Butterfly Network, Inc.

Second quarter 2026 revenue was a record $32.6 million, up 39% year over year. Gross profit was a record $23.3 million, up 56% year over year, and gross margin was 71%, up from 64% in the prior-year period, a 7.7-point increase. Adjusted EBITDA loss was $1.4 million versus a loss of $6.2 million in Q2 2025, an improvement of 78%. U.S. revenue was $27.6 million, up 57%, while international revenue was $5.0 million, down 14%. Core revenue was $21.9 million, up 2%, and Embedded revenue was $10.8 million, up 439%. For Q3 2026, management guided to revenue of $26 million-$30 million and adjusted EBITDA loss of $6 million-$9 million. For full-year 2026, revenue guidance was raised to $119 million-$123 million, implying 22%-26% growth over 2025, and adjusted EBITDA loss guidance was $19 million-$23 million.

Joseph DeVivo emphasized that the company is seeing its “flywheel” start to turn across Focus, Home and Community Care, and Embedded. He highlighted Midjourney, Aleph Neuro, new Embedded wins, the VCOM medical school partnership, FedRAMP progress for government sales, and the planned commercial launch of Home and Community Care in October. His tone was strongly upbeat and strategic, repeatedly framing the business as a scalable platform built around Ultrasound-on-Chip, AI, and broader workflow integration.

John Doherty said the quarter beat both revenue and adjusted EBITDA guidance and delivered the highest gross margin in company history. He pointed to the revenue mix shift toward higher-margin Embedded business, Core strength in U.S. health systems and medical schools, and a 23% increase in probe unit sales. He also noted cash and cash equivalents of $125 million at quarter-end, cash use of $13.3 million in the quarter, and said the company continues to manage through macro pressures from the Middle East conflict, tariffs, and AI-related supply chain shortages, which he described as minor and included in guidance.

Analysts focused on how quickly Embedded revenue can scale, how many partner programs Butterfly can support, the revenue recognition mechanics of the VCOM deal and Embedded contracts, and how Home and Community Care will ramp. Management said Embedded has been running around $7 million-$8 million per quarter, can grow as more partners are added, and includes both milestone-based development revenue and future chip sales/revenue share; they also said the company does not see a practical limit to partnerships because the platform is standardized. On Home, management said it is built into guidance, will start with one state in October, and could reach “multiple millions” in 2027, while VCOM was described as a core business deal with preferred pricing used to deepen medical-school penetration.