Butterfly Network makes handheld point-of-care ultrasound (POCUS) devices and sells them to healthcare professionals and health systems worldwide. Its flagship product is the Butterfly iQ3, a single handheld probe built on Butterfly's proprietary Ultrasound-on-Chip semiconductor platform, capable of whole-body imaging across more than 20 anatomical presets. The device pairs via Bluetooth with a smartphone or tablet, giving clinicians real-time ultrasound at the bedside without cart-based equipment. Butterfly sells to three main customer types: health systems (enterprise-wide deployments, the key strategic focus), individual clinicians and medical students (via direct e-commerce), and veterinarians. Butterfly makes money from probe sales, annual software subscriptions for its Compass AI enterprise platform, and an emerging licensing business called Butterfly Embedded, where Butterfly licenses its Ultrasound-on-Chip technology to companies in non-competing markets. The flagship Embedded deal is a 5-year, $74M contract with Midjourney for an undisclosed AI application. Butterfly also operates a pre-commercial HomeCare initiative targeting chronic care patients in home and skilled nursing settings, which management expects to begin generating revenue in late 2026. Butterfly's gross margins have been improving, driven by higher-margin Embedded revenue and a growing mix of higher-ASP iQ3 probes, though the company remains loss-making. Management's long-term vision is to evolve Butterfly from a POCUS device company into a semiconductor platform company, with POCUS as one of several application verticals.