Butterfly Network, Inc. (BFLY) | Investment Case

1. Company Snapshot

1.a. Company Description

Butterfly Network, Inc., a digital health company, develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally.It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+, a point-of-care ultrasound imaging device that connects with a smartphone, tablet, and hospital computer system; and Butterfly Blueprint, a system-wide ultrasound platform with Compass software that integrates into a healthcare system's clinical and administrative infrastructure.The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions, to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel.

In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as clinical support and services.Butterfly Network, Inc.was incorporated in 2011 and is headquartered in Guilford, Connecticut.

Show Full description

1.b. Last Insights on BFLY

The recent stock performance of Butterfly Network, Inc. is being driven by several negative factors. The company reported a loss of $0.08 per share in Q4, which beat expectations but still indicates a decline in profitability. Additionally, the company's revenue growth is being impacted by increased competition in the point-of-care ultrasound market. Furthermore, the recent study on the impact of POCUS in hospital care, while positive, may not have a significant near-term impact on the company's stock price. The absence of any notable share buyback activity also contributes to the negative sentiment.

1.c. Company Highlights

Last Price	3.79
Change Percentage	4.26%
Open	3.74
Previous Close	3.64
Market Cap ( Millions)	966
Volume	423843
Year High	5.03
Year Low	1.32
M A 50	3.81
M A 200	2.6

FCF Yield	-1.66%
Dividend Yield	0.00%
ROE	-35.34%
Debt / Equity	10.41%
Net Debt / EBIDTA	193.06%
Price To Book	4.9
Price Earnings Ratio	-12.45
Price To FCF	-60.22
Price To sales	9.9
EV / EBITDA	-12.41

2. Butterfly Network's Q4 2025 Earnings: A Strong Finish to a Transformative Year

Butterfly Network reported a robust fourth quarter, with revenues reaching $31.5 million, a 41% year-over-year increase, driven by the Midjourney deal, which contributed $6.8 million to revenue. The company's gross profit was $21.2 million, a 55% increase compared to the prior year, while adjusted EBITDA loss narrowed to $3.2 million, a 65% improvement. EPS came in at -$0.02, beating estimates of -$0.04. The strong finish to 2025 sets the stage for continued growth in 2026, with guidance calling for revenue between $117 million and $121 million, representing a 20%-24% increase.

Publication Date: Mar -06

                                    📋 Highlights
                                    Q4 Revenue Growth::
                                                $31.5M revenue, 41% year-over-year increase driven by Midjourney partnership ($6.8M contribution).
Operating Cash Flow::
                                                First quarter of positive operating cash flow, supported by upfront Midjourney payments.
Core POCUS Expansion::
                                                15% YoY revenue growth with 27% volume increase, and 50% enterprise pipeline growth post-Compass AI launch.
Adjusted EBITDA Improvement::
                                                Loss narrowed to $3.2M (vs. $9.1M in 2024), a 65% reduction.
2026 Guidance::
                                                $117–121M revenue (20–24% YoY growth) and $21–25M adjusted EBITDA loss, including tariff impacts.

                                

Operational Highlights and Strategic Progress

The company made significant strides in its strategic growth plan, with core POCUS business revenue growing 15% year-over-year and a 27% increase in volume. The enterprise pipeline has grown 50% since the Compass AI launch, and the company has surpassed 1,000 NGO partners worldwide. Butterfly Network is also expanding its presence in international markets, with plans to open new markets in South America and continue its expansion across the Middle East and Asia.

Embedded Business and Partnerships

The company's Ultrasound-on-Chip platform is being positioned for new opportunities through partnerships, including the significant Midjourney deal. Butterfly Network is exploring other potential partners, with a large pipeline of opportunities. As Joe DeVivo, Chairman and CEO, noted, "We're not pivoting, we're expanding our vision to help doctors and nurses worldwide with low-cost, easy-to-use devices for patient diagnosis." The Embedded business is expected to drive growth in 2026 and 2027.

Valuation and Outlook

With a P/S Ratio of 9.73 and an EV/EBITDA of -12.16, the market is pricing in significant growth expectations. Analysts estimate revenue growth at 20.4% for the next year. While the macro environment remains uncertain, with tariffs potentially impacting the business, Butterfly Network's pipeline of deals is improving, and the company is well-positioned for growth in 2026 and beyond.

3. NewsRoom

Butterfly Network Appoints David Horsley as Senior Vice President, Innovation – Butterfly Embedded™

Mar -10

Source: businesswire.com

Butterfly Network, Inc. (BFLY) Presents at TD Cowen 46th Annual Health Care Conference Transcript

Mar -06

Source: seekingalpha.com

Hospital Networks Turn to AI-Enhanced Cardiac Imaging to Cut Costs and Improve Outcomes

Mar -03

Source: prnewswire.com

Butterfly Network: Ultrasound-On-Chip And AI Could Create Computer Vision Flywheel

Feb -27

Source: seekingalpha.com

New Strong Sell Stocks for February 27th

Feb -27

Source: zacks.com

Butterfly Network, Inc. (BFLY) Q4 2025 Earnings Call Transcript

Feb -27

Source: seekingalpha.com

Butterfly Network, Inc. (BFLY) Reports Q4 Loss, Tops Revenue Estimates

Feb -26

Source: zacks.com

Butterfly Network Reports Fourth Quarter 2025 Financial Results

Feb -26

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.41%)

6. Segments

Devices and Accessories

Expected Growth: 10.4%

Butterfly Network, Inc.'s 10.4% growth in Devices and Accessories is driven by increasing adoption of handheld ultrasound devices, expansion into new markets, and growing demand for AI-powered medical imaging solutions. Additionally, strategic partnerships and investments in research and development are contributing to the company's rapid growth.

Software and Other Services

Expected Growth: 10.43%

Butterfly Network's 10.43% growth in Software and Other Services is driven by increasing adoption of its handheld ultrasound device, Butterfly iQ, in hospitals and clinics, as well as growing demand for its cloud-based software and AI-powered analytics. Expansion into new markets, strategic partnerships, and investments in sales and marketing also contribute to this growth.

7. Detailed Products

Butterfly iQ

A handheld, single-probe whole-body ultrasound system that provides high-quality images and enables whole-body imaging.

Butterfly Blueprint

A software platform that enables clinicians to access and manage ultrasound images and data, and collaborate with colleagues.

Butterfly OnCall

A tele-ultrasound platform that enables remote consultations and real-time image sharing between clinicians.

Butterfly Education

A comprehensive educational platform that provides ultrasound training and resources for clinicians.

8. Butterfly Network, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Butterfly Network, Inc. operates in the medical device industry, which has a moderate threat of substitutes. While there are alternative medical imaging technologies available, Butterfly's handheld ultrasound device offers a unique value proposition that differentiates it from competitors.

Bargaining Power Of Customers

Butterfly Network, Inc.'s customers are primarily healthcare professionals and hospitals, who have limited bargaining power due to the specialized nature of the company's products and services.

Bargaining Power Of Suppliers

Butterfly Network, Inc. relies on a few key suppliers for its components and manufacturing services. While the company has some bargaining power due to its growing scale, suppliers still have some negotiating power due to the specialized nature of the components.

Threat Of New Entrants

The medical device industry has a high barrier to entry due to regulatory requirements and the need for significant R&D investments. However, new entrants can still disrupt the market with innovative technologies, posing a threat to Butterfly Network, Inc.'s market share.

Intensity Of Rivalry

The medical device industry is moderately competitive, with several established players competing for market share. Butterfly Network, Inc. faces competition from traditional ultrasound manufacturers, as well as new entrants with innovative technologies.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	10.21%
Debt Cost	3.95%
Equity Weight	89.79%
Equity Cost	14.49%
WACC	13.41%
Leverage	11.37%

11. Quality Control: Butterfly Network, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

BioSig Technologies

A-Score: 4.8/10

Value: 8.0

Growth: 6.9

Quality: 3.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

Nevro

A-Score: 4.5/10

Value: 7.4

Growth: 4.6

Quality: 3.3

Yield: 0.0

Momentum: 9.0

Volatility: 2.7

1-Year Total Return ->

NeuroOne Medical Technologies

A-Score: 4.0/10

Value: 6.8

Growth: 5.7

Quality: 4.2

Yield: 0.0

Momentum: 6.0

Volatility: 1.3

1-Year Total Return ->

Accelerate Diagnostics

A-Score: 3.4/10

Value: 10.0

Growth: 5.4

Quality: 5.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Butterfly Network

A-Score: 3.2/10

Value: 6.6

Growth: 4.6

Quality: 4.1

Yield: 0.0

Momentum: 3.0

Volatility: 0.7

1-Year Total Return ->

Biomerica

A-Score: 2.8/10

Value: 8.5

Growth: 2.8

Quality: 3.5

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

54.97%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

13.41%

Butterfly Network, Inc. - US1241551027

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BFLY

1.c. Company Highlights

Weak Momentum

Medium Volatility

Fairly Valued

Earnings Beats

Revenues Beats

Stable Momentum

Average Quality

Strong Momentum

Revenues Miss

More Volatile

Average Growth

Earnings Miss

2. Butterfly Network's Q4 2025 Earnings: A Strong Finish to a Transformative Year

Operational Highlights and Strategic Progress

Embedded Business and Partnerships

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.41%)

6. Segments

Devices and Accessories

Expected Growth: 10.4%

Software and Other Services

Expected Growth: 10.43%

7. Detailed Products

Butterfly iQ

Butterfly Blueprint

Butterfly OnCall

Butterfly Education

8. Butterfly Network, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Butterfly Network, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.79$

Current Price

3.79$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA