Butterfly Network introduced Compass AI, an AI‑powered operating system that transforms point‑of‑care ultrasound (POCUS) workflows from a traditional order‑based model into an encounter‑centric platform that automates documentation and billing for every study performed.
The new system claims 94% documentation compliance, compared with roughly 15% under conventional workflows, and estimates that it can capture up to five times the revenue from existing clinical volume by monetizing previously unbilled studies.
Compass AI is part of Butterfly’s broader strategy to evolve from a hardware‑centric company into a digital‑health ecosystem. By adding a high‑margin software layer, the company can generate recurring revenue, deepen customer lock‑in, and accelerate adoption of its ultrasound‑on‑chip technology across larger enterprise settings.
Financially, Butterfly reported Q3 2025 revenue of $21.5 million, a 5% year‑over‑year increase, and reaffirmed full‑year guidance of $91 million to $95 million. The company’s cash position remains strong, and the shift toward software is expected to improve gross margins over time.
CEO Joseph DeVivo said, “Health systems want to expand POCUS and capture more value, but they’ve been held back by undocumented exams, compliance risk and administrative burden that take clinicians away from patients. Compass AI changes that. It gives organizations the workflows and interoperability to manage POCUS programs at scale—no blind spots, no fragmented care, no added risk. To me, it’s a path to easy money: capturing value that was already there, just being missed.”
While other vendors offer AI‑enhanced POCUS management tools, Compass AI differentiates itself through its deep integration with Butterfly’s handheld devices, its encounter‑based billing engine, and its ability to provide real‑time visibility into usage, credentialing, quality, and return on investment for health‑system administrators.
If widely adopted, Compass AI could become a key growth engine for Butterfly, expanding its market share in the multi‑billion‑dollar POCUS market and creating a scalable, data‑driven revenue stream that complements its existing hardware sales.
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