The raised full-year guidance and record gross margins validate the Embedded licensing strategy and enterprise pipeline conversion. Watch Q4 revenue trajectory (guided to only ~3% YoY growth at midpoint) and the founder's 10b5-1 plan covering 8.4M shares, which could begin sales after this earnings release. Activist investor context from the August SC 13D/A adds pressure for continued execution.
Price Chart
Executive Summary
Butterfly Network reported Q3 2026 revenue of $32.6M (+52% YoY), beating the $28.3M consensus, with record gross margin of 73.0%. The company raised full-year 2026 revenue guidance to $123M-$126M (26%-29% growth) and tightened adjusted EBITDA loss guidance to $12M-$15M. Results reflect strong Embedded licensing revenue and enterprise deal momentum, with activist investor context adding scrutiny.
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $32.6M, up 52% YoY from $21.5M, beating consensus of $28.3M
- GAAP gross margin of 73.0%, highest in company history, vs (17.5)% in prior year; adjusted gross margin 73.0% vs 63.9%
- Net loss of $12.8M vs $34.0M in prior year; adjusted EBITDA loss of $1.2M, improved 85% from $8.1M
- Raised FY2026 revenue guidance to $123M-$126M (26%-29% growth) from prior $119M-$123M
- Raised FY2026 adjusted EBITDA guidance to loss of $12M-$15M from prior loss of $19M-$23M
- Q4 2026 revenue guidance of $31M-$34M (approx 3% YoY growth at midpoint)
- Cash and cash equivalents of $122.3M as of September 30, 2026
- Activist investor SC 13D/A filed 72-73 days prior, with insider 10b5-1 plan for 8.4M shares by founder Rothberg
Financial Impact
Revenue beat consensus by $4.3M (15.2%); full-year guidance raised by $4M at midpoint; adjusted EBITDA guidance improved by $7.5M at midpoint
Risk Factors
- Q4 revenue guidance of $31M-$34M implies only ~3% YoY growth at midpoint, a sharp deceleration from Q3's 52% growth
- Founder Jonathan Rothberg has a 10b5-1 plan to sell up to 8.4M shares, which could begin trading after this earnings release
- Activist investor (Glenview/Longview) sold significant positions in July-August 2026, signaling potential disagreement with strategy
- Operating cash flow negative $32.4M through nine months, burning cash despite revenue growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001804176-26-000038 |
| Document: bfly-20261029.htm | 0001804176-26-000038 |
| Document: 0001804176-26-000038-index-headers.html | 0001804176-26-000038 |
| Document: 0001804176-26-000038-index.html | 0001804176-26-000038 |
| Document: 0001804176-26-000038.txt | 0001804176-26-000038 |
| 8-K Data (Synthetic) | 0001804176-26-000038 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 1d ago | S-3ASR | $8.40 | awaiting T+1 | awaiting T+1 | $7.51 (+10.60%) |
Oct 29, 2026 1d ago | 8-K | $8.33 | awaiting T+1 | awaiting T+1 | $7.51 (−9.84%) |
Oct 15, 2026 14d ago | 3 | $7.25 $7.47 | ▲ +3.03% | ▲ +2.61% | $7.51 (+3.59%) |
Oct 6, 2026 23d ago | 144 | $8.70 $8.27 | ▼ −4.94% | ▼ −4.70% | $7.51 (−13.68%) |
Oct 5, 2026 25d ago | 8-K | $9.38 $8.70 | ▼ −7.25% | ▼ −7.80% | $7.51 (−19.94%) |
Sep 23, 2026 5w ago | 144 | $9.41 $9.39 | ▼ −0.21% | ▼ −0.76% | $7.51 (−20.19%) |
Sep 22, 2026 5w ago | 144 | $9.20 $9.41 | ▲ +2.28% | ▲ +2.36% | $7.51 (−18.37%) |
Sep 9, 2026 7w ago | Insider Cluster | $7.12 $7.33 | ▲ +2.95% | ▲ +2.10% | $7.51 (+5.48%) |
Aug 17, 2026 10w ago | Insider Cluster | $9.00 $9.17 | ▼ −1.89% | ▼ −1.68% | $7.51 (+16.56%) |
Aug 17, 2026 10w ago | Insider Cluster | $9.00 $9.17 | ▼ −1.89% | ▼ −1.68% | $7.51 (+16.56%) |
US Market Status
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