Butterfly Network Sets $91M-$95M Revenue Target for 2025 Amid Delayed Deals

Butterfly Network, a medical imaging company, has set a revenue target of $91M-$95M for 2025. Q2 2025 saw the company deliver its highest quarterly revenue to date, despite delayed large deals and the launch of Compass AI. CEO Joseph M. DeVivo emphasized the milestone, marking the first full quarter since the Butterfly iQ3 launch last year.

Butterfly Network, a medical imaging company, has set a revenue target of $91 million to $95 million for 2025 following a significant downward revision in its full-year guidance. The company reported its highest quarterly revenue to date in Q2 2025, despite delays in large deals and the launch of Compass AI. CEO Joseph M. DeVivo highlighted the milestone, marking the first full quarter since the Butterfly iQ3 launch last year [2].

The second quarter saw Butterfly Network deliver $23.4 million in revenue, a 9% increase over the prior year. Gross margins reached an all-time high of 64%, and the company's cash use was the lowest of any quarter at $7 million. Despite these positive results, the company cited delays in large enterprise-wide deals and uncertainty around government funding as reasons for the revenue guidance adjustment [2].

Butterfly Network's interim CFO, Megan Carlson, stated that the company needs to close on some of the larger deals in its pipeline to reach the high end of its new revenue guidance range. Carlson added that if these deals are not closed, revenue could be closer to $91 million. The company expects revenue in the range of $20 million to $22 million for the third quarter [2].

The company's strategic focus has shifted towards managing deal timing and emphasizing new software and AI launches, such as Compass AI and HomeCare. The HomeCare pilot, which aims to reduce readmissions, is expected to generate revenue based on the number of patients enrolled and per scan [2].

Despite the challenges, Butterfly Network maintains a confident tone, emphasizing strong results, cost control, and future prospects. Management continues to highlight fiscal discipline and cost control despite macro uncertainties. The company's record revenue and improved margins in Q2 2025 demonstrate its ability to navigate a lengthened sales cycle in key channels [2].

Butterfly Network's revised revenue guidance reflects ongoing macro uncertainty, particularly around healthcare funding and government programs. The company is mitigating risks through expense control, fiscal discipline, and continued investment in growth areas like Octiv and HomeCare [2].

References:
[1] https://www.marketwatch.com/story/butterfly-network-shares-fall-as-funding-uncertainty-weighs-on-sales-1abebade
[2] https://seekingalpha.com/news/4476782-butterfly-network-outlines-91m-95m-revenue-target-for-2025-amid-delayed-large-deals-and