two Q3 2026 Earnings Recap

Butterfly shares fell 3.8% after earnings, despite a revenue beat and higher full-year guidance. The likely pressure point was continued international softness: management said it persisted this quarter after deal-timing shifts, and its expected improvement is pushed to Q4 and 2027.

Key Takeaways

• Q3 revenue was $32.6 million, 9% above the top end of guidance; management raised full-year guidance on both the top and bottom lines.
• U.S. HHS revenue grew 15%. The quarter included five seven-figure and ten six-figure enterprise deals measured by total contract value.
• International POCUS remained soft for a second quarter. Butterfly plans to shift toward larger institutional and enterprise customers and expects improvement in Q4 and into 2027.
• Management reported the highest gross margin in company history, but the transcript provides no margin figure.
• Butterfly secured FedRAMP authorization and signed five new Garden partners; DeepEcho also launched the first international Garden application.