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Sep 30, 2025
Butterfly Q3 2025 Earnings Report
Butterfly Network reported 5% year-over-year revenue growth in Q3 2025, with narrowed adjusted EBITDA loss and record-low cash burn.
Key Takeaways
Butterfly Network delivered solid revenue growth despite seasonal headwinds, highlighted by a narrowed adjusted EBITDA loss and a continued reduction in cash burn. The company reinforced its leadership in AI-driven ultrasound with product and regulatory milestones.
Revenue grew to $21.5M, up 5% YoY, driven by iQ3 international sales.
Adjusted EBITDA loss narrowed to $8.1M from $8.4M a year ago.
Gross margin turned negative due to a $17.4M inventory write-down, but adjusted gross margin rose to 63.9%.
Cash burn hit a record low of $3.9M for the quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Butterfly reaffirmed its 2025 revenue outlook of $91M to $95M and narrowed adjusted EBITDA loss guidance to between $32M and $35M.
Positive Outlook
- Full-year revenue guidance reaffirmed at $91M–$95M.
- Adjusted EBITDA loss narrowed versus earlier guidance.
- Pipeline expansion indicates early signs of momentum.
- P5.1 chip development completed; Apollo AI chip initiated.
- First FDA-cleared third-party app launched on Butterfly Garden.
Challenges Ahead
- Gross margin turned negative due to a large inventory write-down.
- Operating expenses increased 6% YoY to $31.4M.
- Software and services revenue slightly declined YoY.
- Net loss widened to $34M versus $16.9M prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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