Blend Labs (BLND) AI Stock Analysis

• Market Cap: $810.41M
• Dividend Yield: N/A
• Average Volume (3M): 2.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: -15.41%
• EPS Growth: 71.18%
• Country: US
• Employees: 540
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 256,119,540
• 10 Day Avg. Volume: 1,363,506
• 30 Day Avg. Volume: 2,235,794
• PEG Ratio: 0.31
• Price to Book (P/B): -18.97
• Price to Sales (P/S): 6.60
• P/FCF Ratio: -46.71
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 7.96
• Enterprise Value/Gross Profit: 11.54
• Enterprise Value/Ebitda: 299.08
• 1Y Price Target: $4.19
• Price Target Upside: 34.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.09
• Revenue Forecast (FY): $147.29M

• Rating: 52 Neutral
• Price Target: $3.00 ▼(-3.85% Downside)

BLND scores in the low-50s mainly due to improving fundamentals (narrowing losses, strong gross margin, and positive operating cash flow) but held back by declining revenue and still-negative free cash flow. Technicals are broadly neutral with a weak longer-term trend, while valuation is pressured by a negative P/E. The latest earnings call adds support via continued non-GAAP operating profitability and strong pipeline growth, tempered by mortgage weakness and 2026 headwinds.

Positive Factors

High Gross Margin

A ~64% gross margin indicates SaaS-like unit economics and strong product pricing power. High gross margins support scalable profitability as revenue grows, provide room for reinvestment in product and sales, and help the company absorb demand cyclicality in lending volumes.

Improving Cash Generation

Return to positive operating cash flow signals improving underlying cash conversion and operational discipline. Sustained positive OCF reduces reliance on external financing, underpins reinvestment in product and sales, and increases resilience across lending-cycle volatility.

Product & GTM Momentum

Hiring an experienced fintech sales leader, combined with a ~60% YoY pipeline build and growth in Consumer Banking share, structurally strengthens go-to-market execution. This improves odds of accelerating adoption of AI-driven origination products across banks and credit unions.

Negative Factors

Shrinking Revenues

Trailing revenue declines undermine operating leverage and make sustained profitability dependent on recovering origination volumes or expanding subscription/consumer banking revenue. When usage-based fees fall with mortgage cycles, topline weakness pressures long-term margin expansion.

Negative Free Cash Flow

Despite positive operating cash flow, ongoing negative free cash flow indicates investment or working-capital needs still outstrip cash generation. Persistent FCF deficits can limit strategic flexibility, force slower product rollouts, or necessitate external funding if trends don't continue improving.

Mortgage Suite Pressure

An 18% YoY drop in mortgage revenue and an anticipated market-share headwind from third-party customer changes are structural risks. Given Blend's exposure to mortgage origination volumes, prolonged weakness erodes a core revenue base and requires successful diversification to consumer banking.

Blend Labs Business Overview & Revenue Model

Company Description

Blend Labs, Inc. provides cloud-based software platform solutions for financial services firms in the United States. It operates in two segments, Blend Platform and Title365. The company offers a suite of white-label products for mortgages, home equity loans and lines of credit, vehicle loans, personal loans, credit cards, and deposit accounts. It also provides a suite of mortgage products that facilitates homeownership journey for consumers comprising close, income verification for mortgage, homeowners insurance, and realty. In addition, the company offers title search procedures for title insurance policies, escrow, and other closing and settlement services, as well as other trustee services; and professional and consulting services. It serves banks, credit unions, financial technology companies, and non-bank mortgage lenders. Blend Labs, Inc. was incorporated in 2012 and is headquartered in San Francisco, California.

How the Company Makes Money

Blend Labs generates revenue through a subscription-based model, charging financial institutions for access to its software platform. Key revenue streams include licensing fees, transaction fees associated with loan origination volume, and professional services such as implementation and consulting. Additionally, Blend has established significant partnerships with major banks and lenders, which not only boosts its credibility in the market but also provides a steady stream of customers and recurring revenue. The company's ability to integrate with existing banking systems and offer customizable solutions further enhances its earning potential.

Blend Labs Financial Statement Overview

Summary

Blend Labs is facing significant financial challenges, with negative equity and ongoing operating losses. Despite some improvements in cash flow management, the company struggles with profitability and financial stability.

Income Statement

Blend Labs has shown a decrease in total revenue over the years, with a significant drop from 2022 to 2023. The gross profit margin remains decent at around 55.7% for TTM (Trailing-Twelve-Months), but the company is struggling with negative EBIT and net income margins, indicating continued operating losses. The net profit margin for TTM is -34.8%, reflecting ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet reflects a concerning financial position with negative stockholders' equity for the TTM period, highlighting financial instability. The debt-to-equity ratio is not applicable due to negative equity. With liabilities exceeding assets, the equity ratio is negative, posing a significant risk. The company's financial structure requires restructuring to support sustainability.

Cash Flow

The cash flow statement shows some improvement in free cash flow, with the TTM free cash flow less negative compared to the previous year, indicating better cash management. However, the operating cash flow remains negative, and the free cash flow to net income ratio is less meaningful due to negative net income. The overall cash flow situation requires careful management to avoid liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	132.56M	162.02M	156.85M	235.20M	234.50M	96.03M
Gross Profit	91.45M	90.54M	81.14M	89.65M	115.99M	61.74M
EBITDA	3.53M	-31.74M	-143.21M	-726.85M	-182.94M	-68.24M
Net Income	-6.93M	-49.60M	-185.32M	-768.61M	-171.34M	-74.62M
Balance Sheet
Total Assets	189.57M	178.01M	206.06M	432.76M	1.11B	215.75M
Cash, Cash Equivalents and Short-Term Investments	77.25M	98.48M	136.92M	354.15M	547.23M	151.72M
Total Debt	1.61M	3.83M	149.69M	231.98M	232.31M	16.58M
Total Liabilities	47.25M	181.99M	179.12M	268.84M	301.89M	52.41M
Stockholders Equity	142.31M	-56.36M	-19.24M	123.17M	774.64M	163.34M
Cash Flow
Free Cash Flow	-7.23M	-22.89M	-128.21M	-192.49M	-129.39M	-66.33M
Operating Cash Flow	5.95M	-13.04M	-127.62M	-190.42M	-127.50M	-65.01M
Investing Cash Flow	17.90M	45.40M	127.31M	99.43M	-633.91M	-7.92M
Financing Cash Flow	-21.35M	-21.06M	-90.96M	2.22M	933.57M	90.76M

Blend Labs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.12
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.12 is above the 20-day moving average (MA) of 3.09, above the 50-day MA of 3.11, and below the 200-day MA of 3.39, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 60.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLND.

Blend Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SEMR	73 Outperform	$1.80B	-387.30	-1.68%	―	19.87%	-136.93%
OPFI	67 Neutral	$881.76M	-13.47	9.19%	―	9.63%	-112.71%
VTEX	66 Neutral	$646.78M	98.73	6.53%	―	3.62%	-20.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SPT	61 Neutral	$651.89M	-13.15	-26.69%	―	13.09%	32.34%
BLND	52 Neutral	$810.41M	-31.79	―	―	-15.41%	71.18%

Blend Labs Corporate Events

Blend Labs Appoints Matt Thomson as New Head of Revenue

On January 6, 2026, Blend Labs announced that fintech sales veteran Matt Thomson has joined the company as Head of Revenue, succeeding outgoing revenue chief Brian Kneafsey, who will move into an advisory role to support continuity. Thomson, who previously scaled sales and customer bases at Alkami Technology and ACI Worldwide across community banks, credit unions, and regional institutions, will lead Blend’s sales organization and revenue strategy as the company seeks to deepen its penetration among financial institutions. The appointment comes after a period of commercial momentum for Blend, which in the third quarter of 2025 added new customers, expanded existing relationships, and reported an approximately 60% year-over-year increase in its sales pipeline, following the early-2025 launch of its Intelligent Origination AI-powered lending platform—developments that position the firm to capitalize on banks’ and credit unions’ growing demand for digital partners.

The most recent analyst rating on (BLND) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Blend Labs stock, see the BLND Stock Forecast page.

Blend Labs Reports Q3 Results with Profitability Gains

On November 6, 2025, Blend Labs announced its third quarter financial results, highlighting a significant increase in non-GAAP operating income year-over-year. Despite a slight decrease in total revenue compared to the previous year, the company reported improved profitability and expanded customer relationships, including a notable expansion with a top 20 bank. The company also provided guidance for the fourth quarter, reflecting expectations for the U.S. mortgage market and acknowledging ongoing economic uncertainties.

The most recent analyst rating on (BLND) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Blend Labs stock, see the BLND Stock Forecast page.