Group 1: Financial Performance - In the first three quarters of 2025, the company achieved total revenue of 1.45 billion CNY, a year-on-year increase of 5% [2] - The net profit attributable to shareholders reached 257 million CNY, showing a significant year-on-year growth of nearly 50% [2] - In Q3 2025, total revenue was 530 million CNY, representing a year-on-year increase of approximately 16% and a quarter-on-quarter increase of about 8% [3] Group 2: Market Performance - Domestic market revenue for the first three quarters was 530 million CNY, a decline of around 4% [2] - International market revenue reached 910 million CNY, with a year-on-year growth of 10.7%, contributing over 60% to total revenue [3] - In Q3 2025, domestic revenue was 176 million CNY, up 18% year-on-year, while international revenue was 357 million CNY, reflecting a growth of about 15% [3] Group 3: Strategic Initiatives - The company is collaborating with the Gates Foundation, receiving payments of 2.568 million USD and 1.547 million USD for project development [4] - Future plans include product upgrades and expanding local operations to maintain stable growth in overseas markets [3] Group 4: Contract Liabilities and R&D - Q3 contract liabilities increased significantly due to enhanced order acquisition capabilities, expected to convert into revenue and profit [5] - R&D expenses decreased while maintaining research intensity, attributed to the application of advanced technologies and efficient management practices [6][7] Group 5: Production and Sales Structure - The new facility in the U.S. spans 1,940 square meters and has received necessary certifications, focusing initially on monitoring and obstetric products [8] - The domestic sales structure includes 28 offices, ensuring comprehensive coverage and effective service support [9] - The international market employs a national agency sales model, with plans to establish subsidiaries in mature regions [10] Group 6: Product Performance - The i500 device, a key product, has shipped around 300 units and over 300,000 reagent units since the beginning of the year, supporting future growth in blood gas business [11] - The overall gross margin for the first three quarters was approximately 58%, with domestic gross margin at 64% and international gross margin at 55% [12]

Core Insights - Butterfly Network reported a record gross margin of 63.7% and a revenue growth of 9.0% year-over-year for Q2 2025, although revenue slightly missed analyst expectations at $23.4 million [1][2] - The company narrowed its losses with non-GAAP earnings per share of $(0.03), better than the expected $(0.05) [1] - Management revised its full-year revenue guidance down to $91 million to $95 million for FY2025, indicating a shift from earlier expectations of approximately 20% year-on-year growth [1][10] Financial Performance - Revenue for Q2 2025 was $23.4 million, up 8.8% from $21.5 million in Q2 2024 [2] - Gross margin improved by 5.1 percentage points from 58.6% in Q2 2024 to 63.7% in Q2 2025 [2][6] - Product revenue increased by 25% to $14.2 million, while software and services revenue remained flat at $6.8 million [5] Strategic Developments - Butterfly Network focuses on handheld ultrasound devices using Ultrasound-on-Chip technology, targeting a wide range of healthcare providers [3] - The company is expanding clinical partnerships and launching new AI-driven software, including the iQ3 device and upcoming P5 chip [4][7] - Recent pilot programs, such as Butterfly HomeCare, have shown promising results in reducing hospital readmissions [8] Future Outlook - The updated revenue guidance suggests approximately 13% growth for FY2025, down from previous estimates [10] - Despite the reduced revenue outlook, the company expects adjusted EBITDA losses to improve to between $32 million and $37 million for FY2025 [10] - Key areas to monitor include the uptake of new AI-driven software, international expansion, and progress in securing additional hospital contracts [11]