Butterfly Network Reports 39.5% Revenue Growth to $32.6 Million in Q2 2026

Butterfly Network, Inc. reported its financial results for the second quarter of 2026, revealing total revenue of $32.6 million, a 39.5% increase from $23.4 million in the same period last year. The growth was primarily driven by a significant rise in software and other services revenue, which surged by 149.8% to $16.9 million, compared to $6.8 million in the prior year. In contrast, product revenue decreased by 5.4% to $15.7 million, down from $16.6 million, largely due to the non-recurrence of semiconductor chip sales to Embedded partners, which negatively impacted revenue by approximately $1.3 million.

The company's gross profit for the quarter was $23.3 million, representing a gross margin of 71.4%, up from 63.7% in the previous year. This improvement in gross margin was attributed to a higher proportion of revenue coming from software and services, which typically have lower associated costs compared to product sales. However, total operating expenses increased to $37.0 million from $31.0 million, driven by higher research and development costs, which rose by 26.8% to $10.5 million, reflecting investments in personnel and product development.

Butterfly's net loss for the quarter was $12.9 million, or $(0.05) per share, a slight improvement from a net loss of $13.8 million, or $(0.06) per share, in the same quarter of 2025. The company reported a total cash and cash equivalents balance of $124.7 million as of June 30, 2026, down from $150.5 million at the end of 2025. The decrease in cash was primarily due to cash used in operating activities, which amounted to $30.2 million for the first half of 2026, compared to $18.8 million in the same period of 2025.

In terms of operational metrics, Butterfly fulfilled 6,400 units in the second quarter, a 22.5% increase from the previous year, driven by higher probe sales in the U.S. and through eCommerce channels. The company also noted a significant increase in the software and services mix, which accounted for 51.8% of total revenue, up from 28.9% in the prior year. This shift indicates a strategic focus on expanding its software offerings and partnerships, including a notable collaboration with Midjourney, Inc.

Looking ahead, Butterfly Network anticipates continued growth in both revenue and customer adoption as it expands its market presence and enhances its product offerings. The company expects that its existing cash reserves will be sufficient to meet its operational needs for at least the next 12 months, while also planning to invest in further development of its software and service capabilities.