Financial Data and Key Metrics Changes - The company reported a revenue of $21.2 million for Q1 2025, reflecting a 20% growth compared to the previous year [13][14] - Gross profit increased to $13.4 million, a 30% rise from $10.3 million in the prior year, with gross margin improving to 63% from 58% [16] - Adjusted EBITDA loss improved from $13.2 million a year ago to $9.1 million, marking a 31% improvement [16][20] Business Line Data and Key Metrics Changes - Product revenue reached $14.2 million, up 25% year-over-year, driven by higher sales volume [14] - Software and other services revenue was $7.1 million, an 11% increase, attributed to higher enterprise software revenue [15] - The mix of revenue from software and services decreased to 33% as product revenue growth outpaced software revenue [15] Market Data and Key Metrics Changes - U.S. revenue was $16.6 million, a 24% increase year-over-year, while international revenue rose 9% to $4.6 million [14] - The company is focusing on expanding its presence in Asia and Latin America, as well as high-potential global health markets [11] Company Strategy and Development Direction - The company is diversifying its product offerings, including the introduction of the AI marketplace Butterfly Garden and the chip licensing program Octave [5][24] - The company aims to maintain leadership in digital, cloud-connected, open platform, and EMR integrated systems through continued R&D investment [6] - The strategy includes targeting medical schools for personal probe purchases, similar to Apple's approach with laptops [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic headwinds, particularly from USAID funding cuts affecting global health initiatives, but remains optimistic about future growth [12][20] - The company expects to maintain its full-year guidance of approximately 20% revenue growth despite uncertainties in healthcare funding [21] - Management emphasized the long-term value of its technology, which is seen as a more affordable solution compared to traditional ultrasound systems [21][22] Other Important Information - The company completed a secondary public offering generating $81 million, which will support ongoing investments and growth initiatives [17] - The upcoming launch of Compass 2.0 software is anticipated to enhance operational efficiency and create new revenue streams [29] Q&A Session Summary Question: Can you discuss the process for securing the second hospital enterprise contract? - Management highlighted the groundswell of demand from doctors for Butterfly technology, leading to institutional adoption and integration into hospital networks [37][40] Question: What is the funnel for additional opportunities with medical schools? - The company is seeing strong interest from medical schools in one-to-one probe programs, with discussions focused on budget allocations for the upcoming fiscal year [42][44] Question: How impactful have the publications from Rochester and Rutgers been on the hospital channel? - The publications have opened conversations at the C-suite level in hospitals, highlighting the widespread adoption of Butterfly technology among affiliated doctors [51][52] Question: What is the split between price and volume in U.S. product sales? - The split is approximately 80% volume and 20% price, with significant price increases observed in international markets [73] Question: How is the company managing currency risks? - The company reported virtually no foreign currency risk, indicating a stable financial position despite currency fluctuations [61]

Financial Performance - Butterfly Network, Inc. reported a quarterly loss of $0.06 per share, better than the Zacks Consensus Estimate of a loss of $0.09, and compared to a loss of $0.07 per share a year ago, indicating an earnings surprise of 33.33% [1] - The company posted revenues of $21.23 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.58%, but showing an increase from year-ago revenues of $17.66 million [2] - Over the last four quarters, Butterfly Network has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Butterfly Network shares have declined approximately 25% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The company's current Zacks Rank is 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $24.46 million, and for the current fiscal year, it is -$0.32 on revenues of $97.54 million [7] - The trend of estimate revisions for Butterfly Network is currently favorable, which could influence future stock movements [5][6] Industry Context - The Medical Info Systems industry, to which Butterfly Network belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance - Revenue for Q1 2025 reached $21.2 million, a 20% increase compared to $17.7 million in Q1 2024[10] - Gross margin improved to 63%, up 4.8 percentage points from 58.2% in Q1 2024[10] - Operating expenses decreased by 3% from $32.9 million to $31.8 million[10] - Adjusted EBITDA loss improved by 31%, from $(13.2) million to $(9.1) million[10] - Cash and cash equivalents increased to $155.2 million, up from $88.8 million[10] - The company reaffirmed its 2025 revenue guidance of $96 - $100 million, representing approximately 20% growth, and an EBITDA loss of $37 - $42 million[11] Business Updates - The company is focused on medical education, hospital systems, and international expansion within its core POCUS business[6,7,8] - Butterfly signed 5 partners in the portfolio and has over 25 prospects in the pipeline[14] - Two new partners were signed in Q1, bringing the total to 23 portfolio companies, with the first partners on track to commercialize FDA-cleared apps this year[17] - Butterfly HomeCare is piloting virtual chronic care management with a leading Medicare Advantage provider, showing early results with no rehospitalizations for patients with congestive heart failure[22]

Financial Data and Key Metrics Changes - The company reported a revenue of $21.2 million for Q1 2025, reflecting a 20% growth compared to the previous year [13] - Adjusted EBITDA loss improved from $13.2 million in Q1 2024 to $9.1 million in Q1 2025, marking a 31% improvement [17] - Gross profit increased by 30% to $13.4 million, with gross margin rising to 63% from 58% [16] Business Line Data and Key Metrics Changes - Product revenue reached $14.2 million, a 25% increase year-over-year, driven by higher sales volume [14] - Software and other services revenue was $7.1 million, up 11% from the prior year, attributed to higher enterprise software revenue [15] - The mix of revenue from software and services decreased to 33% as product revenue growth outpaced software revenue [15] Market Data and Key Metrics Changes - U.S. revenue was $16.6 million, a 24% increase year-over-year, while international revenue increased by 9% to $4.6 million [14] - The company is focusing on expanding its presence in Asia and Latin America, as well as high-potential global health markets [11] Company Strategy and Development Direction - The company is diversifying its product offerings, including the introduction of the AI marketplace Butterfly Garden and the chip licensing program Octave [5] - The strategy includes targeting medical schools for personal probe purchases, similar to Apple's approach with laptops [8] - The company aims to launch Compass 2.0 software in the second half of 2025, enhancing its service offerings [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth despite economic headwinds, particularly in global health funding [12] - The company maintains its full-year guidance of approximately 20% revenue growth and adjusted EBITDA loss between $37 million and $42 million [21] - Management highlighted the importance of maintaining a disciplined approach to expense control while investing in growth areas [21] Other Important Information - The company has completed a secondary public offering, generating $81 million in net proceeds to support ongoing investments [18] - The company is closely monitoring potential tariff impacts, estimating minimal exposure due to its manufacturing and assembly locations [19][20] Q&A Session Summary Question: Positive momentum with the second hospital enterprise contract - Management discussed the groundswell of activity within health systems, leading to increased adoption of Butterfly technology [38][40] Question: Opportunities with schools for one-to-one programs - Management noted strong interest from medical schools in adopting one-to-one probe programs, creating recurring revenue opportunities [44][45] Question: Impact of clinical benefits publications on hospital channel - Management indicated that publications have opened doors to C-suite discussions, enhancing the company's visibility and credibility [52][54] Question: Competitive displacement with IQ3 - Management clarified that the adoption of IQ3 is more about choosing a winner rather than displacing an incumbent, as the market is still developing [70] Question: Price and volume split in U.S. product sales - The company reported an 80% volume and 20% price split in U.S. product sales, with international markets seeing a higher price impact [74] Question: Updates on active partnerships and applications - Management shared insights on ongoing partnerships, including advancements in brain-computer interface technology [77][82] Question: Timing for medical schools to adopt new programs - Management explained that decisions typically occur at the end of the first calendar quarter or in the second quarter, aligning with school budget cycles [85][88]

[Part I - Financial Information](index=5&type=section&id=Part%20I%20Financial%20Information) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, detailing financial position, performance, and cash flows [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Total assets increased significantly by March 31, 2025, driven by cash from a share offering, while liabilities decreased and equity grew Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $155,212 | $88,775 | | Total current assets | $257,383 | $192,613 | | Total assets | $318,412 | $256,082 | | **Liabilities & Equity** | | | | Total current liabilities | $42,476 | $48,215 | | Total liabilities | $78,716 | $87,250 | | Total stockholders' equity | $239,696 | $168,832 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss%20(Unaudited)) Total revenue grew 20.2% year-over-year to $21.2 million, while the company significantly narrowed its net loss for Q1 2025 Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $21,225 | $17,656 | | Gross Profit | $13,380 | $10,276 | | Loss from Operations | $(18,468) | $(22,621) | | Net Loss | $(13,967) | $(21,761) | | Net Loss Per Share | $(0.06) | $(0.10) | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20(Unaudited)) Total stockholders' equity significantly increased by March 31, 2025, primarily driven by net proceeds from a public share offering - A public share offering in Q1 2025 resulted in net proceeds of **$81.1 million**, significantly boosting stockholders' equity[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash used in operating activities improved, while financing activities generated substantial cash, resulting in a net increase in cash for the quarter Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(11,677) | $(20,667) | | Net cash used in investing activities | $(353) | $(1,138) | | Net cash provided by financing activities | $78,467 | $— | | Net increase (decrease) in cash | $66,437 | $(21,805) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes provide detailed explanations of accounting policies and financial statement line items, including revenue disaggregation, share offering details, and legal proceedings Disaggregated Revenue (in thousands) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **By product type:** | | | | Hardware | $14,164 | $11,291 | | Software and other services | $7,061 | $6,365 | | **By geographical market:** | | | | United States | $17,039 | $13,737 | | International | $4,186 | $3,919 | | **Total Revenue** | **$21,225** | **$17,656** | - On January 31, 2025, the Company issued 27,600,000 shares of Class A common stock in a public offering, receiving net proceeds of **$81.1 million** after deducting underwriting discounts and other expenses[54](index=54&type=chunk) - The company is defending against a putative class action lawsuit (Rose v. Butterfly) and two stockholder derivative actions (Koenig v. Fruchterman and Bhavsar v. Fruchterman), but is unable to predict the outcome or estimate a range of possible loss at this time[71](index=71&type=chunk)[72](index=72&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, highlighting revenue growth, reduced net loss, significant cash requirement reductions, and successful capital raising - The company has taken significant actions to reduce its annual cash requirements by approximately **$180 million**, to less than **$50 million** annually[77](index=77&type=chunk) - In January 2025, the company raised **$81.1 million** in net proceeds from a public offering of 27.6 million shares of Class A common stock[77](index=77&type=chunk)[106](index=106&type=chunk) Revenue and Expense Changes (Q1 2025 vs Q1 2024) | Item | Q1 2025 (in thousands) | Q1 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $21,225 | $17,656 | 20.2% | | Gross Profit | $13,380 | $10,276 | 30.2% | | R&D Expense | $9,924 | $10,720 | (7.4)% | | Sales & Marketing Expense | $11,620 | $10,378 | 12.0% | | G&A Expense | $9,600 | $10,442 | (8.1)% | - Net cash used in operating activities decreased by **$9.0 million (43.5%)** year-over-year, driven by a lower net loss and improved working capital management[112](index=112&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies interest rate, inflation, and foreign exchange risks as primary market exposures, which management currently deems immaterial due to conservative cash management and USD-denominated transactions - The company's primary market risks are identified as interest rate risk, inflation risk, and foreign exchange risk[118](index=118&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk) - Management does not believe that these risks have had a material effect on the business, financial condition, or results of operations[118](index=118&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk) - Cash and cash equivalents are held in bank deposits and money market accounts, and a sudden 100 basis point change in interest rates is not expected to have a significant effect[118](index=118&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the Chief Executive Officer and Chief Financial & Operations Officer, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[124](index=124&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[125](index=125&type=chunk) [Part II - Other Information](index=27&type=section&id=Part%20II%20Other%20Information) [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to legal proceedings in the ordinary course of business, with detailed information provided in Note 12 of the financial statements - For detailed information about legal proceedings, this item refers to Note 12 in the Notes to Condensed Consolidated Financial Statements[128](index=128&type=chunk) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material changes to the risk factors described in the 2024 Annual Report on Form 10-K[129](index=129&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales or repurchases of its equity securities during the three months ended March 31, 2025 - The company did not have any unregistered sales of equity securities during the quarter[130](index=130&type=chunk) - The company did not repurchase any of its equity securities during the three months ended March 31, 2025[131](index=131&type=chunk) [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information) This section discloses a Rule 10b5-1 trading plan adopted by entities associated with a board member to sell Class A common stock, with no other similar plans adopted by directors or officers - On March 5, 2025, entities associated with board member Dr. Jonathan Rothberg adopted a Rule 10b5-1 trading plan to sell up to **6,202,545 shares** of Class A common stock[132](index=132&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including corporate documents, officer certifications, and Inline XBRL data files - The report includes an index of all exhibits filed, such as officer certifications and Inline XBRL documents[134](index=134&type=chunk)[136](index=136&type=chunk) [Signatures](index=31&type=section&id=Signatures) The report is duly signed on May 2, 2025, by Heather C. Getz, CPA, as Executive Vice President and Chief Financial & Operations Officer - The report was signed on May 2, 2025, by Heather C. Getz, CPA, Executive Vice President and Chief Financial & Operations Officer[141](index=141&type=chunk)

[First Quarter 2025 Highlights](index=1&type=section&id=Recent%20Operational%20and%20Strategic%20Highlights) Butterfly Network reported strong Q1 2025 results, achieving 20% YoY revenue growth and meeting guidance, with key operational progress including a successful $81.7 million capital raise, advancement of the Butterfly HomeCare pilot program, and continued momentum in medical education and enterprise adoption - The CEO highlighted a **20% growth quarter**, marking a strong start to 2025 and progress in the company's five-year strategic plan. Key growth drivers include medical education, enterprise adoption, and strategic initiatives like Octiv™ and Butterfly HomeCare[3](index=3&type=chunk) - Successfully raised **$81.7 million** in net proceeds from a public offering that closed on January 31, 2025, significantly strengthening the company's balance sheet[5](index=5&type=chunk)[6](index=6&type=chunk) - The Butterfly HomeCare pilot program for congestive heart failure entered its clinical phase. Early results are promising, with **no rehospitalizations** among scanned patients, a significant outcome considering historical readmission rates[5](index=5&type=chunk)[6](index=6&type=chunk) - Momentum in medical education continued, with one of the largest U.S. Colleges of Osteopathic Medicine committing to a **one-probe-per-student model** for the future[6](index=6&type=chunk) - The Butterfly Garden AI development platform expanded to **23 partners**. Partner DESKi received FDA clearance for its HeartFocus AI-powered cardiac app, marking the **second commercialization** from the platform[6](index=6&type=chunk) [First Quarter 2025 Financial Performance](index=1&type=section&id=Three%20Months%20Ended%20March%2031%2C%202025%20Financial%20Results) The company achieved total revenue of $21.2 million, a 20% increase YoY, driven by strong U.S. sales and the higher price of the iQ3 probe, while gross margin improved significantly to 63.0% from 58.2%, operating expenses decreased by 3%, resulting in a reduced net loss of $14.0 million and an improved Adjusted EBITDA loss of $9.1 million Q1 2025 Key Financial Metrics (YoY Comparison) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $21.2M | $17.7M | +20% | | U.S. Revenue | $16.6M | - | +24% | | International Revenue | $4.6M | - | +9% | | Gross Profit | $13.4M | $10.3M | +30% | | Gross Margin | 63.0% | 58.2% | +4.8 p.p. | | Operating Expenses | $31.8M | $32.9M | -3% | | Net Loss | ($14.0M) | ($21.8M) | +36% Improvement | | Adjusted EBITDA Loss | ($9.1M) | ($13.2M) | +31% Improvement | | Adjusted EPS | ($0.04) | ($0.07) | +43% Improvement | - Revenue growth was primarily driven by higher sales volume to U.S. health systems, the impact of the iQ3 probe's higher selling price, and the delivery of semiconductor chips to newly onboarded partners[7](index=7&type=chunk) - The increase in gross margin was mainly due to higher average selling prices and improved software margins resulting from reduced software amortization and lower hosting costs[8](index=8&type=chunk) - The company ended the quarter with **$155.2 million** in cash and cash equivalents[13](index=13&type=chunk) [Full Year 2025 Guidance](index=3&type=section&id=Guidance) Butterfly Network has reiterated its full-year 2025 guidance, projecting revenue between $96 million and $100 million, which represents approximately 20% growth, and an Adjusted EBITDA loss in the range of $37 million to $42 million Full Year 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | $96M - $100M (~20% growth) | | Adjusted EBITDA Loss | ($37M) - ($42M) | [Financial Statements](index=6&type=section&id=Financial%20Statements) The financial statements detail the company's performance and position, with the income statement showing a reduced net loss compared to the prior year, the balance sheet reflecting a stronger cash position following a public offering with cash and equivalents increasing to $155.2 million, and the cash flow statement indicating a 43% reduction in cash used in operations and a significant inflow from financing activities [Condensed Consolidated Statements of Operations](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) Q1 2025 vs Q1 2024 Income Statement Highlights (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $21,225 | $17,656 | | Gross Profit | $13,380 | $10,276 | | Loss from Operations | $(18,468) | $(22,621) | | Net Loss | $(13,967) | $(21,761) | | Net Loss per Share | $(0.06) | $(0.10) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $155,212 | $88,775 | | Total Current Assets | $257,383 | $192,613 | | Total Assets | $318,412 | $256,082 | | Total Liabilities | $78,716 | $87,250 | | Total Stockholders' Equity | $239,696 | $168,832 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash Flow Summary for Three Months Ended March 31 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(11,677) | $(20,667) | | Net cash used in investing activities | $(353) | $(1,138) | | Net cash provided by financing activities | $78,467 | $0 | - The significant cash provided by financing activities in Q1 2025 was primarily due to **$81.1 million** in net proceeds from a share offering[31](index=31&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) The company provides reconciliations for non-GAAP measures to their most comparable GAAP counterparts, with Adjusted Gross Margin at 63.3% for Q1 2025 and the reconciliation from Net Loss to Adjusted EBITDA showing an Adjusted EBITDA loss of $9.1 million, a significant improvement from the prior-year period [Adjusted Gross Profit and Adjusted Gross Margin](index=9&type=section&id=ADJUSTED%20GROSS%20PROFIT%20AND%20ADJUSTED%20GROSS%20MARGIN) Adjusted Gross Profit Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Gross Profit (GAAP) | $13,380 | $10,276 | | Add: Write-downs of inventories | $52 | $0 | | Adjusted Gross Profit (Non-GAAP) | $13,432 | $10,276 | | **Adjusted Gross Margin** | **63.3%** | **58.2%** | [Adjusted EBITDA and Adjusted EPS](index=10&type=section&id=ADJUSTED%20EBITDA%20AND%20ADJUSTED%20EPS) Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss (GAAP) | $(13,967) | $(21,761) | | Adjustments (Stock Comp, etc.) | $4,899 | $8,605 | | **Adjusted EBITDA (Non-GAAP)** | **$(9,068)** | **$(13,156)** | - Adjusted EPS for Q1 2025 was **$(0.04)**, an improvement from **$(0.07)** in Q1 2024[35](index=35&type=chunk)

Industry Description The year 2025 is witnessing a significant expansion of the Medical Info Systems industry, fueled by new federal policies and strong regulatory support. A major catalyst is Donald Trump's $500 billion Stargate AI project, aimed at accelerating AI infrastructure across sectors, including healthcare, with initial backing from SoftBank, OpenAI, Oracle and MGX. Per a Business Research Company report, the use of AI in the medical device market is expected to witness a CAGR of 29.9% during 202 ...

Industry Overview - Healthcare IT spending is on the rise, with 75% of healthcare providers increasing investments in AI, cybersecurity, and other IT areas, transitioning from a pandemic response to a core aspect of next-generation healthcare driven by generative AI technologies [1][2] - The sector is projected to experience a compound annual growth rate (CAGR) of 15.4% from 2024 to 2031, making healthcare IT a highly attractive investment opportunity [2] Company Highlights - Tempus AI has seen its stock rise by 30% year-to-date, focusing on precision oncology and personalized care through its AI-based platform that integrates multi-modal data [7] - Butterfly Network is gaining traction with its Ultrasound-on-Chip technology and is expected to report 5.9% earnings growth alongside an 18.9% revenue increase in 2025, with a strong buy recommendation from brokers [12][13] - Health Catalyst provides data and analytics technology to improve healthcare outcomes, with expectations of 7.1% earnings growth and a 9.2% revenue increase in 2025, holding a "hold" rating from analysts [18][19] Digital Transformation - By 2025, 70% of healthcare leaders plan to invest in digital tools, with 60% aiming to upgrade core technologies like EMRs and ERP software, indicating a significant shift towards digital transformation in the industry [9] - Cybersecurity is a major focus, with 78% of executives prioritizing enhancements due to the increasing risk of cyber threats as digital adoption accelerates [10] Generative AI Impact - Over 40% of organizations report significant to moderate returns on investment from generative AI, while 37% are still evaluating its impact, suggesting many companies are in the early stages of implementation [11]

Core Viewpoint - Butterfly Network, Inc. (BFLY) has experienced significant selling pressure, resulting in a 34.5% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating potential for recovery [1]. Group 1: Technical Analysis - The stock is currently in oversold territory, with a Relative Strength Index (RSI) reading of 29.36, suggesting a possible trend reversal [5]. - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating an oversold condition [2][3]. Group 2: Fundamental Analysis - Analysts have raised earnings estimates for BFLY by 4.6% over the last 30 days, which is a positive sign for potential price appreciation [6]. - BFLY holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the outlook for a turnaround [7].

NEW YORK, March 25, 2025 /PRNewswire/ -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating whether certain officers and directors of Butterfly Network, Inc. (NYSE: BFLY) breached their fiduciary duties to shareholders.  According to a federal securities lawsuit, Insiders at Butterfly Network caused the company to misrepresent or fail to disclose that (i) Butterfly had overstated its post-Merger business and financial prospects; (ii) notwithstanding the ongoing COVID-19 pandemic, Butterfly ...