Butterfly Network (NYSE:BFLY) Announces Earnings Results, Beats Estimates By $0.02 EPS

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

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 13.1%

BFLY stock traded down $1.07 during midday trading on Friday, reaching $7.10. The company had a trading volume of 7,485,210 shares, compared to its average volume of 6,722,682. The firm has a market capitalization of $1.81 billion, a PE ratio of -23.75 and a beta of 2.05. The stock has a 50 day moving average price of $6.61 and a 200 day moving average price of $4.99. Butterfly Network has a fifty-two week low of $1.32 and a fifty-two week high of $9.69.

Wall Street Analyst Weigh In

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

Key Butterfly Network News

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

Insider Buying and Selling

In other Butterfly Network news, Director Jonathan M. Rothberg sold 659,913 shares of the firm’s stock in a transaction on Wednesday, July 22nd. The stock was sold at an average price of $6.47, for a total value of $4,269,637.11. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 dated 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 of the company’s stock, valued at $9,166,130.56. This represents a 3.93% decrease in their position. 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. In the last 90 days, insiders sold 4,840,207 shares of company stock worth $31,652,184. Company insiders own 21.99% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Ameriprise Financial Inc. acquired a new stake in shares of Butterfly Network in the third quarter valued at approximately $25,000. BNP Paribas Financial Markets raised its stake in Butterfly Network by 707.2% during the 2nd quarter. BNP Paribas Financial Markets now owns 16,258 shares of the company’s stock valued at $33,000 after acquiring an additional 14,244 shares in the last quarter. ExodusPoint Capital Management LP acquired a new position in Butterfly Network during the 4th quarter worth $38,000. CIBC Bancorp USA Inc. bought a new position in shares of Butterfly Network in the third quarter worth $40,000. Finally, Prudential Financial Inc. acquired a new position in shares of Butterfly Network during the second quarter valued at $40,000. 37.85% of the stock is owned by institutional investors and hedge funds.

About Butterfly Network

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.