Butterfly Network reported record quarterly revenue of $31.5 million for Q4 2025, up 41% year-over-year, and achieved its first quarter of positive operating cash flow. The digital health company, which makes semiconductor chip-based ultrasound devices, reached a post-money valuation based on its expanded partnerships and product initiatives. US revenue grew 55% to $26.8 million, driven partly by a co-development partnership with Midjourney that contributed $6.8 million in Q4. The agreement, disclosed in November 2025, anticipates up to $74 million in payments over five years. Gross margin improved to 67.3% from 61.4% in the prior year. For fiscal year 2026, Butterfly forecasts revenue of $117 million to $121 million, representing 20% to 24% growth, with an adjusted EBITDA loss of $21 million to $25 million.

Butterfly Network has secured GovRAMP and TX-RAMP authorizations for its Butterfly iQ+/iQ3 and Compass AI ultrasound solution, enabling the company to sell cloud services to all state and local government agencies, including Texas. The certifications demonstrate compliance with the highest security standards. The digital health company reported at least 17% year-over-year revenue growth in Q4, reaching $26.2 million compared to Street estimates of $25.7 million, with full-year revenue landing at $92.3 million. Growth was primarily driven by its core business, with some contribution from its Midjourney partnership. Following these announcements, Craig-Hallum raised its price target on Butterfly Network to $5.25 from $3.25 on 21 January whilst maintaining a Buy rating on the shares.

Larry Robbins' Glenview Capital Management acquired 2.8 million shares of Butterfly Network Inc at $2.65 per share, raising its total holdings to 12.8 million shares. This strategic move in the medical devices sector impacted Glenview's portfolio by 0.16%. Despite being overvalued compared to its GF Value, the stock saw a 22.45% price gain post-transaction.