Butterfly Network Q2 revenue beats on strong U.S. demand
BFLY•Outlook
- Butterfly Network raises 2026 revenue guidance to $119 mln-$123 mln, up 22%-26%
- Company expects Q3 2026 revenue of $26 mln-$30 mln, about 30% growth at midpoint
- Company expects first Home & Community Care commercial revenue in Q4 2026
Overview
- U.S. ultrasound device maker's Q2 revenue grew 39% yr/yr, beating analyst expectations
- Adjusted loss per share for Q2 beat analyst expectations
- Company raised full-year revenue and adjusted EBITDA guidance
Result drivers
- U.S. revenue growth - Company said U.S. revenue rose 57% yr/yr, driven by Embedded partnerships and increased probe sales to health systems, medical schools, and eCommerce customers
- Gross margin expansion - Gross margin rose to 71.4%, mainly due to higher-margin Embedded licensing revenue and reduced software amortization costs
- International revenue decline - International revenue fell 14% yr/yr, largely due to decreased probe sales to international distribution partners, partly offset by commercial expansion into Brazil
