📊 BFLY Key Takeaways
Investment Thesis
Butterfly Network exhibits severe fundamental weakness with massive operating losses (-88.5% margin) despite modest revenue growth (19% YoY), indicating business model challenges at scale. While strong liquidity (3.83x current ratio) and substantial cash reserves ($150.5M) provide a runway, the company is burning cash operationally (-$12.7M) and free cash flow is deeply negative (-$16M), making the current path unsustainable without significant operational improvement or external financing.
BFLY Strengths
- Revenue growth of 19% YoY demonstrates market demand for products
- Strong balance sheet with $150.5M cash and zero long-term debt
- Excellent liquidity position (3.83x current ratio) provides financial flexibility
- Healthy gross margin of 46.9% shows strong unit economics at production level
BFLY Risks
- Severe operating losses (-$86.4M) indicate inability to scale profitably despite gross margin strength
- Negative free cash flow of -$16M annually will exhaust $150.5M cash reserves in ~9 years without improvement
- Operating margin of -88.5% and net margin of -79% reflect fundamental operational inefficiency
- Negative ROE (-39.3%) and ROA (-26.0%) show value destruction across the enterprise
- High insider activity (12 Form 4 filings in 90 days) may indicate uncertainty or management changes
Key Metrics to Watch
- Operating margin trajectory - critical to monitor if company is moving toward profitability
- Operating cash flow - must turn positive to validate sustainable business model
- Cash burn rate and runway - essential to track liquidity sustainability
- Gross margin stability - ensure cost of goods remains favorable as volume scales
- Sales, general & administrative expense ratio - primary driver of operating losses
BFLY Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.83x current ratio provides a solid financial cushion.
BFLY Profitability Ratios
BFLY vs Default Sector
How Butterfly Network, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BFLY Balance Sheet & Liquidity
BFLY 5-Year Financial Trend
5-Year Trend Summary: Butterfly Network, Inc.'s revenue has grown significantly by 56% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.65 indicates the company is currently unprofitable.
BFLY Growth Metrics (YoY)
BFLY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $20.6M | -$16.9M | $-0.08 |
| Q2 2025 | $21.5M | -$13.8M | $-0.06 |
| Q1 2025 | $17.7M | -$14.0M | $-0.06 |
| Q3 2024 | $15.4M | -$16.9M | $-0.08 |
| Q2 2024 | $18.5M | -$15.7M | $-0.07 |
| Q1 2024 | $15.5M | -$21.8M | $-0.10 |
| Q3 2023 | $15.4M | -$27.4M | $-0.13 |
| Q2 2023 | $18.5M | -$28.7M | $-0.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BFLY Capital Allocation
BFLY SEC Filings
Access official SEC EDGAR filings for Butterfly Network, Inc. (CIK: 0001804176)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BFLY
What is the AI rating for BFLY?
Butterfly Network, Inc. (BFLY) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BFLY's key strengths?
Revenue growth of 19% YoY demonstrates market demand for products. Strong balance sheet with $150.5M cash and zero long-term debt.
What are the risks of investing in BFLY?
Severe operating losses (-$86.4M) indicate inability to scale profitably despite gross margin strength. Negative free cash flow of -$16M annually will exhaust $150.5M cash reserves in ~9 years without improvement.
What is BFLY's revenue and growth?
Butterfly Network, Inc. reported revenue of $97.6M.
Does BFLY pay dividends?
Butterfly Network, Inc. does not currently pay dividends.
Where can I find BFLY SEC filings?
Official SEC filings for Butterfly Network, Inc. (CIK: 0001804176) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BFLY's EPS?
Butterfly Network, Inc. has a diluted EPS of $-0.31.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.