Butterfly Network, Inc. (BFLY) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Butterfly Network, Inc. (BFLY) Healthcare & Pipeline Overview

Butterfly Network, Inc. develops and commercializes handheld ultrasound technology, aiming to democratize medical imaging. Their Butterfly iQ+ device and accompanying software platform target a broad range of healthcare providers, offering a portable and accessible alternative to traditional ultrasound systems within the medical devices sector.

What Is the Investment Thesis for BFLY?

Butterfly Network presents a compelling investment thesis centered on the democratization of medical imaging through its innovative handheld ultrasound technology. The company's Butterfly iQ+ device offers a cost-effective and portable alternative to traditional ultrasound systems, potentially expanding access to diagnostic imaging in various healthcare settings. Key value drivers include increasing adoption of point-of-care ultrasound, expansion into new geographic markets, and the growth of the company's software and subscription services. However, investors may want to evaluate the company's current negative profit margin of -73.6% and the highly competitive landscape of the medical devices industry. The company's high beta of 2.22 also indicates higher volatility compared to the market. Successful execution of its growth strategies and achieving profitability are crucial for long-term value creation.

Based on FMP financials and quantitative analysis

BFLY Key Highlights

Market capitalization of $2.44B, reflecting investor valuation of the company's growth potential in the medical imaging market.

• Gross margin of 49.2%, indicating the profitability of Butterfly Network's core ultrasound products and services.
• Butterfly iQ+ device offers a cost-effective and portable alternative to traditional ultrasound systems, potentially expanding access to diagnostic imaging.
• The company's Butterfly Blueprint platform aims to integrate into healthcare systems' clinical and administrative infrastructure, streamlining workflows and data management.
• Expansion into new geographic markets represents a significant growth opportunity for Butterfly Network.

Who Are BFLY's Competitors?

BFLY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BFLY's Key Strengths?

Innovative handheld ultrasound technology.

• Integrated hardware and software platform.
• Potential for cost savings compared to traditional ultrasound.
• Strong brand recognition in the point-of-care ultrasound market.

What Are BFLY's Weaknesses?

Negative profit margin.

• Limited market share compared to established players.
• Reliance on a single product (Butterfly iQ+).
• High beta indicating higher volatility.

What Could Drive BFLY Stock Higher?

Expansion into new geographic markets, particularly in emerging economies.

• Launch of new software features and applications for the Butterfly iQ+ device.
• Increasing adoption of point-of-care ultrasound in various healthcare settings.
• Strategic partnerships and collaborations with healthcare systems and technology companies.

What Are the Key Risks for BFLY?

Negative return on equity (-36.8%) — the business is not currently generating profit on shareholder capital.

• Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
• Competition from established medical device companies with greater resources.
• Technological advancements by competitors that could render Butterfly Network's products obsolete.
• Regulatory hurdles and compliance requirements in the medical device industry.
• Economic downturns affecting healthcare spending and demand for medical devices.
• The company's current negative profit margin poses a risk to its long-term financial sustainability.

What Are the Growth Opportunities for BFLY?

• Expansion into Emerging Markets: Butterfly Network has a significant opportunity to expand its presence in emerging markets, where access to traditional ultrasound technology is limited. These markets represent a large untapped customer base for the company's portable and affordable Butterfly iQ+ device. By establishing strategic partnerships with local distributors and healthcare providers, Butterfly Network can penetrate these markets and drive revenue growth. The global point-of-care ultrasound market is projected to reach $4.7 billion by 2027, offering a substantial opportunity for expansion.
• Growth of Software and Subscription Services: Butterfly Network's software and subscription services, including Butterfly Blueprint and Butterfly Academy, represent a recurring revenue stream and a significant growth opportunity. By offering comprehensive software solutions and educational resources, the company can enhance the value proposition of its ultrasound devices and attract new customers. The global healthcare software market is expected to reach $227.8 billion by 2028, indicating the potential for Butterfly Network to expand its software offerings and capture a larger share of this market.
• Increased Adoption of Point-of-Care Ultrasound (POCUS): The increasing adoption of POCUS in various healthcare settings, including emergency departments, critical care units, and primary care clinics, is driving demand for portable ultrasound devices like the Butterfly iQ+. As healthcare providers recognize the benefits of POCUS in improving diagnostic accuracy and patient outcomes, the demand for Butterfly Network's products is expected to grow. The POCUS market is projected to grow at a CAGR of 12.1% from 2021 to 2028, presenting a significant growth opportunity for Butterfly Network.
• Strategic Partnerships and Collaborations: Butterfly Network can accelerate its growth by forming strategic partnerships and collaborations with healthcare systems, research institutions, and technology companies. These partnerships can provide access to new markets, technologies, and expertise, enabling the company to expand its product offerings and reach a wider customer base. For example, collaborating with a telehealth provider could enable remote ultrasound consultations and expand access to care in underserved areas.
• Development of New Applications and Features: Butterfly Network has the opportunity to develop new applications and features for its ultrasound devices, expanding their utility and attracting new customers. This could include developing specialized imaging modes for specific medical specialties, integrating artificial intelligence algorithms to improve diagnostic accuracy, or creating new software tools for data analysis and reporting. By continuously innovating and expanding its product capabilities, Butterfly Network can maintain its competitive edge and drive long-term growth.

What Are BFLY's Competitive Advantages?

• Proprietary technology: Butterfly Network's silicon-based ultrasound technology is a key differentiator.
• Integrated platform: The combination of hardware, software, and educational resources creates a comprehensive solution.
• First-mover advantage: Butterfly Network was among the first to commercialize a handheld, whole-body ultrasound system.
• Brand recognition: The Butterfly iQ+ device has gained recognition as an innovative and accessible ultrasound solution.

What Does BFLY Do?

Butterfly Network, Inc., founded in 2011 and headquartered in Guilford, Connecticut, is a digital health company focused on transforming medical imaging through its innovative ultrasound technology. The company's core product is the Butterfly iQ+, a handheld, single-probe, whole-body ultrasound system that connects to smartphones, tablets, and hospital computer systems. This device aims to make ultrasound imaging more accessible and affordable for healthcare providers across various settings. Butterfly Network also offers Butterfly Blueprint, a system-wide ultrasound platform with Compass software designed to integrate into a healthcare system's existing clinical and administrative infrastructure, streamlining workflows and data management. The company's products are sold through a direct sales force, distributors, and an eCommerce channel, targeting healthcare systems, physicians, and other healthcare providers both in the United States and internationally. Butterfly Network provides cloud-based software solutions, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy, as well as clinical support and services, enhancing the overall user experience and promoting effective utilization of its technology.

What Products and Services Does BFLY Offer?

• Develops and manufactures handheld ultrasound devices.
• Offers the Butterfly iQ+ device, a single-probe, whole-body ultrasound system.
• Provides the Butterfly Blueprint platform, a system-wide ultrasound solution.
• Offers cloud-based software solutions for data management and analysis.
• Provides teleguidance and in-app educational tutorials.
• Offers formal education programs through Butterfly Academy.
• Sells probes, accessories, and software subscriptions.

How Does BFLY Make Money?

• Direct sales of Butterfly iQ+ devices to healthcare providers.
• Subscription revenue from Butterfly Blueprint software platform.
• Sales of accessories and related products.
• Revenue from educational programs and training services.

What Industry Does BFLY Operate In?

Butterfly Network operates within the medical devices industry, which is characterized by rapid technological advancements and increasing demand for minimally invasive diagnostic tools. The point-of-care ultrasound (POCUS) market is experiencing significant growth, driven by the need for faster and more accessible diagnostic imaging. Butterfly Network's handheld ultrasound technology positions it to capitalize on this trend. The industry is competitive, with established players like GE Healthcare and Siemens Healthineers, as well as other emerging companies focusing on portable ultrasound solutions. Butterfly Network differentiates itself through its single-probe, whole-body imaging capabilities and its integrated software platform.

Who Are BFLY's Key Customers?

• Hospitals and healthcare systems.
• Physicians and medical professionals.
• Emergency medical services (EMS) providers.
• Veterinarians

Butterfly Network, Inc. (BFLY) Valuation Context

Valued at $2.44B, BFLY is classified as a mid-cap stock. Relative to its peer group, BFLY's quantitative score of 26/100 is below the peer average of 77/100.

BFLY Revenue & Earnings Trend

In Q2 2026, BFLY generated $29.0M in top-line revenue, marking a sequential increase of 9.4%. The company recorded a net loss of $12.9M, with diluted EPS of $-0.05. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Healthcare. Across the four most recent quarters, BFLY averaged $-0.07 in diluted EPS.

Company Profile

Butterfly Network, Inc. operates in the Medical - Devices industry within the Healthcare sector. It is headquartered in Guilford, US. The company is led by CEO Joseph DeVivo. BFLY has traded publicly since 2020.

Return on equity for Butterfly Network, Inc. stands at -36.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -26.5%, showing how much profit it generates from its asset base. Its free cash flow yield is -1.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 4.02 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -5.5%, the inverse of the P/E and a quick read on earnings relative to price.

Butterfly Network, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 11.61 places it in the safe zone, indicating low near-term bankruptcy risk.

Wall Street analysts project Butterfly Network, Inc. revenue of about $120.8M for fiscal 2026, with EPS near $-0.12. The estimate reflects 3 contributing analysts.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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