Butterfly Network (BFLY) opened Q1 2026 earnings season with trailing 12 month revenue of about US$97.6 million and a basic EPS loss of roughly US$0.31, setting a clear backdrop of scale without profitability. The company has seen quarterly revenue move from US$22.4 million in Q4 2024 to US$31.5 million in Q4 2025, while basic EPS over those same quarters went from a loss of US$0.08 to a loss of US$0.06. This has left investors focused on how much of that top line is ultimately flowing through to margins.

See our full analysis for Butterfly Network.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with the most widely held narratives around Butterfly Network's growth potential and ongoing losses.

Revenue Near US$97.6m, Losses Still Heavy

• Over the trailing 12 months, Butterfly booked about US$97.6 million in revenue with a net loss of roughly US$77.1 million, so for every dollar of sales, a large portion is still not covering costs.
• Bulls argue that AI driven imaging, HomeCare pilots, and the Butterfly Garden ecosystem can eventually support higher quality revenue. However, current figures show hardware heavy revenue and a trailing twelve month cash use of US$46 million, which keeps the bullish case highly dependent on future margin improvement rather than what is visible in recent earnings.
  • The trailing loss of about US$77.1 million and a basic EPS loss of roughly US$0.31 contrast with the view that the business is moving closer to profitability in the near term.
  • Forecast revenue growth of about 14.15% a year and a five year trend of losses shrinking around 5.3% annually give some support to the bullish view, but they have not yet produced positive margins in the latest 12 month period.

Bulls who see enterprise deals and AI tools as long term growth engines may want to see how that story stacks up against these loss levels in the latest bull case write up 🐂 Butterfly Network Bull Case

P/S Around 12.5x Puts Pressure On The Story

• The shares trade on a P/S of about 12.5x, compared with roughly 2.8x for the US Medical Equipment industry and about 1.8x for peers, so investors are paying a much higher sales multiple for a company that is still loss making on US$97.6 million of trailing revenue.
• Bears point out that this high P/S sits alongside continued losses and no forecast path to profits in the next three years. This means the current valuation leans on growth expectations that are not yet backed by positive earnings.
  • The forecast that Butterfly remains unprofitable for at least three years, even with revenue expected to grow around 14.15% annually, supports the bearish concern that the share price is ahead of the earnings profile.
  • Compared with an analyst price target of US$5.56 and a current share price of US$4.79, there is only a modest gap, so the bearish view focuses more on the 12.5x P/S and the ongoing losses than on a large upside to target.

Skeptics who worry about paying 12.5x sales for a business without a near term profit path may want the full bear case before deciding where they stand 🐻 Butterfly Network Bear Case

Volatile Share Price On Top Of Steady Losses

• The stock has been highly volatile over the last three months while the trailing 12 month net loss sits at about US$77.1 million and insider selling has been significant in the same period, adding extra risk on top of the earnings profile.
• Consensus narrative highlights expanding enterprise deals, AI software and HomeCare pilots as drivers for recurring revenue. Yet the recent figures show software and services are still not large enough to offset hardware reliance and the company reports continued operating losses, which means the path from pilots to durable earnings remains a key area for investors to track.
  • Quarterly revenue moved from US$22.4 million in Q4 2024 to US$31.5 million in Q4 2025 while basic EPS stayed in loss territory, from about US$0.08 loss to about US$0.06 loss, so higher sales have not yet translated into positive earnings.
  • Forecast revenue growth of roughly 14.15% each year and analysts expecting unprofitability through at least three years set up a clear tension between growth ambitions and the current cost base.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Butterfly Network on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

After all of this, are you leaning more bullish or cautious on Butterfly Network, or still undecided and wanting to move quickly before sentiment shifts? Take a closer look at both sides of the story by reviewing the 1 key reward and 3 important warning signs.

See What Else Is Out There

Butterfly Network pairs a high P/S multiple with heavy losses, volatile trading, and no analyst forecast for profitability in the next three years.

If you want ideas that put more emphasis on stability and downside protection, compare this profile with companies in the 74 resilient stocks with low risk scores right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.