BFLY · CIK 0001804176
What Butterfly Network, Inc. told the SEC could break it.
Butterfly's whole product depends on a narrow, two-country supply chain: its core Ultrasound-on-Chip semiconductor and lens are fabricated in Taiwan (by TSMC) and shipped to Thailand for assembly, and it buys some other components — including the transducer module — from single sources without long-term contracts. That concentration leaves it exposed to U.S.-China trade tensions and protectionist tariffs on the foreign manufacturing and customers it relies on. Layered on are two company-level vulnerabilities: it remains unprofitable, with a $77.1 million net loss in 2025 and an accumulated deficit of $879.2 million, and in 2025 it recorded its first single customer above 10% of revenue, at about 11%.
5 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Geographic concentration
- Taiwan chip fabrication + Thailand assemblyhigh
Butterfly's core Ultrasound-on-Chip semiconductor and lens are manufactured in Taiwan (by TSMC) and then sent to Thailand for assembly — concentrating its critical supply chain in two Asian locations exposed to geopolitical and disaster risk.
“ultrasound semiconductor chip and lens which are manufactured in Taiwan and then sent to Thailand for assembly.”
Customer concentration
- single customer ~11% of revenue (unnamed)medium
In 2025 approximately 11% of Butterfly's revenue came from a single (unnamed) customer — its first year with a >10% customer — concentrating revenue risk on one account.
“in 2025, approximately 11% of our revenue was generated by sales to a single customer.”
SEC filing →As of 2026
Liquidity & debt
- accumulated deficit $879.2M / ongoing net lossesmedium
Butterfly remains unprofitable — net losses of $77.1M (2025), $72.5M (2024) and $133.7M (2023) and an $879.2M accumulated deficit — and does not know whether or when it will reach profitability.
“net losses of $77.1 million, $72.5 million, and $133.7 million in the years ended December 31, 2025, 2024, and 2023, respectively. Our accumulated deficit as of December 31, 2025 was $879.2 million.”
SEC filing →As of 2026
Regulatory & policy
- tariffs / US-China trade tensionsmedium
With manufacturing/suppliers and customers abroad, Butterfly is exposed to protectionist tariffs and import/export licensing — heightened by strained US-China trade relations since 2018.
“protectionist measures such as tariffs and import or export licensing requirements, whether imposed by the United States or such foreign countries, in particular the strained trade relations between United States and China since 2018”
SEC filing →As of 2026
Sole-source dependency
- transducer module & other single-source componentsmedium
Beyond TSMC wafers, Butterfly buys some components/materials — including the transducer module — from single sources without long-term contracts; qualifying replacements would take time and could disrupt supply.
“We purchase some of our components and materials used in manufacturing, including the transducer module, from single sources.”
SEC filing →As of 2026
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its suppliers
Taiwan Semiconductor Manufacturing Company Limited (TSMC)
“We have chosen to engage a single supplier, TSMC, a semiconductor manufacturer, to manufacture and supply all of the wafers used to create the semiconductor chips incorporating our Ultrasound-on-Chip™ technology used in our medical devices.”
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