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

Butterfly Network (NYSE:BFLY) posted its earnings results on Thursday. The company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.03) by $0.02, FiscalAI reports. The company had revenue of $32.61 million during the quarter, compared to analysts’ expectations of $29.16 million. Butterfly Network had a negative net margin of 73.63% and a negative return on equity of 34.41%.

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 Trading Down 12.5%

BFLY traded down $1.02 during trading hours on Friday, hitting $7.14. The company’s stock had a trading volume of 7,757,023 shares, compared to its average volume of 6,722,682. Butterfly Network has a 12 month low of $1.32 and a 12 month high of $9.69. The stock has a market cap of $1.82 billion, a price-to-earnings ratio of -23.65 and a beta of 2.05. The business’s 50-day moving average price is $6.61 and its 200-day moving average price is $4.99.

Insider Buying and Selling at Butterfly Network

In other news, CEO Joseph Devivo sold 211,798 shares of the company’s stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $6.56, for a total transaction of $1,389,394.88. Following the sale, the chief executive officer directly owned 7,672,046 shares in the company, valued at approximately $50,328,621.76. This represents a 2.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, 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, EVP John N. Doherty sold 57,136 shares of the business’s stock in a transaction that occurred 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 sale, the executive vice president directly owned 1,397,276 shares in the company, valued at $9,166,130.56. The trade was a 3.93% 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. In the last 90 days, insiders have sold 4,840,207 shares of company stock valued at $31,652,184. Corporate insiders own 21.99% of the company’s stock.

Hedge Funds Weigh In On Butterfly Network

Large investors have recently modified their holdings of the stock. Invesco Ltd. increased its position in Butterfly Network by 18.5% during the fourth quarter. Invesco Ltd. now owns 387,881 shares of the company’s stock valued at $1,474,000 after acquiring an additional 60,538 shares during the last quarter. Mercer Global Advisors Inc. ADV bought a new stake in shares of Butterfly Network in the 4th quarter worth about $72,000. Skyview Financial Group LLC purchased a new position in shares of Butterfly Network during the 4th quarter worth about $1,054,000. XTX Topco Ltd purchased a new position in shares of Butterfly Network during the 4th quarter worth about $521,000. Finally, Stoic Point Capital Management LLC bought a new position in Butterfly Network during the 4th quarter valued at about $2,849,000. Institutional investors own 37.85% of the company’s stock.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued 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 issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $5.56.

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

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.