Butterfly Network makes medical imaging tools, focusing on point-of-care ultrasound (POCUS). Its main product is the Butterfly iQ, a handheld ultrasound device that uses a single probe to scan the whole body. The iQ connects to a software platform, storing images, supporting telehealth, and providing advanced imaging tools. The device is sold to doctors, nurses, and medical technicians in hospitals, clinics, and rural settings, with revenue from device sales, software subscriptions, and educational resources. What sets Butterfly Network apart is its single-probe, portable design that aims to simplify ultrasound workflows and make high-quality imaging more affordable and accessible, especially in underserved areas. The company’s goal is to improve diagnostic access and patient outcomes worldwide by delivering cost-effective, easy-to-use ultrasound technology that integrates hardware and software in one connected system.
Company Size
201-500
Company Stage
IPO
Headquarters
Burlington, Massachusetts
Founded
2011
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Mendaera has launched a version of its Focalist system compatible with Butterfly Network's Ultrasound-on-Chip technology. This marks the first Butterfly Embedded partner technology to reach the market. Mendaera's FDA-cleared Focalist system combines handheld robotics, real-time imaging, and intelligent guidance software for image-guided needle procedures, including vascular access, regional nerve blocks, and organ access. The collaboration brings together imaging and robotics technologies with the aim of advancing digitally native, AI-enabled intervention. Butterfly's software-defined architecture enables a path towards AI-enabled image interpretation and robotic action. Mendaera and Butterfly will both exhibit at the American College of Emergency Physicians Scientific Assembly on 5-7 October 2026 in Chicago, Illinois.
Butterfly Network is commercialising AI-enhanced ultrasound devices designed to assist clinicians with real-time scan guidance. The company generates approximately $112 million in revenue from its handheld iQ devices and related software platforms, including Compass AI and ScanLab, with a market capitalisation of roughly $2.2 billion. In November 2025, Butterfly's subsidiary signed a five-year co-development and licensing agreement with Midjourney for exclusive access to its semiconductor-based ultrasound technology. The deal includes a $15 million upfront payment, $10 million in annual licence fees, and additional milestone-based payments. Pfizer, with $63.7 billion in recent revenue and a market value of $158.1 billion, is applying biomolecular AI foundation models to accelerate drug discovery and development across its Global Biopharmaceuticals Business segment. The company combines large-scale therapeutic operations with machine learning applications in molecule design, trial productivity, and manufacturing efficiency.
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.