Key Highlights

  • Q3 Revenue reached $32.6 million, topping both revenue and adjusted EBITDA expectations.
  • Gross Margin hit a record 73% for the quarter.
  • Management raised full year guidance on enterprise deal momentum.
  • FedRAMP authorization and the initial rollout of the Embedded solution supported growth, with Home and Community Care sales expected to begin in Q4.

Revenue and Margin Both Beat Expectations

Butterfly Network reported third quarter revenue of $32.6 million, exceeding both Top Line and adjusted EBITDA expectations. The company also achieved a record gross margin of 73% for the period, marking a notable improvement in profitability as it scales its handheld ultrasound and software platform. The combination of revenue outperformance and margin expansion led management to raise full year guidance.

Enterprise Traction and New Product Rollouts

Growth during the quarter was supported by increased enterprise deal traction, FedRAMP authorization enabling broader government and regulated sector adoption, and the initial commercial rollout of the company's Embedded solution. FedRAMP authorization in particular opens the door to government and other highly regulated customers that require stringent data security certifications before adopting new technology. Looking ahead, management expects the Home and Community Care segment to generate its first sales in the fourth quarter, adding a new revenue stream alongside Butterfly's existing enterprise and point of care business.

Why did Butterfly Network raise its full year 2026 guidance?

The raise followed a third quarter that beat both revenue and adjusted EBITDA expectations, supported by enterprise deal traction, FedRAMP authorization, and the Embedded solution rollout.

What is the Home and Community Care segment?

It is a newer Business line at Butterfly Network that management expects to generate its first sales in the fourth quarter of 2026.