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Disclosure: The author holds a long position in BFLY.

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BFLY

Analysis as of: 2026-01-13

Butterfly Network, Inc.

Butterfly sells handheld, semiconductor-based ultrasound devices and software intended to standardize imaging workflow, documentation, and sharing across care settings.

ai hardware healthcare medical devices software

On Yahoo Finance ...

Jump to: Summary • Analysis • Opportunity • Risk • Trends • Third Party Analyst Consensus

Summary

Turning handheld imaging into a workflow platform

The base case is continued adoption plus improving revenue quality as enterprise standardization and IP licensing scale. The risk is commoditized handheld pricing and slow hospital procurement.

Analysis

Thesis

Butterfly can compound from a probe seller into the “operating layer” for point-of-care ultrasound—standardizing capture, QA, documentation and enterprise rollout—while monetizing its ultrasound-on-chip IP via licensing and a developer ecosystem; if enterprise conversion becomes templated, revenue quality shifts recurring and the stock can re-rate into 2031.

Last Economy Alignment

Turns scarce clinician time into software-defined workflow; moats come from distribution/workflow hooks + data flywheels more than human labor.

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Opportunity Outlook

Average Implied 5-Year Multiple

3.1x (from 5 most recent analyses)

Reasoning

The upside is a quality shift: from episodic device sales to an enterprise standard that makes bedside ultrasound governable, auditable, and repeatable at scale. Recent moves (IP licensing and opening the Beam Steering API) raise the odds Butterfly becomes a platform with third-party innovation on top of its digital beamforming stack. The multiple doesn’t need to become “software-like”; it just needs credibility on enterprise conversion, retention, and mix.

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Risk Assessment

Overall Risk Summary

The path to 2031 hinges on enterprise adoption speed and pricing power. If Butterfly cannot prove repeatable, CFO-grade ROI (and keep supply chain/inventory disciplined), the business stays a competitive handheld device category with periodic dilution risk. Regulatory cadence for new AI features and partner economics are swing factors.

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Trends

Key Changes

Jan 6, 2026: announced planned Beam Steering API (1H 2026), opening core imaging controls to third-party developers.
Jan 7, 2026: CFO filed Form 4 reflecting a sell-to-cover transaction tied to equity vesting/tax withholding.
Jan 15, 2026: scheduled J.P. Morgan Healthcare Conference presentation; potential for updated framing and milestones.

Forecast update

Market cap has moved up versus the prior run, so the same 2031 business outcome implies a slightly lower upside multiple unless execution accelerates.

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Third Party Analyst Consensus

12-Month Price Target

$4.19

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