Revenue accelerated to $32.6M in 2026Q2 (39.5% YoY) with gross margin expanding to 71.4%, yet operating margin remains deeply negative at -41.9% due to SG&A of $26.4M.
Butterfly Network, Inc. (BFLY) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 112.14M | 97.61M | 82.06M | 65.9M | 73.39M | 62.56M | 46.25M | 27.58M | 1.53M |
| Revenue Growth % | 28.14% | 18.96% | 24.52% | -10.21% | 17.3% | 35.27% | 67.68% | 1707.54% | - |
| Cost of Goods Sold | 53.11M | 51.88M | 33.23M | 49.04M | 33.93M | 45.51M | 107.47M | 48.48M | 2.25M |
| COGS % of Revenue | - | 53.15% | 40.49% | 74.42% | 46.23% | 72.74% | 232.37% | 175.75% | 147.77% |
| Gross Profit | 59.04M | 45.73M | 48.83M | 16.86M | 39.46M | 17.05M | -61.22M | -20.89M | -729K |
| Gross Margin % | 52.64% | 46.85% | 59.51% | 25.58% | 53.77% | 27.26% | -132.37% | -75.75% | -47.77% |
| Gross Profit Growth % | - | -6.34% | 189.7% | -57.28% | 131.38% | 127.86% | -193% | -2766.26% | - |
| Operating Expenses | 138.04M | 132.15M | 123.24M | 162.47M | 232.48M | 209.78M | 100.4M | 81.4M | 52.36M |
| OpEx % of Revenue | - | 135.38% | 150.19% | 246.53% | 316.77% | 335.3% | 217.06% | 295.11% | 3431% |
| Selling, General & Admin | 91.85M | 85.11M | 85.44M | 106.85M | 144.44M | 135.32M | 50.66M | 32.47M | 17.4M |
| SG&A % of Revenue | - | 87.19% | 104.13% | 162.14% | 196.81% | 216.29% | 109.53% | 117.71% | 1140.43% |
| Research & Development | 38.1M | 36.26M | 37.8M | 55.62M | 88.04M | 74.46M | 49.74M | 48.93M | 34.95M |
| R&D % of Revenue | - | 37.15% | 46.07% | 84.39% | 119.97% | 119.01% | 107.54% | 177.41% | 2290.56% |
| Other Operating Expenses | 1000K | 10.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -79M | -86.42M | -74.41M | -145.61M | -193.02M | -192.73M | -161.62M | -102.3M | -53.09M |
| Operating Margin % | -70.44% | -88.53% | -90.68% | -220.96% | -263.01% | -308.04% | -349.43% | -370.87% | -3478.77% |
| Operating Income Growth % | - | -16.13% | 48.9% | 24.56% | -0.15% | -19.25% | -57.99% | -92.7% | - |
| EBITDA | -71.89M | -78.33M | -64.07M | -135.04M | -187.09M | -190.64M | -160.3M | -101.54M | -52.7M |
| EBITDA Margin % | -64.1% | -80.25% | -78.08% | -204.91% | -254.92% | -304.7% | -346.59% | -368.12% | -3453.15% |
| EBITDA Growth % | -20.7% | -22.27% | 52.55% | 27.82% | 1.86% | -18.92% | -57.87% | -92.69% | - |
| D&A (Non-Cash Add-back) | 7.11M | 8.08M | 10.34M | 10.57M | 5.93M | 2.09M | 1.32M | 758K | 391K |
| EBIT | -73.43M | -75.46M | -71.26M | -133.62M | -168.68M | -31.64M | -161.56M | -99.7M | -53.09M |
| Net Interest Income | 3.69M | 4.42M | 3.76M | 7.45M | 3.38M | 1.92M | -856K | 2.69M | 0 |
| Interest Income | 5.02M | 5.91M | 5.02M | 7.45M | 3.38M | 2.57M | 285K | 2.69M | 2.32M |
| Interest Expense | 1.34M | 1.49M | 1.26M | 0 | 2K | 651K | 1.14M | 0 | 0 |
| Other Income/Expense | 4.23M | 9.46M | 1.89M | 11.99M | 24.34M | 160.44M | -1.09M | 2.6M | 2.32M |
| Pretax Income | -74.77M | -76.95M | -72.52M | -133.62M | -168.68M | -32.29M | -162.71M | -99.7M | -50.77M |
| Pretax Margin % | -66.67% | -78.84% | -88.38% | -202.76% | -229.84% | -51.61% | -351.78% | -361.44% | -3326.67% |
| Income Tax | 82K | 110K | -32K | 82K | 42K | 121K | 39K | 0 | 0 |
| Effective Tax Rate % | -0.11% | -0.14% | 0.04% | -0.06% | -0.02% | -0.37% | -0.02% | 0% | 0% |
| Net Income | -74.85M | -77.06M | -72.49M | -133.7M | -168.72M | -32.41M | -162.75M | -99.6M | -50.77M |
| Net Margin % | -66.74% | -78.95% | -88.34% | -202.88% | -229.9% | -51.8% | -351.87% | -361.1% | -3326.67% |
| Net Income Growth % | -19.14% | -6.31% | 45.78% | 20.76% | -420.61% | 80.09% | -63.4% | -96.2% | - |
| Net Income (Continuing) | -74.85M | -77.06M | -72.49M | -133.7M | -168.72M | -32.41M | -162.75M | -99.7M | -50.77M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.29 | -0.31 | -0.34 | -0.65 | -0.84 | -0.19 | -26.87 | -16.45 | -9.63 |
| EPS Growth % | -3.54% | 8.82% | 47.69% | 22.62% | -342.11% | 99.29% | -63.34% | -70.82% | - |
| EPS (Basic) | - | -0.31 | -0.34 | -0.65 | -0.84 | -0.19 | -26.87 | -17.06 | -9.63 |
| Diluted Shares Outstanding | 262.1M | 247.12M | 211.68M | 205.39M | 199.85M | 173.81M | 6.06M | 6.06M | 5.27M |
| Basic Shares Outstanding | 262.1M | 247.12M | 211.68M | 205.39M | 199.85M | 173.81M | 6.06M | 5.84M | 5.27M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying BFLY stock.
For fiscal year 2025, Butterfly Network, Inc. (BFLY) reported total revenue of $97.6M. This represents a 6296.5% increase compared to $1.5M in 2018.
Butterfly Network, Inc. (BFLY) reported a net loss of $77.1M for the fiscal year ending 2025.
Butterfly Network, Inc. (BFLY) reported an operating income of $-86.4M, resulting in an operating profit margin of -88.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Butterfly Network, Inc. (BFLY) generated $45.7M in gross profit for the year, representing a gross profit margin of 46.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Cash burn and dilution
Metrics are mathematically derived from official filings.
Revenue Acceleration on Embedded Momentum
Revenue grew 39.5% YoY in 2026Q2 to $32.6M, the fastest pace in the series, driven by Embedded partner launches and core ultrasound sales, per company disclosures.
The sequential jump from $26.5M in 2026Q1 to $32.6M in 2026Q2, coupled with a 41% YoY growth in 2025Q4, indicates a clear acceleration trend. Management raised guidance to $26M–$30M for the next quarter, suggesting sustained demand. However, the wide guidance range implies uncertainty in partner-driven revenue timing, and the reliance on a few Embedded partners could introduce volatility.
Gross Margin Expansion Signals Pricing Power
Gross margin improved to 71.4% in 2026Q2, up from 58.2% in 2024Q1, reflecting the iQ3 launch and a favorable mix shift toward software, as reported in financial statements.
The 13-point gross margin expansion over five quarters suggests the company is successfully transitioning to higher-margin software and services, while hardware costs are being optimized through semiconductor scale. The 2025Q3 anomaly, where gross margin collapsed to -17.5% due to a $25.2M COGS charge, appears to be a one-time inventory write-down or supply chain disruption, not a structural issue. Investors should monitor whether the 70%+ gross margin is sustainable as hardware volumes scale.
Operating Leverage Still Elusive
Operating margin improved from -128.1% in 2024Q1 to -41.9% in 2026Q2, but operating income remains negative at -$13.7M, indicating fixed costs still outpace revenue growth.
Despite revenue growing 84% from 2024Q1 to 2026Q2, operating expenses (R&D + SG&A) have remained relatively flat, hovering around $37M per quarter. This has driven the operating margin from -128% to -42%, a significant improvement, yet the company still loses $0.42 for every dollar of revenue. The path to breakeven requires either continued revenue growth at this pace or a reduction in the $26.4M quarterly SG&A, which appears to be the largest fixed cost.
SBC Masks True Cash Burn
Stock-based compensation averaged $5.9M per quarter over the last five quarters, representing roughly 20% of revenue, which inflates reported losses and dilutes shareholders, per SEC filings.
While net losses have narrowed from -$21.8M in 2024Q1 to -$12.9M in 2026Q2, SBC of $7.0M in 2026Q2 is a non-cash expense that still impacts dilution. The EPS miss of -$0.05 vs. -$0.03 estimate in the latest quarter suggests that despite top-line beat, bottom-line performance is weaker than expected, possibly due to higher operating costs or tax items. Investors should adjust for SBC to assess the true cash burn, which remains substantial.
SG&A Dominates Cost Structure
SG&A of $26.4M in 2026Q2 is the largest cost line, exceeding R&D by 2.5x, and has remained stubbornly high at ~$22M per quarter for two years, as per income statement data.
The company's sales and marketing spend is not scaling down despite revenue growth, indicating a deliberate investment in market expansion. However, this high fixed cost is the primary drag on operating income, and any slowdown in revenue growth would quickly pressure margins. R&D spend has been relatively stable at ~$9-10M per quarter, suggesting a mature product line, but the lack of R&D reduction may limit near-term profitability.
2025Q3 Inventory Shock and Recovery
The 2025Q3 quarter marked a critical inflection with a -17.5% gross margin and -$34.0M net loss, followed by a sharp recovery to 71.4% gross margin by 2026Q2, based on reported figures.
The $25.2M COGS in 2025Q3 versus revenue of $21.5M suggests a significant inventory write-down or supply chain disruption, likely related to the transition to the iQ3 probe. This one-time event distorted margins and losses, but the subsequent quarters show a strong rebound, indicating the company has moved past the disruption. The lasting impact is a more streamlined product portfolio and improved gross margins, but the event highlights the vulnerability to supply chain shocks.
Cash Burn and Dilution Risks
Despite revenue growth, cumulative operating losses over the last five quarters total -$95.4M, and with SBC adding ~$30M, cash burn remains high, raising dilution concerns, per financial statements.
The company's operating losses, while narrowing, still consume significant cash. With a market cap of ~$1.9B and no clear path to profitability, the company may need to raise capital, which would dilute existing shareholders. The reliance on Embedded partners for growth introduces concentration risk, and if those partners fail to scale, revenue growth could stall. Short-sellers would argue that the current valuation is not supported by the underlying cash flow realities, and the company's history of value destruction post-SPAC merger warrants caution.