Butterfly Network reported third-quarter revenue of $32.6 million, up 52% from a year earlier, and said it exceeded the high end of its revenue and adjusted EBITDA guidance. Gross margin reached a company record of 73%. Management also raised its full-year revenue and adjusted EBITDA outlook.
The results and business update point to stronger U.S. sales and growing contributions from partnerships, alongside continued expansion in enterprise, federal, education and home-care markets.
Key details
- Revenue growth was concentrated in the U.S. U.S. revenue rose 71% year over year to $27.5 million, driven partly by Embedded partnerships—including the co-development partnership with Midjourney—and higher probe sales to health-system, distributor and e-commerce customers.
- International revenue declined. It fell 5% to $5.1 million, largely because of lower probe sales.
- Gross margin hit a record. The 73% margin was the highest in Butterfly’s history. The company did not provide an adjusted EBITDA figure in the results details included here, but said it beat the high end of its quarterly guidance.
- Full-year outlook was raised. Management increased its full-year revenue and adjusted EBITDA guidance; specific revised targets were not included in the results details provided.
- Embedded partnerships advanced toward commercialization. Butterfly added three brain-computer-interface partners, including Merge Labs and Bridge Neurotech. Mendaera became the first partner to launch a commercial product using Butterfly technology, on October 1.
- Enterprise sales produced sizable contract wins. The company closed five deals with total contract values of at least $1 million and ten with values of at least $100,000 during the quarter.
- Federal market access expanded. Butterfly achieved FedRAMP authorization, which supports its pursuit of federal and Veterans Affairs opportunities.
- Education and software partnerships grew. Butterfly announced a multiyear Lighthouse partnership with VCOM to equip every student with a Butterfly device and study point-of-care ultrasound use from medical school through residency. Butterfly Garden added five partners; DeepEcho became its first international and first maternal-health application to go live, on October 23.
- Home and community care moved toward launch. The program entered implementation in its first state, with scanning expected to begin in November and initial revenue anticipated in the fourth quarter.
- Product development and international distribution continued. Butterfly said development of its Apollo chip remained on schedule, it was preparing a limited release of wearable research devices for Embedded partners, and it was preparing a next-generation product powered by the P5.1 chip for an early-2027 launch. It also added a distribution partner in Taiwan and reported momentum in Brazil.
The quarter’s growth was led by U.S. sales, with Embedded partnerships contributing to revenue and new products and programs moving closer to market. The raised outlook, record gross margin and reported enterprise contract wins add to the evidence of commercial progress, while international revenue remained below its year-earlier level.