BFLY Filings — Butterfly Network, Inc. - FilingSpy
BFLY
Butterfly Network, Inc.
A maker of handheld ultrasound devices that plug into a smartphone, Butterfly Network builds its whole-body imaging probes around a semiconductor chip rather than traditional lead-based crystals. Its products include the Butterfly iQ3, iQ+, and Butterfly Move, used by doctors, vets, and health systems. Founded in 2011 by DNA-sequencing pioneer Jonathan Rothberg, the company got its name partly from the butterfly-shaped signal-processing networks his team studied. Its compact probes are famously small enough to fit in a coat pocket.
Total revenue rose 39.5% to $32.6M in Q2 FY2026, driven by a 149.8% surge in software and services revenue from Embedded partnerships.
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Total grew 39.5% to $32.6M, as a 149.8% jump in software and other services revenue to $16.9M more than offset a 5.4% decline in product revenue.
Product fell 5.4% to $15.7M due to the non-recurrence of prior-year semiconductor chip sales to Embedded partners, partially offset by higher probe sales volume in the core business.
Software and other services mix reached 51.8% of total , up 22.9 percentage points, primarily from Embedded partnership revenue including the co-development deal with Midjourney, Inc.
improved to 71.4% from 63.7% as higher-margin software grew, while cost of product revenue rose 10.5% on increased device sales volume.
Operating expenses rose 19.2% to $37.0M, driven by a 26.8% increase in R&D for product development and AI tools, a 24.4% rise in G&A from personnel costs and a credit loss provision, and an 80.6% jump in Other expenses from litigation .
Net loss narrowed to $12.9M from $13.8M; cash used in operations was $13.3M in Q2, and the company held $124.7M in cash, expecting to fund operations for at least 12 months.
Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk We did not have any floating rate debt as of June 30, 2026. Our cash and cash equivalents are comprised primarily of bank deposits and money market accounts. The primary objective of our investments is the preservation of capital to fulfill liquidity needs. We…
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Interest Rate Risk
We did not have any floating rate debt as of June 30, 2026. Our cash and cash equivalents are comprised primarily of bank deposits and money market accounts. The primary objective of our investments is the preservation of capital to fulfill liquidity needs. We do not enter into investments for trading or speculative purposes. Due to the short-term nature and low risk profile of these investments, we do not expect cash flows to be affected to any significant degree by a sudden change in market interest rates, including an immediate change of 100 basis points, or one percentage point. Declines in interest rates, however, would reduce future investment income.
Inflation Risk
We do not believe that inflation has had a material effect on our business, financial condition, or results of operations, other than its impact on the general economy. Nonetheless, to the extent our costs are impacted by general inflationary pressures, including as a result of tariffs, we may not be able to fully offset such higher costs through price increases or manufacturing efficiencies. Our inability or failure to do so could harm our business, financial condition, and results of operations.
Foreign Exchange Risk
We operate our business primarily within the United States and currently execute the majority of our transactions in U.S. dollars. We have not utilized hedging strategies with respect to such foreign exchange exposure. This limited foreign currency translation risk is not expected to have a material impact on our condensed consolidated financial statements.
We are currently and may in the future be subject to legal proceedings, claims, and regulatory actions arising in the ordinary course of business. The outcome of any such matters, regardless of the merits, is inherently uncertain. For more information about our legal proceedings…
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We are currently and may in the future be subject to legal proceedings, claims, and regulatory actions arising in the ordinary course of business. The outcome of any such matters, regardless of the merits, is inherently uncertain.
For more information about our legal proceedings and this item, see Note 12 "Commitments and Contingencies" in the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 "Financial Statements" of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.
Our business, results of operations, and financial condition are subject to various risks and uncertainties including the risk factors described under the caption "Risk Factors" in our 2025 Annual Report on Form 10-K. There have been no material changes to the risk factors descr…
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Our business, results of operations, and financial condition are subject to various risks and uncertainties including the risk factors described under the caption "Risk Factors" in our 2025 Annual Report on Form 10-K. There have been no material changes to the risk factors described in the 2025 Annual Report on Form 10-K.