Butterfly Network (BFLY) AI Stock Analysis

• Market Cap: $1.00B
• Dividend Yield: N/A
• Average Volume (3M): 4.74M
• 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: 4,364,789
• 30 Day Avg. Volume: 4,738,888
• 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: 0.84
• Enterprise Value/Revenue: 9.52
• Enterprise Value/Gross Profit: 22.01
• Enterprise Value/Ebitda: -12.08
• 1Y Price Target: $5.08
• Price Target Upside: 32.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $4.00 ▲(4.71% Upside)

The score is primarily held back by weak financial performance (ongoing losses, margin pressure, and negative free cash flow) despite improving trends and a low-leverage balance sheet. Technicals are a near-term positive with strong momentum, but overbought indicators raise pullback risk. Earnings call and recent events add modest support via maintained guidance and a new licensing deal, offset by write-off/macro headwinds and the warrant delisting.

Positive Factors

Low leverage balance sheet

A low-debt, equity-positive balance sheet provides durable financial flexibility, supporting ongoing R&D, chip development, and commercial scaling without immediate refinancing pressure. This reduces short-to-medium term liquidity risk and preserves options for strategic investments or partnerships.

Enterprise software & certifications

Progress on enterprise-grade software (Compass AI), product launches and ISO 27001 certification strengthen enterprise readiness, improving long-term contract opportunities and recurring revenue potential by addressing integration, security, and workflow needs of hospitals and health systems.

Midjourney licensing deal

A multi-year licensing agreement with upfront and annual payments provides a predictable non-device revenue stream, validates the ultrasound-on-chip IP, and supports a strategy to monetize semiconductor capabilities via co-development and licensing beyond device sales.

Negative Factors

Negative operating & free cash flow

Sustained negative operating and free cash flow creates structural funding needs; unless cash generation turns positive, the company may require recurring external financing, which can dilute shareholders or constrain long-term investments in chips, AI, and commercial scale-up.

Inventory write-off & compressed gross margin

A material inventory write-off that flipped reported gross margin negative exposes execution and product transition risks. Persistent margin volatility undermines profitability sustainability, raises impairment risk for legacy components, and complicates forecasts for durable gross-margin expansion.

Delayed enterprise/hospital deals

Prolonged delays in enterprise and hospital purchasing extend sales cycles and postpone recurring software adoption, slowing scale benefits. For a firm relying on larger institutional contracts, this structural sales timing risk pressures revenue growth and lengthens the path to operating leverage.

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 and cash burn has improved versus prior years, and the balance sheet is a relative strength with low leverage and positive equity. However, financial quality remains constrained by large operating/net losses, sharply compressed gross margin in the TTM period, and still-negative operating and free cash flow.

Income Statement

TTM (Trailing-Twelve-Months) revenue is modestly higher versus the prior year, showing continued top-line expansion. However, profitability remains weak: gross margin has compressed sharply from the last annual period, and the company is still posting large operating and net losses with deeply negative margins. The trajectory is improving versus 2022–2023 loss levels, but earnings quality is still a key concern.

Balance Sheet

The balance sheet looks relatively conservative on leverage, with low debt compared with equity in both the latest annual period and TTM (Trailing-Twelve-Months). Equity remains positive and sizable, which provides flexibility. The main weakness is ongoing losses driving a very negative return on equity, and equity has declined versus earlier years, indicating continued value erosion if losses persist.

Cash Flow

Cash generation remains negative: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are still meaningfully below zero, signaling continued cash burn. That said, cash outflows have improved materially versus 2021–2023 levels, and free cash flow is less negative than in the prior annual period. The key risk is that profitability has not yet turned, so funding needs could continue if the burn rate doesn’t keep improving.

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: 3.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3.82 is below the 20-day moving average (MA) of 4.28, above the 50-day MA of 3.66, and above the 200-day MA of 2.45, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 44.51 is Neutral, neither overbought nor oversold. The STOCH value of 10.15 is Positive, 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	$656.31M	73.11	4.97%	―	1.58%	―
CBLL	59 Neutral	$764.54M	-13.96	-59.78%	―	―	―
BFLY	54 Neutral	$1.00B	-11.41	-41.42%	―	16.04%	28.91%
KIDS	54 Neutral	$437.85M	-8.84	-12.67%	―	19.90%	-57.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VREX	50 Neutral	$584.36M	-8.20	-13.95%	―	4.14%	-45.29%
TMCI	45 Neutral	$147.83M	-2.84	-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.

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.

The most recent analyst rating on (BFLY) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Butterfly Network stock, see the BFLY Stock Forecast page.