Butterfly Network enters licensing agreement with Midjourney for ultrasound technology
SEC Filings
Published 2025-11-18, 06:14 a/m
Butterfly Network, Inc. (NYSE:BFLY) announced Monday that it has entered into a co-development and licensing agreement with Midjourney, Inc. regarding its semiconductor-based ultrasound technology. The agreement was made through Butterfly Network’s wholly owned subsidiary, BFLY Operations, Inc., and grants Midjourney an exclusive, non-transferable license to access and use certain ultrasound-on-chip technology, software, and backend systems within a specified field of use.
According to a press release statement, Midjourney will pay Butterfly Network a one-time, non-recurring fee of $15 million, as well as an annual license fee of $10 million, which will be paid quarterly throughout the term of the agreement. The agreement also includes the potential for up to $9 million in additional payments upon the achievement of specified milestones. This news comes as BFLY’s stock has taken a significant hit, dropping nearly 20% over the past week, reflecting the stock’s characteristic volatility with a beta of 2.36.
Further, Butterfly Network is eligible to receive revenue sharing payments from Midjourney’s commercialization of hardware products that incorporate Butterfly Network’s chips, as well as payments for any chip purchases made by Midjourney.
The agreement is set for a five-year term and is subject to early termination under certain breach or insolvency conditions. Additional provisions include confidentiality, intellectual property ownership, and license-back clauses, along with an option for Midjourney to upgrade its license under certain circumstances.
The information in this article is based on a press release statement contained in a recent SEC filing.
In other recent news, Butterfly Network reported its third-quarter earnings for 2025, showing a mixed financial performance. The company exceeded revenue expectations, recording $21.5 million against a projected $21.22 million. However, its earnings per share (EPS) missed the mark, with a loss of $0.13 compared to the anticipated loss of $0.04. These results reflect the company’s ongoing financial challenges despite surpassing revenue forecasts. Additionally, Butterfly Network unveiled Compass AI, a new enterprise software platform aimed at enhancing point-of-care ultrasound programs. This AI-powered platform addresses documentation and workflow issues, potentially improving the financial viability of such programs. The company claims that traditional workflows capture only about 15% of compliant ultrasound studies, leaving a significant portion unbilled. These developments highlight Butterfly Network’s efforts to innovate and improve its market position amidst financial hurdles.
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