Butterfly Network, Inc.

Hello everyone and thank you for joining the Butterfly Network Inc Q1 2026 earnings call. My name is Gabrielle and I will be coordinating your call 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 first quarter ended March 31st, 2026. 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, is currently available on the investor section of the company's website at ir.butterflynetwork.com. I jumped already chief financial officer of butterfly along with Joseph the vivo but applies chairman and chief executive officer will host the call this morning. During today's call 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 partnerships through revenue share, ship purchases or otherwise, and the size of 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 filing 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 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. So before I begin, I want to take a moment to congratulate our board member, Dr. Erica Schwartz, on her nomination to serve as this country's CDC director. The entire butterfly family is proud of her, and we remain grateful to have her as a valued member of our board. We've been so fortunate to benefit from her insight, leadership, and friendship for the past five years. She has certainly contributed to where Butterfly is today. So with that, I'm pleased to welcome you to our first quarter call this year and to share that we've been making real progress across every facet of our business. Our plan to become the leader in clinic-care ultrasound is firmly established, and the market is moving towards a system-wide understanding of the power Butterfly can bring. Butterfly opened 2026 with another strong financial performance. 25% revenue growth, 69% gross margin, and the lowest first quarter net loss since going public, all while maintaining a very strong balance sheet to support future growth. This performance shows our momentum regardless of the environmental noise And it's an indicator of what's ahead as we continue to make meaningful progress across every phase of our business. And I'm excited to walk you through our updates. Butterfly is in the middle of the digital transformation of imaging driven by the power of semiconductors and ultrasound. We are beginning to experience the convergence of massive computational power, artificial intelligence, and the incredibly customizable digital visualization which can disrupt not only imaging and healthcare, but far beyond. We are living through a profound moment of technological acceleration, one that healthcare has been waiting for, the merge of intelligence with the human body through smart ultrasound form factors that can live with every person everywhere. It starts with our core focus business, empowering every doctor and nurse with a powerful digital imaging device connected to an ecosystem of AI applications, education and data to deliver immediate clinical care wherever the patient is in the world. We are excited to be the first company ever to earn FDA clearance of a BlindSweep AI tool, which in two minutes can determine the age of a fetus. You may have seen this circulating on either LinkedIn or X, But we were very proud that the FDA itself highlighted our clearance publicly on social media as a meaningful demonstration of their increased focus on AI enabled technologies and how to do it correctly in partnership with them. I've reposted it if you want to go to my account and find it. The GA tool is a true reflection of our mission. Each year, millions of women around the globe enter pregnancy without a reliable way to determine gestational age. In global, rural, or emergency settings, patients often enter care not knowing key dates due to lack of prior prenatal care or are unable to verbalize them due to their condition. Without accurate gestational age, clinical decision-making becomes more complex as each stage of pregnancy requires different treatment pathways. clinicians can determine gestational age quickly and with a high degree of accuracy using our GA tool that's built on deep learning models from Dr. Jeffrey Stringer's team at the University of North Carolina and trained on over 21 million images. Butterfly is now in the process of launching this tool to those who need it most in the U.S. and many global health settings that rely on FDA regulatory pathways. Moments like this demonstrate the strength of Butterfly's architecture. With a single cloud-based software update, similar to how a smartphone is updated, we can push this capability to existing users anywhere cleared in the world. The GA tool is expected to unlock new relationships with ministries of health across developing countries, moving beyond the idea of democratizing healthcare to actually delivering on it. AI applications that give local caregivers access to advanced diagnostics will be the most powerful accelerator of handheld point of care ultrasound. Whether developed internally or through our partners in the Butterfly Garden, these applications can make the complex simple and expand access to patients in highly scalable and cost-effective ways. This quarter, two new partners joined to develop in the Butterfly Garden. bringing the portfolio total to 30. Four of our existing partners have received FDA clearance for versions of their software. Most recently, DeepEcho received a breakthrough designation from the FDA and expects clearance of a robust prenatal AI application potentially by the end of this year. We anticipate iCardio going live with an FDA-cleared model this year, beginning of next year as well. And we are very pleased with the progress Heart Focus is making following its launch of a clinical app late last year. We believe all of these applications, combined with Butterfly's internally developed capabilities, will become the largest, most powerful AI-powered ultrasound library in the industry. Over the next three years, we expect this to drive a meaningful inflection in probe utilization and overall system adoption. So continuing with POCUS, our Compass AI launch last quarter is showing early success. Our pipeline of software deals measured in total contract value is up sharply from the first quarter of 2025, serving as an early indicator of meaningful enterprise adoption in 2026. We have already closed our first enterprise deal this quarter and are seeing strong momentum, including a seven-figure software TCP deal for the customer committing to the long-term Compass AI roadmap. In addition, medical schools are accelerating one-to-one adoption with nearly 1,000 probes sold so far this year across six institutions and more programs coming online. These efforts are supported by continued advancement of our already robust enterprise security posture with recent milestones including high-trust R2 certification, and entry into the FedRAMP marketplace as in process with VA sponsorship, further enhancing our ability to support large health systems and expand into federal opportunities. Over the next few quarters, we expect to further the global scale of our POCUS business, continuing to open multiple new markets across the Americas and Asia, including some of the largest and fastest growing POCUS markets like Brazil. At the same time we've been working to expand I Q 3 availability to over a dozen additional countries already in a regulatory pipeline. So we need to help. Now officially named butterfly home and community care. We are making important progress. We expect now our first commercial agreement to be signed in the first half of this year and begin training nurses to support patients scanning across a full state in the 3rd quarter. We believe this model can expand significantly across the United States in 2027 and represents a foundational shift in how care is delivered. It enables at-risk providers to take control of patient outcomes with AI-powered diagnostics, reducing unnecessary hospital visits and improving system efficiency. I am very proud of our team for maintaining their focus and skilled execution in building this business. So lastly, I'd like to briefly update you on our efforts regarding the RoHS lead exemption for handheld ultrasound. We filed an application to revoke this exemption last year, which currently allows the continued use and disposal of toxic materials in lead-based piezo-crystal handheld ultrasound in the EU. The Commission engaged a third party named OKEO, to review the exemption request and make a recommendation. And through this process, they confirmed CMUT to be a technically viable alternative, meaning they have met or exceeded the capability of incumbent technologies. OKEO ultimately recommended re-approval of the exemption, but only for two years. This is important because exemptions can typically span anywhere from two to seven years. And therefore, OKEO opted to recommend the lowest possible term for an exemption following its review of our request. We believe that during these two years, the EU will gain the understanding they need to revoke the lead exemption for handhelds, including greater awareness, viable alternatives to piezoelectric crystals in handheld ultrasound devices, and clarity that replacing piezo handhelds will not present an impediment to healthcare delivery, but rather introduce a more digital and more effective delivery of medicine. We understand the complexity of disrupting established industry practices, but believe the EU has gained significant insights into the existing of a viable alternative and meaningful progress is being made. So I'll save our embedded update for after John's comments, and would now like to turn it over to John. John?