BFLY combines a perfect earnings beat streak and a technical breakout with an expensive valuation and a negative modeled risk/reward, while insiders have recently been net sellers.
Thesis pillars
- Perfect Earnings Beat Streak↑Improving
- Technical Breakout Setup→Stable
- Expensive Valuation Limited Upside→Stable
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 5, 2026, based on the 10-K filed Feb 27, 2026
Butterfly Network, Inc. (BFLY) Stock Analysis
Range Bound setup
Healthcare · Medical Devices
Hold if already holding. Not a fresh buy at $7.81, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: TSMC; Concentration risk — Supplier: Benchmark.
Butterfly Network designs and sells handheld, semiconductor-based point-of-care ultrasound devices (Butterfly iQ+ and iQ3) built on its proprietary Ultrasound-on-Chip platform, marketed to hospitals, physicians, and veterinarians in over 30 countries alongside cloud-connected... Read more
Hold if already holding. Not a fresh buy at $7.81, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: TSMC; Concentration risk — Supplier: Benchmark. Chart setup: RSI 48 mid-range, Bollinger mid-band. Mixed signals. Hold existing position. Score 5.9/10, moderate confidence.
Passes 5/8 gates (positive momentum, favorable risk/reward ratio, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on clean insider activity. Suitability: aggressive.
About Butterfly Network, Inc.
About Butterfly Network, Inc.
Butterfly Network generated $97.6 million in revenue during 2025, up from $82.1 million in 2024, selling its FDA-cleared Butterfly iQ+ and iQ3 handheld ultrasound devices in more than 30 countries through a direct sales force, distributors, and an eCommerce channel. The company posted a $77.1 million net loss for the year and employed approximately 220 people as of January 2026, with international customers accounting for 21% of 2025 revenue.
Butterfly earns revenue from device hardware sales plus recurring software subscriptions — Core Technology at roughly $300 per year and Advanced Technology at about $420 per year — sold through three channels: a targeted direct sales force for large health-system deployments, an eCommerce storefront, and distributor and veterinary affiliate relationships. A single customer accounted for approximately 11% of 2025 revenue. On the supply side, Butterfly depends on Taiwan Semiconductor Manufacturing Company as its sole source for the semiconductor wafers underlying its Ultrasound-on-Chip technology, and on Benchmark Electronics as its sole contract manufacturer for final device assembly. The company competes against the top five manufacturers of legacy cart-based ultrasound systems, positioning its handheld devices as a lower-cost, more portable alternative for out-of-hospital and veterinary use cases.
Show full overview
Butterfly's supply chain concentrates single-point failure risk at two vendors: TSMC manufactures all wafers for its proprietary chip, and geopolitical tensions between Taiwan and China, along with Taiwan's earthquake exposure, could disrupt that supply with no immediately qualified alternative; Benchmark Electronics, meanwhile, is the sole contract manufacturer assembling finished Butterfly devices under a purchase-order arrangement that also obligates Butterfly to buy back excess wafer inventory should demand forecasts prove too high.
See also: Healthcare · Medical Devices
From Butterfly Network, Inc.'s most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-10-29Recent Developments — Butterfly Network, Inc.
Latest news
- NEWS Butterfly Network (BFLY) Set to Report Q3 Earnings Amid Elevated Price-to-Sales Valuation - GuruFocus — GuruFocus neutral
- NEWS Butterfly Network earnings on deck: Can chip partnerships deliver? By Investing.com - Investing.com Australia — Investing.com Australia neutral
- NEWS Butterfly Network earnings on deck: Can chip partnerships deliver? By Investing.com - Investing.com Nigeria — Investing.com Nigeria neutral
- NEWS Butterfly Network earnings on deck: Can chip partnerships deliver? By Investing.com - Investing.com India — Investing.com India neutral
- NEWS Butterfly Network Founder Jonathan Rothberg Sells Nearly $21 Million in Shares. What Does This Mean for Investors? - The — The Motley Fool negative
Generated 2026-10-29T11:53:50Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWCustomersingle customer11%10-K Item 1A: 'approximately 11% of our revenue was generated by sales to a single customer'
- HIGHSupplierTSMC10-K Item 1A: 'We have chosen to engage a single supplier, TSMC, a semiconductor manufacturer, to manufacture and supply all of the wafers used to create the semiconductor chips incorporating our Ultrasound-on-Chip™ technology used in our medical devices.'
- HIGHSupplierBenchmark10-K Item 1A: 'We rely on a single contract manufacturer, Benchmark, to test, assemble, and supply our finished products.'
- LOWGeographicoutside the United States21%10-K Item 1A: 'During the years ended December 31, 2025, 2024, and 2023, approximately 21%, 23%, and 21%, respectively, of our total revenue was generated from customers located outside of the United States.'
Material Events(8-K, last 90d)
- 2026-05-08Item 5.02LOWDirector Erica Schwartz submitted a contingent resignation effective upon Senate confirmation as CDC Director (nominated April 16, 2026); outcome pending. Caroll H. Neubauer appointed to the Board effective May 18, 2026, expanding the board to eight directors.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 ceiling hit
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $7.81, but acceptable to hold if already in. Reasons: Concentration risk — Supplier: TSMC; Concentration risk — Supplier: Benchmark. Chart setup: RSI 48 mid-range, Bollinger mid-band. Mixed signals. Hold existing position. Analyst target $9.72 (+24.4%), stop $7.26 (−7.6%), A.R:R 1.6:1. Score 5.9/10, moderate confidence.
Analyst target: $9.72 (+24.4% upside). Analyst target $9.72 (+24.4%), stop $7.26 (−7.6%), A.R:R 1.6:1. Stop-loss: $7.26.
Concentration risk — Supplier: TSMC; Concentration risk — Supplier: Benchmark; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.3).
Butterfly Network, Inc. trades at a P/E of N/A (forward -115.7). TrendMatrix value score: 4.5/10. Verdict: Hold.
13 analysts cover BFLY with a consensus score of 4.2/5. Average price target: $11.
What does Butterfly Network, Inc. do?Butterfly Network designs and sells handheld, semiconductor-based point-of-care ultrasound devices (Butterfly iQ+ and...
Butterfly Network designs and sells handheld, semiconductor-based point-of-care ultrasound devices (Butterfly iQ+ and iQ3) built on its proprietary Ultrasound-on-Chip platform, marketed to hospitals, physicians, and veterinarians in over 30 countries alongside cloud-connected software subscriptions. The company generated $97.6 million in revenue in 2025, up from $82.1 million in 2024, but posted a $77.1 million net loss as it continues to invest in commercialization. Butterfly also licenses its chip technology to third parties for non-competitive applications such as brain-computer interfaces