Butterfly Network Inc.'s stock plummeted 6.71% during intraday trading on Thursday following the release of its first-quarter 2026 financial results.

The company reported revenue of $26.5 million, a 25% year-over-year increase that surpassed analyst estimates of $26.1 million. Adjusted earnings per share also beat expectations, coming in at -$0.03 compared to the estimated -$0.07. However, the market reacted negatively as investors focused on the company's continued losses, with a reported net loss of $12.7 million and an adjusted EBITDA loss of $6.1 million for the quarter.

While Butterfly Network noted gross margin improvement to 68.9% and reaffirmed its full-year revenue guidance of $117 million to $121 million, the persistent red ink despite top-line growth appears to have dampened investor sentiment. The results highlight the ongoing challenge of achieving profitability even as the company expands through Embedded partnerships and a shift toward higher-priced products.