Butterfly Network (NYSE:BFLY) Announces Quarterly Earnings Results

Butterfly Network (NYSE:BFLY) announced its quarterly earnings results on Thursday. The company reported ($0.02) earnings per share for the quarter, beating 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 firm had revenue of $31.51 million for the quarter, compared to analyst estimates 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 Price Performance

NYSE BFLY traded down $0.89 on Friday, hitting $3.78. 14,723,916 shares of the stock were exchanged, compared to its average volume of 6,891,070. The company has a market capitalization of $955.59 million, a PE ratio of -11.46 and a beta of 2.27. The business’s fifty day moving average is $3.81 and its 200 day moving average is $2.76. Butterfly Network has a 52 week low of $1.32 and a 52 week high of $5.03.

Insider Activity

In other news, CTO Victor Ku sold 35,968 shares of Butterfly Network stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $3.82, for a total transaction of $137,397.76. Following the completion of the transaction, the chief technology officer directly owned 811,962 shares in the company, valued at approximately $3,101,694.84. The trade was a 4.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP John N. Doherty sold 60,182 shares of the business’s stock in a transaction that occurred on Wednesday, January 7th. The stock was sold at an average price of $3.98, for a total value of $239,524.36. Following the transaction, the executive vice president directly owned 1,234,688 shares in the company, valued at $4,914,058.24. The trade was a 4.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 4,725,727 shares of company stock valued at $16,172,849. 25.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Invesco Ltd. boosted its holdings in shares of Butterfly Network by 18.5% in the 4th quarter. Invesco Ltd. now owns 387,881 shares of the company’s stock valued at $1,474,000 after purchasing an additional 60,538 shares in the last quarter. Mercer Global Advisors Inc. ADV bought a new stake in shares of Butterfly Network during the 4th quarter worth $72,000. Skyview Financial Group LLC bought a new position in Butterfly Network in the fourth quarter valued at about $1,054,000. XTX Topco Ltd acquired a new position in Butterfly Network during the fourth quarter worth about $521,000. Finally, Stoic Point Capital Management LLC bought a new position in shares of Butterfly Network in the fourth quarter worth about $2,849,000. Institutional investors own 37.85% of the company’s stock.

More Butterfly Network News

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

Analyst Ratings Changes

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

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.