Form 4: Butterfly Network CBO Sells Shares for Tax Obligations

Butterfly Network's Chief Business Officer, Steve Cashman, sold 142,590 shares of Class A Common Stock to cover tax withholding obligations related to RSU vesting.

Summary

• Steve Cashman, Chief Business Officer of Butterfly Network, Inc. (BFLY), reported a sale of 142,590 shares of Class A Common Stock.
• The transaction occurred on September 4, 2025, at a weighted average price of $1.503 per share, with prices ranging from $1.475 to $1.53 per share.
• The sale was non-discretionary, executed automatically to satisfy tax withholding obligations arising from the vesting of restricted stock units, in accordance with the Issuer's 'sell-to-cover' policy.
• Following this transaction, Mr. Cashman directly beneficially owns 2,181,884 shares of Class A Common Stock.

Sentiment

Score: 5

Explanation: The transaction is a routine 'sell-to-cover' for tax obligations related to RSU vesting, which is a common practice and not indicative of discretionary selling or a change in the company's fundamental outlook.

Positives

• The transaction was non-discretionary, executed solely to cover tax withholding obligations related to the vesting of restricted stock units, indicating a pre-planned and routine event rather than a discretionary sale based on market outlook.

Negatives

• The sale of 142,590 shares by a Chief Business Officer reduces their direct beneficial ownership in the company, which could be perceived as a slight negative, even if for tax purposes.

Future Outlook

The filing does not contain any forward-looking statements or guidance regarding the company's future performance or outlook.

Management Comments

• The Issuer has adopted a 'sell-to-cover' policy to satisfy the tax withholding obligations of the Reporting Person.
• The sales reported represent the number of shares required to be sold by the Reporting Person to cover tax withholding obligations in connection with the vesting of restricted stock units.
• Such sales were automatic and not at the discretion of the Reporting Person.

Industry Context

This Form 4 filing reports a routine insider transaction and does not provide information directly related to broader industry trends or competitive landscape.

Corporate Governance

Stakeholder Impact

• Shareholders: The sale represents a minor reduction in direct insider ownership, but the non-discretionary nature mitigates concerns about management's confidence.
• Employees (specifically the reporting person): The transaction facilitates the tax obligations arising from vested restricted stock units, a component of executive compensation.

Key Dates

Recommendation

The reported transaction is a routine 'sell-to-cover' sale by an executive to satisfy tax obligations upon RSU vesting. This is a non-discretionary event and does not reflect a change in the executive's investment conviction or the company's fundamentals, thus warranting a 'hold' recommendation based solely on this filing.

Keywords

Butterfly Network, BFLY, insider transaction, Form 4, stock sale, executive compensation, restricted stock units, Steve Cashman, sell-to-cover