Forensic Analysis · General / Diversified · as of Jun 27, 2026
Butterfly Network, Inc. (BFLY)
A forensic read on Butterfly Network, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-5.5
Altman Z-score
Clean
Earnings quality
4
Forensic signals
-36.8%
ROE
$2.3B
Market cap
Butterfly Network, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -5.5, placing it in the Distress zone. 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-84%Return on invested capital.Return on invested capital is -84% and slipping from -75% — well below its ~9% cost of capital, so reinvested dollars may be destroying value, not building it.
+7.9%/yrShare-count dilution.Diluted share count changed +24% over the last 3 years to FY2025 (+7.9%/yr). The count is GROWING — existing holders are being diluted. That's ~7.9% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~24%.
100d DSOReceivables vs revenue.Days sales outstanding moved from 92 to 100 days FY2024→FY2025 (receivables +29% vs revenue +19%). Receivables are creeping up relative to sales — watch the trend.
24% of revStock-based comp load.Stock-based compensation ran 24% of revenue in FY2025 — about $0.09 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
Key fundamentals
Net Margin-79.0%
Free Cash Flow$-16.0M
Latest Revenue$97.6M
Return on Equity-39.3%
Revenue Growth YoY+19.0%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Butterfly Network, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about BFLY's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown