Butterfly Network Inc. (BFLY) shares fell 5.08% in pre-market 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 the analyst consensus estimate of $26.1 million. Adjusted earnings per share came in at -$0.03, better than the estimated -$0.07. However, the market's negative reaction appears 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 reaffirmed its full-year revenue guidance of $117 million to $121 million and noted gross margin improvement to 68.9%, investors seemed concerned about the persistent red ink despite top-line growth. The results highlight the ongoing challenge of achieving profitability even as the company expands its revenue through Embedded partnerships and a shift toward higher-priced products.