Butterfly Network, Inc.

Hello, everyone, and thank you for joining the Butterfly Network Inc. Q4 and FY 2025 Earnings School. My name is Gabrielle, and I will be coordinating your poll today. During the presentation, you can register a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two on your telephone keypad. I will now hand over to your host, John Doherty. Please go ahead.

Good morning, and thanks to all of you for joining our call today. Earlier, Butterfly released financial results for the fourth quarter and full year ended December 31st, 2025. We also provided a business update. The release, which includes a reconciliation of management's use of non-GAAP financial measures compared to the most applicable GAAP measures, are currently available on the Investors section of the company's website at ir.butterflynetwork.com. I, John Daugherty, Chief Financial Officer of Butterfly, along with Joseph DeVivo, Butterfly's Chairman and Chief Executive Officer, will host the call this morning. During the 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, revenue attributable to embedded collaboration through revenue share, CHIP purchases or otherwise, 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. Your caution 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 events section of our investor website. A replay of the event will also be available on this page following the call. I would now like to turn the call over to Joe.

Thanks, John. Good morning, everyone, and thank you for joining our fourth quarter and full year 2025 conference call. I'm pleased to announce that our fourth quarter revenues came in at $31.5 million, growing 41% year over year. It's also the first quarter in our history where we realized positive operating cash flow, driven by upfront payments from our mid-journey deal. We are now nearly two years into our strategic growth plan that we introduced in early 2024. The message then was clear, execute with focus and financial discipline, strengthen our core franchise, and unlock the full value of our semiconductor ultrasound platform beyond handheld devices. We're doing just that, and we now have material contribution outside of our core POCUS business. So earlier this month, Jim Cramer was asked a question about Butterfly Network on MadMoney. And he said, I quote, it's a very competitive market, and I don't want to be in that part of the medical device group. Too hard for this guy, just too hard. Well, you know, I'm a big fan of Jim Cramer, and like you, watch CNBC every day. And he's right about one thing. Traditional medical devices are a tough sector. But Butterfly is not a traditional medical device company. We were never just a handheld company shaken at the knees of big ultrasounds. We are David, faithful and committed to our cause, not backing down regardless of how large our opponent is. We are the disruptor. We are playing our own game with our own rules and our own playbook. We are digital eating analogs lunch and plan to revolutionize imaging with digital ultrasound everywhere and images taken. Goliath just doesn't know it yet. So we are changing ultrasound imaging with our differentiated chip platform while deploying secure cloud software, AI tools, and mobile applications, and are the only healthcare company in the world over the last seven years to receive an Apple Design Award. We are not a medical device company alone. We are a transformative semiconductor-based ultrasound company. As you're all aware, the strategy we introduced has three core tenets. accelerate our core focus business with an enterprise-ready cloud-connected imaging solution, execute strategic initiatives to reach new care settings, and enable entirely new applications, namely home care and ultrasound-on-chip co-development. And then lastly, deliver an R&D roadmap that sharpens our technology edge with next-generation chips and new form factors getting more and more powerful and capable. So let me walk you through the progress in each of these. In core POCUS, revenue grew 15% year over year, on top of a 35% growth in the fourth quarter of last year, which, as you recall, was a record product launch year. We closed a second large system-wide enterprise deal in the fourth quarter of 25 and continue to deepen medical school and enterprise relationships. So I'll let John cover the financials in more detail, but we feel much better about macro trends and the deal cycle than earlier in the year and expect to carry that momentum into 2026. The fourth quarter Compass AI launch is a big tailwind for our enterprise strategy. Enhancing our enterprise solution helped refresh existing accounts, continue attracting new customers, and drove more than 50% growth in our enterprise pipeline since launch. At the same time, we've been building what we believe is one of the most secure cloud infrastructures in healthcare. In the U.S., we most recently achieved GovRamp and TexRamp, and FedRamp is anticipated in the coming months, meaning we'll soon be even more qualified for cloud deployments in now the world's largest government market. Internationally, we see meaningful opportunities in 2026 as we open markets in South America and continue expanding across Middle East and Asia, alongside a renewed momentum in global health. We've surpassed 1,000 NGO partners worldwide, and many expect to increase activity in 2026. We also continue to make progress in our Butterfly Garden partners. And as you know, Heart Focus became the first FDA-cleared app in 2025, and we expect additional partners to reach that clinical milestone in 2026. We announced plans to release our proprietary beam steering API in the first half of this year. The API will open 3D imaging capabilities that have been reserved for butterfly products only. Because our beam steering is fully digital on a semiconductor chip and not mechanically driven like other legacy systems, we can uniquely extend those capabilities to partners. The goal is to advance what they can build. expand the AI ecosystem, and help accelerate ease of use. We're excited about the new opportunities this welcomes. So, moving to the strategic growth engines. We've built a home business determined to accelerate the use of POCUS devices where the patient is, expanding the reach and empowering nurses and other clinicians to perform scans using AI tools. I believe we will reach a commercial agreement in 26 allowing home care to enter its commercial phase. This is a powerful new channel that reduces hospital readmissions, lowers costs, and expands Butterfly's reach beyond the hospital. Home care is a reality, and we think it can be a real growth driver starting to add revenue in late 26 and into 27. We also ventured out to develop a new business to make our core ultrasound chip available to companies with large new market opportunities that are not competitive with Butterfly's focused business. That was previously known as Octave. Well, to start the new year, we've officially sunset the Octave name and have centralized our semiconductor platform strategy under Butterfly Embedded, reminiscent of the Intel inside model. What began as an adjacent effort is now emerging as a foundational business, enabling other category-defining innovators to build entirely new application on Butterfly's ultrasound on-chip technology. The big news for the fourth quarter, though, was signing Midjourney deal in November. And as you can see today, it contributed $6.8 million of revenue in the quarter and was a key driver of our 41% year-over-year growth. Midjourney is an independent research lab pushing the boundaries of generative AI and human imagination. Their scientists have envisioned a breakthrough new application for ultrasound that we believe the world will be learning about very soon. This partnership combines Butterfly's core ultrasound chip technology and imaging software with Midjourney's generative AI compute power to do something very special with ultrasound. So this deal is more than revenue, it is validation. It's a foundational step towards Butterfly's reinvention into a platform company. The initial partnership and revenue contribution is pre-commercial. So based on the plan that Midjourney has shared with us, once commercial, we believe there is meaningful additional revenue opportunity for Butterfly in the form of chip sales and revenue share on top of the licensing fees that will continue through the deal. We expect this to happen in the outer years of our five-year plan, and if it occurs, could represent meaningful progress towards our goal of reaching $500 million in annual revenue by 2030. Beyond Mid-Journey, we signed an additional Butterfly Embedded Research Tier partner this quarter and expect another one shortly, while managing an active pipeline of some of the largest technology and healthcare companies in the world. So before I look ahead to our R&D roadmap initiatives, I'll turn it over to John to discuss the financials.