Butterfly Network Q2 revenue beats on strong U.S. demand

Overview

• U.S. ultrasound device maker's Q2 revenue grew 39% yr/yr, beating analyst expectations

• Adjusted loss per share for Q2 beat analyst expectations

• Company raised full-year revenue and adjusted EBITDA guidance

Outlook

• Butterfly Network raises 2026 revenue guidance to $119 mln-$123 mln, up 22%-26%

• Company expects Q3 2026 revenue of $26 mln-$30 mln, about 30% growth at midpoint

• Company expects first Home Community Care commercial revenue in Q4 2026

Result Drivers

• U.S. REVENUE GROWTH - Company said U.S. revenue rose 57% yr/yr, driven by Embedded partnerships and increased probe sales to health systems, medical schools, and eCommerce customers

• GROSS MARGIN EXPANSION - Gross margin rose to 71.4%, mainly due to higher-margin Embedded licensing revenue and reduced software amortization costs

• INTERNATIONAL REVENUE DECLINE - International revenue fell 14% yr/yr, largely due to decreased probe sales to international distribution partners, partly offset by commercial expansion into Brazil

Company press release: ID:nBw4skbJJa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment technology peer group is "buy"

• Wall Street's median 12-month price target for Butterfly Network Inc is $6.00, about 15.5% below its July 29 closing price of $7.10

Reuters Recommended Reads

• July 29 - GE HealthCare tops quarterly estimates, weighs patient care unit sale

• July 29 - Glaukos Q2 sales jump 50%; raises net sales forecast

• July 29 - Bausch + Lomb Q2 revenue beats on surgical segment growth; lifts outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)