Butterfly Network (NYSE:BFLY) Announces Quarterly Earnings Results

Butterfly Network (NYSE:BFLY) 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 business had revenue of $32.60 million during the quarter, compared to analyst estimates 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 Price Performance

Shares of NYSE:BFLY traded down $0.36 during trading on Thursday, hitting $7.45. 4,153,970 shares of the company were exchanged, compared to its average volume of 6,334,697. Butterfly Network has a 52-week low of $1.90 and a 52-week high of $10.21. The stock has a 50 day moving average of $8.15 and a 200 day moving average of $6.01. The company has a market cap of $1.98 billion, a PE ratio of -25.91 and a beta of 2.04.

Insider Buying and Selling

In related news, Director Louise Phanstiel bought 115,200 shares of the business’s stock in a transaction on Friday, August 14th. The stock was acquired at an average price of $8.68 per share, for a total transaction of $999,936.00. Following the purchase, the director directly owned 300,461 shares in the company, valued at $2,608,001.48. This trade represents a 62.18% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Steve Cashman sold 140,112 shares of Butterfly Network stock in a transaction dated 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 transaction, the insider directly owned 1,490,295 shares of the company’s stock, valued at $10,879,153.50. The trade was a 8.59% decrease in their position. 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. Insiders sold 354,707 shares of company stock valued at $2,967,211 in the last 90 days. Corporate insiders own 21.99% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have recently commented on BFLY. Needham & Company LLC initiated coverage on Butterfly Network in a research report on Tuesday, September 22nd. They set a “buy” rating and a $10.00 price target on the stock. Evercore began coverage on Butterfly Network in a research note on Tuesday, September 29th. They issued an “outperform” rating and a $15.00 price objective on the stock. TD Cowen reaffirmed a “buy” rating and set a $10.00 price objective on shares of Butterfly Network in a report on Friday, September 11th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Butterfly Network in a research report on Monday, August 3rd. Finally, Canaccord Genuity Group started coverage on shares of Butterfly Network in a research report on Monday, October 12th. They set a “buy” rating and a $10.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $8.75.

Butterfly Network Company Profile

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.