The beat-and-raise pattern, accelerating software revenue, and expanding gross margins are strong signals of operating leverage. Watch for the Home Community Care commercial launch in H2 2026 and FedRAMP certification in Q3 as catalysts. The stock's $1.9B market cap implies a ~16x forward revenue multiple, which may already price in significant Embedded upside — monitor Q3 guidance execution for any signs of deceleration.
Price Chart
Executive Summary
Butterfly Network reported Q2 2026 revenue of $32.6M (+39% YoY), beating the $29.2M consensus, with a GAAP EPS of -$0.05 (vs -$0.06 YoY) and an adjusted EPS of -$0.01 (vs consensus -$0.04). The company raised its full-year 2026 revenue guidance to $119M-$123M and improved its adjusted EBITDA guidance, driven by strong Butterfly Embedded licensing revenue and expanding gross margins to 71.4%. This marks the second consecutive beat and raise, reinforcing the multi-engine growth narrative around POCUS, Embedded, and Home Community Care.
Key Financial Metrics
Key Facts
- Q2 2026 revenue of $32.6M (+39% YoY) beat consensus of $29.2M.
- GAAP EPS of -$0.05 improved from -$0.06 YoY; adjusted EPS of -$0.01 beat consensus of -$0.04.
- Gross margin expanded 770 bps YoY to 71.4%, driven by higher-margin Embedded licensing revenue.
- Raised FY2026 revenue guidance to $119M-$123M (from $117M-$121M) and improved adjusted EBITDA guidance to a loss of $19M-$23M.
- Software and other services revenue surged to $16.9M (up 150% YoY), now 52% of total revenue.
- Cash and equivalents stood at $124.7M, down from $150.5M at year-end 2025, reflecting ongoing operating cash burn.
Financial Impact
Revenue beat of $3.4M (+11.6% vs consensus) and raised full-year guidance by $2M at the midpoint.
Risk Factors
- Cash burn continues; operating cash flow was -$30.2M in H1 2026 vs -$18.8M in H1 2025.
- International revenue declined 14% YoY in Q2, indicating uneven global adoption.
- Embedded partnership revenue is lumpy and tied to partner milestones, not recurring.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001804176-26-000025 |
| Document: bfly-20260730.htm | 0001804176-26-000025 |
| Document: 0001804176-26-000025-index-headers.html | 0001804176-26-000025 |
| Document: 0001804176-26-000025-index.html | 0001804176-26-000025 |
| Document: 0001804176-26-000025.txt | 0001804176-26-000025 |
| 8-K Data (Synthetic) | 0001804176-26-000025 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 11d ago | 3 | $7.25 $7.47 | ▲ +3.03% | ▲ +2.61% | $7.05 (−2.76%) |
Oct 6, 2026 20d ago | 144 | $8.70 $8.27 | ▼ −4.94% | ▼ −4.70% | $7.05 (−18.97%) |
Oct 5, 2026 22d ago | 8-K | $9.38 $8.70 | ▼ −7.25% | ▼ −7.80% | $7.05 (−24.84%) |
Sep 23, 2026 4w ago | 144 | $9.41 $9.39 | ▼ −0.21% | ▼ −0.76% | $7.05 (−25.08%) |
Sep 22, 2026 4w ago | 144 | $9.20 $9.41 | ▲ +2.28% | ▲ +2.36% | $7.05 (−23.37%) |
Sep 9, 2026 6w ago | Insider Cluster | $7.12 $7.33 | ▲ +2.95% | ▲ +2.10% | $7.05 (−0.98%) |
Aug 17, 2026 10w ago | Insider Cluster | $9.00 $9.17 | ▼ −1.89% | ▼ −1.68% | $7.05 (+21.67%) |
Aug 17, 2026 10w ago | Insider Cluster | $9.00 $9.17 | ▼ −1.89% | ▼ −1.68% | $7.05 (+21.67%) |
Aug 15, 2026 10w ago | Institutional Cluster | $9.02 $9.00 | ▼ −0.22% | ▲ +0.45% | $7.05 (−21.84%) |
Aug 12, 2026 10w ago | Insider Cluster | $8.86 $8.84 | ▼ −0.23% | ▼ −0.03% | $7.05 (−20.43%) |
US Market Status
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