Butterfly Network Q3 Revenue Jumps 52% and Company Raises 2026 Outlook

Burlington-based Butterfly Network (NYSE: BFLY) reported third-quarter revenue of $32.6 million on Oct. 29, 2026, up 52% from $21.5 million a year earlier, and raised its full-year outlook. The handheld ultrasound maker said revenue and adjusted EBITDA both beat the top of its own guidance, and it posted a record 73.0% gross margin, according to the results it filed with the SEC.

Key figures: $32.6M revenue (+52%) · 73.0% gross margin · $12.8M net loss (vs. $34.0M) · $1.2M adjusted EBITDA loss · $122.3M cash · 2026 revenue guide $123M to $126M

The Quarter: Revenue, Margin and Losses

The growth came almost entirely from software and other services, a line that includes Butterfly’s licensing business. That revenue rose to $17.0 million from $6.9 million, while product revenue, mostly probe sales, rose about 7% to $15.6 million. U.S. revenue climbed 71% to $27.5 million, which the company attributed mainly to its Butterfly Embedded partnerships, including a co-development deal with Midjourney, plus more probe sales to health systems, distributors and online customers. International revenue fell 5% to $5.1 million because of lower probe sales to global health partners.

On its earnings call, management said Embedded revenue was about $11.1 million in the quarter and core point-of-care ultrasound revenue was about $21.5 million, up 5%, according to the Investing.com call transcript.

Gross profit was $23.8 million, compared with a gross loss of $3.8 million in the third quarter of 2025. The year-ago figure included a $17.4 million write-down of excess and obsolete inventory. Excluding that charge, adjusted gross margin still rose to 73.0% from 63.9%, which the company tied to higher-margin licensing revenue and higher probe volume.

Operating expenses rose 19% to $37.4 million, largely because of added staff, the filing said. The net loss narrowed to $12.8 million, or 5 cents a share, from $34.0 million, or 13 cents. The adjusted EBITDA loss shrank 85% to $1.2 million from $8.1 million, and adjusted loss per share was 1 cent, compared with 4 cents.

Data: Where the Growth Came From

The split between hardware and software tells most of the story this quarter. Software and other services grew about 145% year over year and made up 52% of revenue, up from 32% a year earlier. Product revenue grew only about 7%. Over nine months, total revenue reached $91.7 million, up 39% from $66.1 million, with software and other services more than doubling to $45.7 million.

Butterfly is still using cash. Cash and equivalents were $122.3 million on Sept. 30, down from $150.5 million at the end of 2025, and the company used about $32.4 million in operating cash over nine months, according to its cash flow statement. Butterfly’s guidance implies one more loss-making quarter, with an adjusted EBITDA loss of $3 million to $6 million in the fourth quarter.

Guidance Raised, and a New Shelf Registration

Butterfly now expects 2026 revenue of $123 million to $126 million, about 26% to 29% growth, up from a prior range of $119 million to $123 million. It narrowed its expected full-year adjusted EBITDA loss to $12 million to $15 million, from $20 million to $22 million. For the fourth quarter, it guided to revenue of $31 million to $34 million, about 3% growth at the midpoint. On the call, management said it expects adjusted EBITDA and cash flow to turn positive by 2028, per the transcript.

The company also filed a new shelf registration for up to $150 million in securities and an at-the-market stock sales program of up to $150 million. Chief Financial Officer John Doherty described the filings on the call as a precaution, according to the transcript.

Analysts had expected revenue of about $28.4 million and an adjusted loss of 4 cents a share, according to Investing.com, which reported that shares fell about 5.5% in premarket trading to $7.38 from a $7.81 close. Butterfly joins a busy week of local results tracked in our Boston company earnings scorecard, and more Boston company news is on our Boston business news hub.

What Comes Next

The company listed several near-term milestones. Mendaera became the first partner to launch a commercial product built on Butterfly technology on Oct. 1, and the company added brain-computer interface partners Merge Labs and Bridge Neurotech. It closed five seven-figure and ten six-figure enterprise software deals, won FedRAMP authorization for federal and Veterans Affairs sales, and said its Home & Community Care program will begin scanning in November, with first revenue expected in the fourth quarter. A next-generation device powered by its P5.1 chip is planned for early 2027.

Reactions

“Our third quarter results came in ahead of guidance on both revenue and adjusted EBITDA, and we posted the highest gross margin in Butterfly’s history,” CEO Joseph DeVivo said in the release. “The enterprise pipeline is turning into signed deals, and achieving FedRAMP authorization puts larger federal opportunities on the table.” He added that the company’s “Ultrasound-on-Chip platform is taking Butterfly into entirely new categories, from brain-computer interfaces to physical AI.”

Sources

• Butterfly Network 8-K, Exhibit 99.1: third quarter 2026 results (SEC EDGAR)
• Business Wire: Butterfly Network Reports Third Quarter 2026 Financial Results
• Investing.com: Butterfly Network Q3 2026 earnings call transcript
• The Motley Fool: Butterfly (BFLY) Q3 2026 earnings call transcript