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Butterfly Network
(NYSE:BFLY)
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Rating:58Neutral
Price Target:
$7.50
▲(13.98% Upside)
Action:Reiterated
Date:07/31/26
The score is driven most by mixed fundamentals: improving growth and manageable leverage, but still very weak profitability and negative cash flow. The latest earnings call meaningfully supports the outlook through raised revenue guidance, record quarterly results, and better EBITDA trend, while technicals are moderately supportive with the stock above key longer-term moving averages. Valuation remains constrained by negative earnings and no provided dividend yield.
Positive Factors
Revenue growth and raised guidance
Record quarterly revenue and a raised FY26 revenue guide reflect durable demand recovery and scaling of core offerings. Sustained top-line momentum over the next 2–6 months supports investment in commercialization, broadens installed base for recurring software, and improves revenue visibility.
Negative Factors
Persistent cash burn and negative FCF
Sustained negative operating and free cash flow forces reliance on existing liquidity or future financing, which can constrain strategic optionality. Until operating cash flow flips positive, management must prioritize cash conservation, potentially delaying some go-to-market investments or increasing dilution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and raised guidance
Record quarterly revenue and a raised FY26 revenue guide reflect durable demand recovery and scaling of core offerings. Sustained top-line momentum over the next 2–6 months supports investment in commercialization, broadens installed base for recurring software, and improves revenue visibility.
Read all positive factors
Butterfly Network Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down Butterfly’s sales across regions (U.S., Europe, Asia, etc.), revealing where device adoption, software subscriptions, and services are strongest. Helps investors see which markets drive growth, where reimbursement or regulatory hurdles could slow adoption, and where currency or supply‑chain exposure may affect results.
Breaks down Butterfly’s sales across regions (U.S., Europe, Asia, etc.), revealing where device adoption, software subscriptions, and services are strongest. Helps investors see which markets drive growth, where reimbursement or regulatory hurdles could slow adoption, and where currency or supply‑chain exposure may affect results.
Data provided by:
The Fly
The FlyButterfly Network (BFLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.86B
Dividend YieldN/A
Average Volume (3M)10.74M
Price to Earnings (P/E)―
Beta (1Y)1.73
Revenue Growth28.14%
EPS Growth-5.15%
CountryUS
Employees220
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.29
Shares Outstanding234,842,770
10 Day Avg. Volume8,232,004
30 Day Avg. Volume10,743,294
Financial Highlights & Ratios
PEG Ratio1.39
Price to Book (P/B)4.79
Price to Sales (P/S)9.62
P/FCF Ratio-58.52
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$8.00Price Target Upside21.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.13
Revenue Forecast (FY)$118.82M
Butterfly Network Business Overview & Revenue Model
Company Description
Butterfly Network, Inc. functions as a digital health enterprise, specializing in the invention, production, and global commercialization of cutting-edge ultrasound imaging technologies for both domestic and international markets. The company's in...
How the Company Makes Money
Butterfly Network primarily generates revenue from (1) hardware sales of its handheld ultrasound devices (e.g., Butterfly iQ series probes and related accessories) sold to healthcare providers, institutions, and other customers; and (2) recurring ...
Butterfly Network Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call was broadly positive: the company reported record revenue, record gross profit, materially improved adjusted EBITDA loss, and strong Embedded momentum (439% YoY) that materially contributed to top-line growth. Product and semiconductor roadmaps (Apollo chip, P5.1 probe) and commercialization milestones (VA/FedRAMP progress, Brazil authorization, VCOM education deal, Home & Community Care launch) add substantive forward-looking upside. Key risks include international softness this quarter, a 12% ASP decline driven by subsidized education deals, continued negative adjusted EBITDA for the year, and timing variability in milestone-based Embedded revenue. On balance, the highlights and evidence of accelerating platform growth and margin expansion outweigh the listed challenges and volatility.Positive Updates
Record Quarterly Revenue and Strong Growth
Q2 revenue of $32.6M, a record for the company, up 39% year-over-year. Company raised full-year guidance to $119M–$123M (up ~22%–26% vs 2025). Q3 revenue guide of $26M–$30M (~30% YoY at midpoint).
Negative Updates
International Revenue Softness
International revenue declined 14% YoY to $5.0M in Q2. Management cited a tough comp to last year’s strong Q2 and several larger international orders shifting into Q3, driving quarter-to-quarter volatility.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Growth
Q2 revenue of $32.6M, a record for the company, up 39% year-over-year. Company raised full-year guidance to $119M–$123M (up ~22%–26% vs 2025). Q3 revenue guide of $26M–$30M (~30% YoY at midpoint).
Read all positive updates
Company Guidance
Butterfly raised full‑year 2026 revenue guidance to $119–$123 million (≈22–26% growth vs. 2025) and expects Q3 revenue of $26–$30 million (≈30% YoY growth at the midpoint), with an adjusted EBITDA loss of $6–$9 million in Q3 and a full‑year adjusted EBITDA loss of $19–$23 million as it continues targeted investments. That guidance follows a record Q2: revenue $32.6M (+39% YoY), gross profit $23.3M and gross margin 71% (up 7.7 pts YoY), adjusted EBITDA loss $1.4M (improved 78% YoY), cash $125M (use of cash $13.3M in the quarter), probe unit sales +23%, core POCUS revenue $21.9M (+2% YoY) and Embedded revenue $10.8M (+439% YoY); management expects Embedded to run roughly $7–$8M/quarter (±$1–2M), Q4 commercial revenue from Home & Community Care (launch Oct 1), VCOM TCV potential >$10M over 4 years, iQ3/P5.1 probe roadmap (P5.1 probe in Q1 2027) and Apollo chip deliveries to partners by end‑2027/early‑2028.Butterfly Network Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 108.56M | 97.61M | 82.06M | 65.90M | 73.39M | 62.56M |
| Gross Profit | 55.45M | 45.73M | 48.83M | 16.86M | 39.46M | 17.05M |
| EBITDA | -69.02M | -67.38M | -60.92M | -123.04M | -162.74M | -29.55M |
| Net Income | -74.85M | -77.06M | -72.49M | -133.70M | -168.72M | -32.41M |
Balance Sheet | ||||||
| Total Assets | 283.00M | 296.53M | 256.08M | 304.27M | 417.57M | 571.97M |
| Cash, Cash Equivalents and Short-Term Investments | 124.66M | 150.49M | 88.78M | 134.64M | 237.81M | 422.84M |
| Total Debt | 19.10M | 20.40M | 22.84M | 25.03M | 31.89M | 29.08M |
| Total Liabilities | 93.59M | 100.55M | 87.25M | 84.22M | 92.21M | 124.27M |
| Stockholders Equity | 189.40M | 195.98M | 168.83M | 220.05M | 325.36M | 447.69M |
Cash Flow | ||||||
| Free Cash Flow | -35.79M | -16.05M | -44.40M | -104.60M | -187.42M | -197.06M |
| Operating Cash Flow | -31.77M | -12.70M | -41.71M | -98.82M | -169.12M | -189.19M |
| Investing Cash Flow | -4.02M | -3.35M | -2.66M | 70.41M | -93.78M | -9.87M |
| Financing Cash Flow | 2.26M | 77.76M | -1.50M | 228.00K | 2.88M | 565.69M |
Butterfly Network Technical Analysis
Neutral
6.58
Price Trends
6.52
Positive
5.46
Positive
4.36
Positive
Market Momentum
0.02
Positive
45.19
Neutral
13.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFLY, the sentiment is Neutral. The current price of 6.58 is below the 20-day moving average (MA) of 7.29, above the 50-day MA of 6.52, and above the 200-day MA of 4.36, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.19 is Neutral, neither overbought nor oversold. The STOCH value of 13.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.10B | 31.11 | 16.27% | ― | 1.52% | ― | |
58 Neutral | $1.86B | -24.57 | -38.36% | ― | 28.14% | -5.15% | |
57 Neutral | $518.58M | -12.02 | -11.42% | ― | 14.52% | 4.11% | |
54 Neutral | $279.60M | -4.44 | -69.50% | ― | -1.66% | -12.59% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $671.21M | -10.85 | -38.19% | ― | ― | ― | |
47 Neutral | $471.10M | -5.61 | -17.61% | ― | 3.63% | -93.57% |
* Healthcare Sector Average
BFLY
Butterfly Network
7.11
5.68
397.20%
VREX
Varex Imaging
11.19
4.08
57.38%
KIDS
OrthoPediatrics
20.19
-0.34
-1.66%
BVS
Bioventus
13.17
6.85
108.39%
TMCI
Treace Medical Concepts
4.31
-1.30
-23.17%
CBLL
Ceribell, Inc.
17.69
2.46
16.15%
Butterfly Network Corporate Events
Executive/Board ChangesShareholder Meetings
Butterfly Network Shareholders Back Leadership and Governance
Positive
Jun 22, 2026
On June 18, 2026, Butterfly Network, Inc. held its 2026 Annual Meeting of Stockholders, where holders of both Class A and high-vote Class B shares voted together as a single class. Shareholders elected seven directors, including CEO Joseph DeVivo ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Butterfly Network Appoints Caroll Neubauer to Board
Positive
May 8, 2026
Butterfly Network, Inc., a leader in semiconductor-based ultrasound devices and AI-enabled imaging platforms, has built a portfolio spanning point-of-care devices, cloud-based workflow software, AI marketplaces and an Ultrasound-on-Chip licensing ...
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.