Butterfly Network (BFLY) TD Cowen 46th Annual Health Care Conference summary

Strategic vision and technology evolution

• Focus on democratizing imaging with a flexible, programmable semiconductor chip for handheld ultrasound, enabling diverse clinical use cases and broad accessibility.

• Technology has been featured in high-profile settings, including TV shows, space missions, and mass casualty events, highlighting its versatility.

• The chip's programmability allows rapid adaptation for new applications without hardware changes, accelerating R&D and partnership opportunities.

• Partnerships, such as with Midjourney, leverage the chip's capabilities for innovative AI and sound-based human-device interfaces.

• Ongoing development of next-generation chips with enhanced AI features, supported by a strong IP portfolio and manufacturing partnership with TSMC.

Partnership and embedded business updates

• Midjourney partnership began in late 2024, evolving from technology purchase to exclusive licensing, with a major use case announcement pending.

• Additional partnerships are in development, often starting as R&D collaborations before commercial agreements, with confidentiality maintained during early stages.

• Embedded business is expected to drive significant revenue and margin growth, with more partnership announcements possible in 2026.

• The embedded segment amplifies overall value and technological advancement for the company.

Market positioning and competitive landscape

• Handheld ultrasound market is experiencing sustainable double-digit growth, with increasing adoption in medical education and clinical practice.

• Competitors like EchoNous and Exo are acknowledged, but current differentiation is maintained through advanced chip technology and a robust patent moat.

• Hospitals are beginning to standardize point-of-care ultrasound programs, creating new opportunities for enterprise sales.