Butterfly Network, Inc. — Earnings Quality Grade F
BFLY · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 100 days, change +8 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 19.0%, CFFO 69.5%. Cash follows revenue
Expense Quality
Inventory -13.3% vs COGS 56.1%. Normal
CapEx growth 24.3% vs revenue 19.0%. Normal
SG&A/Gross Profit = 209.7%, exceeds 70%
Gross margin swung -12.7pp (59.5% → 46.9%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -21.7%. Low accruals
Cash $0.2B covers debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 16% of equity. Manageable
Interest coverage = -58.0x (<2x). Financial stress
Other assets -2.7% vs revenue 19.0%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change 4% YoY. Normal
Manipulation Score
M-Score = -3.30 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25