BFLY's Q3 Earnings Miss Estimates, Revenues Surpass, Stock Climbs

Core Insights - Butterfly Network, Inc. (BFLY) reported a third-quarter 2025 loss of $0.13 per share, which was wider than the Zacks Consensus Estimate of a loss of $0.07 per share, and compared to a loss of $0.08 per share in the same period last year [1][9] - Revenues for the third quarter reached $21.5 million, reflecting a year-over-year increase of 4.5% and exceeding the Zacks Consensus Estimate by 2.4% [1][9] Revenue Performance - International revenues increased by 4% year over year to $5.4 million, attributed to the higher price point of the iQ3 probe launched internationally in Q3 2024 [2] - The overall revenue growth indicates a positive trend despite the wider loss reported [6] Margin Performance - The company's gross loss for the third quarter was $3.8 million, a significant decline from a gross profit of $12.2 million in the same quarter last year, primarily due to a 203.2% increase in the cost of revenues [3] Expense Analysis - Selling and marketing expenses rose by 10.6% year over year to $10.6 million, while research and development expenses decreased by 1.6% to $8.7 million. General and administrative expenses saw a slight drop of 0.7% to $9 million [4] - The operating loss for the quarter was $32.3 million, compared to a loss of $15.6 million in the same period of 2024 [4] Future Guidance - For 2025, the company anticipates revenues between $91 million and $95 million, indicating approximately 13% growth, with the Zacks Consensus Estimate currently at $91 million [5] - The adjusted EBITDA loss is expected to be between $32 million and $35 million, a slight adjustment from the previous estimate of $32 million to $37 million [5] Innovations and Developments - Recent innovations include the launch of an AI-powered Gestational Age Calculator in Malawi and Uganda, which is pending FDA review [6] - The HeartFocus by DESKi app became the first FDA-cleared third-party app on Butterfly Garden, enabling AI-guided echo exams [7] - The company has completed the development of the P5.1 chip and initiated the development of the sixth-generation Apollo AI chip for enhanced edge AI capabilities [7]