Butterfly Network Stock Earnings Reports

Butterfly Network reported a strong start to 2026 with Q1 revenue of $26.5M (up 25% YoY), 69% gross margin, improved adjusted EBITDA (loss of $6.1M vs. $9.1M prior year), and $138M cash on hand. Probe unit sales were up 5% and a higher mix of iQ3 drove an 11% ASP increase. Butterfly Embedded grew rapidly (Q1 Embedded revenue +147% YoY) and the company signed additional Embedded partners (nine total) with potential large licensing and chip revenue opportunities. The company secured the first FDA clearance for a blind-sweep gestational-age (GA) AI tool and highlighted that this cloud-deliverable capability can be pushed to existing devices globally, opening global health and ministry-of-health opportunities. Compass AI and Butterfly Garden continue to gain traction (including a seven-figure Compass AI enterprise contract and nearly 1,000 probes sold to medical schools so far in 2026). Butterfly Home and Community Care is moving to commercial launch with an expected first commercial agreement in H1 2026 and initial statewide deployment and nurse training in Q3. Management reaffirmed full-year 2026 guidance: revenue $117M–$121M (+20–24% YoY) and adjusted EBITDA loss $21M–$25M, and Q2 guidance of $27M–$31M revenue and adjusted EBITDA loss of $6M–$8M. Strategic emphasis remains on (1) scaling POCUS adoption and Compass AI, (2) accelerating third-party apps via Butterfly Garden, (3) commercializing Home care, and (4) expanding Butterfly Embedded (Apollo chip roadmap and partnerships) to unlock new markets and recurring licensing/chip revenue. Management reiterated focus on disciplined investment where ROI is highest while maintaining a strong balance sheet.