Butterfly Network (NYSE:BFLY) Posts Earnings Results, Beats Estimates By $0.03 EPS

Butterfly Network (NYSE:BFLY) released its earnings results on Thursday. The company reported ($0.01) EPS for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.03, FiscalAI reports. The business had revenue of $32.60 million for the quarter, compared to analysts’ expectations 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 Trading Down 14.6%

Shares of BFLY stock traded down $1.09 on Friday, reaching $6.42. The company’s stock had a trading volume of 3,593,124 shares, compared to its average volume of 6,328,873. The stock’s fifty day simple moving average is $8.12 and its 200-day simple moving average is $6.03. Butterfly Network has a 1 year low of $1.90 and a 1 year high of $10.21. The company has a market capitalization of $1.71 billion, a price-to-earnings ratio of -22.05 and a beta of 2.04.

Analysts Set New Price Targets

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

Key Butterfly Network News

Here are the key news stories impacting Butterfly Network this week:

• Positive Sentiment: Butterfly reported third-quarter revenue of $32.6 million, above the $28.4 million analyst consensus, while its adjusted loss narrowed to approximately $0.01 per share versus a $0.04 expected loss and a $0.13 loss a year earlier. Butterfly Network Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Management raised its 2026 revenue outlook after results came in ahead of prior guidance, providing a potentially supportive catalyst for BFLY shares. The company also highlighted new federal wins that could expand adoption of its point-of-care ultrasound devices, cloud software and artificial-intelligence tools. Is Butterfly Network a Bargain Following Raised Guidance and New Federal Wins?
• Neutral Sentiment: The earnings call emphasized continued commercial and federal-market opportunities, as well as progress integrating Butterfly’s hardware, software and AI ecosystem. Investors will likely look for evidence that these initiatives can translate into sustained growth and improving margins. Butterfly Q3 2026 Earnings Call Transcript
• Negative Sentiment: Despite the earnings beat, Butterfly remains unprofitable, with a negative net margin and negative return on equity. The company’s projected full-year loss and high-growth valuation may be limiting enthusiasm, particularly after the stock’s substantial run from its 52-week low. Butterfly Network Reports Q3 Loss, Beats Revenue Estimates

Insider Activity at Butterfly Network

In other news, CAO Megan Carlson sold 10,114 shares of the business’s stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $8.74, for a total value of $88,396.36. Following the sale, the chief accounting officer directly owned 401,971 shares in the company, valued at $3,513,226.54. The trade was a 2.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Steve Cashman sold 140,112 shares of the company’s stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $7.30, for a total transaction of $1,022,817.60. Following the sale, the insider owned 1,490,295 shares in the company, valued at $10,879,153.50. This represents 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 have sold 285,855 shares of company stock valued at $2,426,034 over the last quarter. 21.99% of the stock is currently 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.