Fubotv earnings beat by $0.10, revenue topped estimates
Introduction & Market Context
Butterfly Network, Inc. (NYSE:BFLY) reported its first quarter 2025 financial results on May 2, showing continued revenue growth and improved profitability metrics. The company’s shares, which closed at $2.34 on May 1, were trading up 5.13% in premarket activity following the earnings release, reflecting positive investor sentiment toward the results.
The ultrasound technology company has been executing on its multi-pronged growth strategy, balancing its core point-of-care ultrasound (POCUS) business with emerging strategic initiatives. This quarter’s results demonstrate progress toward the company’s long-term goal of achieving cash flow breakeven by 2027.
Quarterly Performance Highlights
Butterfly Network delivered solid financial results for Q1 2025, with revenue reaching $21.2 million, representing a 20% increase compared to $17.7 million in the same period last year. While this growth rate shows some moderation from the 33% year-over-year growth reported in Q3 2024, it remains in line with the company’s annual guidance.
The company also reported significant improvement in profitability metrics. Gross margin expanded to 63.0%, a 4.8 percentage point increase from 58.2% in Q1 2024, indicating enhanced operational efficiency and potentially improved product mix. Operating expenses decreased by 3% to $31.8 million, compared to $32.9 million in the prior-year period, reflecting disciplined cost management.
As shown in the following financial summary from the presentation:
Notably, Butterfly Network’s adjusted EBITDA loss improved by 31% to $9.1 million, compared to a $13.2 million loss in Q1 2024. The company also significantly strengthened its balance sheet, with cash and cash equivalents of $155.2 million, up from $88.8 million a year earlier, providing substantial runway for continued investment in growth initiatives.
Strategic Initiatives
Butterfly Network’s presentation highlighted its evolved portfolio strategy, which balances the core POCUS business with three key strategic initiatives: Butterfly Garden, Butterfly HomeCare, and Octiv. This diversified approach aims to create multiple growth vectors for the company.
The company’s strategic portfolio is illustrated in this slide:
Within the core POCUS business, Butterfly Network is focusing on three key areas in 2025: medical education, hospital systems, and international expansion. The company reported continued momentum with medical schools, progress in its enterprise pipeline for hospital systems, and expansion of the iQ3 device into additional international markets.
Butterfly Garden, the company’s AI application ecosystem, added two new partners in Q1, bringing the total to 23 portfolio companies. The company expects the first partners to commercialize FDA-cleared apps for clinical use this year, potentially creating new revenue streams.
The Octiv subsidiary, focused on chip-enabled ultrasound technology, has secured five signed partners and has over 25 prospects in its pipeline. This initiative targets applications beyond traditional medical imaging, including wearables, implantables, interventional devices, and therapeutics.
Butterfly HomeCare represents the company’s push into remote care settings. A pilot program with a leading Medicare Advantage provider for virtual chronic care management is showing promising early results, with no rehospitalizations reported among patients with congestive heart failure and those recently discharged.
The company also highlighted growing mainstream adoption of POCUS technology, showcasing media coverage and social media examples of how portable ultrasound is becoming increasingly integrated into healthcare delivery.
Forward-Looking Statements
Butterfly Network reaffirmed its 2025 revenue guidance of $96-100 million, representing approximately 20% growth year-over-year. The company also maintained its adjusted EBITDA loss guidance of $37-42 million for the full year.
These projections align with the company’s longer-term financial targets, which include achieving cash flow breakeven by 2027 and reaching $500 million in revenue within five years, as outlined in previous earnings calls.
Analyst Perspectives
While the presentation did not include specific analyst commentary, the company’s Q1 2025 results appear to be tracking in line with its strategic roadmap. The 20% revenue growth, improving gross margins, and reduced EBITDA losses suggest progress toward the company’s financial goals.
The premarket stock movement of +5.13% indicates that investors are responding positively to the results and maintained guidance. Butterfly Network’s strong cash position of $155.2 million provides significant operational runway as the company continues to invest in its diversified growth strategy.
As Butterfly Network continues to execute on its multi-pronged approach, investors will likely focus on the pace of revenue growth, progress toward profitability, and early commercial success of strategic initiatives like Butterfly Garden and Octiv in upcoming quarters.
Full presentation:
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