Butterfly Network Partners with Merge Labs for Brain Interface Technology
Butterfly Network (NYSE:BFLY) has entered a multiyear agreement to supply its ultrasound-on-chip technology exclusively to Merge Labs, an OpenAI-backed brain-interface startup. The deal includes upfront payments, development milestones, purchase commitments, access fees, and potential royalties, though specific financial terms were not disclosed. This partnership marks the first major application of Butterfly's embedded platform beyond medical imaging. Butterfly’s second-quarter revenue rose 39% to $32.6 million with a gross margin expansion to 71.4%, while its adjusted EBITDA loss narrowed significantly. The company raised full-year revenue guidance, signaling optimism around the Embedded segment driving growth and profitability. However, challenges remain in translating research partnerships into mass production for brain-computer interfaces. Despite positive financial trends and strategic validation from Merge Labs, Butterfly still reported a $12.9 million net loss in Q2 and faces uncertainties regarding contract value or royalty potential. Institutional interest has increased with more hedge funds holding BFLY stock.
Tickers: $BFLY
Topics: biotech corporate partnerships medical devices neurotechnology