Butterfly Network

What Butterfly Network does

Butterfly Network, Inc. (NYSE: BFLY) is a Burlington, Massachusetts-based medical imaging technology company founded in 2011 that develops handheld, single-probe whole-body ultrasound systems built on proprietary Ultrasound-on-Chip semiconductor technology using capacitive micromachined ultrasonic transducers (CMUT) on silicon. The company's product portfolio spans hardware (Butterfly iQ3 third-generation probe launched January 2025, iQ+ second-generation probe, iQ+ Bladder, Butterfly Move POCUS cart, iQ3 Vet), software (Compass AI enterprise workflow platform, Butterfly Cloud, TeleGuidance, ScanLab simulation), and AI applications (FDA-cleared Gestational Age Tool, AI Marketplace with 30 partner apps, Butterfly Garden ecosystem). The platform is priced from $2,699 per probe with required annual subscription membership, dramatically undercutting traditional cart-based ultrasound systems priced at $30,000-$200,000. Butterfly generates revenue across four streams: hardware sales to individual clinicians and health systems, recurring software subscriptions unlocking cloud storage and AI features, embedded licensing (notably a $74M five-year agreement with Midjourney Medical announced November 2025), and professional services. The company serves approximately 145,000+ customers globally across individual clinicians, integrated health systems (Rutgers, University of Rochester, Temple, MUSC), medical education programs, veterinary practices, global health deployments in Sub-Saharan Africa via Gates Foundation funding, and technology partners via the Embedded licensing program. After going public via SPAC merger in 2021 at a $1.5 billion valuation, Butterfly reported Q1 2026 revenue of $26.5 million (+25% YoY) with full-year 2026 guidance of $117-121 million, 69% gross margins, and achievement of positive operating cash flow in Q4 2025.

Name

Butterfly Network

Legal name

Butterfly Network, Inc.

Website

https://butterflynetwork.com

Company type

Public

Founded year

2011

Operating status

Operating

Headcount range

101–250 employees

Short description

Butterfly Network (NYSE: BFLY) develops semiconductor-based handheld ultrasound probes and AI-powered imaging software that replace traditional $30K-$200K cart systems with $2,699 smartphone-connected devices, serving 145,000+ clinicians, health systems, and global health programs worldwide.

Ownership category

akta.pro rank

Headquarters

HQ city

Burlington

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Technology or R&D, Personnel, Supply Chain, Operations, Marketing or Sales, Others

Revenue model

1. Handheld Ultrasound Device Sales: Sale of Butterfly iQ+ and iQ3 handheld ultrasound probes. Hardware devices sold directly to healthcare providers, health systems, and through channel partners. One-time hardware purchase with required ongoing subscription.
2. Software Subscription Services: Required membership subscription unlocking cloud storage, AI-powered features, software updates, and ongoing capability enhancements. Tiered membership options for individual and enterprise customers.
3. Butterfly Embedded Licensing and Co-development: Licensing Ultrasound-on-Chip technology to partners like Midjourney for integration into new products. Includes upfront fees, annual licensing fees, milestone payments, and revenue sharing arrangements. Midjourney deal valued at up to $74M over five years.
4. Professional Services: Training, implementation, and customization services for enterprise customers deploying Butterfly solutions at scale.

Pricing tiers

Go-to-market motion4 records

Distribution channels5 records

Marketing channels6 records

Core offering

Butterfly Network designs, manufactures, and sells FDA-cleared handheld whole-body ultrasound probes (Butterfly iQ3 and iQ+) built on proprietary Ultrasound-on-Chip semiconductor technology, which connect to iPhone/Android devices for point-of-care imaging. Hardware sales are paired with a required software subscription unlocking Butterfly Cloud storage, AI-powered features, Compass AI enterprise workflow software, the AI Marketplace, and the FDA-cleared Gestational Age AI Tool. The Butterfly Embedded licensing program monetizes the Ultrasound-on-Chip platform through partnerships such as the Midjourney Medical whole-body scanner ($74M five-year agreement) and Aleph Neuro brain-computer interface research.

Product overview

Butterfly Network offers a platform-plus-modules architecture built around its proprietary Ultrasound-on-Chip semiconductor technology. The core offering consists of handheld whole-body ultrasound probes (iQ3, iQ+) that connect to smartphones/tablets via the Butterfly iQ app, with cloud storage and management through Butterfly Cloud. Enterprise customers access Compass AI workflow software for automated documentation, quality assurance, and billing. The ecosystem includes an AI Marketplace for third-party applications, Education/Training with ScanLab simulation tools, and TeleGuidance for remote consultation. Butterfly Embedded extends the technology platform to partners through licensing and co-development (Midjourney Medical, Aleph Neuro). Specialized applications include iQ+ Bladder scanner, Butterfly Move cart, Gestational Age AI Tool, and iQ3 Vet for veterinary use.

Differentiator

Problem solved

Functional benefit

Brands

• Butterfly iQ3: Third-generation handheld whole-body ultrasound probe with double the processing power and clearer images
• Butterfly iQ+
• Butterfly Move
• Compass AI
• Butterfly Embedded
• AI Marketplace
• TeleGuidance
• ScanLab

Products and services

• Butterfly iQ3 Third-generation FDA-cleared handheld whole-body ultrasound probe using Ultrasound-on-Chip semiconductor technology with double the processing power and clearer images compared to iQ+. Connects to compatible iPhone and Android smartphones or tablets via the Butterfly iQ mobile app. Priced as a hardware device with a required annual membership subscription.
• Butterfly iQ+ Second-generation FDA-cleared single-probe whole-body imaging device using semiconductor-based ultrasound technology. Performs multiple imaging modes across the whole body with software-driven capability improvements over time. Priced at $2,699 starting, with required annual membership subscription for cloud storage, AI features, and software updates.
• iQ+ Bladder Portable ultrasound system designed for non-invasive bladder imaging that delivers automated urinary volume calculations in seconds. Used by nursing and other clinical specialties for point-of-care bladder assessment.
• Butterfly Move Butterfly Network's first all-in-one point-of-care ultrasound (POCUS) cart providing mobile ultrasound capability for clinical settings requiring portability combined with a cart-based form factor.
• iQ3 Vet Next-generation all-species veterinary imaging solution built on iQ3 technology for veterinary professionals and animal health practices.
• Compass AI Enterprise workflow management software platform that integrates an entire ultrasound program on one streamlined solution, automating documentation, quality assurance, and billing workflows for point-of-care ultrasound programs and reducing unrecorded "ghost" scans.
• Butterfly Cloud Hosted on-demand web-based platform providing applications, APIs, and platform services for ultrasound image storage, management, and sharing. Integrates with DICOM-compliant viewing platforms and EMR/EHR systems.
• AI Marketplace Platform ecosystem for exploring and accessing AI-powered applications compatible with Butterfly probes, enabling third-party AI developers to build and distribute apps that extend probe functionality across clinical use cases.
• Butterfly Embedded Co-development and licensing initiative extending Butterfly's Ultrasound-on-Chip semiconductor platform into new applications and markets through strategic partners. Includes upfront fees, annual licensing fees, milestone payments, and revenue sharing. Active partners include Midjourney Medical ($74M five-year deal) and Aleph Neuro (brain-computer interface research).
• Gestational Age AI Tool FDA-cleared AI-powered blind-sweep ultrasound tool for estimating fetal gestational age in under two minutes without requiring trained sonographers or expert image interpretation. Trained on over 21 million images and developed in partnership with UNC Chapel Hill.
• Butterfly iQ Mobile App Mobile application for displaying, capturing, and managing ultrasound imaging directly on compatible iPhone or Android devices. Connects to Butterfly iQ3 and iQ+ probes and includes features such as TeleGuidance for real-time remote consultation (iOS only).
• Education and Training (with ScanLab) Tutorials, training packages, and courses created by Butterfly experts, including the ScanLab AI-guided simulation-based training application for educational use. Included with Butterfly membership and not for diagnostic use.

Quantifiable outcome

• Reduces hospital length of stay by 1.1 days and reduces costs by 50%
• +4 more outcomes

Named customers6 records

Segments6 records

Ideal customer profiles6 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

AI capability5 records

Feature5 records

Partnerships

Five partnerships are on record, tiered core and minor.

• Aleph NeurocoreTechnology or Integration · 25 June 2026Brain-computer interface research lab using Butterfly's Ultrasound-on-Chip technology for non-invasive brain imaging research through Embedded licensing program. Announced breakthrough in capturing highest-resolution 3D images of human brain from outside skull with MRI-level detail without drilling or bulky MRI equipment.
• Steve Cashman (CBO)minorOthers · 5 June 2026Chief Business Officer Steve Cashman sold approximately $1.89M in shares across two transactions in early June 2026.
• Erica Schwartz (Board Member)minorOthers · 1 June 2026Board member nominated for CDC Director position; committed to divesting Butterfly Network stock within 90 days of confirmation per ethics agreement.
• MidjourneycoreStrategic or Co-development Partner · 1 November 2025AI image generation company Midjourney partnered with Butterfly for exclusive licensing rights to Ultrasound-on-Chip technology for Midjourney Medical's full-body ultrasound scanner. Five-year co-development agreement worth up to $74 million ($15M one-time fee, $10M annual licensing fee, up to $9M milestone payments). Scanner uses 40 Butterfly imaging modules per system with goal of 50,000+ scanners globally by 2031.
• University of North Carolina at Chapel HillcoreStrategic or Co-development Partner · 1 January 2025UNC School of Medicine physicians developed AI-enabled ultrasound technology for estimating fetal gestational age from standardized ultrasound videos without expert image acquisition. Technology licensed to Butterfly, received FDA clearance March 2026. Trained on over 21 million images.

Scale indicators10 records

Recent moves7 records

Expansion highlights7 records

Direct peers

• GE HealthCare: Major medical imaging incumbent with Vscan Air handheld ultrasound directly competing against Butterfly iQ3/iQ+. Combines established hospital sales channels with handheld POCUS offering, making it Butterfly's most significant competitor in the clinician and health-system segment.
• Philips: Philips Lumify is a smartphone-connected handheld ultrasound system competing head-to-head with Butterfly in the POCUS space. Philips brings deeper enterprise imaging integration and global hospital relationships that compete with Butterfly's Compass AI enterprise offering.
• Fujifilm SonoSite: Pioneer in point-of-care ultrasound with iViz handheld system and M-Turbo series. Long-established POCUS brand with strong emergency medicine and bedside clinical adoption, directly competing with Butterfly for the same clinician personas.
• Clarius Mobile Health: Wireless handheld ultrasound competitor offering smartphone-connected probes with AI features. Targets similar individual clinician and specialty use cases (emergency medicine, OB/GYN, MSK) with comparable pricing and a similar subscription/app model.

Emerging players

• Exo: Handheld ultrasound startup using proprietary pMUT (piezoelectric micromachined ultrasonic transducer) technology, representing a competing semiconductor-based approach to Butterfly's CMUT platform. Recently acquired by Biocon, indicating strategic interest in the handheld category.
• EchoNous: AI-focused handheld ultrasound company with emphasis on cardiac and emergency medicine applications. Competes in the AI-enabled handheld segment where Butterfly also differentiates, with venture backing supporting ongoing R&D investment.

Broad incumbents

• Siemens Healthineers: Global medical imaging leader with ACUSON handheld/portable ultrasound offerings and comprehensive enterprise imaging portfolio. Competes with Butterfly at the high end of the health-system market where integrated imaging platforms and PACS integration matter most.
• Mindray: Major Chinese medical device manufacturer with TE Air handheld ultrasound and broader patient monitoring portfolio. Offers competitive pricing across global markets and emerging market presence that overlaps with Butterfly's growth geographies.
• Samsung Medison: Samsung's medical imaging subsidiary offering portable and handheld ultrasound systems. Leverages Samsung's consumer-electronics DNA and manufacturing scale to compete in cost-sensitive segments and emerging markets where Butterfly also targets expansion.
• Canon Medical Systems: Medical imaging subsidiary of Canon with full ultrasound portfolio including portable systems. Competes in the broader medical imaging category with strong hospital relationships and a multi-modality strategy that bundles ultrasound with other Canon imaging modalities.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks7 records

Key highlights7 records

Customer concentration

• Xx.com/ButterflyNetInc
• YouTubeyoutube.com/channel/UClOdXzqDR9Bd8llD_tX4FrA
• Facebookfacebook.com/butterflynetinc
• LinkedInlinkedin.com/company/2338924
• Instagraminstagram.com/butterflynetwork

Compliance15 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles7 records

Subsidiaries1 record

Funding overview

Funding rounds6 records

Investors12 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Butterfly Network