BFLY

BUTTERFLY NETWORK INC

Healthcare | Small Cap

-$0.06

EPS Forecast

$27.32

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2026-07-20

Butterfly Network Q1 2026: A 25% Revenue Lift and a Software-First Growth Engine

Butterfly Network, Inc. (NYSE: BFLY) reported its first quarter ending March 31, 2026, with revenue of $26.5 million, up 25% year over year. The company highlighted a strong U.S. performance ($21.4 million, up 25%) and international growth ($5.2 million, up 23%), a signal that its hybrid model of semiconductor-based ultrasound devices paired with cloud software and AI is starting to scale beyond the lab. Notably, the press release emphasized a top-line earnings surprise relative to consensus and beat its own Adjusted EBITDA guidance, even as no GAAP EPS figure was disclosed in the release.

Ticker: BFLY. EPS and EPS consensus were not provided as standalone numbers in the report, but the narrative centers on revenue, gross margin, and Adjusted EBITDA. The company reaffirmed its revenue and Adjusted EBITDA guidance for the full year, framing the quarter as validation of the current plan rather than a deviation from it.

Financial highlights

  • Three months ended March 31, 2026: Revenue $26.5 million, up 25% YoY; U.S. revenue $21.4 million, up 25%; International revenue $5.2 million, up 23%.
  • Gross margin: 69%, up about 600 basis points year over year, signaling improving efficiency as the company scales its software and services alongside hardware.
  • Adjusted EBITDA: ($6.1) million, up 32% YoY, underscoring that the company is driving better non-GAAP profitability even as it continues to invest in growth initiatives.

The release frames these results as part of a broader strategy to monetize both hardware and software via Butterfly Embedded partnerships and a growing cloud-enabled platform.

Operational and strategic highlights

  • Gestational Age AI Tool: FDA clearance received; rollout initiated for rapid fetal age estimation across the U.S. and global markets.
  • Butterfly Garden Ecosystem: Added two new partners, bringing the portfolio to 30; continued progress toward additional commercial-ready applications.
  • Compass AI and Enterprise Momentum: Closed first enterprise deal of the year; expanding software pipeline since launching the next-gen Compass AI.
  • Global Market Expansion: Advancing entry into the Americas and Asia, including Brazil, with iQ3 expansion in multiple countries.
  • Home & Community Care: Targeting its first commercial agreement in H2 2026, with initial statewide deployments expected in Q3.
  • Butterfly Embedded: Ninth company signed to the portfolio as of April 2026; meaningful progress with existing partners.
  • Apollo Platform Development: Ongoing advancement of the next-generation semiconductor architecture to boost data processing and compute performance.

Management commentary and outlook

Chief Executive Officer Joseph DeVivo framed the quarter as evidence that the company is “starting to come together around three growth engines”: Point-of-care ultrasound scaling globally, Home & Community Care extending capability into patient environments, and Butterfly Embedded extending technology beyond medical ultrasound. He underscored that these are not separate opportunities but parts of a single Butterfly platform designed to compound over time.

The EPS discussion remains peripheral to the quarterly narrative; the company emphasized revenue and Adjusted EBITDA as the benchmarks for current performance. The reaffirmed revenue forecast and EBITDA guidance imply management confidence in sustaining the multi-year growth trajectory as the ecosystem expands.

What this could portend for peers and the sector

Butterfly’s results illustrate a broader shift in medical technology toward integrated hardware-plus-software platforms. The AI-enabled features, regulatory clearances for clinical tools, and a growing portfolio of partnerships suggest a business model where recurring software revenue and embedded modules become a more meaningful portion of value—even if hardware remains the anchor. For sector peers, the quarter could be a reminder that growth may hinge not only on product performance but also on the quick translation of AI capabilities into clinically usable features that unlock new service models and reimbursement-friendly workflows.

The Midjourney co-development tie-in in the U.S. and abroad hints at the potential and risks of cross-industry AI partnerships, where the value lies in integration rather than standalone capabilities. If Butterfly’s software cadence and regulatory approvals stay on pace, other ultrasound and imaging players might accelerate investments in ecosystem-building, aiming to turn point solutions into platform plays that can weather cycles in hardware demand.

Conclusion

Butterfly Network is nudging its story from “new device company” toward “multi-product growth platform.” Revenue growth is tangible, gross margins are expanding, and Adjusted EBITDA is improving, even as the company continues to deploy capital into software, AI-enabled tools, and international expansion. While investors will likely watch for a per-share EPS figure and a clearer EPS consensus on future quarters, the current narrative—revenue above consensus, strategic momentum, and reaffirmed guidance—signals a company that believes its growth engines can compound over time, with the potential ripple effects across its peers if the model proves scalable.

Note on terms: This summary references standard earnings-language and uses SEO-friendly terms such as ticker BFLY, EPS, earnings surprise, EPS consensus, and revenue forecast. The article notes the absence of a GAAP EPS figure in the press release and focuses on disclosed metrics and guidance.