Blend Labs (BLND) AI Stock Analysis

• Market Cap: $907.42M
• Dividend Yield: N/A
• Average Volume (3M): 2.31M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.69
• Revenue Growth: -0.40%
• EPS Growth: 63.36%
• Country: US
• Employees: 540
• Sector: Technology
• Sector Strength: 78
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 254,775,970
• 10 Day Avg. Volume: 1,857,326
• 30 Day Avg. Volume: 2,309,039
• PEG Ratio: >-0.01
• Price to Book (P/B): 2.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.75
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 4.89
• Enterprise Value/Ebitda: -2.31
• 1Y Price Target: $5.31
• Price Target Upside: 64.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 57 Neutral
• Price Target: $3.50 ▲(8.36%Upside)

The overall stock score reflects significant financial challenges and a negative valuation outlook. However, positive sentiment from the earnings call and strategic shifts provide some optimism. Technical analysis indicates mixed signals, but the company's financial instability remains the most pressing issue.

Positive Factors

Business Strategy

The sale of its title business accelerates Blend's evolution toward a pure-play vertical SaaS provider, reflecting a materially improved gross margin profile more in line with pure software vendors.

Financial Performance

Profitability is increasing even at the current tepid level of mortgage volume, and the banking suite continues to gain traction, providing an increasingly meaningful contribution to the P&L, which is mostly uncorrelated with mortgage.

Market Position

Blend’s sale of its title business serves as validation for the opportunity to collaborate with industry partners, allowing a focus on strategic initiatives and high-value activities.

Negative Factors

Competitive Environment

Blend's largest customer is getting bought by an indirect competitor in the form of a non-bank lender who views technology as 'the bedrock of its investment strategy,' and thus competes with Blend's software.

Regulatory Risk

The RKT/COOP deal is likely to receive regulatory scrutiny from the FTC.

Revenue Risk

Mr. Cooper made up 17% of Blend's revenue, with the majority of the Mr. Cooper-related revenue in the lower gross margin Title business.

Blend Labs Business Overview & Revenue Model

Company Description

Blend Labs, Inc. is a leading cloud-based software platform provider in the financial services sector, primarily serving banks, credit unions, and mortgage lenders. The company specializes in streamlining and simplifying the consumer lending and home buying journey, offering digital solutions that include loan origination, account opening, and other banking products. Blend's platform is designed to enhance the user experience by making the lending process faster, more efficient, and more accessible for both financial institutions and their customers.

How the Company Makes Money

Blend Labs generates revenue through a software-as-a-service (SaaS) model, charging financial institutions subscription fees for access to its digital platform. These fees are typically based on the volume of transactions processed through the platform, such as the number of loans originated or accounts opened. Additionally, Blend may earn revenue from implementation fees for setting up the platform for new clients and providing ongoing support and customization services. The company also forms strategic partnerships with other technology providers and financial service firms to enhance its offerings and expand its market reach, which can contribute to its revenue through shared ventures or cross-platform integrations.

Blend Labs Financial Statement Overview

Summary

Blend Labs is facing significant financial challenges, with declining revenues, negative margins, and negative equity. Although there is some improvement in cash flow, the overall financial position remains unstable.

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
153.84M	162.02M	156.85M	235.20M	234.50M	96.03M
	Gross Profit
91.06M	90.54M	81.14M	89.65M	115.99M	61.74M
	EBIT
-35.93M	-49.62M	-156.22M	-281.22M	-197.24M	-75.29M
	EBITDA
-23.49M	-49.62M	-143.21M	-726.85M	-182.94M	-68.24M
	Net Income Common Stockholders
-40.62M	-49.60M	-185.32M	-763.81M	-169.14M	-74.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
104.82M	98.48M	136.92M	354.15M	547.23M	151.72M
	Total Assets
188.27M	178.01M	206.06M	432.76M	1.11B	215.75M
	Total Debt
0.00	3.83M	149.69M	231.98M	228.45M	16.58M
	Net Debt
-56.24M	-38.41M	118.73M	107.78M	15.37M	-24.51M
	Total Liabilities
59.29M	181.99M	179.12M	268.84M	301.89M	52.41M
	Stockholders Equity
-16.89M	-56.36M	-19.24M	123.17M	774.64M	163.34M
Cash Flow		Free Cash Flow
-1.56M	-22.89M	-128.21M	-192.49M	-129.39M	-66.33M
	Operating Cash Flow
10.91M	-13.04M	-127.62M	-190.42M	-127.50M	-65.01M
	Investing Cash Flow
-12.00M	45.40M	127.31M	99.43M	-633.91M	-7.92M
	Financing Cash Flow
-17.88M	-21.06M	-90.96M	2.22M	933.57M	90.76M

Blend Labs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLND, the sentiment is Negative. The current price of 3.23 is below the 20-day moving average (MA) of 3.59, below the 50-day MA of 3.41, and below the 200-day MA of 3.80, indicating a bearish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 32.45 is Neutral, neither overbought nor oversold. The STOCH value of 10.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLND.

Blend Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YALA	79 Outperform	$984.78M	8.11	21.03%	―	6.40%	9.72%
VTEX	71 Outperform	$1.18B	78.11	6.26%	―	7.71%	―
DSP	65 Neutral	$790.22M	419.60	4.15%	―	30.64%	―
RSKD	63 Neutral	$754.47M	―	-9.00%	―	9.30%	24.96%
FSLY	62 Neutral	$1.13B	―	-15.78%	―	6.26%	-9.54%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
BLND	57 Neutral	$907.42M	―	-93.00%	―	-0.40%	63.36%

Blend Labs Corporate Events

Blend Labs Holds Annual Stockholder Meeting

On June 11, 2025, Blend Labs, Inc. held its annual meeting of stockholders where two main proposals were voted on. The stockholders elected seven directors to serve until the next annual meeting and ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (BLND) stock is a Buy with a $3.90 price target. To see the full list of analyst forecasts on Blend Labs stock, see the BLND Stock Forecast page.

Blend Labs Sells Title365 to Covius Services

On June 9, 2025, Blend Labs announced its decision to sell its title insurance business, Title365 Holding Co., to Covius Services, LLC. This strategic move, pending regulatory approvals, is expected to impact Blend’s operational focus and market positioning in the coming months.

The most recent analyst rating on (BLND) stock is a Buy with a $3.90 price target. To see the full list of analyst forecasts on Blend Labs stock, see the BLND Stock Forecast page.

Blend Labs Reports Strong Q1 2025 Financial Results

On May 8, 2025, Blend Labs announced its first quarter 2025 financial results, highlighting a third consecutive quarter of year-over-year growth driven by increased customer engagement. The company reported a platform revenue of $26.8 million, exceeding expectations, and achieved a record first quarter signings with performance obligations up 70% year-over-year. Blend also generated positive free cash flow for the first time, marking a significant financial milestone. Additionally, Blend is in an exclusive process to potentially sell its title insurance business, aligning with its strategic shift to a software-first model.