Butterfly Network (BFLY) AI Stock Analysis

• Market Cap: $487.16M
• Dividend Yield: N/A
• Average Volume (3M): 4.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.32
• Revenue Growth: 25.77%
• EPS Growth: 49.44%
• Country: US
• Employees: 190
• Sector: Healthcare
• Sector Strength: 42
• Industry: Medical - Devices
• EPS (TTM): -0.04
• Shares Outstanding: 220,862,000
• 10 Day Avg. Volume: 3,368,090
• 30 Day Avg. Volume: 4,316,430
• PEG Ratio: -0.54
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.39
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 5.77
• Enterprise Value/Ebitda: -0.98
• 1Y Price Target: $4.13
• Price Target Upside: 112.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 50 Neutral
• Price Target: $2.00 ▲(3.09%Upside)

Butterfly Network's overall stock score reflects a challenging financial situation with unprofitability and cash flow issues as significant risks. Despite positive signals from recent earnings call improvements in revenue growth and margins, valuation concerns and mixed technical indicators weigh on the score.

Positive Factors

Revenue Growth

Total revenue increased 20% with US revenue up 24% driven by higher sales volume to health systems.

Strategic Partnerships

The company described its fifth Octiv partner as 'one of the leading companies in the generative AI space, who will be developing new hardware technology,' indicating a substantial future revenue contribution.

Technological Advancements

BFLY's iQ+/iQ3 platform is very well positioned to capitalize on another provider channel.

Negative Factors

Funding Uncertainty

The company's guidance considers the increased uncertainty some of its customers face regarding funding through the NIH, US Aid, and Medicaid.

Market Risks

Risks include slow rate of change in medicine with difficult-to-predict inflections, competition from larger players, and being unproven with opportunities.

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 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 is facing significant financial challenges, particularly in achieving profitability and generating positive cash flows. Revenue growth and cost management show some strength, but profitability and liquidity remain concerns.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.06M	65.90M	73.39M	62.56M	46.25M
Gross Profit	48.83M	16.86M	39.46M	17.05M	-61.22M
EBITDA	-60.92M	-124.84M	-162.74M	-29.55M	-160.25M
Net Income	-72.49M	-133.70M	-168.72M	-32.41M	-162.75M
Balance Sheet
Total Assets	256.08M	304.27M	417.57M	571.97M	147.19M
Cash, Cash Equivalents and Short-Term Investments	88.78M	134.44M	237.81M	422.84M	60.21M
Total Debt	22.84M	25.03M	31.89M	27.69M	53.89M
Total Liabilities	87.25M	84.22M	92.21M	124.27M	509.12M
Stockholders Equity	168.83M	220.05M	325.36M	447.69M	-361.93M
Cash Flow
Free Cash Flow	-44.40M	-104.60M	-187.42M	-197.06M	-84.08M
Operating Cash Flow	-41.71M	-98.82M	-169.12M	-189.19M	-81.70M
Investing Cash Flow	-2.66M	70.41M	-93.78M	-9.87M	-2.38M
Financing Cash Flow	-1.50M	228.00K	2.88M	565.69M	54.28M

Butterfly Network Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.94 is above the 20-day moving average (MA) of 1.91, below the 50-day MA of 2.14, and below the 200-day MA of 2.75, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 46.63 is Neutral, neither overbought nor oversold. The STOCH value of 50.29 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
KIDS	68 Neutral	$554.58M	―	-11.33%	―	31.28%	-81.86%
SIBN	61 Neutral	$735.10M	―	-15.96%	―	22.60%	41.26%
Sector *	52 Neutral	$7.59B	0.18	-63.05%	2.16%	16.16%	0.65%
AVNS	52 Neutral	$555.39M	45.80	-36.78%	―	1.34%	-530.36%
OFIX	51 Neutral	$441.57M	―	-27.82%	―	5.85%	-8.92%
BFLY	50 Neutral	$487.16M	―	-29.16%	―	25.77%	49.44%
BVS	47 Neutral	$539.69M	―	-19.79%	―	8.60%	-42.76%

Butterfly Network Corporate Events

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.