Revenue growth remains highly sensitive to lumpy contract cycles, with gross margins showing extreme volatility from a negative 75.9% in 2023Q4 to a recent 68.9% in 2026Q1.
| Sales/Revenue | 102.92M | 97.61M | 82.06M | 65.9M | 73.39M | 62.56M | 46.25M | 27.58M | 1.53M |
| Revenue Growth % | 20.2% | 18.96% | 24.52% | -10.21% | 17.3% | 35.27% | 67.68% | 1707.54% | - |
| Cost of Goods Sold | 52.28M | 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 | 50.64M | 45.73M | 48.83M | 16.86M | 39.46M | 17.05M | -61.22M | -20.89M | -729K |
| Gross Margin % | 49.21% | 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 | 132.07M | 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 | 88.11M | 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 | 35.88M | 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 | -81.82M | -86.42M | -74.41M | -145.61M | -193.02M | -192.73M | -161.62M | -102.3M | -53.09M |
| Operating Margin % | -79.5% | -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 | -76.1M | -78.33M | -64.07M | -135.04M | -187.09M | -190.64M | -160.3M | -101.54M | -52.7M |
| EBITDA Margin % | -73.94% | -80.25% | -78.08% | -204.91% | -254.92% | -304.7% | -346.59% | -368.12% | -3453.15% |
| EBITDA Growth % | -26.54% | -22.27% | 52.55% | 27.82% | 1.86% | -18.92% | -57.87% | -92.69% | - |
| D&A (Non-Cash Add-back) | 5.72M | 8.08M | 10.34M | 10.57M | 5.93M | 2.09M | 1.32M | 758K | 391K |
| EBIT | -61.85M | -75.46M | -71.26M | -133.62M | -168.68M | -31.64M | -161.56M | -99.7M | -53.09M |
| Net Interest Income | 3.12M | 4.42M | 3.76M | 7.45M | 3.38M | 1.92M | -856K | 2.69M | 0 |
| Interest Income | 5.45M | 5.91M | 5.02M | 7.45M | 3.38M | 2.57M | 285K | 2.69M | 2.32M |
| Interest Expense | 864K | 1.49M | 1.26M | 0 | 2K | 651K | 1.14M | 0 | 0 |
| Other Income/Expense | 6.15M | 9.46M | 1.89M | 11.99M | 24.34M | 160.44M | -1.09M | 2.6M | 2.32M |
| Pretax Income | -75.67M | -76.95M | -72.52M | -133.62M | -168.68M | -32.29M | -162.71M | -99.7M | -50.77M |
| Pretax Margin % | -73.53% | -78.84% | -88.38% | -202.76% | -229.84% | -51.61% | -351.78% | -361.44% | -3326.67% |
| Income Tax | 102K | 110K | -32K | 82K | 42K | 121K | 39K | 0 | 0 |
| Effective Tax Rate % | -0.13% | -0.14% | 0.04% | -0.06% | -0.02% | -0.37% | -0.02% | 0% | 0% |
| Net Income | -75.77M | -77.06M | -72.49M | -133.7M | -168.72M | -32.41M | -162.75M | -99.6M | -50.77M |
| Net Margin % | -73.63% | -78.95% | -88.34% | -202.88% | -229.9% | -51.8% | -351.87% | -361.1% | -3326.67% |
| Net Income Growth % | -17.12% | -6.31% | 45.78% | 20.76% | -420.61% | 80.09% | -63.4% | -96.2% | - |
| Net Income (Continuing) | -75.77M | -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) | -0.30 | -0.31 | -0.34 | -0.65 | -0.84 | -0.19 | -26.87 | -16.45 | -9.63 |
| EPS Growth % | 0.77% | 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 | 256.52M | 247.12M | 211.68M | 205.39M | 199.85M | 173.81M | 6.06M | 6.06M | 5.27M |
| Basic Shares Outstanding | 256.52M | 247.12M | 211.68M | 205.39M | 199.85M | 173.81M | 6.06M | 5.84M | 5.27M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
High operating cash burn
As reported in financial statements, BFLY's revenue growth has fluctuated significantly, peaking at 41.0% in 2025Q4 before moderating to 25.0% in 2026Q1, suggesting that the company's top-line expansion remains sensitive to lumpy enterprise contract cycles rather than consistent, predictable organic demand across its core medical imaging segments.
The inconsistency in quarterly revenue growth highlights the difficulty in scaling a hybrid hardware-software model within the competitive medical device landscape. Investors should monitor whether the recent deceleration indicates a saturation of early adopters or merely the timing of large-scale institutional deployments.
Based on BFLY's reported figures, gross margins have shown extreme volatility, swinging from a negative 75.9% in 2023Q4 to a recent high of 68.9% in 2026Q1, which implies significant underlying challenges in manufacturing cost control and inventory management for their proprietary semiconductor-based ultrasound technology.
The sharp recovery in gross margins suggests that management may have successfully addressed previous production inefficiencies or inventory write-downs that plagued earlier periods. However, the historical tendency for these margins to collapse warrants caution regarding the sustainability of current profitability levels.
According to recent SEC filings, BFLY continues to struggle with operating leverage, as SG&A expenses remain stubbornly high at $22.2M in 2026Q1, consistently offsetting gross profit gains and preventing the company from achieving a meaningful reduction in its persistent quarterly operating losses.
The inability to scale operating income faster than gross profit suggests that the company's current sales and marketing infrastructure is not yet optimized for efficiency. This persistent overhead burden indicates that the business model requires significantly higher revenue volume to reach a sustainable break-even point.
Analysis of the income statement reveals that BFLY consistently utilizes stock-based compensation, averaging over $5M per quarter, which 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.
The reliance on equity-based incentives in a period of negative net income suggests that management is prioritizing talent retention over immediate cash preservation. Investors should adjust for these non-cash expenses to better understand the actual cash burn rate and the true cost of operations.
Data from the provided income statement indicates that BFLY's path to profitability is highly fragile, as evidenced by the recurring need for heavy R&D and SG&A investment, which may suggest that the company's competitive moat is insufficient to command the pricing power required for long-term viability.
Short-sellers would likely focus on the company's inability to maintain positive operating margins despite the technological novelty of its CMOS-based probes. The risk remains that the hardware-heavy nature of the business will continue to demand capital-intensive growth that dilutes shareholder value indefinitely.
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.