Butterfly Network CAO Sells Nearly 14,000 Shares to Cover Tax Bill on Vested Stock Units
Megan Carlson, chief accounting officer and senior vice president of finance at Butterfly Network, Inc. (NYSE: BFLY), disposed of 13,804 shares of Class A Common Stock on Sept. 4, 2026, according to an SEC Form 4 filing.
The shares sold at a weighted average price of $7.30, generating proceeds of roughly $101,000.
As reported by The Motley Fool and corroborated by Yahoo Finance, the sale was non-discretionary.
Carlson did not choose to reduce her stake; the transaction was triggered automatically under a sell-to-cover policy, a standard arrangement in which a portion of newly vested restricted stock units (RSUs) is sold to satisfy the IRS withholding requirement due at the time of vesting.
What the Transaction Represented
The 13,804 shares equaled roughly 3% of Carlson's directly held position before the filing. After the sale, she retained approximately 412,000 shares, valued at about $3.03 million based on the Sept. 4, 2026, closing price of $7.36.
Her remaining stake represents 0.15% of total insider-held shares, leaving her financial exposure tied to the company's performance.
The sell-to-cover mechanism is not a discretionary investment decision. Executives cannot defer or avoid the tax obligation, so the sale carries no signal about Carlson's view of the stock's future direction.
Stock Performance Around the Vesting Date
Butterfly Network shares had risen sharply in the year leading up to the vesting event. The stock delivered a total return of 381% over the 12-month period ending Sept. 4, 2026, according to Motley Fool's analysis of the filing.
As of the Sept. 9, 2026, market close, shares were priced at $7.46.
That gain is notable given the longer-term picture. Since 2021, BFLY has posted a total return of negative 40%, a compound annual decline of about 9.7%, compared with an 83% cumulative gain for the S&P 500 over the same span.
Company Financial Snapshot
Butterfly Network carries a market capitalization of $2.1 billion and generated $112.1 million in trailing twelve-month revenue, up from roughly $60 million in 2021.
The company has not reached consistent profitability; its trailing twelve-month net loss stands at $74.8 million. Free cash flow remains negative but has narrowed substantially, moving from approximately negative $200 million toward negative $30 million.
The company develops portable ultrasound devices, including the Butterfly iQ and Butterfly iQ+, which connect to smartphones and tablets to allow point-of-care imaging. Its customers include hospitals and other clinical settings worldwide.
What This Means for Investors
Insider transactions filed on SEC Form 4 require disclosure regardless of the reason behind them. Sell-to-cover sales, however, are initiated by a compensation plan rather than by the executive's own market judgment.
Investors evaluating BFLY should weigh the company's revenue growth trajectory and narrowing cash burn against its continued net losses before drawing any conclusions from this filing.