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 guidance, though the updated targets were not included in the results information provided here.
The update highlighted growth in Butterfly’s enterprise and embedded businesses, progress toward federal and home-care opportunities, and new partnerships spanning medical education, maternal health and brain-computer interfaces.
Key details
- Revenue grew sharply, led by U.S. sales. Revenue was $32.6 million, compared with $21.5 million in the third quarter of 2025. U.S. revenue rose 71% to $27.5 million, driven in part by Embedded partnerships, including the co-development partnership with Midjourney, and higher probe sales to health systems, distributors and eCommerce customers.
- International revenue declined. Sales outside the U.S. fell 5% year over year to $5.1 million, largely because of lower probe sales. The company also cited momentum in Brazil and a new distribution partner in Taiwan.
- Gross margin reached a record 73%. Butterfly said this was its highest gross margin to date.
- Enterprise sales advanced. The company closed five enterprise deals with total contract value of at least $1 million each, plus ten deals valued at $100,000 or more. It also said its enterprise pipeline is converting into signed contracts.
- Federal opportunities gained support. Butterfly achieved FedRAMP authorization, which it said supports opportunities with federal agencies and the Department of Veterans Affairs.
- Embedded products are reaching the market. Mendaera became the first partner to launch a commercial product built on Butterfly technology, on October 1. Butterfly also added three brain-computer-interface partners; the company named Merge Labs and Bridge Neurotech among the partners announced during the quarter.
- Home and community care moved toward launch. The business entered implementation in its first state, with scanning expected to begin in November and initial revenue anticipated in the fourth quarter.
- Partnerships expanded in education and software. Butterfly announced a multi-year Lighthouse program with VCOM to provide a device to every student and track point-of-care ultrasound use from medical school into residency. It also signed five new Butterfly Garden partners. DeepEcho, the first international and first maternal-health application on the platform, went live on October 23.
- Technology development continued. The Apollo chip remained on schedule, the company prepared a limited release of wearable research devices for Embedded partners, and it continued preparations for a next-generation product using the P5.1 chip, planned for early 2027.
Plain-English implications
The quarter combined strong revenue growth and record gross margin with progress in several newer channels, including Embedded, enterprise and home care. The raised full-year guidance signals management expects its revenue and adjusted EBITDA performance to exceed its prior outlook, but the updated targets are not specified in the results information summarized here.