Butterfly (BFLY) Q2 2026 Earnings Call Transcript
Thursday, July 30, 2026 at 8:00 a.m. ET CALL PARTICIPANTS Chief Financial Officer - John Doherty Chairman and Chief Executive Officer - Joseph DeVivo TAKEAWAYS Revenue -- $32.6 million, an increase of 39% year over year driven primarily by the growth of the Butterfly Embedded segment. Embedded Revenue -- $10.8 million, representing 439% year-over-year growth due to development work and milestones from the Midjourney partnership.
How this was made
The 30-second read
Why it matters
The most tradable elements are the raised Q3 and FY 2026 guidance ranges, the magnitude of gross margin expansion, and the stated schedule for key commercialization milestones (home care implementation, FedRAMP certification, and Apollo chip delivery).
Market read
Traders can update models immediately using the disclosed guidance ranges and operating metrics, especially the shift toward higher-margin Embedded licensing and the narrowing adjusted EBITDA loss.
What to watch
International revenue decline is attributed to timing and tough comparisons, which could indicate demand softness rather than purely calendar effects; also, VCOM and FedRAMP milestones are execution-dependent.
Background
Butterfly Network held its Q2 2026 earnings call, emphasizing growth from its Embedded licensing segment and progress toward enterprise software and next-generation semiconductor plans.
Ticker impact
Butterfly reported Q2 2026 results and raised Q3 revenue guidance to $26M-$30M, plus FY 2026 revenue to $119M-$123M.
Likely positive bias for the next session and into Q3 as traders price the raised revenue and narrowing adjusted EBITDA loss, tempered by international weakness.
The article discloses multiple forward-looking guidance updates (Q3 and FY) alongside operating improvements (gross margin expansion, smaller adjusted EBITDA loss). The main offset is a stated 14% international revenue decline tied to timing and comparisons.
Market effects
Reinforces investor focus on ultrasound device companies with licensing/embedded software models and enterprise adoption milestones.
Brazil regulatory authorization and a first U.S. state implementation point to incremental demand catalysts, while international timing issues remain a drag.
Midjourney partnership delivery timing (late 2027/early 2028) keeps longer-dated AI imaging optionality in view, but near-term results hinge on execution.
Counterpoint
Raised guidance may still be consistent with continued adjusted EBITDA losses, so the stock could re-rate down if embedded growth or home-care rollout slips.
Key entities
- companyButterfly Network
Reported Q2 2026 revenue and margins, discussed Embedded/Midjourney partnership progress, and raised Q3 and FY 2026 guidance.
- executiveJoseph DeVivo
CEO who discussed imaging performance claims for the P5.1 chip and reiterated Apollo chip delivery timing to Midjourney.
- executiveJohn Doherty
CFO who provided financial results, guidance ranges, and commentary on cash usage and risk factors.
