This discussion outlines Butterfly Network's detailed quarter-by-quarter 2026 revenue contributions from the Midjourney partnership, highlighting upfront payments, license fees, and milestone revenues. It provides insight into the contract's impact on Butterfly's Embedded business growth and 2026 financial guidance.
Generated by Dafinchi AI. Source-grounded AI analysis, not investment advice.
Please provide a quarter-by-quarter revenue bridge for Midjourney contributions in 2026 by upfront, license, and milestone components.
Quarter-by-Quarter Revenue Bridge for Midjourney in 2026 by Upfront, License, and Milestone Components
Butterfly Network’s partnership with Midjourney, signed in late 2025, represents a $74 million contract inclusive of multiple revenue components: an upfront payment, annual license fees, and milestone payments. The overall revenue contribution from Midjourney spans through 2026 and into 2027, contributing significantly to Butterfly’s Embedded business revenue growth.
Contract Value and Components:
Q4 2025 Baseline:
Revenue Guidance and Cadence in 2026:
Qualitative Commentary:
| Quarter | Upfront Revenue | License Fees | Milestone Payments | Total Midjourney Contribution | Notes |
|---|---|---|---|---|---|
| Q1 2026 | Significant portion* | Ongoing recognition | Some milestones likely | Moderate to High | Early part of the year expected to include leftover upfront recognition from Q4 2025 and initial license fees and milestones 123 |
| Q2 2026 | Minimal or none | Recurring license fees | Milestone payments expected | Steady | Continued license and milestone revenue as project advances; pipeline strengthening |
| Q3 2026 | Minimal | Recurring license fees | Milestone payments expected | Steady | Ongoing, with ramp-up in commercial integration |
| Q4 2026 | Minimal | Recurring license fees | Milestone payments expected | Steady/Increasing | Possible milestone achievement for commercialization preparation |
*Upfront payments recognized mostly in late 2025 and possibly into Q1 2026, as per the $6.8 million recognized in Q4 2025 immediately post-contract signing.
References:
This analysis captures all disclosed elements relating to the Midjourney revenue bridge for 2026 based on Butterfly Network’s official earnings disclosures.
Disclaimer: The output generated by dafinchi.ai, a Large Language Model (LLM), may contain inaccuracies or "hallucinations." Users should independently verify the accuracy of any mathematical calculations, numerical data, and associated units, as well as the credibility of any sources cited. The developers and providers of dafinchi.ai cannot be held liable for any inaccuracies or decisions made based on the LLM's output.
Morgan Stanley described its nearly $30 billion sequential deposit increase as a deliberate investment in long-term funding capacity and client relationships, not a push to maximize near-term net interest income. Deposits reached $465 billion, while deposit mix modestly weighed on quarterly NII; management expects funding benefits to emerge over time and forecast a conditional modest increase in fourth-quarter NII.
Sources used
Research questionWhat did management say about Strategic deposit growth and funding?
Answer outline
PepsiCo’s Q3 2026 discussion points to broad-based international growth, supported by improving competitiveness and stronger volumes, while leaving the durability of that pace unguaranteed. In North America, management plans to continue targeted pricing, affordability measures, innovation, and marketing investment. The Q4 earnings revision reflected margin pressure from costs, mix, and maintained investment, creating risks to monitor in 2027 without establishing a quantified outlook.
Sources used
Research questionHow sustainable is PepsiCo’s international revenue growth, and what are the forward growth opportunities? In North America, should investors expect changes to pricing or other plans after 2026 volume underperformed expectations, particularly for snacks? What drove the Q4 margin-related earnings revision, and what might it signal about pressures in 2027?
Answer outline
Constellation Brands said it is comfortable with its full-year marketing investment, viewing it as a healthier level after likely underspending in prior years. Management expects marketing to run at about 10% of net sales in the second half, including above 11% in Q3, and said continued sports programming does not mean the overall spending level will rise.
Sources used
Research questionWhat did management say about Ongoing marketing spend levels?
Answer outline
Constellation Brands expects scaled beer brands to remain central to growth, while next-wave brands and newer spaces such as SpikedAde offer additional potential without a quantified contribution forecast. Management described broad FY2027 hedge coverage but did not identify a FY2028 hedge-related cost catch-up; the separate Veracruz depreciation headwind is expected to begin in FY2028.
Sources used
Research questionHow should growth contributions divide among scaled brands, next-wave brands, and newer demand spaces such as SpikedAde? Also, could hedges or contracted operating costs benefit fiscal 2027 and then create a catch-up in fiscal 2028?
Answer outline
McCormick’s Q3 Consumer Americas interventions brought early, uneven progress: shipments and consumption improved sequentially, but lower volume offset pricing and left organic sales flat. For Q4, management’s focus is faster retailer execution, stronger support for weaker cooking-blend and recipe-mix lines, continued targeted demand generation, and mitigation of a packaging constraint that could affect shipments.
Sources used
Research questionHow successful were McCormick's initial Consumer Americas interventions in improving volume trends, and what additional or different actions are needed in Q4 to sustain sequential improvement?
Answer outline
Intuit outlines a dual-path strategy: aggressively scaling assisted tax via TurboTax Live while rebuilding a high-quality DIY funnel to sustain long-term growth.
Sources used
Research questionWhat did management say about Assisted tax growth and DIY quality focus?
Answer outline
Alliant Energy raises its 2026 load-growth outlook to 2–3% driven by faster data-center ramp and stronger core demand, aided by spillover effects from construction activity. O&M margins rise about 1 percentage point, but management attributes the gain largely to timing and weather normalization rather than a durable cost-structure shift; long-term sustainability depends on project execution and ongoing pipeline.
Sources used
Research questionWhat is driving the higher 2026 load growth forecast and the uptick in O&M margins, and are these factors sustainable beyond the near term?
Answer outline
Disney explains that the new U.S. park discounts (including after-2:00 p.m. and Anaheim resident pricing) are targeted promotions designed to drive incremental value and optimize capacity, not signals of weaker demand. Q3 metrics show domestic strength and per-capita growth, supporting a strategy to balance volume with yield as capacity expands.
Sources used
Research questionIn light of domestic strength and international visitation softness, how did management justify the rationale and expected business impact of new U.S. park discount programs such as after-2:00 p.m. pricing and Anaheim resident pricing?
Answer outline
Republic Services provides a concise update on its sustainability portfolio, highlighting ~$40 million in incremental revenue and ~$20 million in incremental EBITDA for the year, strong plastics demand and pricing within Polymer Centers, and a longer-term focus on landfill-diversion and second-life opportunities. RNG-specific metrics aren’t disclosed separately, while the company emphasizes environmentally and economically sustainable returns as the bar for future investments.
Sources used
Research questionActually, that's a good segue into what I wanted to talk about. Maybe taking again a longer-term view. I mean, I think over the last couple of years, you've built a pretty nice sustainability portfolio across RNG, in plastics. And so 2 parts, wanted to get an update on just the returns of those investments, how they're trending as they stand today. But also, I think more importantly, are there any other areas within sustainability or even outside sustainability that might be outside of your core business now that you're kind of exploring, investing in, again, over the medium to long term? So kind of a higher level question there?
Answer outline
Zillow outlines the revenue implications of moving toward more than 75% preferred connections by year-end 2026, including seasonality headwinds and timing effects from Zillow Home Loans, alongside the adoption trajectory for Preview and Showcase on new listings. The discussion highlights timing lags, product-driven revenue dynamics, and an expected reversal in Q1 2027 as transitions lap.
Sources used
Research questionWhat is the revenue impact and seasonality from moving to more than 75% preferred connections by year-end 2026, and what is the adoption trajectory for the 5% of new listings using Zillow's previews and related tools?
Answer outline
Sysco says its AI-driven efficiency program compounds gains over time and is positioned to land at the high end of the long-term profitability algorithm without requiring an immediate algorithm change. For 2027, US Broadline EBIT growth hinges on roughly 2.5% local case growth, about $100 million of net-of-investment AI cost-out, and tech-enabled supply chain and working-capital improvements.
Sources used
Research questionCould the AI-driven efficiency program act as a longer-term catalyst for the profitability algorithm, and what are the building blocks and key drivers of US Broadline EBIT growth in 2027?
Answer outline
Expedia Group presents a geographically balanced business, with Europe facing macro headwinds and outbound pressure while APAC rebounds and demand shifts may favor regions over time. On margins, near-term headwinds from lapped cost actions and FX, plus ongoing B2B investments, temper Q3 results, but management expects a mid-year-to-year trajectory of margin expansion with a softer Q4 as efficiency benefits accrue and investments mature.
Sources used
Research questionWhat did management say about Geographic trends and margin outlook?
Answer outline
Dafinchi