Butterfly Network - AI Stock Analysis

Analysis generated January 21, 2026

Butterfly Network, Inc. is a digital health company that aims to democratize medical imaging and makes it universally accessible and affordable. Founded with the mission to bring high-quality ultrasound technology to the masses, Butterfly Network has utilized cutting-edge technology to develop a handheld, easy-to-use, and significantly cheaper ultrasound device that is connected to a smartphone. Headquartered in Guilford, Connecticut, Butterfly Network is publicly traded under the ticker "BFLY."

Fundamental Analysis

For the last quarter, Butterfly Network reported revenue of $21 million. This represents a 8.10% decrease compared to the previous quarter. This decline in revenue may indicate potential issues that the company needs to address. Year-over-year, however, revenue showed an increase of 4.51%. This positive growth on a year-over-year basis suggests some underlying business strengths or successful strategic initiatives.

Net income for the last quarter was reported at -$34 million, constituting a 145.56% decrease from the quarter before it and a 100.73% decrease compared to the same quarter last year. The significant drop in net income presents serious concerns about the company’s profitability and cost management strategies.

EBITDA for the last quarter was recorded at -$32 million. This is a decrease of 178.82% from the previous quarter and 127.48% from the same quarter last year. These numbers highlight that the company is facing operational challenges, possibly in efficiency or cost structure.

Moreover, insider selling activities in the past couple of months raise additional concerns. Insider selling could be interpreted as a bearish signal, suggesting that those with the most intimate knowledge of the company see potential headwinds ahead.

Technical Analysis

The current stock price of Butterfly Network stands at $4.42, marking a 24.16% increase over the past month. This short-term positive trend indicates renewed investor confidence. Over the long term, the stock has increased by 12.47% from a year ago, suggesting sustained growth and interest from investors.

Technical indicators also support a bullish trend. The current Simple Moving Average (SMA10) is $4.34, higher than the previous SMA10 of $4.30. This upward movement of the SMA suggests that the price momentum continues to be favorable. The Relative Strength Index (RSI) is at 62.7, which is considered neutral but is approaching the overbought territory, indicating that the stock may see some profit-taking soon.

Alternative Data Analysis

Analyzing the alternative data, starting with job postings and employee sentiment, Butterfly Network has 5 open positions, a 25% increase in the last couple of months. This indicates the company is positioning itself for growth and expansion, a positive sign.

However, the employee outlook is a cause for concern, with only 34% of employees having a positive outlook on the company’s future. This low morale could impact productivity and overall business performance.

On the customer acquisition front, Butterfly Network's website had approximately 110,000 visitors, down by 16% over the last few months. This decline indicates a potential loss in customer interest or difficulties in maintaining a growing user base.

In terms of customer engagement, Butterfly Network has 35,000 followers on Instagram and 23,000 on Twitter, with no meaningful changes in recent months. While this indicates stability, the lack of growth in social media followers suggests that the company might need to improve its engagement strategies.

Lastly, AltIndex’s AI score for Butterfly Network is 34, indicating a sell signal. This score considers multiple factors, including fundamental, technical, and alternative data, and serves as a caution to investors.

Conclusion

In summary, Butterfly Network shows mixed signals across various data points. While the company has posted some positive year-over-year growth in revenue and recent stock price momentum, significant concerns remain around profitability, employee sentiment, customer acquisition, and insider activities. Given these mixed indicators and AltIndex’s sell signal, investors should exercise caution. It may be wise to consider a wait-and-see approach or to invest only if you have a high-risk tolerance and believe in the company’s long-term vision.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.