8-K: Butterfly Network Appoints John Doherty as New CFO

Butterfly Network, Inc. announced the appointment of John Doherty as Executive Vice President, Chief Financial Officer, effective December 8, 2025.

Summary

• John Doherty has been appointed as Executive Vice President, Chief Financial Officer of Butterfly Network, Inc., effective December 8, 2025.
• Mr. Doherty previously served as CFO of Kaltura, Inc. and held leadership roles at Magic Leap, InterXion Holding N.V., and Verizon Communications Inc.
• Megan Carlson, the Interim Chief Financial Officer, will transition back to her role as Chief Accounting Officer and Senior Vice President of Finance & Accounting on the effective date.
• Ms. Carlson was awarded a $200,000 cash retention bonus, payable after December 31, 2026, contingent on her continuous employment.
• Mr. Doherty's compensation package includes an annual base salary of $530,000 and an annual cash bonus target of 70% of his base salary, effective for 2026 performance.
• He will receive a one-time sign-on bonus of $500,000 and a one-time 2025 performance bonus of $250,000.
• Equity grants include $2,000,000 in restricted stock units (RSUs) vesting over three years and $1,000,000 in performance-based RSUs (PSUs) tied to stock price targets of $3.00, $4.50, and $6.00 per share.

Sentiment

Score: 8

Explanation: The appointment of a highly experienced CFO with a strong track record in growth, transformation, and strategic transactions is a positive development. The retention of the interim CFO in a key accounting role also provides continuity. The performance-based equity incentives align the new CFO's interests with shareholder value creation, indicating a forward-looking and strategic approach to leadership.

Positives

• John Doherty brings over 25 years of global financial leadership experience, including guiding public and private companies through growth, transformation, and strategic transactions.
• His background includes securing over $1 billion in financing and leading recapitalizations at Magic Leap, driving over 60% revenue and EBITDA growth at InterXion, and spearheading over $100 billion in strategic transactions at Verizon.
• The retention of Megan Carlson as Chief Accounting Officer ensures continuity and leverages her deep expertise, which was invaluable during her interim CFO period.
• The performance-based RSUs align Mr. Doherty's incentives with shareholder value creation, with vesting tied to specific stock price achievements ($3.00, $4.50, $6.00 per share).

Risks

• The vesting of performance-based RSUs is contingent on the Company's Class A Common Stock achieving specific price targets ($3.00, $4.50, $6.00 per share) within five years, which is subject to market fluctuations and company performance.

Future Outlook

The company anticipates entering an exciting next phase of growth, with a focus on disciplined investment, strategic portfolio management, and sustainable growth initiatives. The new CFO expressed confidence in the company's momentum, successful product launch, strengthened balance sheet, and defined path toward breakeven, creating a foundation for long-term shareholder value.

Management Comments

• Joseph DeVivo, President, Chairman and Chief Executive Officer of Butterfly Network, stated: "John is a proven leader with a remarkable track record of driving shareholder value, business performance, and financial impact at scale. Johns expertise in expanding global businesses, executing transformative transactions, and aligning financial strategy with growth makes him the ideal partner for Butterfly as we enter an exciting next phase of growth."
• John Doherty commented: "Butterfly has built strong momentum with a successful product launch, a strengthened balance sheet, and a defined path toward breakeven, creating an attractive foundation for long-term value creation for shareholders. Im excited to join at this pivotal stage and to help advance that momentum through continued disciplined investment, strategic portfolio management, and sustainable growth initiatives."
• Joseph DeVivo also thanked Megan Carlson: "On behalf of the Company and our leadership team, I want to thank Megan for stepping up and providing outstanding leadership as Interim CFO during a critical period. Her deep expertise and commitment have been invaluable in keeping us on course. Were fortunate to have her as an integral part of the leadership team going forward."

Industry Context

This appointment strengthens Butterfly Network's financial leadership as it continues to innovate in the digital health and medical imaging sector, particularly with its handheld ultrasound technology. Mr. Doherty's extensive experience in technology and telecommunications, including securing significant financing and leading strategic transactions, aligns well with the company's stated goal of driving growth and transformation in a competitive and evolving industry.

Management Changes

Corporate Governance

Stakeholder Impact

• **Shareholders**: The appointment of an experienced CFO and performance-based equity incentives could instill confidence in the company's financial management and strategic direction, potentially leading to long-term value creation.
• **Employees**: The retention of Megan Carlson in a key finance role ensures continuity and stability within the finance department. The new CFO's leadership may bring new strategic initiatives.
• **Customers/Suppliers**: No direct impact mentioned, but strengthened financial leadership could support continued product development and market expansion, indirectly benefiting these stakeholders.
• **Management Team**: The addition of a seasoned CFO is expected to bolster the executive team, providing strategic financial guidance and supporting the company's growth objectives.

Next Steps

• John Doherty will officially commence his role as Executive Vice President, Chief Financial Officer on December 8, 2025.
• Megan Carlson will continue in her role as Chief Accounting Officer and Senior Vice President of Finance & Accounting.
• Mr. Doherty's 2025 performance bonus is payable in the first quarter of 2026.
• Mr. Doherty's annual cash bonus eligibility will begin in 2027, based on 2026 performance.
• The company will continue to pursue disciplined investment, strategic portfolio management, and sustainable growth initiatives.

Key Dates

Recommendation

The appointment of John Doherty as CFO is a positive development, given his extensive experience in driving growth and strategic transactions in relevant industries. His compensation package, particularly the performance-based RSUs tied to stock price targets, aligns his incentives with shareholder value creation. The retention of the interim CFO in a critical accounting role also provides stability. However, without broader financial performance data or a detailed strategic plan, a 'hold' recommendation is prudent. Investors should monitor the company's execution on its 'path toward breakeven' and the achievement of the stock price targets for the performance-based equity.

Keywords

CFO appointment, executive change, financial leadership, corporate governance, compensation package, restricted stock units, performance stock units, digital health, ultrasound technology, BFLY