Butterfly Network, Inc. reported first‑quarter 2026 revenue of $26.53 million, a 25% increase from $21.23 million in Q1 2025 and a $0.53 million (≈2%) beat over the consensus estimate of $26.0 million. The lift was driven by strong demand in both the core ultrasound business and the newly expanding Butterfly Embedded licensing segment, which added $5.7 million in revenue from the Midjourney partnership, a 147% year‑over‑year jump.
The company posted a net loss of $12.68 million, narrowing from a $13.97 million loss in the same period last year. Adjusted earnings per share were $‑0.03, beating the consensus estimate of $‑0.04 by $0.01 (25%). The improvement was largely due to tighter cost control and a higher gross‑margin mix, as gross margin rose to 68.9% from 63.0% year‑over‑year.
Operating cash flow turned positive for the first time in Butterfly’s history, largely because of a $15 million upfront payment from a licensing partner. The cash‑flow improvement reflects the momentum in the Butterfly Embedded segment, which continues to generate higher‑margin licensing revenue and supports the company’s balance‑sheet strength.
Management reaffirmed its full‑year 2026 revenue guidance of $117 million to $121 million and adjusted EBITDA loss guidance of $21 million to $25 million. For Q2 2026, revenue guidance is $27 million to $31 million and adjusted EBITDA loss is projected at $6 million to $8 million, indicating confidence in continued growth and margin expansion.
Market reaction was mixed; the stock fell about 8% in some instances after the release, with pre‑market trading showing a 1.83% decline. Investors cited ongoing losses and valuation concerns as reasons for the muted response, despite the earnings beat and positive cash flow.
"Butterfly opened the year with another strong financial performance, 25% revenue growth, 69% gross margin and the lowest first quarter net loss since going public, all while maintaining a very strong balance sheet to support future growth," said Joseph DeVivo, President, CEO and Chairman.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.