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Blend Labs
(NYSE:BLND)
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Rating:59Neutral
Price Target:
$2.00
▲(14.29% Upside)
Action:Reiterated
Date:08/07/26
BLND scores as a mixed but improving setup: the biggest positives are the cash-flow turnaround (positive operating and free cash flow) and better operating performance with strong gross margins, supported by constructive technical momentum. The score is held back by the structurally weak balance sheet (negative equity), ongoing net losses (negative P/E), and cautious near-term guidance amid macro/rate sensitivity and churn/revenue-timing risks around Autopilot.
Positive Factors
Improved cash generation
Blend's shift to sustained positive operating and free cash flow reflects improved cost control and cash efficiency versus prior multi-year burn. Durable cash generation provides runway to invest in product, absorb near-term revenue variability, and reduce reliance on external financing if sustained across multiple quarters.
Negative Factors
Structurally negative equity
Negative shareholders' equity signals cumulative losses that impair financial flexibility and could constrain strategic options. Even with zero reported debt, the weak capitalization may force Blend to rely on internal cash generation or external capital for growth initiatives, buybacks, or to absorb shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Blend's shift to sustained positive operating and free cash flow reflects improved cost control and cash efficiency versus prior multi-year burn. Durable cash generation provides runway to invest in product, absorb near-term revenue variability, and reduce reliance on external financing if sustained across multiple quarters.
Read all positive factors
Blend Labs (BLND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$331.12M
Dividend YieldN/A
Average Volume (3M)2.43M
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth-10.34%
EPS Growth49.81%
CountryUS
Employees419
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.08
Shares Outstanding233,256,930
10 Day Avg. Volume2,220,912
30 Day Avg. Volume2,431,944
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)-25.77
Price to Sales (P/S)6.37
P/FCF Ratio-9.72K
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$3.10Price Target Upside77.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.05
Revenue Forecast (FY)$131.55M
Blend Labs Business Overview & Revenue Model
Company Description
Established in 2012 and headquartered in San Francisco, California, Blend Labs, Inc. provides cloud-hosted software platforms tailored for financial institutions across the United States. The company's operations are divided into two key divisions...
How the Company Makes Money
Blend primarily makes money by selling access to its software platform to financial institutions. Revenue is generally generated through (1) software/platform fees charged to lenders for using Blend’s digital origination and processing solutions (...
Blend Labs Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive strategic and operational narrative: Blend delivered solid top-line growth, improved margins, meaningful cash generation, and significant early momentum for its Autopilot product alongside large productivity gains internally (Blend 3.0). Those positives are tempered by a challenging macro environment (higher rates), conservative near-term guidance (Q3 flat-to-down), an expected decline in Q4 funded volume, an uptick in churn notices to lower-cost providers, and the need to be cautious about near-term Autopilot revenue recognition due to governance and timing. Overall, the company appears well-positioned for medium- to long-term growth driven by agentic AI and product adoption, while managing near-term headwinds.Positive Updates
Revenue and Top-line Performance
Total revenue of $33.8M in Q2 2026, up 7% year-over-year and near the high end of guidance ($32M–$34M). Mortgage Suite revenue $19.2M, up 7% YoY; Consumer Banking suite revenue $12.2M, up 6% YoY; professional services $2.4M.
Negative Updates
Macroeconomic Headwinds and Rate Sensitivity
Mortgage rates increased (example cited: ~6.4% in May to ~6.8% recently), muting market activity—particularly refinance—and creating risk of weaker volumes in later quarters (management warned Q4 could be muted if rates remain high).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Top-line Performance
Total revenue of $33.8M in Q2 2026, up 7% year-over-year and near the high end of guidance ($32M–$34M). Mortgage Suite revenue $19.2M, up 7% YoY; Consumer Banking suite revenue $12.2M, up 6% YoY; professional services $2.4M.
Read all positive updates
Company Guidance
Blend guided third-quarter revenue of $31.5M–$33.5M (≈ -4% to +2% YoY) with Mortgage Suite revenue roughly -4% to +3% YoY, Blend-funded loans of ~200k–210k (≈ +2% at midpoint) against a total mortgage market of 1.20M–1.26M units (≈ +5% at midpoint), economic value per funded loan of ~$80–$81, and Consumer Banking revenue growth of -5% to +1%; Q3 non-GAAP operating income is expected to be $3.5M–$4.5M (implying ~12% operating margin at the midpoint) and includes a ~ $1.5M sequential S&M increase for the annual Blend Forum. For Q4 they see total market units of 1.105M–1.165M (≈ -11% YoY at midpoint) and Blend funded volume of ~180k–190k (≈ -10% to -15% YoY), while cautioning the macro/rate environment, an uptick in churn notices (manageable, low single-digit annual revenue impact), and that Autopilot revenue should be modeled conservatively today (model costs were relatively small in Q2).Blend Labs Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
34
Negative
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 129.97M | 123.58M | 162.02M | 156.85M | 235.20M | 234.50M |
| Gross Profit | 97.15M | 91.17M | 90.54M | 81.14M | 89.65M | 115.99M |
| EBITDA | 5.90M | 2.94M | -31.74M | -143.21M | -726.85M | -182.94M |
| Net Income | -458.00K | -8.05M | -49.60M | -185.32M | -768.61M | -171.34M |
Balance Sheet | ||||||
| Total Assets | 143.57M | 170.04M | 178.01M | 206.06M | 432.76M | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 44.87M | 68.32M | 98.48M | 136.92M | 354.15M | 547.23M |
| Total Debt | 2.04M | 160.97M | 3.83M | 149.69M | 231.98M | 232.31M |
| Total Liabilities | 48.79M | 200.60M | 181.99M | 179.12M | 268.84M | 301.89M |
| Stockholders Equity | 94.78M | -30.55M | -56.36M | -19.24M | 123.17M | 774.64M |
Cash Flow | ||||||
| Free Cash Flow | 13.79M | -81.00K | -22.89M | -128.21M | -192.49M | -129.39M |
| Operating Cash Flow | 20.12M | 11.51M | -13.04M | -127.62M | -190.42M | -127.50M |
| Investing Cash Flow | 31.23M | 18.54M | 45.40M | 127.31M | 99.43M | -633.91M |
| Financing Cash Flow | -80.84M | -32.59M | -21.06M | -90.96M | 2.22M | 933.57M |
Blend Labs Risk Analysis
Blend Labs disclosed 67 risk factors in its most recent earnings report. Blend Labs reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Blend Labs Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $584.53M | 2.12 | 68.06% | ― | 10.16% | ― | |
71 Outperform | $650.84M | 21.82 | 12.98% | ― | 9.62% | -99.69% | |
70 Outperform | $579.04M | -19.94 | -14.05% | ― | 11.85% | 47.54% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $331.12M | -18.88 | -1.22% | ― | -10.34% | 49.81% |
* Technology Sector Average
BLND
Blend Labs
1.55
-1.31
-45.80%
SPT
Sprout Social
9.97
-3.98
-28.53%
OPFI
OppFi
7.13
-3.44
-32.54%
VTEX
VTEX
3.81
-0.15
-3.79%
Blend Labs Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresProduct-Related Announcements
Blend Labs Posts Q2 Revenue Growth and Share Buybacks
Positive
Aug 6, 2026
On August 6, 2026, Blend Labs reported second-quarter 2026 revenue of $33.8 million, up 7% year-over-year, with software platform revenue rising to $31.4 million and professional services revenue reaching $2.4 million. GAAP gross margin held at 74...
Executive/Board ChangesShareholder Meetings
Blend Labs Stockholders Reelect Board, Ratify PwC Auditor
Positive
Jun 23, 2026
On June 17, 2026, Blend Labs, Inc. held its 2026 annual meeting of stockholders, at which investors voted on the election of seven directors and the ratification of the company’s independent auditor for the fiscal year ending December 31, 20...
Business Operations and StrategyStock BuybackFinancial Disclosures
Blend Labs Delivers Strong Q1 Results and Outlook
Positive
May 7, 2026
On May 7, 2026, Blend reported first-quarter 2026 results that exceeded guidance, with total revenue rising 15% year over year to $30.8 million and software platform revenue reaching $28 million. GAAP gross margin improved to 76% and non-GAAP gros...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.