Butterfly Network (BFLY) AI Stock Analysis

• Market Cap: $359.99M
• Dividend Yield: N/A
• Average Volume (3M): 3.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.40
• Revenue Growth: 23.13%
• EPS Growth: 46.62%
• Country: US
• Employees: 190
• Sector: Healthcare
• Sector Strength: 50
• Industry: Medical - Devices
• EPS (TTM): -0.03
• Shares Outstanding: 225,314,150
• 10 Day Avg. Volume: 3,283,887
• 30 Day Avg. Volume: 3,669,795
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 4.23
• Enterprise Value/Gross Profit: 6.83
• Enterprise Value/Ebitda: -6.41
• 1Y Price Target: $2.90
• Price Target Upside: 102.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 44 Neutral
• Price Target: $1.50 ▲(4.90% Upside)

Butterfly Network faces substantial financial and technical challenges, with significant operational inefficiencies impacting profitability and cash flow. Despite record revenue and strategic initiatives, the stock remains under pressure from bearish technical indicators and a weak valuation. Positive aspects include strong gross margins and low leverage, with optimism for future growth following recent corporate events.

Positive Factors

Growth Opportunities

BFLY has several big growth drivers, including the worldwide rollout of iQ3, the upcoming launch of Compass 2.0 software, and a major Octiv partnership.

Product Innovation

BFLY’s AI-driven tools for aortic stenosis and AAA screening mark a major step in expanding the clinical utility of its Butterfly iQ handheld ultrasound platform.

Revenue Growth

Total revenue increased 20% with a notable rise in US revenue driven by higher sales volume to health systems and the delivery of semiconductor chips to new partners.

Negative Factors

Management Changes

Butterfly announced that CFO Heather Getz resigned to pursue other interests.

Revenue Guidance

Butterfly reported a mixed second-quarter update with revenue slightly missing expectations, full-year revenue guidance lowered by $5 million (~5%).

Sales Challenges

The evolving macro environment has elongated the US hospital sales cycle and pushed out some large enterprise deals.

Butterfly Network Business Overview & Revenue Model

Company Description

Butterfly Network, Inc. (BFLY) is a digital health company that is revolutionizing medical imaging. It operates in the healthcare technology sector, focusing on the development of its handheld, pocket-sized ultrasound device known as the Butterfly iQ+. This device leverages a semiconductor chip to create high-quality medical imaging, making ultrasound technology more accessible and affordable for healthcare professionals worldwide. The company's mission is to democratize medical imaging and make it universally available.

How the Company Makes Money

Butterfly Network generates revenue primarily through the sale of its ultrasound devices. The Butterfly iQ+ is sold directly to healthcare providers, hospitals, and other medical institutions. Additionally, the company offers a subscription-based model for its software platform, which provides users with cloud storage, advanced imaging tools, and telemedicine capabilities. This software subscription model ensures a steady stream of recurring revenue. Butterfly Network also engages in partnerships with healthcare organizations and educational institutions to expand its market reach and bolster sales. These collaborations can include joint research initiatives, co-development projects, and distribution agreements that further contribute to its financial growth.

Butterfly Network Financial Statement Overview

Summary

Butterfly Network has shown some revenue growth and strong cost management with a positive gross profit margin of 60.65%. However, the company faces significant financial challenges, including negative net profit and EBIT margins, and ongoing cash flow difficulties. The balance sheet shows low leverage, but persistent losses and cash outflows pose risks to financial stability.

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.

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.

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.

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	-57.79M	-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	27.69M	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

• Technical Analysis Sentiment: Negative
• Last Price: 1.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFLY, the sentiment is Negative. The current price of 1.43 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.90, and below the 200-day MA of 2.73, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 35.23 is Neutral, neither overbought nor oversold. The STOCH value of 54.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BFLY.

Butterfly Network Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIBN	61 Neutral	$666.96M	―	-14.18%	―	22.93%	43.83%
BVS	57 Neutral	$609.34M	―	-0.10%	―	5.08%	99.38%
OFIX	55 Neutral	$562.00M	―	-24.63%	―	4.84%	0.85%
Sector *	51 Neutral	$7.70B	-0.29	-46.01%	2.24%	23.07%	-0.65%
KIDS	50 Neutral	$481.16M	―	-11.49%	―	26.08%	-63.67%
AVNS	49 Neutral	$519.71M	45.80	-46.17%	―	1.48%	-6091.13%
BFLY	44 Neutral	$359.99M	―	-29.42%	―	23.13%	46.62%

Butterfly Network Corporate Events

Butterfly Network CFO Transition and Financial Milestone

On August 1, 2025, Heather C. Getz stepped down as Butterfly Network‘s Executive Vice President and Chief Financial & Operations Officer, transitioning to an advisory role until March 2026. Megan Carlson, the Chief Accounting Officer, has been appointed as Interim Chief Financial Officer. The company has begun the search for a permanent CFO. This leadership transition is not due to any disagreements with the company. In the second quarter of 2025, Butterfly Network reported its highest quarterly revenue of $23.4 million and gross margins of 64%, marking a significant achievement in its financial performance. The company is focused on scaling its core business and exploring new revenue streams, with upcoming launches of advanced AI software and technology innovations, positioning itself as a leader in handheld ultrasound technology.

The most recent analyst rating on (BFLY) stock is a Buy with a $3.75 price target. To see the full list of analyst forecasts on Butterfly Network stock, see the BFLY Stock Forecast page.

Butterfly Network Holds Annual Stockholders Meeting

On June 12, 2025, Butterfly Network, Inc. held its Annual Meeting of Stockholders, where key decisions were made regarding the company’s governance and operations. The stockholders elected several directors for a one-year term, ratified the appointment of Deloitte & Touche LLP as the independent accounting firm, and approved the executive compensation package. These decisions reflect the company’s ongoing efforts to strengthen its leadership and financial oversight, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (BFLY) stock is a Buy with a $3.75 price target. To see the full list of analyst forecasts on Butterfly Network stock, see the BFLY Stock Forecast page.