Butterfly Network (BFLY) AI Stock Analysis

• Market Cap: $957.42M
• Dividend Yield: N/A
• Average Volume (3M): 6.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.87
• Revenue Growth: 16.04%
• EPS Growth: 28.91%
• Country: US
• Employees: 190
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.02
• Shares Outstanding: 228,205,930
• 10 Day Avg. Volume: 11,437,468
• 30 Day Avg. Volume: 6,847,906
• PEG Ratio: 1.38
• Price to Book (P/B): 4.79
• Price to Sales (P/S): 9.62
• P/FCF Ratio: -58.52
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 8.14
• Enterprise Value/Gross Profit: 17.37
• Enterprise Value/Ebitda: -11.79
• 1Y Price Target: $5.75
• Price Target Upside: 57.53% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.15
• Revenue Forecast (FY): $111.62M

• Rating: 55 Neutral
• Price Target: $4.00 ▲(9.59% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back mainly by persistent large losses and still-negative free cash flow despite meaningful improvements in cash burn and revenue growth. The earnings call was a notable positive, driven by record Q4 results, improved margins/cash flow, and strong FY2026 growth guidance, while technical signals are neutral and valuation remains challenged due to unprofitability; the warrant delisting is an additional (smaller) risk factor.

Positive Factors

Revenue growth and FY2026 guidance

Management's FY2026 revenue guidance (~+20–24%) builds on FY2025 growth, signaling durable top-line momentum from core POCUS volume and Embedded contributions. Sustained double-digit growth supports scaling operating leverage, broader market adoption, and a clearer path to higher recurring revenue over multiple years.

Software & services mix expansion

Rapid software/services growth to 43% of revenue increases recurring, higher-margin revenue and customer stickiness. A larger software mix reduces reliance on one-time device sales, improves lifetime value, and supports predictable cash generation and margin stability as the platform and Embedded partnerships scale.

Material cash balance and sharply lower cash burn

A sizable cash balance and much lower annual cash use provide multi-quarter runway to fund R&D, commercialization, and Embedded rollouts without immediate refinancing. Improved liquidity and low leverage give the company flexibility to invest in growth initiatives while absorbing execution timing variability.

Negative Factors

Persistent unprofitability

Despite revenue gains, very large net losses and a deeply negative margin profile mean the business is not yet self-funding. Continued negative earnings pressure equity, constrains free cash flow conversion, and raises the risk of future dilution or financing requirements if operating momentum stalls.

Embedded and home-care timing uncertainty

Significant upside is tied to Embedded commercialization and future chip sales, but much of the Midjourney contribution is pre-commercial with monetization expected in later years. Delays or slower ramp would postpone material revenue and margin benefits, extending the timeline to profitability.

Product-mix and international weakness

Sharp declines in legacy iQ+ sales and weak international results highlight product-transition and geographic execution risks. Adverse mix shifts can pressure near-term margins and unit economics, while slower global adoption limits TAM capture and the company's ability to realize scale benefits outside the U.S.

Butterfly Network Business Overview & Revenue Model

Company Description

Butterfly Network, Inc., a digital health company, develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+, a point-of-care ultrasound imaging device that connects with a smartphone, tablet, and hospital computer system; and Butterfly Blueprint, a system-wide ultrasound platform with Compass software that integrates into a healthcare system's clinical and administrative infrastructure. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions, to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as clinical support and services. Butterfly Network, Inc. was incorporated in 2011 and is headquartered in Guilford, Connecticut.

How the Company Makes Money

Butterfly Network generates revenue primarily through the sale of its Butterfly iQ ultrasound devices and associated software subscriptions. The company operates on a direct sales model, targeting hospitals, clinics, and healthcare providers that require ultrasound imaging solutions. Additionally, Butterfly Network offers a subscription-based software service that provides users with access to advanced imaging features and cloud-based data storage, enhancing the functionality of their devices. Strategic partnerships with healthcare organizations and technology companies also contribute to revenue by expanding market reach and integrating their ultrasound solutions into existing healthcare systems.

Butterfly Network Financial Statement Overview

Summary

Revenue is growing (FY2025 ~$97.6M, up ~19% YoY) and operating cash burn improved sharply (operating CF about -$12.7M in 2025 vs ~-$41.7M in 2024), supported by relatively low leverage (debt-to-equity ~0.09). However, profitability remains the key weakness with very large losses (2025 net margin ~-79%) and sharply negative ROE (~-39%), keeping the business far from self-funding.

Income Statement

Revenue has improved meaningfully over time (2025: ~$97.6M, up ~10% YoY; 2024 was essentially flat), but profitability remains a clear weak point. Gross margin stayed solid in 2024–2025 (~59.5% to ~46.9%), yet the company continues to post very large operating and net losses (2025 net margin ~-79%; 2024 ~-88%). Losses have narrowed versus the extreme 2022–2023 period, but the earnings profile is still far from break-even and margins remain highly negative.

Balance Sheet

Leverage appears manageable with relatively low debt versus equity in recent years (debt-to-equity ~0.09 in 2025 and ~0.14 in 2024), providing financial flexibility compared with more highly levered peers. However, ongoing losses are pressuring shareholder returns (return on equity remains sharply negative, ~-39% in 2025), and equity has trended down from earlier years—highlighting the risk that continued losses could erode the capital base over time.

Cash Flow

Cash burn remains a concern, but the trajectory has improved substantially: operating cash flow was about -$12.7M in 2025 versus roughly -$41.7M in 2024 and much larger outflows in 2022–2023. Free cash flow is still negative (about -$16.0M in 2025), and it worsened versus 2024 (FCF growth ~-41.7%), suggesting reinvestment and/or working-capital demands are still heavy. Overall, liquidity performance is improving, but the business is not yet self-funding.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	97.61M	82.06M	65.90M	73.39M	62.56M
Gross Profit	45.73M	48.83M	16.86M	39.46M	17.05M
EBITDA	-67.38M	-60.92M	-123.04M	-162.74M	-29.55M
Net Income	-77.06M	-72.49M	-133.70M	-168.72M	-32.41M
Balance Sheet
Total Assets	296.53M	256.08M	304.27M	417.57M	571.97M
Cash, Cash Equivalents and Short-Term Investments	150.49M	88.78M	134.64M	237.81M	422.84M
Total Debt	20.40M	22.84M	25.03M	31.89M	29.08M
Total Liabilities	100.55M	87.25M	84.22M	92.21M	124.27M
Stockholders Equity	195.98M	168.83M	220.05M	325.36M	447.69M
Cash Flow
Free Cash Flow	-16.05M	-44.40M	-104.60M	-187.42M	-197.06M
Operating Cash Flow	-12.70M	-41.71M	-98.82M	-169.12M	-189.19M
Investing Cash Flow	-3.35M	-2.66M	70.41M	-93.78M	-9.87M
Financing Cash Flow	77.76M	-1.50M	228.00K	2.88M	565.69M

Butterfly Network Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFLY, the sentiment is Positive. The current price of 3.65 is above the 20-day moving average (MA) of 3.40, below the 50-day MA of 3.83, and above the 200-day MA of 2.57, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 46.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BFLY.

Butterfly Network Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVS	65 Neutral	$753.15M	21.81	4.97%	―	1.58%	―
KIDS	55 Neutral	$450.47M	-10.51	-12.67%	―	19.90%	-57.90%
BFLY	55 Neutral	$957.42M	-12.19	-42.25%	―	16.04%	28.91%
VREX	52 Neutral	$527.10M	52.93	-13.95%	―	4.14%	-45.29%
CBLL	52 Neutral	$673.40M	-15.00	-30.83%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TMCI	43 Neutral	$89.78M	-2.63	-51.63%	―	7.90%	19.92%

Butterfly Network Corporate Events

Butterfly Network warrants delisted while common stock remains

On January 13–14, 2026, Butterfly Network, Inc. disclosed that the New York Stock Exchange had determined to delist and immediately suspend trading of the company’s publicly traded warrants, ticker “BFLY WS,” citing abnormally low selling price levels under Section 802.01D of the NYSE Listed Company Manual. The warrants, originally issued in connection with Butterfly’s February 16, 2021 business combination with Longview Acquisition Corp., are exercisable for Class A common shares at $11.50 per share and are scheduled to expire on February 12, 2026; Butterfly emphasized that it does not believe the delisting reflects its operating performance and clarified that trading in its Class A common stock under the ticker “BFLY” on the NYSE will continue unaffected, limiting the impact primarily to holders of the warrants rather than common shareholders.

The most recent analyst rating on (BFLY) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Butterfly Network stock, see the BFLY Stock Forecast page.