Butterfly Network, Inc. (BFLY) SEC Filings & Earnings Calls

Activist investor reduces stake below 5% threshold

“As of August 13, 2026, Glenview ceased to be the beneficial owner of more than five percent of the class of securities.” · word for word

Insider selling via 10b5-1 plan

“Pursuant to the Plan, sales of up to 363,348 shares of Class A common stock and 8,049,929 shares of Class B common stock may be effected” · word for word

Insider selling via 10b5-1 plan

“Pursuant to the Plan, sales of up to 363,348 shares of Class A common stock and 8,049,929 shares of Class B common stock may be effected” · word for word

Activist investor reduces stake below 5% threshold

“As of August 13, 2026, Glenview ceased to be the beneficial owner of more than five percent of the class of securities.” · word for word

Loss of director with potential regulatory or government relations expertise.

“Resignation of a director with likely public health/government background.”

International revenue decline of 14% YoY due to decreased probe sales to distribution partners; partially offset by Brazil expansion.

“International revenue decreased 14% year-over-year to $5.0 million, largely resulting from decreased probe sales to our international distribution partners during the second quarter.” · word for word

Operating expenses increased 19% YoY due to headcount investments; may pressure profitability if revenue growth slows.

“Operating expenses were $37.0 million, up 19% from $31.0 million in the prior year period... reflecting increased headcount in the current year from investments we've made in our internal capabilities.” · word for word

Litigation Liability

“Recognition of $4.0 million of estimated liabilities for loss contingencies related to ongoing litigation and $2.0 million of higher legal costs due to litigation.” · word for word

Customer Concentration in Embedded Partnerships

“Software and other services revenue increase primarily driven by Embedded partnerships, including co-development partnership with Midjourney, Inc.”

Operating Cash Burn Acceleration

“Net cash used in operating activities increased by $11.3 million, or 60.1%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025.” · word for word

Insider selling risk

“On July 17, 2026, 1,195,857 shares of Class B common stock were sold at a weighted average price per share of $6.5959.” · word for word

Insider selling risk

“On July 17, 2026, 1,195,857 shares of Class B common stock were sold at a weighted average price per share of $6.5959.” · word for word

Insider selling pressure

“Founder and related entities sold over 4 million shares in three days, reducing beneficial ownership significantly.”

Insider selling pressure

“Founder and related entities sold over 4 million shares in three days, reducing beneficial ownership significantly.”

Potential disruption from director departure, but mitigated by immediate appointment of new independent director.

“Resignation contingent on confirmation; new director appointed with standard compensation.”

Litigation liability

“We recognized an additional $3.3 million estimated loss and a $6.0 million loss recovery in our other operating expenses during the three months ended March 31, 2026.” · word for word

Operating expenses increased 1% YoY, with headcount and professional services costs rising.

“Operating expenses were $32.2 million, up 1% from $31.8 million.” · word for word

Dependence on Butterfly Embedded partnerships for growth; concentration risk.

“Revenue from our Butterfly Embedded partnerships, including our co-development partnership with Midjourney.” · word for word

Controlled company governance risk

“Jonathan M. Rothberg, Ph.D. beneficially owns a majority of the voting power of all outstanding shares of the Company's common stock. As a result, we are a 'controlled company' within the meaning of the corporate governance standards of the New York Stock Exchange.” · word for word

Key person dependency on founder

“Jonathan M. Rothberg, Ph.D. beneficially owns 100% of our Class B common stock and controls a majority of the voting power of all of our outstanding shares of capital stock.” · word for word

Insider selling risk

“Pursuant to the Plan, sales of up to 2,799,818 shares of Class A common stock and 5,000,000 shares of Class B common stock may be effected during the plan sales period beginning following the cooling-off period contained in Rule 10b5-1(c) on July 14, 2026 and ending on July 14, 2027 in accordance with the terms and conditions of the Plan.” · word for word

Insider selling risk

“Pursuant to the Plan, sales of up to 2,799,818 shares of Class A common stock and 5,000,000 shares of Class B common stock may be effected during the plan sales period beginning following the cooling-off period contained in Rule 10b5-1(c) on July 14, 2026 and ending on July 14, 2027 in accordance with the terms and conditions of the Plan.” · word for word

Inventory obsolescence risk

“Cost of product revenue increased by $19.7 million, or 80.7%, for the year ended December 31, 2025 compared to the year ended December 31, 2024, primarily driven by a non-recurring $17.4 million charge during the year ended December 31, 2025 for excess and obsolete inventory due to technological advancements in the underlying components of our devices and ch” · word for word

Litigation risk

“Other increased by $6.7 million for the year ended December 31, 2025 compared to the year ended December 31, 2024. This increase was driven by $7.1 million of higher legal costs due to litigation, including the $3.0 million accrued loss contingency recognized in 2025.” · word for word

Operating loss risk

“Loss from operations $ (86,415) for 2025 vs $ (74,411) for 2024.”

International revenue declined 6% YoY due to prior year new distribution partner sales.

“International revenue decreased 6% year-over-year to $4.7 million.” · word for word

Operating expenses increased 22% YoY, reflecting investments in sales force and client experience.

“Operating expenses were $37.9 million, up 22% from $31.0 million.” · word for word

Warrant delisting due to abnormally low price; warrants expire Feb 12, 2026; holders may lose value if not exercised before expiration.

“abnormally low selling price... Warrants are set to expire on February 12, 2026”

Reputational risk: delisting action by NYSE could signal governance or market confidence issues, though company denies performance link.

“NYSE has determined to commence proceedings to delist the Company's public warrants”

Preliminary results subject to audit; no specific revenue or profit figures.

“Preliminary, unaudited; full results expected in late February.”

Dependence on Midjourney's commercialization success for revenue sharing and chip purchases.

“Revenue sharing payments in connection with Midjourney’s commercialization of hardware products incorporating Company chips.” · word for word

Inventory obsolescence from rapid product cycles

“driven by a non-recurring $17.4 million charge during the three months ended September 30, 2025 for excess and obsolete inventory due to technological advancements in the underlying components of our devices and changes in our product portfolio.” · word for word

Litigation cost escalation

“This increase was driven by $1.9 million of higher legal costs due to litigation, partially offset by $0.8 million of lower employment-related costs.” · word for word

Inventory write-down risk: $17.4M excess/obsolete inventory charge indicates potential product lifecycle or demand mismatch.

“$17.4 million write-down of excess and obsolete inventory that was recognized during the quarter.” · word for word

GAAP gross margin deeply negative due to write-down; adjusted metrics mask underlying profitability challenges.

“Total gross margin, on a GAAP basis, was (17.5)% compared to 59.5% in the prior year period.” · word for word