Butterfly Network (BFLY) investor relations material

Executive summary

• Achieved record Q2 2026 revenue of $32.6 million, up 39.5% year-over-year, surpassing guidance, driven by Embedded business growth and strong U.S. sales.

• Gross margin rose to 71.4%, a 7.7-point increase year-over-year, with adjusted EBITDA loss improving 78% to $1.4 million.

• Net loss narrowed to $12.9 million from $13.8 million year-over-year, with loss per share at $(0.05).

• Embedded partnerships, especially with Midjourney, and new regulatory approvals in Brazil and the U.S. VA drove expansion.

• Expanded product offerings, AI-driven software platforms, and medical education partnerships, including VCOM.

Financial highlights

• U.S. revenue grew 57% year-over-year to $27.6 million, while international revenue declined 14% to $5.0 million, offset by Brazil market entry.

• Software and services revenue surged 149.8% to $16.9 million, now 51.8% of total revenue; product revenue was $15.7 million, down 5.4%.

• Gross profit hit $23.3 million, gross margin reached 71.4%, and operating expenses rose 19% to $37.0 million.

• Adjusted EBITDA loss improved to $1.4 million; net loss per share was $(0.05); adjusted EPS improved to $(0.01).

• Cash and equivalents at quarter-end were $124.7 million; cash use was $13.3 million in Q2 and $30.2 million in H1 2026.

Outlook and guidance

• Q3 2026 revenue expected at $26–$30 million (30% year-over-year growth at midpoint); adjusted EBITDA loss of $6–$9 million.

• Full-year 2026 revenue guidance raised to $119–$123 million (22–26% growth); adjusted EBITDA loss of $19–$23 million.

• Guidance includes investments in innovation and growth for both core and Embedded businesses.

• Management expects continued revenue growth driven by software and Embedded partnerships.

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