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

Butterfly Network (NYSE:BFLY) posted its quarterly earnings data on Thursday. The company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.02, FiscalAI reports. Butterfly Network had a negative net margin of 90.31% and a negative return on equity of 37.80%. The company had revenue of $31.51 million during the quarter, compared to analysts’ expectations of $26.25 million.

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

• Q4 revenue was a record $31.5M (+41% YoY) and the company reported its first quarter of positive operating cash flow, driven largely by upfront payments from the Midjourney agreement.
• Butterfly says Embedded is accelerating — it executed a $74M Midjourney contract (contributed $6.8M in Q4), reports ~8–9 embedded partners and a large pipeline, and expects potential future chip sales and revenue‑share as partners commercialize.
• Profitability and liquidity improved (Q4 adjusted EBITDA loss narrowed to -$3.2M, FY cash use fell to $19.4M, year‑end cash $154.5M) and 2026 revenue guidance is $117–121M (+20–24%), though the company still expects a full‑year adjusted EBITDA loss of $21–25M.
• International revenue declined (Q4 down 6% YoY) and sales mix showed a 79% drop in iQ+ units, highlighting U.S. concentration and exposure to timing, tariff and commercialization risks tied to large Embedded partners.

Butterfly Network Stock Performance

Shares of BFLY stock traded down $0.89 on Friday, hitting $3.78. 14,723,916 shares of the stock traded hands, compared to its average volume of 6,891,070. Butterfly Network has a twelve month low of $1.32 and a twelve month high of $5.03. The stock has a market capitalization of $955.59 million, a PE ratio of -11.46 and a beta of 2.27. The firm’s 50-day moving average price is $3.81 and its two-hundred day moving average price is $2.76.

Insiders Place Their Bets

In other news, Director Jonathan M. Rothberg sold 769,327 shares of the stock in a transaction that occurred on Monday, December 8th. The shares were sold at an average price of $3.27, for a total value of $2,515,699.29. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders have sold 4,725,727 shares of company stock valued at $16,172,849. Insiders own 25.18% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in BFLY. BNP Paribas Financial Markets increased its position in shares of Butterfly Network by 139.9% during the 3rd quarter. BNP Paribas Financial Markets now owns 39,010 shares of the company’s stock worth $75,000 after purchasing an additional 22,752 shares during the last quarter. Kovack Advisors Inc. acquired a new stake in shares of Butterfly Network during the fourth quarter valued at about $73,000. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Butterfly Network during the fourth quarter valued at about $72,000. Hudson Bay Capital Management LP purchased a new stake in shares of Butterfly Network in the 4th quarter valued at approximately $59,000. Finally, Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Butterfly Network by 217.9% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 14,305 shares of the company’s stock worth $54,000 after acquiring an additional 9,805 shares during the last quarter. 37.85% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on BFLY shares. Lake Street Capital raised their price target on shares of Butterfly Network from $4.00 to $5.50 and gave the company a “buy” rating in a research note on Tuesday, January 20th. Wall Street Zen upgraded Butterfly Network from a “sell” rating to a “hold” rating in a research report on Sunday, November 23rd. TD Cowen lifted their price target on Butterfly Network from $4.50 to $6.00 and gave the stock a “buy” rating in a research note on Friday. Craig Hallum reissued a “buy” rating and issued a $5.25 price objective on shares of Butterfly Network in a research note on Wednesday, January 21st. Finally, Loop Capital set a $5.00 target price on shares of Butterfly Network in a research note on Wednesday, December 31st. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Butterfly Network currently has an average rating of “Moderate Buy” and a consensus target price of $5.44.

Key Stories Impacting Butterfly Network

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

• Positive Sentiment: TD Cowen raised its price target to $6.00 and reiterated a “buy” rating, signaling material upside vs. the current level and providing broker support for the stock. TD Cowen Raises PT to $6
• Positive Sentiment: Q4 results beat expectations: revenue of $31.5M topped consensus and EPS loss was smaller than forecast, while commentary and press materials highlighted record revenue growth. These results underpin the revenue-outperformance narrative. Q4 Highlights
• Positive Sentiment: Management issued FY2026 revenue guidance ($117M–$121M) above Street consensus (~$108.5M), which is a key near-term growth guidepost for investors watching topline momentum.
• Positive Sentiment: Unusually large options activity—over 10,000 call contracts bought—indicates speculative or institutional bullish positioning that could amplify upside on positive follow-through.
• Positive Sentiment: Industry/strategy write-ups emphasize Butterfly’s semiconductor-based ultrasound plus AI (Compass) as a long-term competitive differentiator if execution scales, supporting a multi-quarter growth thesis. Seeking Alpha: Ultrasound-On-Chip
• Neutral Sentiment: The full Q4 earnings call transcript and BusinessWire release provide more color on margin dynamics and product adoption; useful for confirming management cadence but not immediately market-moving on their own. Earnings Call Transcript Press Release
• Negative Sentiment: Zacks added BFLY to its Rank #5 (Strong Sell) list today, a clear near-term negative that can trigger selling pressure from algorithmic and momentum-driven funds. Zacks Rank #5
• Negative Sentiment: Company remains unprofitable (large negative net margin and negative ROE), which keeps multiples constrained and makes the stock sensitive to any miss in profitability or guidance cadence. Q4 Loss / Margin Detail

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.