Butterfly Network — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the three months ended September 30, 2026, was $32.6 million, a 52% increase from $21.5 million in the prior year period.
• U.S. revenue reached $27.5 million, up 71% year-over-year, driven by Embedded partnerships and increased probe sales volume.
• International revenue was $5.1 million, a 5% decrease year-over-year, primarily due to reduced probe sales to global health partners.
• Gross profit was $23.8 million compared to a gross loss of $3.8 million in the prior year; GAAP gross margin improved to 73.0% from (17.5)%.
• Adjusted gross margin was 73.0%, up from 63.9% in the prior year period.
• Operating expenses were $37.4 million, a 19% increase from $31.4 million in the prior year, largely due to increased headcount.
• Net loss was $12.8 million, an improvement from $34.0 million in the prior year period.
• Adjusted EBITDA loss was $1.2 million, an 85% improvement from an $8.1 million loss in the prior year.
• Net loss per share (EPS) was $(0.05), compared to $(0.13) in the prior year; Adjusted EPS was $(0.01), compared to $(0.04).
• Cash and cash equivalents were $122.3 million as of September 30, 2026.
• Deferred revenue decreased to $27.1 million total ($15.9 million current, $11.1 million non-current) from $36.3 million ($26.9 million current, $9.4 million non-current) at December 31, 2025.

Guidance and Future Outlook:

• Full Year 2026 Revenue guidance raised to $123 million to $126 million, representing 26% to 29% growth.
• Full Year 2026 Adjusted EBITDA loss guidance raised to $12 million to $15 million.
• Fourth Quarter 2026 Revenue guidance set at $31 million to $34 million, approximately 3% growth year-over-year at the midpoint.
• Fourth Quarter 2026 Adjusted EBITDA loss guidance set at $3 million to $6 million.
• Initial revenue from the Home & Community Care program is expected in the fourth quarter of 2026.
• A next-generation product powered by the P5.1 chip is scheduled for launch in early 2027.

Business Segments and Product Lines:

• Butterfly Embedded™ added three Brain-Computer Interface (BCI) partners, including Merge Labs and Bridge Neurotech.
• Mendaera became the first partner to launch a commercial product built on Butterfly technology on October 1, 2026.
• Compass AI™ closed five 7-figure and ten 6-figure Total Contract Value (TCV) enterprise deals in the quarter.
• Butterfly Garden™ signed five new partners; DeepEcho became the first international and first maternal health partner application to go live on October 23, 2026.
• The Apollo chip development advanced on schedule.
• Limited release of wearable research devices for Embedded partners is prepared.
• Medical Education: Announced the Lighthouse program with VCOM, a multi-year partnership to equip students with Butterfly devices.

Market and Competitive Landscape:

• Achieved FedRAMP authorization, opening federal and VA pipeline opportunities.
• International expansion momentum built in Brazil and a new distribution partner added in Taiwan.
• The Ultrasound-on-Chip™ platform is expanding into new categories including brain-computer interfaces and physical AI.

Risks and Challenges:

• The press release notes that actual results may differ from forward-looking statements due to risks including product development timing, regulatory approvals, competition, and macroeconomic conditions.
• Specific risks include the ability to manage growth, supply chain shortages, and the success of new product categories.

Management Commentary and Tone:

• CEO Joseph DeVivo stated results came in ahead of guidance on both revenue and adjusted EBITDA, with the highest gross margin in company history.
• Management noted strength across the business, with the enterprise pipeline turning into signed deals.
• DeVivo highlighted that progress is compounding, with over a decade of investment in the semiconductor platform beginning to deliver on expected potential.
• The tone emphasized the transition of Home & Community Care from program building to execution.

Other Key Points:

• Conference call and webcast scheduled for October 29, 2026, at 8:00 am ET.
• The company is a pioneer in semiconductor-based ultrasound devices, programmable cloud software, and AI.
• The third-generation device, Butterfly iQ3™, is noted as the best-selling product.
• The company has received recognition from Prix Galien USA, Fierce 50, TIME's Best Inventions, and Fast Company's World Changing Ideas.
• No dividends, buybacks, or M&A deals were mentioned in the release.