<div id="readability-page-1"><div><p>Butterfly Network (BFLY) is back on traders radar after a three way catalyst: a fresh licensing and co development deal with Midjourney, a director share purchase, and the launch of its Compass AI platform.</p> <p>See our latest analysis for Butterfly Network.</p> <p>Those catalysts have arrived against a backdrop of a sharp turnaround in sentiment. Butterfly’s 30 day share price return of 60.9 percent and 90 day gain of 67.7 percent contrast with a still modest 1 year total shareholder return of 1.6 percent, suggesting momentum is building, but the longer term picture remains bruised.</p> <p>If this kind of turnaround story interests you, it is also worth scanning other innovative healthcare names through healthcare stocks for fresh ideas beyond Butterfly.</p> <p>With shares still trading below consensus targets despite a powerful short term rally and improving growth metrics, investors now face a key question: Is Butterfly genuinely undervalued, or is the market already pricing in its next leg of growth?</p> <h2>Most Popular Narrative: 19.1% Undervalued</h2> <p>With Butterfly Network closing at $3.17 versus a most-popular fair value of $3.92, the narrative leans toward upside if its growth blueprint delivers.</p> <blockquote> <p><em>The launch of next-generation Compass AI software, with automated documentation and workflow enhancements, is expected to drive increased enterprise adoption and higher software subscription revenues, improving gross margin mix and boosting earnings via a greater share of recurring, high-margin digital revenue.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Curious what kind of revenue ramp, margin shift, and future earnings multiple could justify this richer valuation profile? The narrative lays out a surprisingly aggressive roadmap for scaling recurring digital revenue and compressing losses, built on detailed top line and margin assumptions that are anything but conservative.</p> <p><strong>Result: Fair Value of $3.92 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, persistent delays in enterprise deal closures and continued operating losses from heavy AI and semiconductor investment could quickly challenge this positive valuation outlook.</p> <p>Find out about the key risks to this Butterfly Network narrative.</p> <h2>Another View: Rich on Sales Despite Upside Narrative</h2> <p>The 19.1 percent upside story collides with a tougher reality on sales-based valuation. Butterfly trades at about 9.1 times revenue versus a US Medical Equipment average of 3.3 times and a fair ratio of 3.5 times, signaling meaningful downside risk if sentiment cools.</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2cb6ab85-8b9c-4ae7-a04d-ab767dd1129d/chart/ps-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/2cb6ab85-8b9c-4ae7-a04d-ab767dd1129d/chart/ps-multiple-vs-industry"/><figcaption>NYSE:BFLY PS Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Butterfly Network Narrative</h2> <p>If this outlook does not fully align with your own thinking, or you prefer hands on analysis, you can build a personalized view in under three minutes, starting with Do it your way.</p> <p>A great starting point for your Butterfly Network research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>If you are serious about sharpening your edge beyond Butterfly Network, do not sit on your hands. Let these pre screened ideas expand your opportunity set.</p> <ul> <li>Capitalize on early stage momentum by targeting quality names among these 3642 penny stocks with strong financials.</li> <li>Position yourself at the front of the automation wave with these 26 AI penny stocks as intelligent software transforms various industries.</li> <li>Seek potential mispricings by focusing on these 913 undervalued stocks based on cash flows where cash flow strength may not yet be fully reflected in share prices.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

BFLY

<p>Butterfly Network (BFLY) is gaining attention due to a licensing deal with Midjourney, insider buying, and the launch of Compass AI. Despite a recent share price rally, the company is considered undervalued with a fair value of $3.92. However, challenges such as high revenue multiples and potential delays in enterprise deals pose risks. Investors are encouraged to explore other innovative healthcare stocks and consider the broader market context.</p>

Butterfly Network (BFLY): Valuation Check After Midjourney Deal, Insider Buying and Compass AI Launch