BFLY Should I Buy
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Butterfly Network Inc (BFLY) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. Despite recent price declines, the company's strong growth potential, positive analyst sentiment, and promising revenue projections make it a compelling long-term investment.
The stock is showing bullish moving averages (SMA_5 > SMA_20 > SMA_200), indicating a positive long-term trend. The MACD is above 0 and positively contracting, which suggests potential upward momentum. RSI is neutral at 53.364, and the stock is trading near its pivot level of 3.785, with key support at 2.968 and resistance at 4.602.
Analysts have raised price targets significantly, with targets ranging from $5.25 to $6, citing strong Q4 results, revenue growth, and new revenue streams like Butterfly Embedded.
The company achieved a 41% YoY revenue increase in Q4 2025 and positive operating cash flow for the first time.
The launch of Compass AI and the commercial phase of the HomeCare business are expected to drive substantial revenue growth.
The AI medical imaging market is projected to grow significantly, aligning with Butterfly Network's core business.
Recent price performance has been weak, with a -6.70% regular market change and additional declines in pre-market and post-market trading.
Q4 2025 financials showed a YoY revenue drop of -19.01% and a net income decline of -100%.
Adjusted EPS for Q4 missed consensus estimates.
In Q4 2025, the company reported a 41% YoY revenue increase to $31.5 million, achieving positive operating cash flow for the first time. However, the full-year revenue dropped by -19.01% YoY to $18.1 million, and net income fell to 0. Gross margin decreased to 55.71%, down -9.34% YoY, while EPS improved to -0.31, up 287.50% YoY.
Analysts are bullish on the stock, with multiple firms raising price targets and maintaining Buy ratings. The raised targets reflect confidence in the company's growth potential, driven by new revenue streams, strong Q4 results, and expanding enterprise pipelines.
