Butterfly Network Posts Record Revenue, Achieves First Positive Operating Cash Flow
Event summary
- Butterfly Network reported Q4 2025 revenue of $31.5 million, up 41% year-over-year.
- Achieved first quarter of positive operating cash flow in company history.
- Midjourney partnership contributed $6.8 million in Q4 revenue under a $74 million five-year agreement.
- Gross margin increased to 67.3% from 61.4% year-over-year.
- Guidance for 2026: Revenue of $117 million to $121 million (20-24% growth), Adjusted EBITDA loss of $21 million to $25 million.
The big picture
Butterfly Network is transitioning from a medical device company to a semiconductor-based digital health company, leveraging its Ultrasound-on-Chip™ technology. The strategic shift aims to position the company as a leader in programmable, AI-native imaging and sensing. The Midjourney partnership and advancements in Compass™ AI and Butterfly Embedded™ brand highlight the company's push towards diversified revenue streams and technological innovation.
What we're watching
- Revenue Diversification
- How Butterfly Network will balance growth between core point-of-care business and new initiatives like HomeCare and Butterfly Embedded.
- Operational Efficiency
- Whether the company can sustain improved gross margins amid increased operating expenses.
- Market Expansion
- The pace at which Butterfly Network can penetrate international markets after a 6% year-over-year decline in international revenue.
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