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Blend Labs
(NYSE:BLND)
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Rating:49Neutral
Price Target:
$1.50
▼(-4.46% Downside)
Action:Reiterated
Date:06/23/26
The score is held down primarily by below-average financial quality (negative equity, continued losses, and uneven revenue), partially offset by a constructive earnings update (Q1 outperformance and guided non-GAAP operating income improvement). Technicals are mildly supportive near-term, while valuation is constrained by negative earnings and no dividend.
Positive Factors
High gross margins / unit economics
Sustained ~75–80% gross margins indicate strong SaaS-style unit economics and pricing power across lending workflows. High margins give Blend durable operating leverage potential, allowing incremental revenue to flow to EBITDA as fixed costs are absorbed, supporting long-term margin sustainability.
Negative Factors
Negative stockholders' equity
Ongoing negative equity constrains financial flexibility and can limit access to cheaper capital or strategic M&A. Over months this elevates refinancing and covenant risk, forcing reliance on cash flow improvement or external financing to restore a healthier capital structure.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins / unit economics
Sustained ~75–80% gross margins indicate strong SaaS-style unit economics and pricing power across lending workflows. High margins give Blend durable operating leverage potential, allowing incremental revenue to flow to EBITDA as fixed costs are absorbed, supporting long-term margin sustainability.
Read all positive factors
Blend Labs (BLND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$438.23M
Dividend YieldN/A
Average Volume (3M)2.47M
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth-17.06%
EPS Growth54.45%
CountryUS
Employees419
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.09
Shares Outstanding238,860,280
10 Day Avg. Volume2,205,268
30 Day Avg. Volume2,468,227
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
$3.58Price Target Upside128.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.06
Revenue Forecast (FY)$131.69M
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 software to financial institutions through a SaaS-style model tied to use of its platform for loan origination and related workflow automation. Key revenue streams generally include: (1) Platform/software rev...
Blend Labs Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presents a mix of strong operational and product momentum — revenue up 15% YoY, mortgage volume up 29% YoY, meaningful early traction for Autopilot (65 activations, 22 live, >7k applications, $10M pipeline), margin expansion, and internal productivity gains — balanced against near-term macro and customer-specific headwinds (expected EVPFL step-down, a ~100bp market-share headwind from one large client), a material year-over-year decline in free cash flow (~55%), and some one-time accounting benefits that boosted gross margin. Management is cautious in the near term but optimistic on medium-term AI-driven upside (10%–15% potential incremental top-line growth by 2027) while keeping Autopilot out of guidance until pricing and adoption settle.Positive Updates
Revenue and Margin Outperformance
Total revenue of $30.8M in 2026 Q1, up 15% year-over-year, and non-GAAP operating income of $4.1M (non-GAAP operating margin ~13%), above the high end of guidance. Non-GAAP gross margin expanded to 80.3% (from 72.9% in 2025), reflecting operating leverage and revenue growth.
Negative Updates
Free Cash Flow Decline
Free cash flow for the quarter was $7.0M versus $15.5M in the prior year, a decline of roughly 55% year-over-year, reflecting seasonal patterns and timing of collections.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Margin Outperformance
Total revenue of $30.8M in 2026 Q1, up 15% year-over-year, and non-GAAP operating income of $4.1M (non-GAAP operating margin ~13%), above the high end of guidance. Non-GAAP gross margin expanded to 80.3% (from 72.9% in 2025), reflecting operating leverage and revenue growth.
Read all positive updates
Company Guidance
Blend guided Q2 revenue of $32M–$34M (≈1%–7% YoY growth), with Mortgage Suite revenue expected to grow 4%–10% YoY and Consumer Banking revenue to be between -2% and +4% YoY; they see economic value per funded loan (EVPFL) stepping down from $84 in Q1 to $79–$80 in Q2 (Q1: total revenue $30.8M, +15% YoY; Mortgage Suite $17.2M, +18% YoY; funded loans ≈187k, +29% YoY), and are guiding Q2 non‑GAAP operating income of $5M–$6.5M (implying ~18% margin at the midpoint). Management flagged a ~100 bp market‑share headwind in 2026, noted Q1 was above prior ranges, and cautioned Autopilot upside (~$10M pipeline; free trial in Q2) is not yet baked into guidance.Blend Labs Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
32
Negative
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 127.66M | 123.58M | 162.02M | 156.85M | 235.20M | 234.50M |
| Gross Profit | 95.57M | 91.17M | 90.54M | 81.14M | 89.65M | 115.99M |
| EBITDA | 4.41M | 2.94M | -31.74M | -143.21M | -726.85M | -182.94M |
| Net Income | -5.62M | -8.05M | -49.60M | -185.32M | -768.61M | -171.34M |
Balance Sheet | ||||||
| Total Assets | 161.26M | 170.04M | 178.01M | 206.06M | 432.76M | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 60.97M | 68.32M | 98.48M | 136.92M | 354.15M | 547.23M |
| Total Debt | 165.58M | 160.97M | 3.83M | 149.69M | 231.98M | 232.31M |
| Total Liabilities | 217.17M | 200.60M | 181.99M | 179.12M | 268.84M | 301.89M |
| Stockholders Equity | -55.91M | -30.55M | -56.36M | -19.24M | 123.17M | 774.64M |
Cash Flow | ||||||
| Free Cash Flow | -9.65M | -81.00K | -22.89M | -128.21M | -192.49M | -129.39M |
| Operating Cash Flow | -1.53M | 11.51M | -13.04M | -127.62M | -190.42M | -127.50M |
| Investing Cash Flow | 18.20M | 18.54M | 45.40M | 127.31M | 99.43M | -633.91M |
| Financing Cash Flow | -45.28M | -32.59M | -21.06M | -90.96M | 2.22M | 933.57M |
Blend Labs Technical Analysis
Positive
1.57
Price Trends
1.65
Positive
1.63
Positive
2.29
Negative
Market Momentum
0.03
Positive
56.58
Neutral
52.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLND, the sentiment is Positive. The current price of 1.57 is below the 20-day moving average (MA) of 1.74, below the 50-day MA of 1.65, and below the 200-day MA of 2.29, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLND.
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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $716.04M | 32.04 | 9.69% | ― | 8.25% | -99.84% | |
73 Outperform | $1.35B | 3.96 | 134.28% | ― | 12.95% | ― | |
69 Neutral | $518.11M | -13.06 | -19.29% | ― | 12.27% | 37.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | $438.23M | -19.13 | -12.24% | ― | -17.06% | 54.45% |
* Technology Sector Average
BLND
Blend Labs
1.81
-1.66
-47.84%
SPT
Sprout Social
8.62
-10.02
-53.76%
OPFI
OppFi
9.38
-2.06
-18.01%
VTEX
VTEX
4.20
-2.00
-32.26%
Blend Labs Corporate Events
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.