BFLY earnings call summary

Prepared Highlights

• Q4 2025 total revenue of $31.5 million, a record quarterly result, growing 41% year-over-year (YoY) (CFO, CEO).
• Core POCUS revenue grew 15% YoY in Q4, on top of 35% growth in Q4 2024; core unit volume increased 27% YoY (CEO, CFO).
• U.S. revenue was $26.8 million, up 55% YoY, driven by Butterfly Embedded and 44% unit growth in core business (CFO).
• International revenue was $4.7 million, down 6% YoY (Q4 2025); iQ3 sales +42% YoY, iQ+ sales -79% YoY (CFO).
• Butterfly Embedded (formerly Octave) contributed $6.8 million in Q4 2025 revenue from the Midjourney partnership (CEO, CFO).
• Gross profit was $21.2 million (margin 67%) vs. $13.7 million (61%) in Q4 2024, driven by higher-margin Embedded revenue and lower software amortization (CFO).
• Adjusted EBITDA loss improved 65% YoY to -$3.2 million in Q4 2025, from -$9.1 million in Q4 2024 (CFO).
• Full year 2025 revenue was $97.6 million, up 19% YoY (CFO). Full year adjusted EBITDA loss improved 32% to -$26.5 million (CFO).
• Cash and equivalents (including restricted cash) at year-end 2025: $154.5 million; cash used in 2025 was $19.4 million (vs. $45.9 million in 2024) (CFO).
• Positive free cash flow of $6.3 million in Q4 2025, the first quarter of positive operating cash flow in company history (CEO, CFO).
• Enterprise pipeline grew >50% since the Q4 Compass AI launch; closed a second large system-wide enterprise deal in Q4 2025 (CEO).
• R&D milestone: Fifth-generation (P5.1) chip moved to production by year-end; next-gen Apollo chip architecture targets 20x current data rate and compute performance (CEO).

Official Guidance

• Q1 2026: Revenue of $24M–$28M; Adjusted EBITDA loss of ($8M)–($10M) (CFO).
• Full Year 2026: Revenue of $117M–$121M (20%–24% YoY growth); Adjusted EBITDA loss of ($21M)–($25M) (CFO).

Mgmt Quotes

• "It is also the first quarter in our history where we realized positive operating cash flow, driven by upfront payments from our Midjourney deal." (CEO)
• "We are not a medical device company alone. We are a transformative semiconductor-based ultrasound company." (CEO)
• "We had a strong fourth quarter of 2025, with revenue of $31.5 million, the highest quarterly result in the company's history." (CFO)
• "The initial partnership and revenue contribution is pre-commercial... there is meaningful additional revenue opportunity for Butterfly in the form of chip sales and revenue share." (CEO on Midjourney deal)
• "Next up on our chip roadmap is Apollo... delivering 20 times the current data rate and compute performance." (CEO)

Prepared Metrics

Q&A Batch (1–4 of 4)

Q1 — Joshua Thomas Jennings

• Topic: Butterfly Embedded 及 Midjourney 合作收入时间线与贡献
• Key points:
  • Midjourney 合同总额 $74M，包含预付款、年度许可费及里程碑工作收入，预计 2026–2027 年持续贡献。
  • 商业化后还将有芯片销售和收入分成机会。
  • 现有 8–9 个嵌入式合作伙伴，管道中还有其他潜在机会。
  • 家庭护理商业合作预计 2026 年中前完成，下半年开始贡献，2026 年收入“名义性”。
• Mgmt stance: 对 Embedded 业务 bullish，强调 Midjourney 只是其中一部分，管道规模大且有类似机会。

Q2 — Chase Richard Knickerbocker (Jake)

• Topic: 宏观环境及对 2026 年的影响 + 医疗学校机会
• Key points:
  • 关税仍带来“一些下行压力”，但影响不大；去年末已签署若干合同，管道有所改善。
  • 医疗学校是 2026 年重要贡献者，第二季度为大季；去年因学生贷款上限暂停，但当前学生需求强劲，学生用 Butterfly 可增强就业竞争力。
• Mgmt stance: 对宏观中性偏谨慎（关税不确定性），但对医疗学校 bullish（学生选择带超声能力课程趋势明确）。

Q3 — Andrew Frederick Brackmann

• Topic: 向 Butterfly Embedded 转型的原因与组织聚焦
• Key points:
  • 转型并非放弃点阵超声核心 vision，而是底层技术（9,000 传感器数字化控制）可赋能 AI/人体接口、脑机接口等广泛领域。
  • 公司不是另起炉灶，而是开放现有路线图（Poseidon、P5.1、Apollo）给合作伙伴，同时增强点阵超声能力。
  • 类比 NVIDIA (1993–2005 年游戏→CUDA) 和 AWS（内部过剩→云计算），强调商业模式协同。
• Mgmt stance: 强烈 bullish，认为技术被市场“召唤”，且与核心业务协同，不会失去焦点。

Q4 — Benjamin Charles Haynor

• Topic: P5.1 平台时间表、新形态（iQ Station、可穿戴）及 Midjourney 收入分成性质
• Key points:
  • P5.1 预计 2027 年初 出货，已投入生产，夏季返回硬件，随后验证、获 FDA 批准。
  • iQ Station 在路线图上，时间约为 2027 年底。
  • 可穿戴在技术上可行，但等待 家庭护理业务 确定用例后再投入。
  • POCUS 创新者论坛 60 人参会，曾催生 Compass AI（将记录时间从 4–5 分钟降至 30 秒）。
  • Midjourney 的收入分成非版税，体现深度合作伙伴关系，公司愿超额投入。
• Mgmt stance: 对内部 pipeline bullish（P5.1、iQ Station），对可穿戴 cautious（需等待用例验证），对 Midjourney 合作关系 bullish。