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what it is
Blend sells software that helps banks and mortgage lenders move your loan from application to closing online.
how it gets paid
Last year Blend Labs made $124M in revenue.
why it's growing
Revenue grew 35.6% last year. $33M matters most because flat revenue annualizes to roughly $132M.
what just happened
Blend posted $33M in quarterly revenue with positive EPS, but sales were still down 1% vs. prior year.
At a glance
B balance sheet — gets the job done, barely
-$0.24 fy2024 eps est
$162M fy2024 rev est
negative operating margin (still losing at EBIT)
1.45 beta
xvary composite: 47/100 — below average
What they do
Blend sells software that helps banks and mortgage lenders move your loan from application to closing online.
Once a bank runs lending through Blend, ripping it out means redoing workflows, compliance, and staff habits across systems that processed nearly $1.3T of loan applications in 2025 filings. That is switching costs (switching costs → leaving is painful → so what: customers do not casually replace loan plumbing). Blend also works with large institutions like Wells Fargo, U.S. Bank, M&T Bank, and Truist, which gives it proof that matters more than marketing.
How they make money
$124M
annual revenue · their business grew +35.6% last year
total revenue
$124M
+35.6%
The products that matter
loan origination workflow software
Digital Origination Platform
nearly $1.3T processed
Nearly $1.3T of loan applications ran through the platform. That is real lender usage. It also sits inside a company with a $399M market cap and a $1.39B accumulated deficit, which tells you scale alone has not fixed the model.
core platform
automation and loan review tooling
Autopilot AI
part of the margin repair story
This is the new efficiency pitch. The page data does not give you adoption or savings figures, so you should treat it as a thesis input, not proof. If automation cannot improve economics in a 74.3% gross margin business, the story gets much less forgiving.
execution test
Key numbers
$124M
ttm revenue
That is the actual sales base today, which matters because the company is being valued at about 3.2 times revenue.
74.3%
gross margin
Gross margin (gross margin → money left after delivering the product → so what: software economics are real if operating costs ever get controlled).
~-18%
operating margin
The feed sometimes prints a positive op margin by mistake— the story on this page is still losses at EBIT until filings show a sustained positive operating line.
$156M
long-term debt
Debt matters more in a small company because $156M is about 39% of the $399M market cap.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $156M (28% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for BLND right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Blend posted $33M in quarterly revenue with positive EPS, but sales were still down 1% vs. prior year.
The good news was profitability moving the right way, with quarterly EPS at $0.02 versus a loss a year earlier. The bad news was simpler: revenue barely moved, which is a problem for a company still expected to scale.
$33M
quarter revenue
$0.02
quarter EPS
74.3%
gross margin
the number that mattered
$33M matters most because flat revenue annualizes to roughly $132M, well below the $162M full-year figure investors want to see.
source: company earnings report, 2026
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What could go wrong
the risk is not abstract. this is a mortgage-software company with 74.3% gross margin, $124M of revenue, and a $1.39B accumulated deficit. if the cost structure still does not bend as revenue grows, the software story starts to look cosmetic.
med
Revenue grows and earnings still do not show up
Blend generated $124M of revenue with 74.3% gross margin and still stayed unprofitable. If revenue gets toward the $162M estimate and EPS still sits around a loss, the turnaround is not just late. It is weaker than advertised.
That would break the cleanest bull argument: more volume should finally cover the rest of the cost base.
med
Mortgage demand stays soft or lender budgets tighten
Q1 2026 guidance of $28.5M–$30.0M implies 9% growth. That is still growth. It is not enough room for a stumble in a rate-sensitive market. If lenders process fewer loans or delay software spend, Blend loses volume and timeline at the same time.
You would feel that first in revenue, then in confidence that the company can scale through the cycle.
med
The incumbent keeps the default seat
Intercontinental Exchange's Encompass already owns the system-of-record position at many lenders. Blend can matter without owning that seat. It is much harder to earn outsized software economics if the incumbent keeps the deepest workflow lock-in.
That caps pricing power, slows adoption, and leaves Blend fighting for relevance instead of owning the stack.
med
Autopilot AI sounds better than it pays
This page has no hard adoption or savings figures for Autopilot AI. That matters. If the product does not reduce processing cost, improve retention, or speed conversion, the AI angle is narrative support rather than financial proof.
Then you are left with a $399M company buying back stock before it has shown that automation fixes the model.
The number that matters next is simple: does the company turn guided revenue of $28.5M–$30.0M into visibly better earnings quality. If not, the stock stops looking like a turnaround and starts looking like a permanent promise.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 revenue guide versus reality
Management guided to $28.5M–$30.0M for Q1 2026. You want to see a clean beat, or at minimum proof that growth is not slipping back toward flat.
margin
Whether 74.3% gross margin finally reaches the bottom line
High gross margin without earnings is the whole puzzle. If losses do not narrow as revenue rises, you should question whether this deserves software-style optimism.
capital return
Buyback pace versus business progress
The board authorized $50M, the company bought back $25M in 2025, and another $15M came in Q4 2025. Watch whether repurchases stay a side note or become the main evidence management offers.
customers
Churn in a rate-sensitive mortgage market
This page already points to customer churn and a volatile mortgage backdrop. If both worsen together, the path from $124M revenue to $162M gets a lot harder to believe.
Analyst rankings
earnings outlook
-$0.24
Analysts still expect a full-year loss. In human-speak, the street is not paying for profitability yet.
revenue setup
$162M
That estimate sits above the current $124M revenue base. Analysts are still underwriting growth. They are not yet underwriting proof.
risk profile
1.45
Beta measures how hard a stock moves versus the market. At 1.45, BLND has historically been more swingy than the index. If you own it, expect movement.
source: institutional data
Institutional activity
institutional ownership data for BLND is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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