why is BFLY "EPS Below Expectations"

Butterfly Network (BFLY) reported an EPS of -$0.06 for Q2 2025, which was worse than expected. This means the company had a loss of $0.06 per share, which was below the forecast. Here are a few reasons why BFLY's EPS was below expectations: |code|Ticker|Name|Date|Estimate EPS|EPS Surprise|market_code| |---|---|---|---|---|---|---| |BFLY|BFLY.N|Butterfly Network|2024 Q3|-0.08|0|169| |BFLY|BFLY.N|Butterfly Network|2024 Q4|-0.09|0.01|169| |BFLY|BFLY.N|Butterfly Network|2025 Q1|-0.07|0.03|169| |BFLY|BFLY.N|Butterfly Network|2025 Q2|-0.05|0.02|169| 1. **Revenue Growth**: Although Butterfly Network achieved its highest quarterly revenue at $23.4 million, which is a 9% increase from the previous year, it still missed the analyst estimate of $23.72 million. This slight shortfall in revenue growth might have impacted the profitability metrics, leading to an EPS below expectation. 2. **Gross Margin**: The company's gross margin improved to an all-time high of 64%, up from 59% in the prior year. This improvement suggests that Butterfly Network is becoming more efficient in managing its costs, which could have potentially led to a better EPS if revenue was higher or expenses were better managed. 3. **International Expansion**: While international revenue increased by 19% to $6.2 million, US revenue remained flat at $17.2 million. The international growth might not have fully offset the challenges in the US market, contributing to the lower-than-expected EPS. 4. **Strategic Initiatives**: Butterfly Network is investing in new product launches and software developments, such as the launch of Compass AI and the expansion of its Butterfly Garden initiative. These strategic moves might have temporarily impacted profitability, leading to a lower EPS. In summary, while Butterfly Network showed positive signs of growth, including improved gross margins and international revenue, the slight revenue shortfall and strategic investments might have collectively contributed to an EPS below expectations.