BFLY stock forecast, quote, news & analysis
Butterfly Network Inc is a digital health business transforming care with handheld, whole-body ultrasound... Show more
Butterfly Network (BFLY) Stock Analysis: Embedded Partnerships and AI Expansion Reshape the Growth Narrative
Key Takeaways
- Butterfly Network shares traded near $8.16 as of late July 2026, reflecting a modest 30-day decline of roughly 3% from the June 30 close of $8.42, while the stock remains up approximately 87% year-to-date.
- Second-quarter 2026 results delivered record revenue of $32.6 million, up 39% year-over-year, and a company-high gross margin of 71%, driven largely by surging Butterfly Embedded licensing revenue.
- Full-year 2026 revenue guidance was raised to $119–$123 million, implying 22%–26% growth, while the adjusted EBITDA loss narrowed significantly to $1.4 million in Q2.
- The Midjourney co-development partnership and 11 total Embedded collaborators are validating the Ultrasound-on-Chip platform beyond traditional point-of-care ultrasound markets.
- Insider selling by founder Jonathan Rothberg under a pre-established 10b5-1 plan has drawn investor attention, though the company's multi-engine growth strategy continues to advance.
Current Market Snapshot
Butterfly Network shares have experienced pronounced volatility over the past several weeks. After a dramatic spike to $8.90 on June 18, 2026 — fueled by revelations that Embedded partners including Midjourney were building groundbreaking applications atop Butterfly's Ultrasound-on-Chip semiconductor platform — the stock settled into a consolidation range. Prices drifted from $8.42 at the end of June to a recent low of $6.58 on July 24, pressured in part by a disclosed insider share sale by founder Jonathan Rothberg. The July 30 Q2 earnings release, featuring a top-and-bottom-line beat and raised guidance, sparked a sharp intraday recovery toward $8.16. With a market capitalization approaching $1.9 billion and a price-to-sales ratio above 17, the stock continues to price in aggressive growth expectations tied to Butterfly's AI ecosystem and Embedded licensing model.
Butterfly Network (BFLY) Business Overview and Competitive Position
Butterfly Network is a digital health company that has pioneered semiconductor-based, handheld whole-body ultrasound technology. Its flagship Ultrasound-on-Chip platform replaces traditional piezoelectric transducer arrays with a single silicon chip, enabling a portable probe — currently the iQ3 and iQ+ devices — to perform diagnostic imaging across multiple clinical applications when paired with a smartphone or tablet. The company generates revenue through three growing channels: direct probe and software subscription sales to healthcare providers, medical schools, and veterinary practices (the core POCUS business); the Butterfly Embedded program, which licenses its chip technology to partners in robotics, wearables, pharmaceuticals, and neurotechnology for co-development; and an emerging Home & Community Care initiative aimed at extending ultrasound into at-home chronic disease management. Butterfly's AI portfolio, anchored by Compass AI and the Butterfly Garden developer ecosystem, adds a recurring software layer that differentiates the company from conventional medical device manufacturers.
Recent Developments Driving BFLY
The most consequential development in recent weeks arrived on July 30, when Butterfly reported Q2 2026 results that exceeded consensus expectations. Revenue reached $32.6 million, surpassing analyst estimates by roughly $3.4 million, while adjusted EPS of -$0.01 beat the -$0.03 consensus. Gross margin climbed to 71.4%, a company record, reflecting the high-margin contribution of Embedded licensing revenue, which surged 439% to $10.8 million. Management raised full-year revenue guidance to a range of $119 million to $123 million and improved its adjusted EBITDA loss outlook to $19–$23 million. Earlier in the quarter, Butterfly disclosed that two Embedded partners — Midjourney and Aleph Neuro — publicly unveiled applications built on the Ultrasound-on-Chip platform, validating the technology's reach beyond medical imaging into brain-computer interfaces and AI-driven creative tools. The company also received provisional authorization to sell across the U.S. Department of Veterans Affairs and secured regulatory clearance in Brazil, one of the world's largest ultrasound markets. On the sentiment side, founder Jonathan Rothberg sold approximately 660,000 shares at $6.47 on July 22 under a pre-arranged Rule 10b5-1 trading plan for estate planning purposes, a transaction that drew scrutiny but left his indirect holdings above 22 million shares.
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2026 Outlook and What Investors Should Watch
Butterfly Network enters the second half of 2026 with several catalysts that could shape its trajectory. The pace of new Embedded partner signings and the commercialization timelines of existing partners — particularly those approaching product launches in vascular robotics and AI-driven diagnostics — will be closely monitored. Management guided for Q3 revenue of $26–$30 million and expects Home & Community Care to begin generating revenue in the fourth quarter, representing a potential new growth vertical. Progress toward FedRAMP certification, which would unlock broader U.S. government sales, and the commercial debut of Butterfly Garden AI applications from three third-party developers expected by year-end, are additional milestones. On the risk side, international revenue declined 14% in Q2, cash used in operations widened to $13.3 million, and the high price-to-sales multiple leaves limited room for execution missteps. Investors will also watch for further insider transaction activity and any updates on the fourth-generation chip platform, which management believes can expand Butterfly's addressable market into the $1.6–$2 billion compact cart ultrasound segment.
Disclaimer
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BFLY sees MACD Histogram just turned negative
BFLY saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on July 07, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for BFLY moved out of overbought territory on June 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 26 similar instances where the indicator moved out of overbought territory. In of the 26 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BFLY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BFLY broke above its upper Bollinger Band on July 30, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for BFLY entered a downward trend on July 31, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 64 cases where BFLY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on July 30, 2026. You may want to consider a long position or call options on BFLY as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BFLY advanced for three days, in of 231 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BFLY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (10.000) is normal, around the industry mean (10.948). P/E Ratio (0.000) is within average values for comparable stocks, (63.950). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (4.043). BFLY has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.016). P/S Ratio (16.234) is also within normal values, averaging (35.779).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BFLY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock worse than average.
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Industry MedicalNursingServices