Key Highlights

  • Revenue of USD 32.6 million rose 52% year over year and topped the consensus estimate of USD 28.37 million.
  • Loss of USD 0.01 per share beat the USD 0.04 consensus estimate loss, with GAAP at USD 0.05.
  • Embedded revenue reached USD 11.1 million, up more than 1,000%, while Core revenue grew 5% to USD 21.5 million.
  • Full year revenue guidance rose to USD 123 million to USD 126 million, and adjusted EBITDA loss guidance narrowed.

Butterfly Network, Inc. (NYSE:BFLY) reported third quarter 2026 revenue of USD 32.6 million, up from USD 21.5 million a year earlier and above a consensus estimate of USD 28.37 million. Loss per share of USD 0.01 compared with a consensus estimate loss of USD 0.04, while the GAAP net loss per share was USD 0.05 versus USD 0.13 a year ago. Net loss narrowed to USD 12.8 million from USD 34.0 million, and gross profit reached a record USD 23.8 million against a gross loss of USD 3.8 million.

Embedded Revenue and Margin Mechanics

Butterfly Embedded revenue was USD 11.1 million, driven by the Midjourney partnership and new agreements with Merge Labs and Bridge Neurotech. Core revenue of USD 21.5 million included five seven figure and ten six figure total contract value deals. U.S. revenue rose 71% to USD 27.5 million, while international revenue fell 5% to USD 5.1 million, which Chief Executive Officer Joseph DeVivo said prompted a plan to apply the U.S. enterprise playbook abroad.

Adjusted gross margin climbed to 73% from 64%, helped by Embedded mix and an IEEPA tariff refund. The prior year gross result included a USD 17.5 million write-down. Adjusted EBITDA loss shrank 85% to USD 1.2 million from USD 8.1 million. Operating expenses rose to USD 37.4 million from USD 31.4 million, and probe unit sales grew 5%, with the iQ3 up 8% and the iQ+ down 9%.

Guidance and Funding Framework

Management guided to full year 2026 revenue of USD 123 million to USD 126 million, up USD 4 million at the bottom and USD 3 million at the top versus prior guidance, implying growth of about 26% to 29%. That range implies fourth quarter revenue of USD 31 million to USD 34 million. Adjusted EBITDA loss guidance is USD 12 million to USD 15 million, implying a fourth quarter loss of USD 3 million to USD 6 million. The company noted that Embedded revenue does not recognize evenly from quarter to quarter.

Cash and equivalents excluding restricted cash were USD 122 million, with USD 2.4 million of cash used in the quarter. The company filed a universal shelf registration for up to USD 150 million and set up an at the market equity program of the same size. The chief financial officer called it housekeeping, said there is no immediate need for cash, and reiterated a target of positive adjusted EBITDA and cash flow by 2028.

Signposts for the Fourth Quarter and Beyond

Several items carry dates or numbers. Home & Community Care scanning starts in November, and management said initial revenue arrives in the fourth quarter. A next generation product built on the P5.1 chip is slated for early 2027, and a limited batch of wearable devices is planned for Embedded co-development partners.

Other markers include the fourth quarter revenue range of USD 31 million to USD 34 million, international performance after the strategy change, and Compass AI enterprise deal flow following FedRAMP authorization. The Edward Via College of Osteopathic Medicine partnership, which supplies a probe to each of about 670 new students per year across four schools, is a further reference for Core volume.