Update shared on 16 Dec 2025
Analysts have modestly raised their price target on Butterfly Network to reflect a slightly lower discount rate and a marginally higher future valuation multiple, even as they factor in somewhat softer long term profit margins.
What's in the News
- Signed a five-year co-development and licensing agreement with Midjourney, granting an exclusive license to Butterfly’s ultrasound-on-chip platform. The agreement includes a $15 million upfront fee, $10 million in annual license payments, up to $9 million in milestones, and additional revenue sharing and chip purchase payments (Key Developments).
- Launched Compass AI, an AI-powered enterprise POCUS platform designed to shift health systems from order-based to encounter-based workflows. The platform targets documentation compliance rates of up to 94 percent and may help unlock up to five times more revenue from existing exam volumes (Key Developments).
- Introduced a Gestational Age AI tool in Malawi and Uganda to support maternal and fetal care in low-resource settings. This initiative builds on a Gates Foundation-backed deployment of 1,000 probes and more than 1.8 million scans across Sub-Saharan Africa (Key Developments).
- Reaffirmed fiscal 2025 revenue guidance of $91 million to $95 million, implying approximately 13 percent year-over-year growth (Key Developments).
- Appointed John Doherty as Executive Vice President and Chief Financial Officer, effective December 8, 2025. He brings more than 25 years of global finance and strategic transaction experience across technology and telecom to the company (Key Developments).
Valuation Changes
- Fair Value Estimate: Unchanged at 3.92, indicating no revision to the intrinsic value per share under the updated assumptions.
- Discount Rate: Decreased slightly from 7.76 percent to 7.72 percent, modestly lifting the present value of projected cash flows.
- Revenue Growth: Effectively unchanged at approximately 19.32 percent, signaling stable expectations for top line expansion.
- Net Profit Margin: Eased slightly from 13.38 percent to 12.91 percent, reflecting somewhat more conservative long term profitability assumptions.
- Future P/E: Increased modestly from 69.21 times to 71.68 times, implying a slightly higher valuation multiple applied to future earnings.
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