Corrected (official): Digital healthcare firm Butterfly Network posts smaller-than-expected Q2 loss

Butterfly Network

01/08/2025 12:55

Corrects first bullet of outlook section to say Butterfly sees 2025 revenue at $91 million to $95 million, not $92 mln to $96 mln, after company clarifies

Overview

Butterfly Q2 revenue rises 9% yr/yr but missed analyst expectations, per LSEG data

Adjusted EPS beats analyst estimates, reflecting improved operational efficiency

Co achieved record gross margins of 64%, driven by higher selling prices

Outlook

Butterfly sees 2025 revenue at $91 mln to $95 mln

Company expects 2025 adjusted EBITDA loss of $32 mln to $37 mln

Butterfly focuses on scaling core business and new revenue streams

Company plans to launch Compass AI software in Q3

Result Drivers

RECORD GROSS MARGINS - Achieved 64% gross margins due to higher selling prices and improved software margins

INTERNATIONAL REVENUE GROWTH - International revenue rose 19% YoY, driven by price and volume increases from iQ3 launch

AI CLINICAL APPLICATIONS - Three partners received FDA clearance for AI-powered applications, enhancing product offerings

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$23.40 mln
$23.70 mln (5 Analysts)
Q2 Adjusted EPS
Beat
-$0.03
-$0.07 (4 Analysts)
Q2 Gross Profit
$14.90 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

Wall Street's median 12-month price target for Butterfly Network Inc is $3.75, about 54.4% above its July 31 closing price of $1.71

Press Release: ID:nBw9656BCa

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)