Butterfly Network, Inc.

During the presentation, you can register to ask questions by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. I would now like to hand you over to your host, Heather Getz, to begin. Heather, please go ahead when you're ready.

Good morning, and thank you for joining us. Earlier today, Butterfly released financial results for the second quarter ended June 30th, 2025, and provided a business update. The release, which provides a reconciliation of management's use of GAAP and non-GAAP measures compared to the most applicable GAAP measures, are currently available on the investor section of the company's website at ir.butterflynetwork.com. I, Heather Goetz, Chief Financial and Operations Officer of Butterfly, alongside with Joseph DeVivo, Butterfly's Chairman and Chief Executive Officer, and Megan Carlson, Senior Vice President of Finance and Accounting, will be hosting this morning's call. During today's call, we will be making certain forward-looking statements. These statements may include, among other things, expectations with respect to financial results, future performance, development and commercialization of products and services, potential regulatory approvals, uncertainties regarding the potential impact of healthcare funding, and the size and potential growth of current or future markets for our products and services. These forward-looking statements are based on current information, assumptions, and expectations that are subject to change and involve a number of known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those contained in the forward-looking statements. These and other risks are described in our filings made with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements and the company disclaims any obligation to update such statements. As a reminder, this call is being webcast live and recorded. To access the webcast, please visit the event section of our investor website. A replay of the event will also be available on the page following the call. I will now like to turn the call over to Joe. Joe?

Thanks, Heather. And good morning, everyone, and thanks for getting up early with us on a Friday. The second quarter marked the first full quarter to anniversary our Butterfly IQ3 launch in the prior year. And against this milestone, I'm pleased to share that we were able to deliver our highest quarterly revenue in company history, totaling $23.4 million. Our gross margins reached an all-time high at 64%, and our cash use was the lowest of any quarter at $7 million. Each quarter, we continued to deliver leverage as we marched to break even. and I'm very pleased of our overall performance and continued discipline of our management team this quarter in the face of some macro headwinds we mentioned during last quarter's call. Earlier this year, we started seeing signs that certain macro environment decisions were having an effect on our core focus business. The guidance provided for Q2 reflected these dynamics, and we came in the range of that guidance. In the near term, we expect these conditions will persist through the end of the year. We believe in the long-term, Butterfly's inherent value proposition will actually thrive in the further cost-contained environment as the healthcare market adjusts. As a result, we are modifying our full-year guidance to reflect this. Our previous guidance factored in the tough comparisons to last year, given the boost we saw from IQ3 trade-ins and ASP lift. That said, we had expected to be further along in closing larger deals for additional growth. Those opportunities are still very much active while the sales cycle is being lengthened. That said, we continue to diligently work on our significant pipeline of enterprise and medical school deals. I'm pleased to announce that we did close the large enterprise-wide deal we mentioned on the last call in the second quarter. They have not let us use their name publicly, but we will fully deploy in every department, every campus, and one of the top five most recognized health systems in the world. It's clear evidence of the tipping point in interest we are seeing at the highest levels. Make no mistake, the momentum of Butterfly in the market is undeniable. I expect things will be back to normal after healthcare digests the changes it's going through. We continue to progress deals and grow market share with IQ3 still leading the way, driving participation and winning RFPs, integrating into medical school programs while proving to the marketplace that it's simply the best handheld ultrasound out there. Not just as a versatile digital probe, but a holistic ultrasound program. Compass, our cloud-based enterprise software, also leads the way in imaging workflow, QA, storage, and interoperability. And it's about to get even better in the next era with our next generation software platform launch. I'll share more details on that towards the end of the call. So during the quarter, we saw continued progress with Butterfly Garden. We added two new Butterfly Garden partners, and we were pleased to see that our partners iCardio, Heart Focus by Desky, and Deep Echo received FDA clearance in the first half of 25 for their clinical use. We expect Heart Focus will be launched to Butterfly users sometime in the third quarter and the other applications shortly thereafter. Butterfly Garden is now entering its commercial phase, and we are excited for the customers to have these AI tools for their clinical use on a butterfly. Once launched, they'll be able to download a specific app to their phone, plug in the butterfly, and scan. These advanced AI tools will allow cardiac and pulmonary scanning by healthcare professionals without prior ultrasound training. These apps over time will expand the market opportunity for POCUS, while enabling more and more clinicians to diagnose patients where they are. During the quarter, we also launched an educational app called MSK View. This is an app developed in the research facilities of the University of Rochester Medical Center, helping caregivers learn how to identify an important nerve while scanning the musculoskeletal. We are very proud of this collaboration with URMC and pleased that our garden helps speed the market new AI applications developed in the clinical community. Butterfly Garden, I believe, will be growing each quarter and will become a significant accelerant for the POCUS market. So keeping on the AI front, Butterfly has added a new descending aorta scanning protocol to our ScanLab educational software. Aortic aneurysms, often present as a deadly event, impacting approximately 35,000 Americans each year. Most patients are asymptomatic until rupture or dissection, so helping clinicians master this view can be lifesaving. Improving access to valvular disease screening is another key focus for butterfly. In the second quarter, research we conducted with Tufts University, recently published in the European Heart Journal Image Methods and Practice, showed that a machine learning model, especially trained on a butterfly IQ, can accurately detect aortic stenosis. Aortic stenosis affects 12% of adults over 75 and often goes undiagnosed in older and underserved communities. Demonstrating that handheld AI can pick up aortic stenosis is a big step towards earlier community-based screening. Butterfly's clinical team has been busy The full Rutgers study we previewed earlier this year has now been accepted by a leading medical journal. The findings will remain under embargo until Q3, and they detail the financial and operational benefits of adding butterfly to inpatient care. So the evidence just continues to build. Now I'll pause here on business updates and turn it over to Heather and Megan to review the financials. But before I do, I want to thank Heather for her work helping reinvent Butterfly and for setting us on a course of a strong financial footing. As you read in the release, Heather will be leaving Butterfly around August 15th and will transition to an advisor of Butterfly until early 2026. Megan Carlson, our Senior Vice President of Finance and Accounting and Chief Accounting Officer, has been appointed our interim CFO until a permanent CFO is identified. One of Butterfly's great strengths is the expertise and depth of our finance organization. With Megan in place, I'm certain we will not skip a beat. We all at Butterfly wish Heather well for her life's next chapter. With that, I'll turn it to Heather to go into the second quarter in more detail. Heather?