Exploring Butterfly Network, Inc. (BFLY) Investor Profile: Who’s Buying and Why?

You're looking at Butterfly Network, Inc. (BFLY) and trying to figure out why major institutions are still accumulating shares in a company that is guiding for a 2025 revenue of $91 million to $95 million but also a significant adjusted EBITDA loss of up to $35 million. It's a classic innovator's dilemma: are the big players buying the current financials or the future technology? The answer is defintely the latter, which is why you see institutional investors holding nearly 48.05% of the company, a stake that gives them immense power over the stock's direction. Just look at BlackRock, Inc., one of the largest shareholders, which held over 14 million shares as of mid-2025, or the recent news of the five-year licensing deal with Midjourney, Inc. that brings in a one-time $15 million fee plus a $10 million annual license fee for their ultrasound-on-chip technology. This isn't about today's net loss of $13.8 million from Q2; it's a bet on the long-term value of their proprietary semiconductor-based ultrasound platform and the new Compass AI software. So, who exactly are these big buyers like Vanguard Group Inc. and ARK Investment Management LLC, and what specific milestones are they watching to justify the stock's volatility?

Who Invests in Butterfly Network, Inc. (BFLY) and Why?

You're looking at Butterfly Network, Inc. (BFLY), a company that's trying to redefine medical imaging, and you want to know who's actually putting their money in and what their endgame is. The short answer is: a mix of massive, often passive, institutional players and a significant chunk of retail investors, all betting on a long-term technology disruption.

As of late 2025, the ownership structure shows a clear division, which tells you a lot about the stock's volatility and its potential trajectory. Institutional investors hold the largest share, but retail and insiders also have a considerable say. It's defintely a growth-stock story right now, not a value play.

Key Investor Types: The Ownership Breakdown

The investor base for Butterfly Network, Inc. is dominated by institutional money, but not overwhelmingly so. This is typical for a disruptive, pre-profit technology company that's been public for a few years.

• Institutional Investors: This group, which includes mutual funds, pension funds, and asset managers like BlackRock, Inc. and Vanguard Group Inc, holds the largest position, accounting for approximately 41% of the total shares outstanding. We've seen 299 institutional owners reporting positions, holding a total of 145,055,121 shares.
• Retail/General Public: Individual investors-the general public-hold a substantial stake, around 36% of the company. This high percentage means the stock price can be more sensitive to sentiment swings and social media trends than a stock dominated by institutions.
• Hedge Funds and Active Managers: Firms like Glenview Capital Management, Llc, which holds 9,955K shares (a 4.40% ownership stake), and ARK Investment Management LLC are key players here. Their activity, like ARK's recent share decrease, shows they are actively managing their position based on near-term performance and market conditions.
• Insiders: The company's executives and directors have serious skin in the game. Co-founder Jonathan Rothberg, for instance, remains the largest single shareholder, holding a significant 15% of the shares outstanding.

Investment Motivations: Betting on Disruption

Nobody is buying Butterfly Network, Inc. for dividends-the company is still in its high-growth, pre-profit phase. You're investing in the future of medical diagnostics. The core motivation is the company's 'ultrasound-on-a-chip' technology, which is genuinely disruptive.

The pitch is simple: replace bulky, expensive cart-based ultrasound machines with a portable, affordable device, the iQ3 probe, that connects to a smartphone. This opens up massive new markets outside of traditional hospitals, like emergency medicine, rural care, and even home health. The company is leaning into this, with its 2025 full-year Revenue Guidance reaffirmed at $91 million to $95 million, representing approximately 13% growth. That's a solid growth rate, but the Adjusted EBITDA loss guidance of $32 million - $35 million reminds you that profitability is still on the horizon. The investment thesis rests on the belief that they can successfully execute on their Mission Statement, Vision, & Core Values of Butterfly Network, Inc. (BFLY).

Investment Strategies: Growth vs. Conviction

The strategies employed by these different investor types reflect their risk tolerance and time horizon. It's a classic growth-stock playbook.

Here's the quick math: you have a company with a compelling product, demonstrated revenue growth (Q3 2025 Revenue was $21.5 million), but it's burning cash to capture market share.

The overall fund sentiment, as indicated by a low put/call ratio of 0.08, suggests a generally bullish options market, meaning traders are betting on the price rising. That's a sign of high conviction, even if the stock price itself has been volatile. For you, this means you need to be prepared for a bumpy ride, but the long-term potential of the technology is what keeps the big money-and the smart money-interested.

Institutional Ownership and Major Shareholders of Butterfly Network, Inc. (BFLY)

You're looking at Butterfly Network, Inc. (BFLY) and trying to figure out who's really in the driver's seat. The short answer is that institutional money-big funds and firms-holds a significant stake, and their trading decisions are what you need to watch. As of late 2025, institutional investors control approximately 43% of the company, and they are the primary force behind the stock's volatility and strategic direction.

This level of ownership means the stock is defintely sensitive to their collective sentiment, plus the top 14 shareholders alone account for about 50% of the company's total ownership.

Top Institutional Investors and Their Holdings

The largest shareholders in Butterfly Network, Inc. are exactly the names you'd expect to see in a high-growth, technology-driven healthcare company. These are the passive index giants and the active managers who see long-term potential in the company's portable ultrasound technology. The top institutional holders are dominated by the mega-asset managers, reflecting the company's inclusion in various market-tracking funds.

Here's a snapshot of the largest institutional stakes based on the most recent 2025 fiscal year filings, with a total market value of the institutional long positions reaching approximately $277.9 million.

It's important to remember that these institutions, like BlackRock, Inc. and Vanguard Group Inc, often hold shares through various index and mutual funds, making their stake largely passive. But still, their sheer size gives them enormous influence.

Changes in Ownership: Net Buying and Key Moves

In the last reported quarter of 2025, institutional trading showed a clear trend of net accumulation. Institutions were buying more shares than they were selling, which is a bullish sign for a growth stock like Butterfly Network, Inc. Over that period, institutions bought approximately 182.8 million shares while selling around 82.2 million shares.

Here's the quick math: that's a net inflow of over 100 million shares, suggesting conviction in the company's near-term outlook. However, a closer look at the largest holders reveals a mixed bag of actions:

• Vanguard Group Inc increased its stake by 4.281% in the third quarter of 2025, adding 453,258 shares.
• BlackRock, Inc. slightly reduced its position by 1.392%, selling 195,359 shares.
• ARK Investment Management LLC, a firm known for its high-conviction tech bets, decreased its holding by 4.2% as recently as November 2025.
• Some smaller, more active funds like BNP Paribas Financial Markets saw a massive percentage increase, boosting their stake by 139.9% in November 2025.

This shows a divergence: while index funds (Vanguard) are adding shares to keep pace with the market, some active managers (ARK, BlackRock, Inc.) are trimming their positions. It's a classic battle between passive tracking and active risk management.

Impact of Institutional Investors on Stock and Strategy

The sheer volume of institutional holdings-over 40% of the total shares-makes Butterfly Network, Inc.'s stock price highly sensitive to their collective trading actions. When a few large investors decide to sell, even a small portion of their holdings, it can create a significant downward pressure on volume and price. This is particularly true for a company with a market capitalization of around $679 million as of November 2025.

Their influence isn't just on price; it's strategic, too. Large institutional investors, especially those who file a Schedule 13D (indicating an intent to influence management), can push for changes in corporate governance, capital allocation, or even a sale of the company. Even passive holders influence strategy indirectly by providing a foundational level of credibility and stability to the stock. The fact that institutional investors benefited from a 32% stock increase in a single week in November 2025 underscores their power to move the needle. To understand the underlying financial health that drives these decisions, you should read Breaking Down Butterfly Network, Inc. (BFLY) Financial Health: Key Insights for Investors. Your next step should be to monitor the upcoming 13F filings for Q4 2025 to see if the net buying trend holds up.

Key Investors and Their Impact on Butterfly Network, Inc. (BFLY)

If you're looking at Butterfly Network, Inc. (BFLY), you need to know who's steering the ship from an ownership perspective. The investor base is a fascinating mix, dominated by a few large institutional players and a significant foundational stake held by company insiders. This structure means the stock price is highly sensitive to the trading decisions of a few major funds, but it's also anchored by the long-term vision of its original leadership.

The top 14 to 15 shareholders collectively own about 50% of the company, which is a high concentration. This is defintely a situation where you need to watch the 13F filings closely, because a slight change in position from one of these giants can create real volatility in the market.

The Foundational and Institutional Pillars

The largest single shareholder isn't a massive fund, but the company's founder, Jonathan Rothberg, who is also a Top Key Executive. His stake represents a substantial 14% of the shares outstanding, which signals a strong belief in the long-term potential of the ultrasound-on-chip technology. Beyond the founder, the institutional heavyweights are the usual suspects in passive and active management.

As of the end of the third quarter of 2025 (September 30, 2025), institutions held roughly 43% of the stock. The largest institutional holders include BlackRock, Inc., Vanguard Group Inc., and Fosun International Ltd. These are the funds that provide a base level of liquidity and credibility in the investment community.

Q3 2025 Trading Signals: What the Giants Are Doing

Looking at the Q3 2025 activity, we see some nuanced positioning. Vanguard Group Inc. increased its holdings by 4.281% (an addition of 453,258 shares), which is a vote of confidence often tied to their index-tracking mandates as the company grows. On the flip side, BlackRock, Inc. slightly trimmed its position by 1.392% (selling 195,359 shares).

The shifts are small in percentage terms, but the dollar amounts are large, so they matter. When a fund like BlackRock adjusts even a small percentage, it impacts the stock's volume and price action. You're seeing the typical push and pull between passive index funds accumulating shares and active managers making tactical adjustments.

• Vanguard Group Inc. added 4.281% in Q3 2025.
• BlackRock, Inc. reduced its stake by 1.392% in Q3 2025.
• ARK Investment Management LLC cut its allocation by 4.41% in Q3 2025.

Thematic Funds and Insider Selling

A key investor to watch is ARK Investment Management LLC, which holds Butterfly Network, Inc. as a high-conviction thematic play on 'disruptive innovation.' While their ARK Genomic Revolution ETF (ARKG) decreased its portfolio allocation to BFLY by a significant 32.62% in the last quarter, the firm still holds over 6.1 million shares. Their investment thesis is tied to the long-term transformation of healthcare delivery, which aligns with Butterfly Network, Inc.'s Mission Statement, Vision, & Core Values of Butterfly Network, Inc. (BFLY).

This thematic support is crucial, but you also have to factor in insider selling. In November 2025, Director Dawn Carfora sold 112,009 shares for a total value of $301,304.21, and founder Jonathan M. Rothberg also sold 100,502 shares. Insider selling isn't always a red flag-it can be for diversification-but when you see multiple executives selling, it warrants a closer look at the company's near-term outlook, particularly as the company focuses on achieving cash flow breakeven by 2027.

The recent five-year Co-Development and Licensing Agreement signed on November 17, 2025, with Midjourney, Inc. is a massive validation for these thematic investors. This deal, which includes a $15 million one-time fee and a recurring annual license fee of $10 million, proves that the underlying semiconductor-based ultrasound-on-chip platform is a valuable asset beyond just the core device sales. It's a clear path to unlocking new, high-margin revenue streams that the market hasn't fully priced in yet.

Next Action: Portfolio Manager: Update your BFLY valuation model to incorporate the $10 million annual licensing revenue stream and the $32 million - $35 million Adjusted EBITDA loss guidance for the 2025 fiscal year by the end of the week.

Market Impact and Investor Sentiment

You're looking at Butterfly Network, Inc. (BFLY) and trying to figure out if the big money is buying in or heading for the exits. Honestly, the investor sentiment is a study in contradiction right now: institutional conviction remains high, but recent insider selling and stock volatility show a real near-term caution.

The institutional base is strong, holding between 37.85% and 46.37% of the stock, with the top 15 shareholders controlling about 50% of the business. This high concentration means the stock price is extremely sensitive to the trading actions of a few major players. For options traders, the put/call ratio of 0.08 suggests a short-term bullish outlook, which is a nice counterpoint to the overall market jitters. Still, watch the insiders.

• BlackRock, Inc. holds a 5.55% stake, totaling 14,030,599 shares.
• The Vanguard Group, Inc. owns 4.19% of the company.
• ARK Investment Management LLC recently decreased its holding by 4.41%.

That decrease from a high-profile growth investor like ARK Investment Management LLC is a signal you can't ignore, even as other institutions maintain their positions. It suggests a debate on the timing of Butterfly Network's profitability, not necessarily the technology itself. You can see the long-term potential in the Mission Statement, Vision, & Core Values of Butterfly Network, Inc. (BFLY).

Recent Market Reactions to Ownership Shifts

The stock has been volatile-a beta of 2.36 tells you that much. This year, we've seen sharp moves in both directions tied directly to financial milestones and key investor activity, which is typical for a growth company with a market capitalization of around $525.41 million.

For example, the stock surged 7.67% in pre-market trading in May 2025 after the Q1 2025 earnings report, where the company beat the consensus EPS forecast, reporting a loss of -$0.04 versus the anticipated -$0.07. That's a clear positive reaction to operational execution. Conversely, the recent mixed Q3 2025 results-a revenue beat at $21.5 million but a larger-than-expected EPS loss of $0.13-contributed to the stock dropping nearly 20% in the week leading up to mid-November 2025.

Insider selling is also a critical ownership change that the market reacts to. In early November 2025, Director Jonathan M. Rothberg sold 100,502 shares for a total value of $309,546.16, representing an 8.10% decrease in his position. When a founder or director sells, it defintely adds downward pressure and raises a red flag for the market, regardless of the stated reason.

Analyst Perspectives and Key Investor Impact

Wall Street analysts are currently conflicted, landing on a consensus rating of 'Hold' based on the most recent ratings from five firms. However, the price targets show a belief in significant upside from current levels. The average 12-month price target was recently revised up to $3.65 per share, an increase of 13.16% from the prior estimate. That implies a potential upside of over 72% from the latest closing price of $2.12 per share.

Here's the quick math on the 2025 fiscal year guidance: management has reaffirmed a full-year revenue target of $91 million to $95 million. Hitting that range, coupled with a tightened Adjusted EBITDA loss guidance of $32 million - $37 million, is what keeps the bullish analysts engaged. The key is the shift from a hardware-only story to a platform play.

The recent licensing deal with Midjourney, announced in November 2025, is a perfect example of a strategic move that analysts will factor into future models. The deal includes a one-time fee of $15 million and an annual license fee of $10 million for five years. This non-recurring and recurring revenue stream, leveraging their core technology, is a clear opportunity that justifies the higher price targets, even with the projected FY 2025 EPS loss of -$0.35.

The institutional investors, especially those focused on long-term technological disruption like BlackRock, Inc. and Vanguard Group Inc., are essentially betting that the company's innovation-like the new Compass AI software and the upcoming P5 chip-will convert this strong revenue growth momentum into sustainable profitability in 2026 and beyond.

Next step: you need to track the institutional filings for the end of Q4 2025. Specifically, look for any further changes in the positions of BlackRock, Inc. and ARK Investment Management LLC to gauge the next shift in sentiment.