Ultrasound device maker Butterfly Network Q3 revenue beats on Embedded partnerships

Overview

• US ultrasound device maker Q3 revenue rose 52% yr/yr, beating analyst expectations

• Adjusted loss per share for Q3 beat analyst expectations

• Company posted record gross margin of 73%, driven by Embedded revenue and probe sales

Outlook

• Butterfly raises 2026 revenue guidance to $123 mln-$126 mln

• Company expects 2026 adjusted EBITDA loss of $12 mln-$15 mln

• Butterfly sees Q4 revenue of $31 mln-$34 mln

Result Drivers

• EMBEDDED PARTNERSHIPS & PROBE SALES - Co said higher U.S. revenue was driven by Embedded partnerships and increased probe sales

• HIGHER MARGIN EMBEDDED REVENUE - Co attributed record gross margin to higher-margin Embedded licensing revenue and increased probe sales

• INTERNATIONAL DECLINE - Co said lower international revenue was due to decreased probe sales to global health partners

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $10.00, about 28% above its October 28 closing price of $7.81

Reuters Recommended Reads

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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.)