Butterfly Network, Inc.

Hello, everyone. Thank you for joining us and welcome to Butterfly Network, Inc. Q3 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to John Doherty, Chief Financial Officer. John, please go ahead.

Good morning, and thanks to all of you for joining our call today. Earlier, Butterfly released financial results for the third quarter ended September 30th, 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 Investors section of the company's website at ir.butterflynetwork.com. Additionally, we also filed a new universal shelf registration statement on Form S3, replacing the shelf that expired in August, 2026. I, John Doherty, Chief Financial Officer of Butterfly, along with Joseph DeVivo, Butterfly's Chairman and Chief Executive Officer, will host a call this morning. 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, Revenue attributable to home and community care, as well as embedded partnerships through revenue share, ship 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. 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.

Thank you, John. and welcome everybody to our third quarter conference call in 2026. I remain extremely pleased with our execution across the business. We delivered 32.6 million in revenue, beating top end of our guidance by 9%. We delivered the highest gross margin in Butterfly's history and we're raising our full year guidance on the top and bottom lines. What I'm most proud of is how revenue is being built. It's durable and it compounds. In the U.S., our core business is increasingly anchored in multi-year enterprise contracts with a pipeline that has grown sixfold since introducing Compass AI. Internationally, we've developed a plan to take what's working in the U.S. and put that playbook to work in global markets. In Embedded, every new partnership brings development and licensing revenue today, but more importantly, the potential for revenue share if and when they commercialize means it builds on itself. and as home and community care begins generating revenue, that's upside. Each of these wins can expand our addressable markets. So for me, I see our opportunity growing every day. I become more and more excited by Butterfly's potential for significant growth over the next few years. Starting with our POCUS business, I'm very proud of our domestic team. We delivered 15% revenue growth in our USHHS business this quarter. Our enterprise strategy is taking effect, and we're talking to new enterprise accounts on a regular basis. We are seeing a rapidly maturing POCUS landscape. Health systems are listening to clinicians who want to perform ultrasound, and they're providing more and more CME education for them. It's also becoming more recognized that a health system hocus program and data management system like Compass AI is essential. Our Compass AI pipeline is converting, and we are now closing software and hardware enterprise deals each quarter. The third quarter included five seven-figure TCV deals and then 10 six-figure TCV deals, a clear demonstration that this pipeline is materializing. Being mostly software, that revenue also compounds over time. These are also multi-year contracts, and that's exactly the kind of revenue that builds durability into our business. We expect this to keep accelerating. So continuing in the U.S., our partnerships with the Edward Villa College of Osteopathic Medicine, known as VCOM, has kicked off. Through the new Lighthouse program, VCOM is committed to providing a butterfly probe to every one of its students. That's about 670 new students per year across four schools. And then upperclassmen are receiving devices this year also. I attended one of their white coat ceremonies where I stood on stage with the dean. He handed each student their stethoscope and I handed them their new butterfly. The look of joy on their faces is a memory I will not soon forget. Graduates will take their pros with them into residency now, which is new. And because every device is networked through Compass AI, we'll work with VCOM to understand postgraduate activity and use it to inform best practices going forward. To wrap up the US, we achieved FedRAMP authorization in the quarter as anticipated, which enables us to do business with the federal government at scale. Our government pipeline is now building organically, and we are now being proactively included in RFIs from government agencies on much larger efforts. This is entirely new for Butterfly. FedRAMP could be a real catalyst for Butterfly's POCUS business by creating access to the largest purchaser of healthcare in the world. More to come on that front. So turning to international POCUS. After deal timing shifts last quarter and continued softness this quarter, we took a closer look at our international commercial strategy and identified clear opportunities to improve our performance. Historically, we've relied heavily on distributors focused on individual clinicians. We now see real opportunity to pursue larger institutional and enterprise customers, much like we've successfully done domestically, where our market share is more than double that of any international region. For competitive reasons, I won't share the specifics, but we are preparing to put our U.S. playbook to work internationally. We expect improved performance in the fourth quarter and into 2027. We believe this is an important step towards building a stronger, more durable, and scalable international business. Moving to our partnership ecosystems, we signed five new garden partners this quarter, spanning emergency medicine, global health, telemonitoring, and veterinary applications. We should now begin to see a steady stream of partners coming to market. Every garden app can expand what the probes already do in the field and become an enabler of adoption. Just this week, Deep Echo launched its app into the butterfly garden. It brings butterfly users AI powered fetal imaging analysis and automated measurements designed to expand access to critical maternal health care. Deep Echo marks our first international garden application to go live. Its initial commercial focus is underserved international markets where access to prenatal imaging is limited, and it is also available in the U.S. for educational purposes now. We congratulate our friends at Deep Echo on this accomplishment. On Embedded, I want to take a moment to reiterate how this revenue builds, because it's one of the most important things to understand about Butterfly. Today, the majority of our embedded partners pay us for development work, licenses, and chips while they're doing technology development. Assuming products reach market, we then receive software licensing, ongoing chip purchases, and in some cases, commercial licensing. So each new partnership isn't a one-time event. It adds a layer of immediate and long-term revenue that compounds as partners commercialize. Embedded revenue won't always move in a straight line quarter to quarter, especially at this early phase. But what matters is that the underlying base keeps growing with every partner we add. This quarter, we hosted an event in the Bay Area that brought together the founders, researchers, and VCs at the forefront of brain-computer interface innovation. Ultrasound is one of the few modalities that can interface with the brain noninvasively, both sensing neural activity and stimulating neurons. and Butterfly's Ultrasound on Ship is emerging as a key enabler. While early BCI work has focused on restoring function for people with injuries or disabilities, we're seeing growing interest in approaches that would also enhance human capability in entirely new ways. Some of these applications will take years of clinical study, while others may have shorter paths to market. But each new partnership expands our reach into what we believe could be A significant new market for our technology. We added three new partners over the quarter, all in the BCI space. Two we've already announced, Merge Labs and Bridge Neurotech. Both incorporate founders from our partner Forrest Neurotech, recently renamed Arbor Neuroscience, which continues to incubate new ideas from some of the brightest minds at Caltech. Both contributed to embedded revenue in the quarter. And our third partner is Still Stealth. Our pipeline continues to grow and mature with compelling ideas from startups to very large companies. We've also strengthened our commercial efforts with new sales executives dedicated to specific categories of embedded. So the future is exciting and partner innovation is already becoming a reality today. That's the moment where long-term revenue begins. Mandara, a pioneer in vascular robotics and one of the first announced embedded partners, has now launched its product with Butterfly Technology, a handheld robotic system for real-time needle guidance. We're proud of our partnership and the enhanced capability it provides physicians in critical use cases. We continue to make strong progress also with our mid-journey partnership and remain on track to achieve previously communicated milestones. Development of Apollo is also progressing on schedule. Apollo is a critical technology for MidJourney and several of our other embedded partners. We believe it could be transformational, representing the first convergence of semiconductor-based ultrasound and physical AI. It's a platform investment serving not just us, but many of our partners. Our R&D team has also advanced our wearable form factor which has been one of the most requested capabilities from current and prospective partners. We plan to release a limited batch of wearables to embedded co-development partners for research and development. We see it as a potential enabler of future embedded opportunities. So shifting to home and community care, we finally moved from program building to execution. We completed all program approvals in the third quarter and are now delivering the implementation phase we committed to last quarter. Scanning starts in November and we expect initial revenue in this fourth quarter. We hope to expand to other markets through 2027 and are also active in discussions with other large potential partners about this application while exploring new service opportunities enabled by emerging use cases and advances in AI. I believe this revenue will grow throughout 2027 and could become meaningful in 2028. So with that, I'll turn it over to John. John?