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Butterfly Network (BFLY) Is Up 28.3% After Exclusive Midjourney AI Licensing Deal and Compass AI Launch Has the Bull Case Changed?

Simply Wall St · 11/27/2025 04:46
  • On November 17, 2025, Butterfly Network, Inc. announced it entered a five-year, exclusive co-development and licensing agreement with Midjourney, granting access to its semiconductor-based ultrasound technology for a US$15 million upfront payment, ongoing US$10 million annual license fees, milestone payments, and revenue sharing.
  • This agreement, combined with Butterfly Network's launch of Compass AI, an artificial intelligence-powered platform designed to drastically improve point-of-care ultrasound workflow efficiency and compliance, signals a substantial acceleration in technology commercialization and enterprise software capabilities for the company.
  • We'll explore how Butterfly Network’s US$15 million upfront licensing deal with Midjourney contributes to its evolving investment narrative and digital health ambitions.

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Butterfly Network Investment Narrative Recap

To be a Butterfly Network shareholder, you need conviction in the company’s ability to commercialize its point-of-care ultrasound technology and shift a growing share of medical imaging workflows onto its digital and AI-powered platforms. The recent five-year, US$15 million upfront licensing agreement with Midjourney offers near-term revenue benefits, but it does not materially address Butterfly’s biggest near-term catalyst, accelerating large enterprise and medical school deals, nor does it mitigate the most pressing risk: persistent delays and slow enterprise sales cycles. Compass AI, recently launched by Butterfly, is likely the announcement most relevant to the Midjourney deal. By showcasing robust, AI-powered workflow enhancements for healthcare institutions, Compass AI may directly influence hospital and enterprise adoption, and is positioned as a catalyst for improved software subscription revenues and higher documentation compliance across client sites. However, investors should also be aware that while new partnerships and product launches may help boost revenue, the challenge of delayed sales cycles and slow enterprise deal-closing remains a real risk...

Read the full narrative on Butterfly Network (it's free!)

Butterfly Network's outlook anticipates $135.9 million in revenue and $17.0 million in earnings by 2028. Achieving this would require a 15.8% annual revenue growth rate and an earnings increase of $79.8 million from current earnings of -$62.8 million.

Uncover how Butterfly Network's forecasts yield a $3.58 fair value, a 16% upside to its current price.

Exploring Other Perspectives

BFLY Community Fair Values as at Nov 2025
BFLY Community Fair Values as at Nov 2025

Ten fair value estimates from the Simply Wall St Community range from US$0.87 to US$10.29 per share. While enterprise deal acceleration remains the key catalyst, you may want to compare these varied views alongside your own expectations for sales momentum and revenue growth.

Explore 10 other fair value estimates on Butterfly Network - why the stock might be worth over 3x more than the current price!

Build Your Own Butterfly Network Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.