarter revenue guidance of $26 million-$30 million brackets the $28.8 million consensus, offering limited evidence of a major forecast reset. Butterfly Network Q2 2026 earnings
• Negative Sentiment: Profitability remains a concern: Butterfly continues to operate at a substantial loss, with a reported negative net margin of 73.63% and negative return on equity of 34.41%. The earnings beat therefore reflects improved results rather than current profitability. Butterfly Network earnings report

Wall Street Analyst Weigh In

Separately, Weiss Ratings reiterated a "sell (d-)" rating on shares of Butterfly Network in a report on Wednesday, May 6th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Butterfly Network has a consensus 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.