Butterfly Network (BFLY) 44th Annual J.P. Morgan Healthcare Conference summary

Key announcements and business updates

• Expiring SPAC warrants will reduce potential dilution by 20 million shares, benefiting current and new shareholders.

• The company has accelerated top-line growth, improved gross margins, and reduced cash consumption over the past 24 months, with preliminary unaudited Q4 2025 revenue growth of at least 17% and FY 2025 revenue exceeding $92 million.

• Recent licensing deals, including a $15 million upfront and $10 million annual license fee with Midjourney, are bringing in non-dilutive capital and strengthening the balance sheet.

• The company will not spin out its chip business but will integrate it as Butterfly Embedded, combining software, devices, and chips.

• Over 600 patents issued and pending support a robust innovation pipeline.

Technology innovation and product roadmap

• The Poseidon 5.1 chip, doubling mechanical pressure and improving harmonics, is in production and expected in devices by 2027.

• The Apollo chip family will offer 20x compute power, enabling local AI processing, improved image quality, and lower energy use, with next-gen launches expected through 2031.

• AI-driven software, including Compass AI, automates documentation and workflow, streamlining reimbursement and quality assurance.

• The Butterfly Garden SDK enables third-party AI app development, with 27 companies developing tools and the first FDA-cleared app launched.

• The company is developing a new family of semiconductors with a roadmap for Apollo 1–4 and a future superchip.

Market expansion and strategic partnerships

• The installed base is the largest globally, with 150,000 units shipped and 80% of medical students trained on the device, and adoption in over 100 countries.

• Partnerships include brain-computer interface, vascular robotics, and a $74 million exclusive chip license with a GenAI company.

• Strategic partnerships and licensing agreements include a pipeline of 40+ companies for embedded solutions and co-development in non-competitive markets.

• The company is working with over 1,000 NGOs and expanding into home care and wearable devices.

• Co-development partners pay for custom chip and software development, expanding capabilities and knowledge.