📊 BFLY Key Takeaways
Is Butterfly Network, Inc. (BFLY) a Good Investment?
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.
Butterfly Network shows credible top-line momentum with 19.0% revenue growth, solid 46.9% gross margin, and an unusually strong balance sheet supported by $150.49M in cash and no long-term debt. However, the business still appears far from sustainable profitability, with deeply negative operating and net margins overwhelming the benefits of revenue growth. The core fundamental debate is whether management can convert improving scale into materially lower operating losses before cash burn becomes a longer-term concern.
Why Buy Butterfly Network, Inc. Stock? BFLY Key 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
- Revenue growth of 19.0% YoY suggests continued commercial adoption and improving scale
- Strong liquidity profile with a 3.83x current ratio, 2.88x quick ratio, and $150.49M of cash
- Debt-free capital structure reduces financial risk and gives management flexibility
BFLY Stock Risks: Butterfly Network, Inc. Investment 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
- Operating margin of -88.5% indicates the cost structure remains far too heavy relative to revenue
- Net margin of -79.0% and negative ROE/ROA show the company is still destroying shareholder capital
- Negative free cash flow and ongoing losses could pressure the cash runway if operating leverage does not improve
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
- Operating margin trend
- Free cash flow and cash balance trajectory
Butterfly Network, Inc. (BFLY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.83x current ratio provides a solid financial cushion.
BFLY Profit Margin, ROE & Profitability Analysis
BFLY vs Market Sector: How Butterfly Network, Inc. Compares
How Butterfly Network, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Butterfly Network, Inc. Stock Overvalued? BFLY Valuation Analysis 2026
Based on fundamental analysis, Butterfly Network, Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Butterfly Network, Inc. Balance Sheet: BFLY Debt, Cash & Liquidity
BFLY Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
BFLY Quarterly Earnings & 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.
Butterfly Network, Inc. Dividends, Buybacks & Capital Allocation
BFLY SEC Filings: Latest 10-K & 10-Q Analysis
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 a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BFLY's key strengths?
Claude: Revenue growth of 19% YoY demonstrates market demand for products. Strong balance sheet with $150.5M cash and zero long-term debt. ChatGPT: Revenue growth of 19.0% YoY suggests continued commercial adoption and improving scale. Strong liquidity profile with a 3.83x current ratio, 2.88x quick ratio, and $150.49M of cash.
What are the risks of investing in BFLY?
Claude: 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. ChatGPT: Operating margin of -88.5% indicates the cost structure remains far too heavy relative to revenue. Net margin of -79.0% and negative ROE/ROA show the company is still destroying shareholder capital.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BFLY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Butterfly Network, Inc. has a SELL rating with 80% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is BFLY stock overvalued or undervalued?
Valuation metrics for BFLY: ROE of -39.3% (sector avg: 15%), net margin of -79.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy BFLY stock in 2026?
Our dual AI analysis gives Butterfly Network, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BFLY's free cash flow?
Butterfly Network, Inc.'s operating cash flow is $-12.7M, with capital expenditures of $3.3M. FCF margin is -16.4%.
How does BFLY compare to other Market stocks?
Vs Default sector averages: Net margin -79.0% (avg: 12%), ROE -39.3% (avg: 15%), current ratio 3.83 (avg: 1.8).