Megan Carlson, Chief Accounting Officer and Senior Vice President of Finance at Butterfly Network, sold 13,804 shares of Class A common stock on 4 September 2026, valued at approximately $101,000. The transaction was a non-discretionary sell-to-cover sale to satisfy tax withholding requirements from vesting equity awards. Following the sale, Carlson retains around 412,000 shares directly. The medical device company's stock delivered a 381% total return over the 12 months ending on the transaction date. Butterfly Network develops portable ultrasound imaging devices, including the Butterfly iQ and iQ+, which connect to smartphones and tablets for point-of-care diagnostics. The company has a market capitalisation of $2.1 billion and generated $112.1 million in trailing twelve-month revenue.

Merge Labs, a brain-interface startup backed by OpenAI and Sam Altman, has selected Butterfly Network as its exclusive ultrasound-on-chip supplier under a multiyear agreement. The deal includes upfront payments, development milestones, purchase commitments, access fees, and potential royalties, though specific amounts were not disclosed. Butterfly's semiconductor-based ultrasound architecture makes the system programmable and easier to embed in new devices. The company retained rights to license its technology to other partners. Butterfly's second-quarter revenue increased 39% to $32.6 million, with gross margin expanding to 71.4%. Adjusted EBITDA loss narrowed 78% to $1.4 million. Management raised full-year revenue guidance to $119 million to $123 million. Thirty-three hedge funds held Butterfly Network in the second quarter, up from 26 in the first quarter.

Central banks signalling fewer interest rate hikes could support early-stage AI companies outside big tech. A new screener has identified 29 AI small-cap stocks positioned to benefit from the next wave of machine learning and automation. Butterfly Network, a medical imaging company, combines handheld ultrasound devices with AI-powered Compass software. The firm recently posted record quarterly revenue with strong gross margins. However, it remains unprofitable and trades at a high price-to-sales multiple, whilst experiencing significant insider selling. Pagaya Technologies operates an AI-driven loan decisioning platform serving banks, fintechs, and auto lenders. The platform assesses and prices consumer and small business credit in real time. The screener surfaced 26 additional companies with similar growth potential in AI-powered sectors.