two Earnings Recaps
Q2 2026
Aug 1, 2026
Butterfly Network's stock was largely unchanged following Q2 2026 results, reflecting a balanced mix of steady execution in Embedded partnerships and gradual software adoption without clear upside surprises.
Key takeaways
- Revenue, gross margins, and adjusted EBITDA came in near the top of prior guidance; full year guidance was raised modestly.
- Embedded partnerships reached a total of 11 with two new agreements, broadening applications in brain-computer interfaces and women's health wearables.
- Point-of-care ultrasound (POCUS) business advanced with six new enterprise software deals for Compass AI, growing the pipeline fivefold since last year.
- Provisional authorization secured to sell to the entire VA system; broader U.S. government sales opportunities are developing.
- Despite management’s positive framing, the market viewed progress as incremental rather than breakthrough, leading to a flat share price reaction of +0.1%.
Q1 2026
May 1, 2026
Butterfly Network shares surged 9.8% following Q1 2026 earnings as investors responded positively to 25% revenue growth, expanding gross margin, and clear progress in enterprise AI-driven adoption. Acceleration in software deals and FDA recognition of new AI tools contributed to the upbeat market reaction.
Key takeaways
- Reported 25% year-over-year revenue growth for the first quarter.
- Gross margin reached 69%, with net loss at its lowest Q1 level since the company went public.
- Achieved FDA clearance for a blind sweep AI tool to determine fetal gestational age, positioned for a U.S. and global rollout.
- Two new partners joined the Butterfly Garden ecosystem, with four partner apps receiving FDA clearance and additional breakthrough designations.
- Pipeline of software deals, measured by total contract value, rose sharply year-on-year, including a 7-figure Compass AI enterprise agreement and nearly 1,000 probes sold to medical schools in early 2026.