Butterfly Network (BFLY) AI Stock Analysis

• Market Cap: $1.08B
• Dividend Yield: N/A
• Average Volume (3M): 4.53M
• 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: 3,927,881
• 30 Day Avg. Volume: 4,531,983
• 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: 0.34
• Enterprise Value/Revenue: 4.11
• Enterprise Value/Gross Profit: 9.50
• Enterprise Value/Ebitda: -5.21
• 1Y Price Target: $4.25
• Price Target Upside: -3.41% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $4.00 ▼(-9.09% Downside)

The score is primarily held back by weak financial performance (ongoing losses, margin pressure, and negative cash flow) despite improving trends and a low-leverage balance sheet. Technicals are constructive but look overbought, while earnings-call commentary and corporate events add support via maintained guidance, AI/product progress, and a newly announced licensing agreement.

Positive Factors

Conservative leverage / balance sheet flexibility

Low debt and sizable positive equity provide Butterfly multi-quarter flexibility to fund R&D, product launches, and licensing execution without immediate refinancing. This structural cushion reduces bankruptcy risk and supports strategic optionality while the company works toward sustained profitability.

IP monetization via licensing deal

A multi-year licensing deal with upfront and recurring fees diversifies revenue away from device sales and creates predictable, non-capex income tied to Butterfly’s ultrasound-on-chip IP. Structural licensing income can improve cash flow durability and de-risk revenue volatility from device cycles.

Clinical AI validation and product roadmap

Strong real-world clinical outcomes and cost savings materially strengthen Butterfly’s enterprise value proposition for hospitals and health systems, supporting longer-term software adoption, higher switching costs, and deeper integration of AI features into care pathways, aiding durable commercial traction.

Negative Factors

Persistent negative cash generation

Ongoing negative operating and free cash flow, despite improvement, means the company remains dependent on external capital or licensing receipts to fund operations. This structural cash-burn profile raises dilution and execution risk until consistent positive cash generation is achieved.

Gross margin compression and inventory write-off

A material inventory write-off and sharp gross margin swing indicate product transition and obsolescence risk. Sustained margin pressure undermines operating leverage and the path to profitability, forcing reliance on volume growth or higher-margin licensing to restore durable margin sustainability.

Delayed large enterprise/hospital deals

Prolonged sales cycles and postponed enterprise purchases slow conversion of clinical validation into recurring revenue. For a business relying on enterprise adoption and subscription upsell, delayed large deals can materially extend the timeline to scale software revenue and achieve consistent 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

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: 4.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 4.4 is above the 20-day moving average (MA) of 3.82, above the 50-day MA of 3.14, and above the 200-day MA of 2.31, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 72.35 is Negative, neither overbought nor oversold. The STOCH value of 85.31 is Negative, 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	$641.41M	68.57	4.97%	―	1.58%	―
CBLL	59 Neutral	$869.15M	-15.73	-59.78%	―	―	―
BFLY	55 Neutral	$1.08B	-13.15	-41.42%	―	16.04%	28.91%
KIDS	54 Neutral	$504.31M	-9.56	-12.67%	―	19.90%	-57.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VREX	50 Neutral	$557.95M	-7.79	-13.95%	―	4.14%	-45.29%
TMCI	45 Neutral	$178.41M	-3.41	-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.

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.