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BFLY Q3 Earnings Preview: Strategic Progress Likely to Support Growth

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Key Takeaways

  • Butterfly Network's iQ3 probe sales and higher ASP are likely to have bolstered product revenues in Q3 2025.
  • BFLY's enterprise software and partner licensing may have contributed to solid Q3 revenue growth.
  • Strategic initiatives like Octiv, HomeCare and Butterfly Gardens may support Butterfly Network's top line.

Butterfly Network, Inc. (BFLY - Free Report) is set to release its third-quarter 2025 results on Oct. 31, before the market opens.

The digital health company that pioneered semiconductor-based ultrasound technology reported a loss of 6 cents in the last reported quarter, which surpassed the Zacks Consensus Estimate by 14.29%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 21.91%. 

BFLY’s Q3 Estimates

For the third quarter of 2025, the Zacks Consensus Estimate for Butterfly Network’s revenues is pegged at $21 million, indicating an increase of 2.1% from the year-ago reported figure.

The Zacks Consensus Estimate for the company’s third-quarter 2025 loss stands at 7 cents per share, which suggests a 12.5% improvement year over year.

Estimate Revision Trend Ahead of BFLY’s Q3 Earnings

Estimates for Butterfly Network’s Q3 earnings have remained stable in the past 90 days.

Here’s a brief review of the company’s performance leading up to this announcement.

Factors Shaping BFLY’s Q3 Performance

The company is currently in the second year of its multi-year strategic plan, which aims to achieve more than $500 million in revenues by 2030 and break-even cash flows by the end of 2027. In the third quarter of 2025, product revenues are likely to have benefited from robust uptake of the Butterfly iQ3 probe, both in the United States and internationally, supported by higher average selling prices (ASP).

Meanwhile, higher enterprise software revenues, and increased licensing and services contributions from partnerships are expected to have favored Software and other services sales. Butterfly Network is likely to have introduced Compass AI, a next-generation, cloud-based enterprise software platform that simplifies documentation and enables faster record completion. Increased penetration among existing customers and stronger appeal to new enterprise customers may have helped drive solid revenue gains.

Butterfly Network, Inc. Price and EPS Surprise

Butterfly Network, Inc. Price and EPS Surprise

Butterfly Network, Inc. price-eps-surprise | Butterfly Network, Inc. Quote

We also expect continued progress across its strategic initiatives. Octiv is already positively impacting Butterfly Network’s top and bottom lines. Management has previously indicated a partnership with a generative AI company to develop a new imaging technology that can have a major impact on individuals’ health care and health awareness. Meanwhile, HomeCare had been actively negotiating its first commercial agreement after a successful pilot demonstrated meaningful reductions in hospital readmissions for congestive heart failure patients being managed at risk.

The company’s AI marketplace, Butterfly Gardens, added two new partners in the previous quarter while three existing partners received FDA clearance for their AI-powered clinical applications. Among them, HeartFocus is expected to have been launched to Butterfly users in the third quarter, positively impacting its revenues. Over time, these apps are likely to expand the Butterfly Network’s market opportunity for point-of-care ultrasound (POCUS) while enabling clinicians to diagnose patients where they are.

However, uncertainty around changes in funding and other government programs may have continued to slow down customers’ purchase decisions, posing headwinds for Butterfly Network. These delays may have affected the company’s U.S. hospital and enterprise channel, as well as publicly funded global health deals, with several large pipeline deals extending beyond the anticipated close time. As a result, BFLY’s performance in the quarter under review may have been partially constrained.

What Our Model Unveils for BFLY Stock

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see.

Earnings ESP: Butterfly Network has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Top MedTech Picks

Here are some other medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:

Exact Sciences (EXAS - Free Report) has an Earnings ESP of +32.65% and a Zacks Rank #1. The company is slated to release third-quarter 2025 results on Nov. 3.

EXAS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 329.87%. The Zacks Consensus Estimate for the company’s third-quarter EPS is expected to increase 147.6% from the year-ago quarter figure.

ANI Pharmaceuticals (ANIP - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #2. The company is expected to release third-quarter 2025 results soon. 

ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%. The Zacks Consensus Estimate for ANIP’s third-quarter EPS is expected to surge 29.9% from the year-ago reported figure.

IDEXX Laboratories (IDXX - Free Report) has an Earnings ESP of +0.23% and a Zacks Rank #2. The company is slated to release third-quarter 2025 results on Nov. 3.

IDXX’s earnings topped estimates in each of the trailing four quarters, the average surprise being 6.08%. The Zacks Consensus Estimate for the company’s third-quarter EPS is anticipated to increase 12.1% from the year-ago quarter figure.

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