Free cash flow remains deeply inconsistent, swinging from a positive $7.9M in 2025Q4 to a negative $14.8M in 2026Q1, highlighting a fragile self-funding model.
| Cash from Operations | -14.92M | -12.7M | -41.71M | -98.82M | -169.12M | -189.19M | -81.7M | -120.43M | -69.58M |
| Operating CF Margin % | - | -13.01% | -50.83% | -149.95% | -230.43% | -302.38% | -176.64% | -436.62% | -4559.7% |
| Operating CF Growth % | 462.35% | 69.55% | 57.79% | 41.57% | 10.61% | -131.56% | 32.16% | -73.08% | - |
| Net Income | -75.77M | -77.06M | -72.49M | -133.7M | -168.72M | -32.41M | -162.75M | -99.7M | -50.77M |
| Depreciation & Amortization | 7.53M | 8.08M | 10.34M | 10.57M | 5.93M | 2.09M | 1.32M | 758K | 391K |
| Stock-Based Compensation | 22.69M | 23.43M | 21.03M | 27.48M | 42.53M | 47.8M | 11M | 6.04M | 5.59M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 9.41M | 17.61M | 4.23M | 16.96M | -19.46M | -155.62M | 20.7M | 12.21M | 2.59M |
| Working Capital Changes | 21.22M | 15.23M | -4.82M | -20.13M | -29.4M | -51.05M | 48.03M | -39.74M | -27.39M |
| Change in Receivables | -6.2M | -6.75M | -8.5M | -162K | -3.06M | -6.13M | -4.38M | -1.2M | -756K |
| Change in Inventory | 2.09M | 1.43M | 2.22M | -34.13M | -24.51M | -11.29M | -23.49M | -1.39M | -10.91M |
| Change in Payables | 4.42M | 5.09M | -841K | -1.88M | 1.22M | -10.52M | 11.18M | 2.55M | 0 |
| Cash from Investing | -3.94M | -3.35M | -2.66M | 70.41M | -93.78M | -9.87M | -2.38M | -4.47M | -1.1M |
| Capital Expenditures | -3.94M | -3.35M | -2.69M | -5.78M | -18.3M | -7.88M | -2.38M | -4.47M | -1.1M |
| CapEx % of Revenue | 3.83% | 3.43% | 3.28% | 8.78% | 24.94% | 12.59% | 5.14% | 16.2% | 71.95% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 36K | 10K | 57K | 0 | 0 | 0 | 0 |
| Cash from Financing | 1.6M | 77.76M | -1.5M | 228K | 2.88M | 565.69M | 54.28M | 324K | 247.84M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | -4.37M | 54.37M | 0 | 0 |
| Equity Issued (Net) | -81.11M | 2.23M | 0 | 0 | 0 | 548.4M | -657K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | -657K | 0 | 0 |
| Other Financing | 82.71M | 75.53M | -1.5M | 228K | 2.88M | 21.66M | 571K | 324K | 247.84M |
| Net Change in Cash | -17.26M | 61.71M | -45.86M | -28.18M | -260.01M | 366.63M | -29.8M | -124.58M | 177.16M |
| Free Cash Flow | -18.86M | -16.05M | -44.4M | -104.6M | -187.42M | -197.06M | -84.08M | -124.9M | -70.68M |
| FCF Margin % | -18.33% | -16.44% | -54.11% | -158.73% | -255.37% | -314.97% | -181.78% | -452.82% | -4631.65% |
| FCF Growth % | 45.53% | 63.86% | 57.55% | 44.19% | 4.9% | -134.39% | 32.69% | -76.71% | - |
| FCF per Share | -0.07 | -0.06 | -0.21 | -0.51 | -0.94 | -1.13 | -13.88 | -20.62 | -13.41 |
| FCF Conversion (FCF/Net Income) | 0.25x | 0.16x | 0.58x | 0.74x | 1.00x | 5.84x | 0.50x | 1.21x | 1.37x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent operating cash burn
As reported in financial statements, Butterfly Network's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching 1.10 in 2026Q1, suggesting that non-cash adjustments and working capital fluctuations are masking the underlying cash-generative capacity of the company's core medical device operations.
The persistent gap between net income and operating cash flow indicates that reported earnings are not currently reflective of the company's actual cash-burning trajectory. Investors should monitor whether this divergence is driven by recurring non-cash expenses or unsustainable shifts in working capital that may not repeat in future periods.
Based on BFLY's reported figures, free cash flow remains deeply inconsistent, swinging from a positive $7.9M in 2025Q4 to a negative $14.8M in 2026Q1, which highlights the company's ongoing struggle to achieve a sustainable, self-funding operational model amidst its high-growth investment phase.
The extreme volatility in free cash flow margins suggests that the company's cash position is highly sensitive to the timing of enterprise-level sales and associated working capital cycles. This lack of stability warrants caution, as it implies that the business has not yet reached the scale necessary to decouple cash generation from lumpy revenue recognition.
According to recent SEC filings, BFLY experienced a significant $15.9M working capital inflow in 2025Q4 followed by a return to cash-consuming patterns, suggesting that the company's cash flow is heavily reliant on the timing of inventory management and accounts receivable collections rather than organic operational efficiency.
The erratic nature of working capital changes indicates that management may be utilizing balance sheet levers to manage short-term liquidity needs. Analysts should investigate whether these fluctuations represent genuine improvements in collection cycles or merely temporary timing differences that could reverse in subsequent quarters.
Analysis of the cash flow statement reveals that stock-based compensation consistently averages over $5M per quarter, which, as noted in financial disclosures, effectively obscures the true magnitude of cash-based operating losses and complicates the assessment of the company's underlying profitability trajectory for long-term equity holders.
By adding back significant stock-based compensation to operating cash flow, the company presents a more favorable liquidity picture than the underlying business performance justifies. This practice warrants further investigation to determine the true economic cost of talent acquisition and retention relative to the company's actual cash-generating capabilities.
Quick answers to the most common questions about buying BFLY stock.
Butterfly Network, Inc. (BFLY) generated $-12.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Butterfly Network, Inc. (BFLY) reported negative free cash flow of $16.0M in 2025, indicating capital requirements exceeded cash from operations.
Butterfly Network, Inc. (BFLY) spent $3.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.