Butterfly Network (NYSE:BFLY) Issues Earnings Results

Key Points

• Butterfly Network beat quarterly expectations: Revenue rose 52% year over year to $32.6 million, exceeding estimates and guidance, while the adjusted EBITDA loss narrowed to $1.2 million from $8.1 million.
• Management raised its 2026 outlook to $123 million-$126 million in revenue and expects to reach adjusted EBITDA and cash-flow breakeven by 2028.
• Growth opportunities are expanding through enterprise and embedded partnerships, but international revenue declined 5% and a potential $150 million at-the-market equity program could dilute shareholders if used.

Butterfly Network (NYSE:BFLY - Get Free Report) announced its quarterly earnings data on Thursday. The company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.03, FiscalAI reports. Butterfly Network had a negative return on equity of 33.99% and a negative net margin of 66.74%. The firm had revenue of $32.60 million during the quarter, compared to analysts' expectations of $28.37 million.

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

• Q3 revenue rose 52% year over year to $32.6 million, exceeding the high end of guidance by 9%. Record gross margin reached 73%, while the adjusted EBITDA loss narrowed to $1.2 million from $8.1 million a year earlier.
• Butterfly raised and narrowed its 2026 outlook to $123 million-$126 million of revenue and a $12 million-$15 million adjusted EBITDA loss. Management remains confident in reaching adjusted EBITDA and cash-flow breakeven by 2028.
• Enterprise adoption is gaining traction, with five seven-figure and ten six-figure total contract value deals during the quarter. Compass AI contracts are generally multi-year and can drive recurring software revenue plus expanding probe deployments over time.
• Embedded revenue grew more than 1,000% year over year to $11.1 million, supported by Midjourney, Merge Labs, and Bridge Neurotech. Management expects the business to continue building through new partnerships, product commercialization, and potential revenue sharing, although quarterly results may remain lumpy.
• International revenue declined 5% year over year because of delayed deals and distributor inventory, prompting a strategy shift toward direct enterprise selling. Butterfly also established a potential $150 million ATM equity program, which management described as precautionary but could create shareholder dilution if shares are issued.

Butterfly Network Stock Performance

BFLY traded down $0.36 during mid-day trading on Thursday, reaching $7.45. 4,153,970 shares of the stock were exchanged, compared to its average volume of 6,334,697. Butterfly Network has a 1 year low of $1.90 and a 1 year high of $10.21. The stock has a market capitalization of $1.98 billion, a PE ratio of -25.91 and a beta of 2.04. The company has a 50 day moving average price of $8.15 and a two-hundred day moving average price of $6.01.

Analyst Ratings Changes

BFLY has been the subject of a number of recent research reports. Needham & Company LLC assumed coverage on Butterfly Network in a report on Tuesday, September 22nd. They issued a "buy" rating and a $10.00 target price for the company. Weiss Ratings restated a "sell (d-)" rating on shares of Butterfly Network in a report on Monday, August 3rd. TD Cowen restated a "buy" rating and issued a $10.00 price target on shares of Butterfly Network in a research report on Friday, September 11th. Evercore initiated coverage on shares of Butterfly Network in a report on Tuesday, September 29th. They set an "outperform" rating and a $15.00 price target on the stock. Finally, Canaccord Genuity Group began coverage on Butterfly Network in a report on Monday, October 12th. They set a "buy" rating and a $10.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Butterfly Network has an average rating of "Moderate Buy" and an average price target of $8.75.

Insider Transactions at Butterfly Network

In other Butterfly Network news, CAO Megan Carlson sold 68,852 shares of the business's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $7.86, for a total value of $541,176.72. Following the transaction, the chief accounting officer owned 425,889 shares of the company's stock, valued at approximately $3,347,487.54. The trade was a 13.92% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Steve Cashman sold 140,112 shares of the company's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $7.30, for a total value of $1,022,817.60. Following the completion of the transaction, the insider owned 1,490,295 shares of the company's stock, valued at $10,879,153.50. This trade represents a 8.59% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 354,707 shares of company stock worth $2,967,211. 21.99% of the stock is owned by insiders.

About Butterfly Network

Butterfly Network, Inc develops portable medical imaging technology designed to make ultrasound more accessible across hospitals, clinics, emergency-care settings and other care environments. The company's core products use a semiconductor-based ultrasound-on-chip platform, replacing conventional ultrasound systems' large arrays of piezoelectric transducers with a compact, software-driven probe.

Its product portfolio includes the Butterfly iQ, iQ+, and iQ3 handheld ultrasound systems, which connect to compatible mobile devices and provide imaging across multiple clinical applications.

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