Butterfly Network (NYSE:BFLY) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

31 Oct 2026, 13:26 by Scott Moore · The Cerbat Gem

Butterfly Network (NYSE:BFLY – Get Free Report) issued its quarterly earnings data on Thursday. The company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.03, FiscalAI reports. Butterfly Network had a negative net margin of 43.56% and a negative return on equity of 21.38%. The company had revenue of $32.60 million for the quarter, compared to analyst estimates of $28.37 million.

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

Q3 revenue rose 52% year over year to $32.6 million, exceeding the high end of guidance by 9%. Record gross margin reached 73%, while the adjusted EBITDA loss narrowed to $1.2 million from $8.1 million a year earlier.
Butterfly raised and narrowed its 2026 outlook to $123 million-$126 million of revenue and a $12 million-$15 million adjusted EBITDA loss. Management remains confident in reaching adjusted EBITDA and cash-flow breakeven by 2028.
Enterprise adoption is gaining traction, with five seven-figure and ten six-figure total contract value deals during the quarter. Compass AI contracts are generally multi-year and can drive recurring software revenue plus expanding probe deployments over time.
Embedded revenue grew more than 1,000% year over year to $11.1 million, supported by Midjourney, Merge Labs, and Bridge Neurotech. Management expects the business to continue building through new partnerships, product commercialization, and potential revenue sharing, although quarterly results may remain lumpy.
International revenue declined 5% year over year because of delayed deals and distributor inventory, prompting a strategy shift toward direct enterprise selling. Butterfly also established a potential $150 million ATM equity program, which management described as precautionary but could create shareholder dilution if shares are issued.

Butterfly Network Stock Down 14.9%

Shares of NYSE BFLY traded down $1.12 during mid-day trading on Friday, hitting $6.39. 7,469,494 shares of the company were exchanged, compared to its average volume of 4,986,290. Butterfly Network has a 1-year low of $1.90 and a 1-year high of $10.21. The stock has a 50 day simple moving average of $8.06 and a 200-day simple moving average of $6.04. The firm has a market cap of $1.70 billion, a price-to-earnings ratio of -30.43 and a beta of 2.04.

Insider Buying and Selling

In other Butterfly Network news, CEO Joseph Devivo sold 68,346 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $10.01, for a total transaction of $684,143.46. Following the completion of the sale, the chief executive officer directly owned 7,603,700 shares in the company, valued at $76,113,037. The trade was a 0.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Nicholas Caezza sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $9.75, for a total value of $97,500.00. Following the completion of the transaction, the general counsel directly owned 300,307 shares in the company, valued at approximately $2,927,993.25. The trade was a 3.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 285,855 shares of company stock worth $2,426,034 over the last 90 days. Company insiders own 21.99% of the company’s stock.

Analysts Set New Price Targets

BFLY has been the topic of a number of research analyst reports. Evercore initiated coverage on Butterfly Network in a report on Tuesday, September 29th. They set an “outperform” rating and a $15.00 price target on the stock. Canaccord Genuity Group assumed coverage on shares of Butterfly Network in a research note on Monday, October 12th. They set a “buy” rating and a $10.00 target price for the company. TD Cowen reiterated a “buy” rating and issued a $10.00 price target on shares of Butterfly Network in a research note on Friday, September 11th. Weiss Ratings reissued a “sell (d-)” rating on shares of Butterfly Network in a research note on Monday, August 3rd. Finally, Needham & Company LLC assumed coverage on Butterfly Network in a research report on Tuesday, September 22nd. They issued a “buy” rating and a $10.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $8.75.

Check Out Our Latest Stock Analysis on Butterfly Network

Key Headlines Impacting Butterfly Network

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

Positive Sentiment: Q3 results exceeded expectations. Butterfly reported revenue of $32.60 million, ahead of analysts’ roughly $28.37 million estimate. Its adjusted loss was approximately $0.01 per share, better than consensus estimates ranging from a $0.03 to $0.04 loss and substantially improved from the $0.13 loss reported a year earlier. Butterfly Network Reports Third Quarter 2026 Financial Results
Positive Sentiment: Management raised its 2026 revenue outlook. The higher forecast, along with management’s statement that quarterly revenue and adjusted earnings came in ahead of guidance, suggests improving demand for Butterfly’s semiconductor-based ultrasound devices, cloud software and artificial-intelligence products. Butterfly Network’s Q3 Adjusted Loss Narrows as Revenue Increases; 2026 Revenue Outlook Raised
Positive Sentiment: New federal wins add potential growth and validation. Investors are weighing recently announced federal contracts or business wins as evidence that Butterfly’s portable ultrasound technology may be gaining traction in government and institutional healthcare markets. Is Butterfly Network a Bargain Following Raised Guidance and New Federal Wins?
Neutral Sentiment: Management’s earnings call provided additional context. The Q3 discussions focused on execution against the company’s growth strategy, adoption of its point-of-care ultrasound platform and the implications of the raised outlook. Butterfly Network Q3 2026 Earnings Call Transcript
Negative Sentiment: Butterfly remains unprofitable. Despite the narrower adjusted loss, the company continues to report substantial GAAP losses, a negative net margin and negative return on equity. Investors may therefore remain cautious until revenue growth translates into sustained profitability and cash-flow improvement. Butterfly Network Reports Q3 Loss, Beats Revenue Estimates

Butterfly Network Company Profile

(Get Free Report)

Butterfly Network, Inc develops portable medical imaging technology designed to make ultrasound more accessible across hospitals, clinics, emergency-care settings and other care environments. The company’s core products use a semiconductor-based ultrasound-on-chip platform, replacing conventional ultrasound systems’ large arrays of piezoelectric transducers with a compact, software-driven probe.