Butterfly Network Founder Rothberg Sells Another 660,000 Shares at $6.47

Brendan Coffey, The Motley Fool Mon, July 27, 2026 at 12:32 PM PDT | 5 min read

• BFLY +1.41%

Jonathan M. Rothberg, founder and now an independent director at Butterfly Network, Inc. (NYSE: BFLY), sold approximately 660,000 shares of Class B Common Stock on July 22, 2026, according to an SEC Form 4 filing.

Transaction Summary

• Transaction value based on SEC Form 4 weighted average sale price: $6.47 per share
• Post-transaction value based on July 22 closing price: $6.61 per share

Company Snapshot

• Sector: Healthcare
• Industry: Medical – Devices
• TTM Revenue: $102.9 million
• TTM Net Income: (-$75.8 million)

Butterfly Network, Inc. is a digital health enterprise specializing in the invention, production, and global commercialization of cutting-edge ultrasound imaging technologies. The company's innovative product portfolio includes the portable Butterfly iQ and the smartphone-compatible Butterfly iQ+.

Key Questions

What determined the timing and execution of this sale?

The transaction was executed under a Rule 10b5-1 trading plan adopted on March 13, 2026, specifically for estate planning purposes, allowing for pre-scheduled liquidity at a price of $6.47 per share.

What is the significance of the share class used in this transaction?

The sale involved Class B Common Stock, which automatically converted into Class A Common Stock on a one-to-one basis at the time of the disposition.

How does this affect the insider's remaining equity exposure?

Beyond the remaining Class B position, Rothberg continues to hold more than 22 million shares through both direct and indirect ownership, as of the July 23, 2026 market close.

Who are the specific entities associated with the indirect holdings?

The shares are held through various entities for which Rothberg serves as Manager, including:

• 4C Holdings I
• 4C Holdings II
• 4C Holdings III
• 4C Holdings IV
• 4C Holdings V, LLC
• Trusts: NVR TR, JNR TR, GBR TR, and EJR TR, LLC

Company Overview

Butterfly Network develops and commercializes innovative portable ultrasound imaging systems, including the Butterfly iQ and Butterfly iQ+, which enable point-of-care whole-body ultrasound imaging through smartphone and tablet connectivity.

• Revenue model: Direct sales of proprietary ultrasound devices and related software solutions to healthcare providers, hospitals, and clinical practitioners globally.
• Target market: Healthcare providers, emergency departments, primary care physicians, and point-of-care ultrasound practitioners seeking portable, cost-effective alternatives to traditional ultrasound systems.

Butterfly Network is a digital health enterprise focused on democratizing ultrasound imaging through portable, smartphone-integrated technology. With $102.9 million in trailing twelve-month (TTM) revenue and a market capitalization of $1.7 billion, the company is scaling its commercialization efforts across domestic and international markets. The company's competitive advantage lies in its proprietary single-probe ultrasound architecture and seamless mobile device integration, positioning it as an innovator in the point-of-care ultrasound segment.

What This Transaction Means for Investors

Jonathan Rothberg founded Butterfly Network in 2011 and has served as chairman and interim CEO at various times, before becoming an independent member of the board of directors. He knows Butterfly Network's business inside and out.

Shareholders rarely want to see an insider like Rothberg selling shares. Yet keep in mind that there are reasons an insider may sell that have nothing to do with their outlook for the stock price, such as paying a large personal expense or diversifying their portfolio.

Still, Butterfly Network investors would be wise to take this sale by Rothberg as an alert signal, especially given he has made multiple sales in recent weeks, while the Rule 10b5-1 trading plan was in place.