Butterfly Network (BFLY) Q4 2025 earnings summary

Executive summary

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

• The company is executing a strategic growth plan focused on expanding its core POCUS business, enabling new applications (home care, Butterfly Embedded), and advancing its semiconductor ultrasound platform.

• Material revenue contributions are now coming from outside the core POCUS business, notably from Butterfly Embedded partnerships.

• Transitioning from a medical device company to a semiconductor-based platform, with strategic focus on AI-native imaging and sensing.

• Generated positive net cash flow of $6.3 million in Q4 and reported the lowest annual cash usage in company history.

Financial highlights

• Q4 2025 revenue was $31.5 million, a 41% increase year-over-year; full-year 2025 revenue was $97.6 million, up 19%.

• U.S. revenue in Q4 was $26.8 million (up 55% year-over-year); international revenue was $4.7 million (down 6%).

• Product revenue in Q4 was $18.1 million (up 23%); software and services revenue was $13.4 million (up 76%), now 43% of total revenue.

• Gross profit for Q4 was $21.2 million (up 55%), with gross margin rising to 67% from 61% year-over-year.

• Adjusted EBITDA loss for Q4 was $3.2 million (improved 65%); full-year adjusted EBITDA loss was $26.5 million (improved 32%).

• Cash and equivalents at year-end were $154.5 million; annual cash use was $19.4 million, a $26.4 million improvement.

• Operating expenses for Q4: $37.9 million (up 22% YoY); net loss: $15.3 million (improved from $18.1 million YoY).

• Adjusted EPS for Q4: $(0.02) vs. $(0.05) YoY.

Outlook and guidance

• Q1 2026 revenue expected between $24 million and $28 million, reflecting typical seasonality.

• Q1 2026 adjusted EBITDA loss expected between $8 million and $10 million due to seasonal expenses.

• Full-year 2026 revenue guidance is $117 million to $121 million (20–24% growth); adjusted EBITDA loss expected between $21 million and $25 million.

• Guidance includes continued investment in innovation, Butterfly Embedded, and tariff impacts.

• Home care commercialization expected to contribute revenue by late 2026 or 2027.