Start here if you're new
what it is
It sells pocket ultrasound devices, software that links to the internet, and support for clinics.
how it gets paid
Last year Butterfly Network made $98M in revenue. handheld ultrasound devices was the main engine at $58M, or 59% of sales.
why it's growing
Revenue grew 19.0% last year. Revenue was up 208% vs. prior year. The company still lost money.
what just happened
Butterfly posted $66M of revenue last quarter, with gross margin at 37.1% and EPS at -$0.25.
At a glance
B balance sheet — gets the job done, barely
-$0.34 fy2024 eps est
$2B fy2026 rev est
88.5% operating margin
1.9 beta
xvary composite: 47/100 — below average
What they do
It sells pocket ultrasound devices, software that links to the internet, and support for clinics.
Butterfly says its handheld probe can scan the whole body. That is a room-sized machine versus a pocket-sized probe. Your clinician gets one device, one tablet, and fewer steps, which matters when 190 employees are trying to keep the system simple.
How they make money
$98M
annual revenue · their business grew +19.0% last year
handheld ultrasound devices
$58M
+22.0%
software
$16M
+19.0%
services
$18M
+14.0%
education and other
$6M
0.0%
The products that matter
handheld ultrasound device
Butterfly iQ+
$31.5M device revenue · +41%
Device sales brought in $31.5M last year and grew 41%. That tells you adoption is moving, but it is still only about one-third of the business.
32.1% of revenue
software and imaging workflow platform
Butterfly Cloud
$66.5M revenue · +11%
This segment generated $66.5M and makes up 67.9% of revenue. It matters because recurring software revenue is supposed to make the business more predictable than a one-time device sale.
67.9% of revenue
embedded distribution strategy
partnerships
2026 guide: $117M–$121M
Management's 2026 revenue target implies the partnership push needs to show up in reported numbers soon. Without that, the growth story stays conceptual.
the bet
Key numbers
$98M
annual revenue
This is the size of the business. It is tiny next to a roughly $968M market cap, which is why the stock still trades on hope.
88.5%
operating margin
This tells you the company loses most of what it sells after overhead. Revenue growth does not fix that by itself.
37.1%
gross margin
This is the cash left after making the product. It is far better than the operating margin, which means overhead is doing the damage.
$18M
long-term debt
Debt is small at 2% of capital, so the balance sheet is not the main problem. The main problem is profitability.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $18M (2% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for BFLY right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Butterfly posted $66M of revenue last quarter, with gross margin at 37.1% and EPS at -$0.25.
Revenue was up 208% vs. prior year. The company still lost money, which is the ugly part of the pretty headline.
$66M
revenue
-$0.25
eps
37.1%
gross margin
the number that mattered
The $66M quarter matters because it was up 208% vs. prior year, yet EPS was still -$0.25.
source: company earnings report, 2026
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What could go wrong
The #1 risk is embedded ultrasound partnerships scaling too slowly to offset operating losses.
med
the loss base is still too large
Butterfly lost $77.1M over the last 12 months on $98M in revenue. That is not a normal amount of room for execution mistakes.
If growth slows even modestly, investors stop focusing on the technology story and start focusing on how long it takes to self-fund.
med
partnership-led growth still needs proof
The company is framing embedded and distribution relationships as the next leg of scale, and the 2026 guide of $117M–$121M raises the bar.
If those deals do not convert into reported revenue, the stock loses the part of the story investors are paying up for.
med
recurring software is solid, not explosive
Software and services are already $66.5M of revenue, but that segment grew 11% while device sales grew 41%.
If the recurring layer does not accelerate, Butterfly stays more transactional and less predictable than the premium story suggests.
A company guiding to $117M–$121M in 2026 revenue can work. A company losing $77.1M while trying to get there still has to earn the market's patience quarter by quarter.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next quarterly print
The next report needs to show that Q4's $31.5M revenue was not a one-off. One good quarter gets attention. Two starts a trend.
margin
gross margin above 43.3%
This is the cleanest operating proof point. If growth is real, margin should not stall while revenue rises.
growth
software and services growth
At $66.5M, this is already most of the business. If it keeps growing only 11% while hardware grows 41%, the recurring-revenue case stays incomplete.
risk
guide credibility
Management put $117M–$121M on the board for 2026. Miss that range, and the stock likely gets treated less like a growth platform and more like an unfinished turnaround.
Analyst rankings
coverage
thin
in human-speak: there is not enough ranked analyst coverage here to make the consensus the story.
what matters instead
ops
Watch revenue versus the $117M–$121M guide, gross margin versus 43.3%, and whether losses start shrinking relative to sales.
read-through
mixed
Limited ranking data usually means you should trust reported numbers more than target-price theater.
source: institutional data
Institutional activity
institutional ownership data for BFLY is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$4
current price
n/a
target midpoint · n/a from current
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