Butterfly Network (NYSE:BFLY) Soars 19.4% on AI-Powered Compass Launch: Revolutionizes POCUS Revenue Streams

Butterfly Network Inc. (NYSE:BFLY) surged 19.403% in pre-market trading on November 20, 2025, following the launch of its AI-powered Compass platform, a breakthrough in point-of-care ultrasound (POCUS) workflows. The company unveiled Compass AI, an enterprise software system designed to streamline documentation compliance and unlock revenue potential in healthcare systems.

Traditional POCUS workflows, reliant on radiology-style order-based processes, have historically captured only 15% of compliant studies, leaving 85% unbilled. Compass AI replaces this fragmented model with an AI-enhanced, encounter-based system that achieves up to 94% documentation compliance without increasing clinician workload. By eliminating delays and skipped orders, the platform could generate five times more revenue from the same clinical volume, according to the firm. Ambient voice dictation and AI-driven quality assurance tools further reduce administrative burdens, cutting charting time by 25%.

Joseph DeVivo, CEO of Butterfly Network, emphasized that Compass AI addresses systemic challenges in POCUS scalability, offering real-time governance across departments and devices. The platform integrates with EHRs and PACS to ensure seamless data routing, while a centralized dashboard tracks usage, compliance, and unbilled scans. This interoperability positions the company to expand its market share in a sector hindered by compliance risks and operational inefficiencies.

The move follows the company’s September announcement of research into machine learning applications for early aortic stenosis detection, underscoring its broader AI strategy. With Compass AI, Butterfly Network aims to transform POCUS from a niche tool into a standardized, revenue-generating service for health systems seeking to optimize profitability and care quality.

Backtest assumptions suggest that the platform’s adoption could accelerate in 2026, driven by healthcare providers prioritizing AI solutions for cost efficiency. A hypothetical strategy aligning with the stock’s recent momentum would focus on key adoption milestones and partnerships in 2026 Q1.