Butterfly Network (BFLY) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 revenue of $26.5 million, up 25% year-over-year, with gross margin improving to 69%, and the lowest Q1 net loss since going public, driven by strong core and embedded business performance and exceeding consensus estimates.

• Net loss for Q1 2026 was $12.7 million, an improvement from $14.0 million in Q1 2025, with EPS improving to $(0.05) from $(0.06).

• Adjusted EBITDA loss narrowed 32% year-over-year to $6.1 million.

• Continued expansion of AI-powered ultrasound applications, including FDA clearance of the gestational age AI tool and new product launches.

• Units fulfilled increased 4.9% year-over-year, with notable growth in international distributor and veterinary channels.

Financial highlights

• Q1 2026 revenue reached $26.5 million, up 25% year-over-year, with gross profit at $18.3 million and gross margin rising to 68.9% from 63% as software/services mix increased to 44.8% of total revenue.

• Product revenue rose 3.5% to $14.7 million; software and other services revenue surged 68.2% to $11.9 million.

• Operating expenses totaled $32.2 million, with R&D at $9.5 million, sales/marketing at $11.4 million, and G&A at $10.8 million.

• Adjusted EBITDA margin improved to (23.1%) from (42.9%) year-over-year.

• Cash and equivalents at quarter-end were $138 million.

Outlook and guidance

• Q2 2026 revenue expected between $27M-$31M, a 24% year-over-year increase at midpoint, with adjusted EBITDA loss of $6M-$8M.

• Full-year 2026 revenue guidance reaffirmed at $117M-$121M, up 20%-24% over 2025, and adjusted EBITDA loss expected between $21M-$25M.

• Management expects continued revenue growth with a shift toward higher-margin software and services.

• Existing cash and cash flows from operations are expected to fund operations for at least the next 12 months.