Butterfly Network Reports Strong Q1 2025 Financial Results: Revenue Growth, Strategic Progress, and Expanded Innovation
Butterfly Network, Inc. (NYSE: BFLY), a pioneering digital health company revolutionizing healthcare with its portable, semiconductor-based ultrasound technology and intuitive software, has announced its financial results for the first quarter ended March 31, 2025. The company reported robust performance metrics, including a 20% year-over-year revenue increase, reduced net losses, and significant progress across its strategic initiatives. Butterfly also reiterated its full-year 2025 guidance, underscoring its confidence in delivering consistent growth and operational efficiency.
Q1 2025 Financial Highlights
Butterfly Network delivered strong financial results in Q1 2025, reflecting steady execution on its multi-pronged growth strategy:
- Revenue Growth: Quarterly revenue reached $21.2 million, representing a 20% increase compared to $17.7 million in Q1 2024. This growth was driven by higher sales volumes in the U.S., the impact of the iQ3 probe’s higher selling price following its 2024 launch, and contributions from international markets.
- Reduced Losses: The company demonstrated improved profitability, reducing its net loss by 36% to $14.0 million, compared to $21.8 million in the prior year period. Additionally, net cash used in operations decreased by 43%, highlighting effective cost management and operational efficiencies.
- Gross Margin Expansion: Gross profit increased to $13.4 million, up from $10.3 million in Q1 2024. Gross margin expanded to 63.0%, up from 58.2%, primarily due to higher average selling prices, increased software margins, and lower hosting costs.
- Operating Expenses: Total operating expenses decreased by 3% to $31.8 million, reflecting disciplined spending and optimization efforts. Excluding stock-based compensation and other non-recurring expenses, operating expenses fell by 4% to $24.9 million.
- Adjusted EBITDA: Adjusted EBITDA loss improved significantly to $9.1 million, down from $13.2 million in Q1 2024, further demonstrating Butterfly’s commitment to achieving sustainable profitability.
- Capital Raise: In January 2025, Butterfly successfully closed a public offering, raising $81.7 million in net proceeds. This infusion of capital strengthens the company’s balance sheet and supports ongoing innovation and market expansion efforts.
Strategic and Operational Updates
Butterfly Network continues to make meaningful progress across its key initiatives, reinforcing its position as a leader in portable medical imaging technology:
1. Advancing Medical Education
Butterfly’s commitment to transforming medical education remains a cornerstone of its growth strategy. During Q1, the company secured additional commitments from schools adopting its student device programs. Notably, one of the largest Colleges of Osteopathic Medicine in the U.S. ordered one probe per student, solidifying this model as a standard practice moving forward. These partnerships underscore Butterfly’s role in shaping the next generation of healthcare professionals.
2. Expanding AI Capabilities
The company’s Butterfly Garden ecosystem continues to grow, now comprising 23 AI development partners. In April 2025, DESKi became the second partner in the portfolio to receive FDA clearance for its HeartFocus AI-powered cardiac app, marking a significant milestone in commercializing advanced AI solutions for clinical use.
3. Butterfly HomeCare Pilot Program
Butterfly HomeCare, the company’s initiative aimed at remote patient monitoring, achieved notable progress in Q1. The congestive heart failure pilot program entered its clinical phase, scanning patients with heart failure and those recently discharged. Early results are promising, showing no rehospitalizations—a critical outcome given that 1 in 4 heart failure patients are historically readmitted within 30 days and nearly 50% within six months, according to the American Heart Association (AHA).
4. Mainstream Adoption
Butterfly’s flagship product, the iQ3 probe, gained mainstream recognition when it was organically featured in episodes of the popular HBO Max medical drama The Pitt. This exposure highlights the growing role of Butterfly’s technology in real-world patient care and underscores its potential to become a household name in healthcare innovation.
Reaffirming Full-Year 2025 Guidance
Butterfly Network reiterated its full-year 2025 financial guidance, reflecting confidence in its ability to deliver sustained growth and operational excellence:
- Revenue: Expected to range between $96 million and $100 million, representing approximately 20% growth over 2024.
- Adjusted EBITDA Loss: Projected to be between $37 million and $42 million, reflecting continued progress toward profitability.
These projections align with Butterfly’s long-term strategic plan, which focuses on expanding access to advanced imaging technology, driving adoption in medical education and enterprise settings, and advancing cutting-edge innovations like Butterfly HomeCare and Octiv™.
Leadership Perspective
Commenting on the company’s performance, Joseph DeVivo, Butterfly’s President, CEO, and Chairman, stated, “2025 is off to a great start. The Butterfly team delivered another solid quarter, achieving 20% growth while continuing to mature as a company. As we move through the second year of our five-year strategic plan, we’re beginning to see the benefits of our multi-pronged growth strategy take shape. Our opportunities in medical education and enterprise adoption remain strong, and we’re making significant strides across initiatives like Octiv™ and Butterfly HomeCare.”
DeVivo added, “With multiple avenues for growth and a talented team built to execute, we’re well-positioned to meet our guidance while continuing to innovate and maintain our leadership in the industry.”
A Bright Future for Butterfly Network
Butterfly Network’s Q1 2025 results demonstrate the company’s resilience, strategic focus, and ability to execute on its vision of democratizing healthcare through advanced imaging technology. By leveraging its innovative products, expanding AI capabilities, and forging strategic partnerships, Butterfly is poised to transform patient care on a global scale.
As the company progresses through the remainder of 2025, investors and stakeholders can expect continued momentum in revenue growth, operational improvements, and breakthroughs in healthcare innovation. With a strengthened balance sheet, clear strategic priorities, and a dedicated team, Butterfly Network is well-equipped to deliver value to patients, providers, and shareholders alike.
For more information on Butterfly Network’s Q1 2025 performance and future outlook, visit the company’s investor relations page or review its latest earnings presentation.
