Butterfly Network (BFLY) Q3 2026 Earnings Report
MX:BFLY Q3 2026 EPS Results
- Actual EPS
- -MXN 0.19
- Consensus EPS
- -MXN 0.66
- Beat/Miss
- Beat by +MXN 0.47
- One Year Ago EPS
- -MXN 0.75
MX:BFLY Q3 2026 Revenue Results
- Actual Revenue
- MXN 612.39M
- Expected Revenue
- MXN 532.94M
- Beat/Miss
- Beat by +MXN 79.45M
- YoY Revenue Growth
- +51.70%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
Butterfly Network's next earnings date is estimated for March 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was strongly positive. The company reported 52% year-over-year revenue growth, record gross margin, an 85% improvement in Adjusted EBITDA loss, major Embedded revenue growth, strong U.S. enterprise traction, and higher full-year guidance. The main challenges were a 5% international revenue decline, a 9% decline in iQ+ sales, continued Adjusted EBITDA losses, uneven Embedded revenue timing, and ongoing macroeconomic pressures. Management remained confident in the 2027 product, international, Embedded, and Home & Community Care opportunities.
For full year 2026, Butterfly expects revenue to be between $123 million and $126 million, an increase of approximately 26%-29% over 2025, implying $31 million to $34 million in revenue for the Q4, and expects its Adjusted EBITDA loss to be between $12 million and $15 million, implying an Adjusted EBITDA loss between $3 million and $6 million for the Q4; the company remains on course to be Adjusted EBITDA and cash flow positive by 2028, expects improved international performance in the Q4 and into 2027, expects initial Home & Community Care revenue in this Q4, believes that revenue will grow throughout 2027 and could become meaningful in 2028, plans its next generation product in early 2027 with its P5.1 chip, expects to enter the $8 billion cart-based ultrasound market in 2028, and said that, if Midjourney current course and speed is successful, in 2030 revenue will be at least $550 million, with a 45% compound annual growth rate for revenue for the business as a whole at the mid-range of this year’s revenue.
- Record Q3 Revenue and Raised Full-Year GuidanceQ3 revenue was $32.6 million, up 52% year over year and 9% above the top end of guidance. Management raised and narrowed full-year 2026 revenue guidance to $123 million-$126 million, representing approximately 26%-29% growth over 2025, and raised full-year Adjusted EBITDA guidance to a loss of $12 million-$15 million.
- Record Gross Margin and Improved Adjusted EBITDAGross profit reached a record $23.8 million, compared with a prior-year gross loss of $3.8 million. Normalizing for the $17.5 million prior-year write-down, gross profit increased $10.1 million, or 74% year over year. Adjusted gross margin rose to 73% from 64%, a 913-basis-point increase, while Adjusted EBITDA loss improved 85% to $1.2 million from $8.1 million.
- Strong U.S. Revenue and Core POCUS PerformanceU.S. revenue increased 71% year over year to $27.5 million, driven by Embedded revenue and solid Core demand. U.S. unit sales increased 9%, while U.S. HHS revenue grew 15%. Core revenue was $21.5 million, up 5% year over year, with strong performance across U.S. HHS, Medical Education, Out of Hospital, Federal, Global Health, and E-commerce.
- Embedded Revenue SurgedButterfly Embedded revenue was $11.1 million, an increase of over 1,000% versus Q3 2025. Growth was primarily driven by the Midjourney partnership and new agreements with Merge Labs and Bridge Neurotech. Management stated that Embedded revenue was trending above prior expectations and that the pipeline continued to grow and mature.
- Enterprise Compass AI TractionThe company closed five seven-figure total contract value deals and ten six-figure total contract value deals in Q3. Management said the Compass AI pipeline is converting into software and hardware enterprise deals, with multi-year contracts creating recurring software revenue and a more durable revenue base.
- Compass AI Addresses Broader Health-System WorkflowsManagement stated that Compass AI is designed to solve health-system-wide point-of-care ultrasound workflow, compliance, data-management, and reimbursement issues, including for scans generated by competing hardware. In some cases, approximately 80% of scans entering Compass AI come from competitive devices, creating an opportunity to expand Butterfly hardware adoption over time.
- FedRAMP Authorization Opens Federal OpportunityButterfly achieved FedRAMP authorization during the quarter, enabling it to operate within federal government systems at scale. Management said the government pipeline is building organically, the company is being proactively included in larger agency requests for information, and the authorization could catalyze a new opportunity in 2027.
- VCOM Lighthouse Medical-Education PartnershipThrough the Lighthouse program with the Edward Via College of Osteopathic Medicine, Butterfly will provide a probe to every student, representing approximately 670 new students per year across four schools. Upperclassmen are also receiving devices, and graduates will take their probes into residency. Devices are networked through Compass AI to help the company understand postgraduate activity and inform future best practices.
- Garden Ecosystem ExpansionButterfly signed five new Garden partners during the quarter across emergency medicine, global health, telemonitoring, and veterinary applications. DeepEcho launched the first international Garden application, providing AI-powered fetal imaging analysis and automated measurements for underserved international markets and educational use in the U.S.
- Embedded Partnership and Product MilestonesThe company added three new partners in the brain-computer-interface space, including Merge Labs and Bridge Neurotech, and both contributed to Q3 Embedded revenue. Mendaera launched its handheld robotic vascular product using Butterfly technology. Development of Apollo remained on schedule, and the company advanced a wearable form factor for limited release to Embedded co-development partners.
- Home & Community Care Moving Into Commercial ExecutionButterfly completed all program approvals in Q3 and began the implementation phase. Scanning is scheduled to start in November, with initial revenue expected in Q4 2026. Management said it expects the business to expand to additional markets through 2027 and believes the revenue could become meaningful in 2028.
- Strong Cash Position and Path to 2028 ProfitabilityCash and cash equivalents, excluding restricted cash, totaled $122 million at quarter-end, and quarterly cash use was $2.4 million versus $3.9 million in the prior-year quarter. Management reiterated that it expects to reach Adjusted EBITDA and cash-flow positive results by 2028.
- Next-Generation Technology RoadmapManagement expects to launch the P5.1 chip and a related next-generation product in early 2027. P5.1 will introduce tissue harmonics, and management expects the product to move beyond the image-quality parity achieved with iQ3. Apollo is expected to provide 20 times the processing power and data-processing speed of current technology, enabling AI models to run directly on the device.
- Expansion Into Cart-Based UltrasoundButterfly is preparing to enter the cart-based ultrasound market in 2028, which management characterized as an $8 billion market. The planned offering is intended to combine the company's semiconductor platform, digital infrastructure, AI ecosystem, and connected workflows.
- Continued Investment in Growth AreasThe company plans to continue investing in global market expansion, Compass AI penetration, Garden applications, 2027 product launches, fourth-generation chip development, Embedded partnerships, and Home & Community Care. R&D expense increased 17% year over year in Q3 while Adjusted EBITDA loss continued to improve.
- International Commercial Strategy ResetManagement identified an opportunity to improve international performance by shifting from a distributor-led focus on individual clinicians toward larger institutional and enterprise customers, using the U.S. playbook. The company expects improved international performance in Q4 and into 2027.
MX:BFLY Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 03, 2027 | 2026 (Q4) | -0.38- | -0.38 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | -0.66-0.19 | -0.75 | 75.00% (+0.56) | |
| Jul 30, 2026 | 2026 (Q2) | -0.66-0.19 | -0.56 | 66.67% (+0.38) | |
| Apr 30, 2026 | 2026 (Q1) | -0.92-0.56 | -0.75 | 25.00% (+0.19) | |
| Feb 26, 2026 | 2025 (Q4) | -0.85-0.38 | -0.94 | 60.00% (+0.56) | |
| Oct 31, 2025 | 2025 (Q3) | -0.81-0.75 | -0.94 | 20.00% (+0.19) | |
| Aug 01, 2025 | 2025 (Q2) | -0.94-0.56 | -1.39 | 59.46% (+0.83) | |
| May 02, 2025 | 2025 (Q1) | -1.26-0.75 | -1.32 | 42.86% (+0.56) | |
| Feb 28, 2025 | 2024 (Q4) | -1.50-0.94 | -3.95 | 76.19% (+3.01) | |
| Nov 01, 2024 | 2024 (Q3) | -1.45-0.94 | -2.44 | 61.54% (+1.50) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.