Butterfly Network (BFLY) AI Stock Analysis

• Market Cap: $899.26M
• Dividend Yield: N/A
• Average Volume (3M): 5.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: 16.04%
• EPS Growth: 28.91%
• Country: US
• Employees: 190
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.04
• Shares Outstanding: 226,175,170
• 10 Day Avg. Volume: 5,111,730
• 30 Day Avg. Volume: 5,914,158
• PEG Ratio: 0.19
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 8.05
• P/FCF Ratio: -14.87
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 4.11
• Enterprise Value/Gross Profit: 9.50
• Enterprise Value/Ebitda: -5.21
• 1Y Price Target: $4.25
• Price Target Upside: 108.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -0.18
• Revenue Forecast (FY): $91.33M

• Rating: 59 Neutral
• Price Target: $3.50 ▲(71.57% Upside)

Butterfly Network's overall stock score reflects significant financial challenges, mitigated by positive technical indicators and strategic corporate developments. While the company shows potential through AI initiatives and new product launches, persistent profitability and cash flow issues remain key risks.

Positive Factors

Strategic Partnerships

The licensing deal with Midjourney enhances Butterfly's market reach and revenue streams, providing a stable income source and potential for growth through milestone payments.

AI Strategy and Product Development

New product launches and certifications strengthen Butterfly's market position, enhancing trust and expanding global reach, which supports long-term growth.

Revenue Growth

Achieving high-end revenue guidance indicates strong demand and effective sales strategies, supporting sustained growth and market presence.

Negative Factors

Negative Profitability

Persistent negative profitability challenges Butterfly's ability to reinvest in growth and innovation, potentially limiting its competitive edge and financial health.

Cash Flow Challenges

Ongoing cash flow issues strain liquidity and limit financial flexibility, posing risks to operational sustainability and strategic investments.

Operational Inefficiencies

Significant operational inefficiencies hinder profitability and resource allocation, affecting long-term operational effectiveness and competitive positioning.

Butterfly Network Business Overview & Revenue Model

Company Description

Butterfly Network, Inc. (BFLY) is a digital health company that specializes in revolutionizing medical imaging through its innovative handheld ultrasound technology. The company's core product is the Butterfly iQ, a pocket-sized ultrasound device that leverages advanced semiconductor technology and a proprietary software platform to deliver high-quality imaging at a fraction of the cost of traditional ultrasound machines. Butterfly Network operates in the healthcare sector, focusing on providing accessible and affordable diagnostic imaging solutions for a range of clinical applications.

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

Butterfly Network faces significant financial challenges, with unprofitability and negative cash flows being major concerns. Despite modest revenue growth and a strong gross profit margin, the company struggles with operational inefficiencies and cash management issues. The balance sheet shows low leverage, but persistent losses pose risks to future 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	88.45M	82.06M	65.90M	73.39M	62.56M	46.25M
Gross Profit	38.25M	48.83M	16.86M	39.46M	17.05M	-61.22M
EBITDA	-69.67M	-60.92M	-123.04M	-162.74M	-29.55M	-160.25M
Net Income	-79.87M	-72.49M	-133.70M	-168.72M	-32.41M	-162.75M
Balance Sheet
Total Assets	290.00M	256.08M	304.27M	417.57M	571.97M	147.19M
Cash, Cash Equivalents and Short-Term Investments	144.23M	88.78M	134.64M	237.81M	422.84M	60.21M
Total Debt	21.03M	22.84M	25.03M	31.89M	29.08M	53.89M
Total Liabilities	86.17M	87.25M	84.22M	92.21M	124.27M	148.19M
Stockholders Equity	203.83M	168.83M	220.05M	325.36M	447.69M	-994.00K
Cash Flow
Free Cash Flow	-27.52M	-44.40M	-104.60M	-187.42M	-197.06M	-84.08M
Operating Cash Flow	-24.85M	-41.71M	-98.82M	-169.12M	-189.19M	-81.70M
Investing Cash Flow	-2.67M	-2.66M	70.41M	-93.78M	-9.87M	-2.38M
Financing Cash Flow	76.74M	-1.50M	228.00K	2.88M	565.69M	54.28M

Butterfly Network Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.04
• 50DMA: Positive
• 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 2.04 is below the 20-day moving average (MA) of 3.11, below the 50-day MA of 2.61, and below the 200-day MA of 2.21, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 69.13 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	64 Neutral	$619.90M	66.70	4.97%	―	1.58%	―
CBLL	61 Neutral	$786.43M	-14.63	-59.78%	―	―	―
BFLY	59 Neutral	$899.26M	-10.64	-41.42%	―	16.04%	28.91%
KIDS	52 Neutral	$428.07M	-8.73	-12.67%	―	19.90%	-57.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VREX	50 Neutral	$512.49M	-7.11	-13.95%	―	4.14%	-45.29%
TMCI	45 Neutral	$163.76M	―	-51.63%	―	7.90%	19.92%

Butterfly Network Corporate Events

Butterfly Network Signs Licensing Deal with Midjourney

On November 17, 2025, Butterfly Network, Inc. entered into a Co-Development and Licensing Agreement with Midjourney, Inc. This agreement grants Midjourney an exclusive license to use Butterfly’s ultrasound-on-chip technology for a specified field of use. Midjourney will pay Butterfly a one-time fee of $15 million and an annual license fee of $10 million, with additional payments possible upon reaching certain milestones. The agreement, which lasts five years, includes confidentiality and intellectual property provisions, and allows Midjourney to upgrade its license under certain conditions.

Butterfly Network Appoints New CFO John Doherty

On October 9, 2025, Butterfly Network announced the appointment of John Doherty as Executive Vice President and Chief Financial Officer, effective December 8, 2025. Doherty brings over 25 years of financial leadership experience, having previously held significant roles at Kaltura, Magic Leap, and Verizon Communications. His expertise in financial strategy and transformative transactions is expected to support Butterfly’s growth and shareholder value. Megan Carlson, the Interim CFO, will resume her role as Chief Accounting Officer. This leadership change is part of Butterfly’s strategic efforts to strengthen its financial operations and continue its momentum in the digital health sector.