Butterfly Network Reports Q3 Revenue Growth, Reaffirms $91M–$95M 2025 Guidance Amid AI Advances

Butterfly Network reported strong third-quarter 2025 revenue growth, reaching the higher end of its guidance and demonstrating significant progress in its AI and semiconductor-based ultrasound technology initiatives. The company's CEO highlighted improvements in cash consumption, gross margins, and an expanding pipeline despite challenges such as purchase delays in U.S. hospital channels and software subscription churn. Key upcoming products include the Compass AI software, HeartFocus app, and the P5.1 chip, which promises to enhance handheld ultrasound performance. Financial results showed a 5% year-over-year revenue increase driven by international growth and higher average selling prices, although a $17.4 million inventory write-off impacted gross margin negatively. Clinical studies validated the cost and care benefits of Butterfly’s AI tools, and the company achieved important global security certifications, underscoring readiness for broader adoption. Overall, Butterfly is positioning itself as a platform solution innovating ultrasound delivery and scaling, with a focus beyond device sales toward integrated AI-driven healthcare technology.