Blend Labs (BLND) AI Stock Analysis

• Market Cap: $894.49M
• Dividend Yield: N/A
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: -0.40%
• EPS Growth: 63.36%
• Country: US
• Employees: 540
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 254,775,970
• 10 Day Avg. Volume: 2,242,143
• 30 Day Avg. Volume: 2,061,036
• 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: 0.50
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 4.89
• Enterprise Value/Ebitda: -2.31
• 1Y Price Target: $5.31
• Price Target Upside: 53.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 49 Neutral
• Price Target: $3.50 ▲(1.16%Upside)

Blend Labs faces substantial financial challenges, with a negative equity position and ongoing losses impacting its overall score. However, positive developments in earnings call, including strategic shifts and revenue growth, provide some optimism. Technical indicators and valuation remain neutral to negative, underscoring the need for cautious optimism.

Positive Factors

Customer Growth

Blend is gaining new logos at an accelerating pace, while expanding but at the same time simplifying its product offerings via expanding use of partnerships.

Market Share

The divestiture helps streamline the company’s strategic vision to enhance customer experiences for consumer banking products, supporting Blend’s favorable positioning to gain market share.

Strategic Positioning

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.

Negative Factors

Acquisition Impact

While the acquisition of Mr. Cooper by Rocket does mean a bit of a revenue headwind looking out to 2028, short term, this deal can only be a wake-up call for traditional mortgage lenders and servicers.

Competitive Environment

Risks to the thesis include changes in the competitive environment, limited visibility into business forecasting of origination volumes, and general execution.

Customer Revenue Dependence

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.

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
EBITDA	-23.49M	-49.62M	-143.21M	-726.85M	-182.94M	-68.24M
Net Income	-40.62M	-49.60M	-185.32M	-763.81M	-169.14M	-74.62M
Balance Sheet
Total Assets	188.27M	178.01M	206.06M	432.76M	1.11B	215.75M
Cash, Cash Equivalents and Short-Term Investments	104.82M	98.48M	136.92M	354.15M	547.23M	151.72M
Total Debt	0.00	3.83M	149.69M	231.98M	228.45M	16.58M
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: Positive
• Last Price: 3.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.46 is above the 20-day moving average (MA) of 3.37, above the 50-day MA of 3.45, and below the 200-day MA of 3.78, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 86.76 is Negative, 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
YALA	81 Outperform	$1.11B	9.54	21.03%	―	6.40%	9.72%
VTEX	71 Outperform	$1.19B	76.17	6.26%	―	7.71%	―
DSP	65 Neutral	$856.54M	458.80	4.15%	―	30.64%	―
RSKD	65 Neutral	$824.95M	―	-9.00%	―	9.30%	24.96%
Sector *	63 Neutral	£501.37M	10.64	-8.56%	179.69%	4.36%	-29.71%
FSLY	61 Neutral	$1.02B	―	-15.78%	―	6.26%	-9.54%
BLND	49 Neutral	$894.49M	―	-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.