Q3 2025 Butterfly Network Inc Earnings Call Transcript
Key Points
- Butterfly Network Inc (BFLY) reported revenue at the higher end of guidance, with a 5% growth over the prior year, driven by higher average selling prices and increased volume.
- The company achieved an adjusted gross margin increase to 63.9% from 60% in the prior year period, excluding a non-cash inventory adjustment.
- Butterfly Network Inc (BFLY) has strengthened its security posture with ISO 27001 and other international certifications, enhancing trust and enterprise readiness.
- The AI lung tool, Auto B-line Counter, demonstrated significant clinical and economic benefits, including a 30% reduction in hospital length of stay and over $750,000 in cost savings.
- The company is advancing its technology with the development of the P5.1 chip and the upcoming Apollo AI chip, which promises enhanced processing power and local AI capabilities.
- Butterfly Network Inc (BFLY) faced headwinds in enterprise sales due to hospitals focusing on broader macro issues, impacting the sales pipeline.
- The company recorded a non-cash charge for the write-off of excess inventory, affecting gross margins negatively.
- There is ongoing churn in individual subscriptions, impacting software and services revenue.
- The federal government shutdown poses potential risks to deal timing and regulatory processing, although not currently significant.
- Some customers are delaying purchase decisions due to macroeconomic factors, affecting the US hospital and enterprise channels.
Good morning, everyone and welcome to the Butterfly Network third quarter 2025 earnings conference call. My name is Carla, and I will be coordinating your call today.
(Operator Instructions)
I'd now like to hand you over to the interim Chief Financial Officer, Megan Carlson to begin. Please go ahead when you're ready.
Good morning and thank you for joining us.
Earlier today, Butterfly released financial results for the third quarter ended September 30, 2025, and provided a business update. The release, which includes a reconciliation of management's use of non-GAAP financial measures compared to the most applicable GAAP measures, is currently available on the investors section of the company's website at ir.butterflynetwork.com.
I, Megan Carlson, interim Chief Financial Officer of Butterfly, alongside Joseph DeVivo, Butterfly's Chairman and Chief Executive Officer, will host this morning's call.
During today's call, we will be making certain
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