Butterfly Network (NYSE:BFLY – Get Free Report) announced its quarterly earnings results on Thursday. The company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.03, FiscalAI reports. The company had revenue of $32.60 million for the quarter, compared to the consensus estimate of $28.37 million. Butterfly Network had a negative return on equity of 33.99% and a negative net margin of 66.74%.
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 Down 4.3%
Butterfly Network stock traded down $0.34 during trading hours on Thursday, hitting $7.47. The stock had a trading volume of 4,992,865 shares, compared to its average volume of 6,337,073. The stock has a market capitalization of $1.99 billion, a P/E ratio of -25.78 and a beta of 2.04. The stock’s 50-day moving average price is $8.15 and its 200-day moving average price is $6.01. Butterfly Network has a 12-month low of $1.90 and a 12-month high of $10.21.
Wall Street Analysts Forecast Growth
A number of brokerages have recently weighed in on BFLY. Canaccord Genuity Group started coverage on Butterfly Network in a research report on Monday, October 12th. They issued a “buy” rating and a $10.00 price objective on the stock. Evercore initiated coverage on Butterfly Network in a report on Tuesday, September 29th. They set an “outperform” rating and a $15.00 target price for the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Butterfly Network in a research note on Monday, August 3rd. TD Cowen reissued a “buy” rating and set a $10.00 price objective on shares of Butterfly Network in a research report on Friday, September 11th. Finally, Needham & Company LLC started coverage on shares of Butterfly Network in a report on Tuesday, September 22nd. They issued a “buy” rating and a $10.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $8.75.
Read Our Latest Report on Butterfly Network
Insider Buying and Selling
In related news, General Counsel Nicholas Caezza sold 10,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $9.75, for a total transaction of $97,500.00. Following the transaction, the general counsel owned 300,307 shares in the company, valued at $2,927,993.25. This represents a 3.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Steve Cashman sold 140,112 shares of the 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 transaction, the insider directly owned 1,490,295 shares in the company, valued at $10,879,153.50. The trade was a 8.59% decrease in their ownership of the stock. 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. Insiders sold 354,707 shares of company stock worth $2,967,211 over the last 90 days. 21.99% of the stock is currently owned by company insiders.
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.
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