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Butterfly Network (BFLY)
NYSE:BFLY
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Butterfly Network
(NYSE:BFLY)
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Rating:55Neutral
Price Target:
$2.00
▼(-0.50% Downside)
Butterfly Network's overall stock score reflects significant financial challenges, with negative profitability and cash flow issues being the primary concerns. Despite strong technical indicators suggesting bullish momentum, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation. The company's strategic advancements in AI and software, along with international revenue growth, offer potential for future improvement, but macroeconomic uncertainties remain a risk.
Positive Factors
Record Revenue and Gross Margin
Achieving record revenue and gross margin indicates strong operational performance and effective cost management, enhancing long-term financial stability.
International Revenue Growth
Significant international revenue growth demonstrates successful market expansion and product adoption, supporting sustained global business development.
AI and Software Developments
Innovative AI and software developments enhance product offerings and competitive positioning, driving future growth and customer retention.
Negative Factors
Negative Profitability
Persistent unprofitability and negative margins highlight operational inefficiencies, posing challenges to achieving sustainable financial health.
Cash Flow Challenges
Negative cash flow impacts liquidity and limits the company's ability to invest in growth opportunities, requiring improved cash management.
Domestic Revenue Challenges
Flat domestic revenue growth reflects market saturation and external uncertainties, potentially hindering overall revenue expansion.
Butterfly Network (BFLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$521.10M
Dividend YieldN/A
Average Volume (3M)4.33M
Price to Earnings (P/E)―
Beta (1Y)2.25
Revenue Growth23.13%
EPS Growth46.62%
CountryUS
Employees190
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.03
Shares Outstanding225,314,150
10 Day Avg. Volume6,914,365
30 Day Avg. Volume4,325,004
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.71
Enterprise Value/Revenue4.23
Enterprise Value/Gross Profit6.83
Enterprise Value/Ebitda-6.26
Forecast
1Y Price Target
$3.25Price Target Upside61.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Butterfly Network Business Overview & Revenue Model
Company DescriptionButterfly 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 MoneyButterfly 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 Key Performance Indicators (KPIs)
Butterfly Network Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as record revenue and strategic advancements in software and AI, indicating strong business potential. However, concerns about macroeconomic conditions and their impact on future revenue, particularly in the domestic market, were evident. The company remains bullish in the long-term but cautious in the short-term.Q2-2025 Updates
Positive Updates
Record-Breaking Quarterly Revenue
Butterfly Network reported its highest quarterly revenue in company history at $23.4 million, along with a gross margin reaching an all-time high of 64%.
International Revenue Growth
Total international revenue increased by 19% over the prior year period to $6.2 million, driven by both price and volume due to the international launch of iQ3 and geographic expansion.
Enterprise-Wide Deal Closure
Closed a large enterprise-wide deal with one of the top 5 most recognized health systems in the world, which will be fully deployed in every department and campus.
AI and Software Developments
Launch of Compass AI, a next-generation software platform aimed at reducing documentation steps with advanced AI tools, expected to be a game changer for enterprise customers.
Butterfly Garden Advancements
Butterfly Garden entered its commercial phase with new partners like iCardio and HeartFocus receiving FDA clearance, enhancing the AI tools available to Butterfly users.
Improved Cash Use and Fiscal Discipline
Cash use was the lowest of any quarter at $7 million, with a 24% improvement in adjusted EBITDA driven by higher revenue and gross profit.
Negative Updates
Guidance Revision Due to Macro Conditions
Full year guidance was adjusted to reflect macroeconomic uncertainties, with revenue expectations lowered to a range of $91 million to $95 million, citing delays in large deal closures.
Domestic Revenue Challenges
U.S. revenue was flat at $17.2 million, affected by lower domestic volume and delays in customer purchase decisions due to uncertainty around funding and government policy changes.
Churn in Individual Software Subscriptions
The software and other services revenue was flat, impacted by lower renewals of individual subscriptions despite higher enterprise software revenue.
Company Guidance
During the Butterfly Network's Q2 2025 earnings call, the company reported its highest quarterly revenue to date at $23.4 million, alongside a record gross margin of 64%. Despite macroeconomic challenges, Butterfly reduced its cash usage to $7 million, the lowest for any quarter in its history. The company adjusted its full-year revenue guidance to a range of $91 million to $95 million, citing delays in large deals and uncertainties in funding that impacted its U.S. hospital and global health channels. While U.S. revenue remained flat at $17.2 million, international revenue saw a 19% increase, reaching $6.2 million. The product revenue grew by 13% to $16.6 million, driven by higher average selling prices and chip sales, while software and services revenue remained flat at $6.8 million. Butterfly also highlighted the promising transition of its Butterfly Garden initiative into its commercial phase, with new AI tools enhancing clinical capabilities and the potential for significant revenue growth in its HomeCare segment, showcasing a comprehensive strategy to navigate and capitalize on market dynamics.Butterfly Network Financial Statement Overview
Summary
Butterfly Network faces significant financial challenges with negative profitability and cash flow issues, despite some revenue growth and cost management strengths. The balance sheet shows low leverage but persistent losses pose risks.Income Statement
Butterfly Network has shown modest revenue growth with a year-over-year increase of approximately 4.35% in the TTM. However, the company is currently unprofitable with a negative net profit margin of -75.57% and a negative EBIT margin of -81.35%, indicating significant operational challenges. The gross profit margin is positive at 60.65%, suggesting some strength in cost management, but overall profitability remains a concern.40
Negative
Balance Sheet
The company's balance sheet reflects a moderate level of stability with a debt-to-equity ratio of 0.08, indicating low leverage. The equity ratio is relatively strong at 75.27%, demonstrating a solid equity base relative to total assets. However, the company has been consistently recording negative net income, which adversely affects return on equity, currently not calculable due to negative net income.50
Neutral
Cash Flow
Butterfly Network's cash flow situation is challenging, with negative free cash flow and operating cash flow in the TTM. Despite a reduction in negative free cash flow compared to the previous period, the company continues to experience cash outflows from operations, affecting its liquidity position. The operating cash flow to net income ratio is not favorable, reflecting the need for better cash management strategies.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 87.52M | 82.06M | 65.90M | 73.39M | 62.56M | 46.25M |
| Gross Profit | 54.24M | 48.83M | 16.86M | 39.46M | 17.05M | -61.22M |
| EBITDA | -59.13M | -60.92M | -124.84M | -162.74M | -29.55M | -160.25M |
| Net Income | -62.83M | -72.49M | -133.70M | -168.72M | -32.41M | -162.75M |
Balance Sheet | ||||||
| Total Assets | 313.28M | 256.08M | 304.27M | 417.57M | 571.97M | 147.19M |
| Cash, Cash Equivalents and Short-Term Investments | 148.14M | 88.78M | 134.44M | 237.81M | 422.84M | 60.21M |
| Total Debt | 19.10M | 22.84M | 25.03M | 31.89M | 29.08M | 53.89M |
| Total Liabilities | 80.47M | 87.25M | 84.22M | 92.21M | 124.27M | 509.12M |
| Stockholders Equity | 232.81M | 168.83M | 220.05M | 325.36M | 447.69M | -361.93M |
Cash Flow | ||||||
| Free Cash Flow | -31.95M | -44.40M | -104.60M | -187.42M | -197.06M | -84.08M |
| Operating Cash Flow | -29.88M | -41.71M | -98.82M | -169.12M | -189.19M | -81.70M |
| Investing Cash Flow | -2.07M | -2.66M | 70.41M | -93.78M | -9.87M | -2.38M |
| Financing Cash Flow | 77.96M | -1.50M | 228.00K | 2.88M | 565.69M | 54.28M |
Butterfly Network Technical Analysis
Positive
2.01
Price Trends
1.65
Positive
1.91
Positive
2.57
Negative
Market Momentum
0.12
Negative
63.04
Neutral
68.44
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 2.01 is above the 20-day moving average (MA) of 1.72, above the 50-day MA of 1.65, and below the 200-day MA of 2.57, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 68.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BFLY.
Butterfly Network Risk Analysis
Butterfly Network disclosed 48 risk factors in its most recent earnings report. Butterfly Network reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Butterfly Network Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | 500.49M | -3.72 | -29.10% | ― | -1.36% | -479.49% | |
55 Neutral | $521.10M | ― | -29.42% | ― | 23.13% | 46.62% | |
53 Neutral | 550.64M | -900.00 | -0.10% | ― | 5.08% | 99.38% | |
52 Neutral | 458.35M | -10.17 | -11.75% | ― | 26.08% | -63.67% | |
51 Neutral | 416.87M | -8.28 | -21.16% | ― | ― | ― | |
44 Neutral | 420.73M | -8.48 | -50.38% | ― | 7.67% | 23.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
BFLY
Butterfly Network
2.01
0.24
13.56%
VREX
Varex Imaging
12.06
0.14
1.17%
KIDS
OrthoPediatrics
18.28
-8.83
-32.57%
BVS
Bioventus
6.66
-5.29
-44.27%
TMCI
Treace Medical Concepts
6.66
0.86
14.83%
CBLL
Ceribell, Inc.
11.37
-14.13
-55.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.