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Butterfly Network (BFLY) just reported Q3 2025 earnings—and the market's reaction is weird. Loss widened to 13 cents/share (worse than expected 7 cents), yet stock popped 5.1% in pre-market anyway. Here's the twist:
📊 Revenue hit $21.5M, beating estimates by 2.4% and growing 4.5% YoY—but gross profit turned into a $3.8M loss (cost of revenue jumped 203%!). Operating loss expanded to $32.3M vs $15.6M last year.
Why the rally? Company's cutting cash burn and hitting growth targets. Q3 had international expansion (iQ3 probe launch), FDA submissions for AI gestational age calculator, and new AI-guided echo app approval. Full year guidance stays at $91-95M revenue (+13% growth).
Bottom line: BFLY is trading on AI/healthcare buzz despite ugly margins. Classic biotech playbook—lose money now, scale tech later. Market betting on the future, not the present.