Butterfly Network, Inc. (BFLY)

Price$7.36Cached quoteAs of 2026-09-05 01:07 UTC

AI: Overvalued

Price checkThe valuation already assumes strong growth and much better profitability ahead.

Butterfly Network (NYSE: BFLY) carries roughly a $2.0 billion market value and about a $1.9 billion enterprise value, meaning market value adjusted for cash and debt. Current metrics are about 18 times trailing sales and 17 times enterprise value to sales. Against management’s 2026 revenue midpoint, enterprise value is still roughly 15 to 16 times sales. That is a demanding valuation for a company that remains loss-making, despite fast growth and improving margins.

Big pictureGrowth is accelerating, but partner timing makes revenue and margins potentially lumpy.

Second-quarter revenue grew 39% year over year and gross margin reached 71.4%, helped by higher-margin Butterfly Embedded licensing. Management raised full-year revenue guidance to $119 million to $123 million and improved adjusted EBITDA-loss guidance to $19 million to $23 million. The opportunity is attractive, but licensing milestones, distributor orders, hospital budgets, and new-product adoption can shift between periods. Investors should therefore expect more volatility than a mature medical-device business with steady recurring demand.

Business strengthLiquidity is solid, debt is modest, yet cash burn and dilution still matter.

At June quarter-end, Butterfly held $124.7 million of cash and reported no floating-rate debt; its balance sheet listed lease and operating liabilities rather than bank or bond borrowings. Current assets were more than four times current liabilities, and management said existing cash and operating cash flows should fund at least the next twelve months. Capital is being directed toward R&D, software, commercial expansion, and working capital. Operating activities used $30.2 million in the first half, while equity compensation and prior financing have increased share count.

What could change the storyFaster licensing profits could justify optimism; slower commercialization would expose the premium.

The bull case needs Embedded partnerships such as Midjourney and Merge to produce recurring license, hardware, milestone, and royalty revenue while core ultrasound software and enterprise sales keep growing above 20% with sustained gross margins near current levels. The bear case is that partner commercialization takes longer, international sales stay uneven, or operating spending rises before revenue arrives. Continued negative cash flow or renewed equity issuance would also weaken per-share returns. Clear progress toward adjusted EBITDA breakeven would materially improve the valuation case.

AI: News

Merge licensing agreementButterfly added a multi-year brain-computer-interface licensing deal with Merge Labs.

On September 1, Butterfly and Merge Labs announced a multi-year Butterfly Embedded agreement for ultrasound-based brain-computer interfaces. Merge receives access to Butterfly’s Poseidon Ultrasound-on-Chip technology, while Butterfly is slated to receive upfront and milestone license payments, hardware purchase commitments, technology-access fees, and potential future royalties. The deal broadens the Embedded opportunity beyond conventional imaging, but meaningful commercial royalties depend on Merge successfully developing and selling future products.

Q2 raises guidanceRecord quarterly revenue and stronger margins led management to lift its 2026 outlook.

On July 30, Butterfly reported second-quarter revenue of $32.6 million, up 39% year over year, with a 71.4% gross margin. Adjusted EBITDA loss improved sharply to $1.4 million, although GAAP net loss remained $12.9 million. Management raised full-year revenue guidance to $119 million to $123 million and improved its adjusted EBITDA-loss range. The quarter showed stronger operating leverage, while first-half operating cash use remained an important counterweight.

Brazil commercial launchButterfly began selling its handheld ultrasound devices in Brazil through authorized distributors.

On July 2, Butterfly announced commercial availability of the iQ+ and iQ3 handheld ultrasound systems and mobile application in Brazil through authorized distribution partners. The launch expands access to a large Latin American medical-device market and creates another route for international growth. Near-term contribution is uncertain, however, because distributor ordering can be uneven and Butterfly’s international revenue declined year over year in the following reported quarter.

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Revenue

2019

2020

2021

2022

2023

2024

2025

Net income

2019

2020

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2022

2023

2024

2025

Free cash flow

2019

2020

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Total cash / debt

CashTotal debt

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2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019
Revenue	$97.6M	$82.1M	$65.9M	$73.4M	$62.6M	$46.3M	$27.6M
Gross profit	$45.7M	$48.8M	$16.9M	$39.5M	$17.1M	−$61.2M	−$20.9M
Gross margin	46.85%	59.51%	25.58%	53.77%	27.26%	−132.37%	−75.75%
Research & development	$36.3M	$37.8M	$55.6M	$88.0M	$74.5M	$49.7M	$48.9M
Operating expenses	$132.1M	$123.2M	$162.5M	$232.5M	$209.8M	$100.4M	$81.4M
Operating income	−$86.4M	−$74.4M	−$145.6M	−$193.0M	−$192.7M	−$161.6M	−$102.3M
Operating margin	−88.53%	−90.68%	−220.96%	−263.01%	−308.04%	−349.43%	−370.87%
EBITDA	−$79.7M	−$65.5M	−$136.9M	−$187.1M	−$190.6M	−$160.3M	−$101.5M
EBITDA margin	−81.67%	−79.84%	−207.75%	−254.97%	−304.69%	−346.59%	−368.12%
Net income	−$77.1M	−$72.5M	−$133.7M	−$168.7M	−$32.4M	−$162.7M	−$99.7M
Net profit margin	−78.95%	−88.34%	−202.88%	−229.90%	−51.80%	−351.87%	−361.44%
Basic EPSper basic share	-$0.31	-$0.34	-$0.65	-$0.84	-$0.19	-$26.87	-$17.08
Diluted EPSper diluted share	-$0.31	-$0.34	-$0.65	-$0.84	-$0.19	-$26.87	-$17.08

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈8.10%of listed shares

ROBBINS LARRY19.27M shares · Jun 22, 2026

View holders

Top 20 reported holders of BFLY
Holder	% owned
ROBBINS LARRY	≈8.10%19.27M shares
BlackRock, Inc.	7.91%18.82M shares
GLENVIEW CAPITAL MANAGEMENT, LLC	6.02%14.34M shares
Hood River Capital Management LLC	5.54%13.19M shares
Fosun International Ltd	4.30%10.23M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.60%8.56M shares
DEVIVO JOSEPH	≈3.37%8.03M shares
D. E. Shaw & Co., Inc.	2.69%6.39M shares
STATE STREET CORP	2.42%5.76M shares
GEODE CAPITAL MANAGEMENT, LLC	2.25%5.35M shares
ARK Investment Management LLC	2.14%5.09M shares
Nuveen, LLC	2.12%5.06M shares
FMR LLC	2.06%4.91M shares
AWM Investment Company, Inc.	1.86%4.43M shares
ROTHBERG JONATHAN M	≈1.53%3.63M shares
SEI INVESTMENTS CO	1.23%2.94M shares
Getz Heather C	≈1.23%2.92M shares
GOLDMAN SACHS GROUP INC	1.16%2.76M shares
First Light Asset Management, LLC	1.11%2.64M shares
DEUTSCHE BANK AG\	1.08%2.58M shares

Percentages use 238M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys15$14.20M disclosed value

Sells (SEC code S)62$31.50M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 8, 2026Form 4	Cashman SteveChief Business Officer	SellClass A Common Stock	294.7K	$4.66	$1.37M	1.63M
Jun 5, 2026Form 4	Cashman SteveChief Business Officer	SellClass A Common Stock	104.8K	$4.96	$519.7K	1.93M
Jun 2, 2026Form 4	Caezza NicholasDeputy General Counsel	SellClass A Common Stock	1.7K	$4.52	$7.8K	310.3K
May 1, 2026Form 4	Carlson MeganCAO and SVP, Finance	SellClass A Common Stock	110.4K	$4.75	$524.5K	507.2K
Apr 29, 2026Form 4	Cashman SteveChief Business Officer	SellClass A Common Stock	147.5K	$4.91	$724.3K	2.03M