MeritValue

Butterfly Network, Inc.

BFLYdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Butterfly Network, Inc. earns about -102% on invested capital, but has diluted owners by 42% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$62.6M1$73.4M2$65.9M3$82.1M3$97.6M3
Net income−$32.4M4−$168.7M5−$133.7M6−$72.5M6−$77.1M6
Operating cash flow−$189.2M7−$169.1M8−$98.8M9−$41.7M9−$12.7M9
Capital expenditure$7.88M10$18.3M11$5.78M12$2.69M12$3.35M12
Free cash flow (derived)−$197.1M7−$187.4M8−$104.6M9−$44.4M9−$16M9
Total debt—————
Cash & equivalents$422.8M13$162.6M14$134.4M15$88.8M16$150.5M16
Diluted shares173.8M199.8M205.4M211.7M247.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$7.93
your share of equity
Profit it earned you last year
−$3.12
Free cash flow it threw off
−$0.65
Debt you’d be carrying
—

10 shares is a claim on $7.93 of net worth that earned you −$3.12 and generated −$0.65 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-102% avg · 5y
FY21 -101%FY22 -82%FY23 -123%FY24 -72%FY25 -134%

It earned an average -102% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+42% shares · 5y

Share count is up 42% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001558370-24-002308 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001628280-25-009036 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001804176-26-000009 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001558370-24-002308 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001628280-25-009036 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001804176-26-000009 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001558370-24-002308 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001628280-25-009036 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001804176-26-000009 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001558370-24-002308 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001628280-25-009036 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001804176-26-000009 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001558370-23-004464 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2022-12-31 · accession 0001558370-24-002308 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2023-12-31 · accession 0001628280-25-009036 (CashAndCashEquivalentsAtCarryingValue)
  16. 10-K · period ending 2024-12-31 · accession 0001804176-26-000009 (CashAndCashEquivalentsAtCarryingValue)