Butterfly (BFLY) Q2 2026 Earnings Call Transcript
Butterfly Network (BFLY) reported Q2 2026 revenue of $32.6M, up 39% y/y, driven by Embedded revenue of $10.8M (+439%). Gross profit rose to $23.3M and gross margin to 71%. Adjusted EBITDA loss narrowed to $1.4M. Q3 revenue guidance is $26M to $30M, and FY2026 revenue guidance is $119M to $123M.
How this was made
The 30-second read
Why it matters
The key tradable update is management’s raised guidance for Q3 revenue and FY2026 revenue and adjusted EBITDA loss, alongside gross margin expansion and segment mix shifts.
Market read
Traders can update models based on the new Q3 and FY2026 guidance ranges, and reassess risk around continued adjusted EBITDA losses and international timing.
What to watch
Embedded growth relies on partner milestones and development work; execution risk around Apollo semiconductor delivery (late 2027 or early 2028) and FedRAMP timing could affect future revenue recognition.
Background
Butterfly Network held its Q2 2026 earnings call, emphasizing growth from its Embedded licensing segment and progress toward next-generation semiconductor and enterprise software rollouts.
Ticker impact
Butterfly reported Q2 2026 revenue of $32.6M (+39% YoY) and raised Q3 revenue guidance to $26M-$30M, plus FY2026 revenue to $119M-$123M.
Likely positive bias for the next few sessions as traders reprice growth and margin mix, tempered by continued adjusted EBITDA losses.
The article discloses fresh, numeric guidance (Q3 and FY2026) and segment mix changes (Embedded licensing growth, gross margin expansion) that directly affect forward expectations, though it remains a loss-making profile.
Market effects
Supports the narrative that point-of-care ultrasound and embedded licensing models can scale, potentially improving sentiment toward medical device software-adjacent platforms.
Brazil regulatory authorization and international timing issues highlight uneven regional adoption and order timing risk.
Embedded partnerships tied to AI and cloud security readiness (FedRAMP) may influence broader medtech cloud adoption expectations.
Counterpoint
Despite raised revenue guidance, adjusted EBITDA remains negative and international revenue declined 14% YoY, suggesting growth may be uneven and profitability still distant.
Key entities
- companyButterfly Network
Reported Q2 2026 results and provided raised Q3 and FY2026 guidance, highlighting Embedded licensing growth and margin expansion.
- executiveJoseph DeVivo
CEO who discussed chip performance claims and confirmed Apollo chip schedule for Midjourney delivery.
- executiveJohn Doherty
CFO who provided financial metrics, guidance ranges, and commentary on macro and tariff-related risks.
