• In January 2026, Butterfly Network, Inc. issued guidance indicating it expects at least 17% year-over-year revenue growth for the fourth quarter of 2025, prompting fresh attention from the analyst community.
• This guidance has highlighted the potential of Butterfly Network’s ultrasound platform across multiple business lines, drawing interest from both healthcare-focused and generalist investors.
• Next, we’ll explore how this outlook for at least 17% revenue growth shapes Butterfly Network’s broader investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

What Is Butterfly Network's Investment Narrative?

To own Butterfly Network, you have to believe that handheld ultrasound and its software layer can evolve into a true platform business, not just a niche device play. The new guidance for at least 17% year-over-year revenue growth in Q4 2025 strengthens that story in the near term, particularly when layered on top of the Midjourney licensing deal, Compass AI rollout and upcoming Beam Steering API. Together, these are likely to sharpen the focus on revenue scale and software monetization as the key short term catalysts. At the same time, the stock’s sharp price run and high price to sales multiple keep execution risk front and center, especially for a company that remains unprofitable with ongoing dilution and insider selling.

However, one near term risk around valuation and dilution is easy to overlook, yet important for investors. According our valuation report, there's an indication that Butterfly Network's share price might be on the expensive side.

Exploring Other Perspectives

Explore 9 other fair value estimates on Butterfly Network - why the stock might be worth less than half the current price!

Build Your Own Butterfly Network Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Butterfly Network research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Butterfly Network research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Butterfly Network's overall financial health at a glance.

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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.