Butterfly Network (BFLY) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $31.5M, up 41% year-over-year, marking the highest quarterly result to date and the first quarter of positive operating cash flow, driven by the Midjourney deal upfront payments.

• The company is transitioning from a medical device company to a semiconductor-based platform, focusing on AI-native imaging and sensing, and expanding its core POCUS business and new applications like home care.

• The Midjourney partnership contributed $6.8M in Q4 revenue and is foundational for platform transformation, with further revenue potential from chip sales and revenue share as commercialization progresses.

• International expansion is underway, with new markets in South America, the Middle East, and Asia, and over 1,000 NGO partners engaged globally.

• Investments in R&D include moving the P5.1 chip to production, developing the Apollo chip architecture, and launching next-generation Compass AI enterprise software.

Financial highlights

• Q4 2025 revenue was $31.5M, a 41% increase year-over-year, exceeding guidance and driven by both core business and Butterfly Embedded contributions.

• U.S. revenue grew 55% YoY to $26.8M, while international revenue declined 6% to $4.7M.

• Product revenue was $18.1M (+23% YoY); software and other services revenue was $13.4M (+76% YoY), with software/services now 43% of total revenue.

• Gross profit for Q4 was $21.2M (+55% YoY), with gross margin rising to 67% from 61% due to higher-margin Embedded revenue and lower software amortization.

• Adjusted EBITDA loss improved to $3.2M in Q4 (from $9.1M in Q4 2024), and to $26.5M for FY 2025 (from $38.9M in FY 2024).

• Cash and equivalents at year-end were $150.5M, with annual cash use reduced to the lowest in company history and positive free cash flow of $6.3M in Q4.

Outlook and guidance

• FY 2026 revenue guidance is $117M–$121M (+20–24% YoY), with adjusted EBITDA loss of $21M–$25M, including investments in innovation and Embedded business, and tariff impacts.

• Q1 2026 revenue expected between $24M–$28M, reflecting typical seasonality.

• Q1 2026 adjusted EBITDA loss projected at $8M–$10M due to higher seasonal expenses.

• Home care commercial agreement anticipated in H1 2026, with nominal revenue in 2026 and ramping in 2027.