Butterfly's AI Initiatives Boost Revenue by 5%, Yet Net Loss Climbs to $34 Million

Butterfly Network Inc (BFLY) posted a 5% year-over-year revenue growth for the third quarter of 2025, bringing in $21.5 million, which exceeded the projected $21.22 million, as detailed in a

. The digital health firm, recognized for its Ultrasound-on-Chip innovation, pointed to progress in AI and cost-effectiveness as primary factors behind its growth, even during a typically slower quarter. Nevertheless, the company recorded a net loss of $34.0 million, a notable rise from the $16.9 million loss in the same quarter last year. This larger loss was mainly due to a $17.4 million non-cash inventory write-down for surplus and outdated inventory, which negatively affected the GAAP gross margin, resulting in a gross loss of $3.8 million versus a gross profit of $12.2 million a year earlier, according to a .

In spite of these setbacks, Butterfly Network saw its adjusted gross margin rise to 63.9% from the previous year's 60.0%, attributed to higher average selling prices and lower software amortization expenses, as reported by GuruFocus. The company’s cash and cash equivalents stood at $144.2 million as of September 30, 2025, showing a modest increase from earlier periods, according to GuruFocus. Operating expenses climbed to $31.4 million, marking a 6% increase year-over-year, as the company continues to invest in technology and enterprise sales, GuruFocus further noted.

Butterfly Network maintained its full-year 2025 revenue outlook of $91 million to $95 million and tightened its adjusted EBITDA loss forecast to between $32 million and $35 million, according to GuruFocus. The company reiterated its dedication to innovation, highlighting the development of the P5.1 chip and the forthcoming Apollo AI chip, which is expected to deliver greater processing capabilities and on-device AI, as mentioned in the Yahoo Finance article. Furthermore, Butterfly Network’s AI-powered lung tool, Auto B-line Counter, showed both clinical and financial advantages, such as reducing hospital stays by 30% and saving over $750,000 in costs, as reported by Yahoo Finance.

Nonetheless, the company continues to face obstacles. It cited challenges in enterprise sales as hospitals focus on larger economic issues, and persistent churn in individual subscriptions is impacting software and service revenues, according to Yahoo Finance. The ongoing federal government shutdown could also delay deal closures and regulatory approvals, though these effects are currently limited, Yahoo Finance added.