Butterfly Network (NYSE:BFLY) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Butterfly Network (NYSE:BFLY) posted its quarterly earnings results on Thursday. The company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.03) by $0.02, FiscalAI reports. The firm had revenue of $32.61 million during the quarter, compared to analyst estimates of $29.16 million. Butterfly Network had a negative net margin of 73.63% and a negative return on equity of 34.41%.

Here are the key takeaways from Butterfly Network’s conference call:

• Record second-quarter results exceeded guidance, with revenue of $32.6 million, up 39% year over year, gross margin reaching a company-record 71%, and adjusted EBITDA loss improving 78% to $1.4 million.
• Butterfly Embedded revenue increased 439% year over year to $10.8 million, driven primarily by the Midjourney partnership; the company added two partnerships during the quarter, bringing its total to 11, with additional commercial milestones viewed as potential upside.
• Core growth initiatives gained traction, including six new Compass AI enterprise deals, provisional authorization to sell across the VA, expanded medical-school programs, and the VCOM agreement, which carries potential total contract value above $10 million over four years.
• Management raised full-year 2026 revenue guidance to $119 million–$123 million and expects Home and Community Care revenue to begin in the fourth quarter; the first commercial state is scheduled to launch October 1 with plans to pursue expansion in 2027.
• International revenue declined 14% year over year to $5 million, while cash usage increased to $13.3 million in the quarter and third-quarter guidance calls for an adjusted EBITDA loss of $6 million–$9 million amid planned investments in innovation and growth.

Butterfly Network Stock Down 13.3%

BFLY traded down $1.09 during trading on Friday, hitting $7.08. The company’s stock had a trading volume of 8,899,552 shares, compared to its average volume of 6,726,407. The firm’s 50 day moving average price is $6.61 and its two-hundred day moving average price is $4.99. Butterfly Network has a 12 month low of $1.32 and a 12 month high of $9.69. The stock has a market capitalization of $1.80 billion, a price-to-earnings ratio of -23.61 and a beta of 2.05.

Trending Headlines about Butterfly Network

Here are the key news stories impacting Butterfly Network this week:

• Positive Sentiment: Q2 results exceeded expectations: Butterfly reported a loss of $0.01 per share, narrower than the $0.03 loss analysts expected and improved from a $0.06 loss a year earlier. Revenue rose to $32.61 million, topping the $29.16 million consensus estimate. Butterfly Network Q2 earnings report
• Positive Sentiment: Business momentum remained strong: Management said the company exceeded the high end of its quarterly guidance. Coverage also highlighted a Midjourney partnership as a factor supporting enthusiasm around Butterfly’s artificial-intelligence and ultrasound technology. Butterfly Network stock and Midjourney partnership article
• Neutral Sentiment: Full-year revenue guidance was maintained or updated to $119 million-$123 million, broadly consistent with the $119 million analyst consensus. Third-quarter revenue guidance of $26 million-$30 million brackets the $28.8 million consensus, offering limited evidence of a major forecast reset. Butterfly Network Q2 2026 earnings
• Negative Sentiment: Profitability remains a concern: Butterfly continues to operate at a substantial loss, with a reported negative net margin of 73.63% and negative return on equity of 34.41%. The earnings beat therefore reflects improved results rather than current profitability. Butterfly Network earnings report

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Butterfly Network in a report on Wednesday, May 6th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $5.56.

Insider Activity at Butterfly Network

In other Butterfly Network news, Director Jonathan M. Rothberg sold 659,913 shares of the business’s stock in a transaction dated Wednesday, July 22nd. The shares were sold at an average price of $6.47, for a total value of $4,269,637.11. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John N. Doherty sold 57,136 shares of the company’s stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $6.56, for a total transaction of $374,812.16. Following the transaction, the executive vice president owned 1,397,276 shares in the company, valued at $9,166,130.56. The trade was a 3.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 4,840,207 shares of company stock worth $31,652,184 in the last quarter. Insiders own 21.99% of the company’s stock.

Institutional Trading of Butterfly Network

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Invesco Ltd. lifted its holdings in Butterfly Network by 18.5% during the 4th quarter. Invesco Ltd. now owns 387,881 shares of the company’s stock worth $1,474,000 after buying an additional 60,538 shares in the last quarter. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Butterfly Network in the 4th quarter valued at $72,000. Skyview Financial Group LLC acquired a new stake in shares of Butterfly Network in the 4th quarter valued at $1,054,000. XTX Topco Ltd bought a new stake in shares of Butterfly Network during the fourth quarter worth $521,000. Finally, Stoic Point Capital Management LLC bought a new stake in shares of Butterfly Network during the fourth quarter worth $2,849,000. Institutional investors and hedge funds own 37.85% of the company’s stock.

Butterfly Network Company Profile

Butterfly Network, Inc is a medical technology company focused on democratizing access to diagnostic imaging through its proprietary ultrasound-on-chip platform. The company’s flagship device, the Butterfly iQ, leverages semiconductor technology to deliver whole-body ultrasound imaging in a handheld form factor. This portable system connects to a compatible smart device, enabling point-of-care scanning across a variety of clinical settings.

Beyond its hardware offering, Butterfly Network provides a cloud-based software suite that supports image storage, analysis and remote collaboration.