Blend Labs (BLND) AI Stock Analysis

• Market Cap: $736.48M
• Dividend Yield: N/A
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -4.76%
• EPS Growth: 67.62%
• Country: US
• Employees: 540
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 255,696,750
• 10 Day Avg. Volume: 3,587,189
• 30 Day Avg. Volume: 2,326,853
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 6.31
• Enterprise Value/Gross Profit: 9.84
• Enterprise Value/Ebitda: -89.36
• 1Y Price Target: $4.45
• Price Target Upside: 45.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 50 Neutral
• Price Target: $3.00 ▼(-1.64% Downside)

Blend Labs' overall stock score reflects significant financial challenges, including negative profitability and equity, which are partially offset by positive strategic initiatives and revenue growth. The technical analysis indicates bearish momentum, while the valuation remains unattractive due to ongoing losses. Recent corporate events and earnings call insights provide some optimism for future improvements.

Positive Factors

Partnerships and Deals

New logo wins strong in Q1. Management indicated the company closed 3x as many new deals in Q1 vs a year ago, including a top-25 credit union that will be implementing both the mortgage and banking suite products.

Revenue Growth

Revenue grew roughly 10% as financial institutions continue to invest ahead of a potential mortgage market recovery.

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

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 Risks

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

Revenue Headwind

While the acquisition of Mr. Cooper by Rocket does means 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.

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 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 negative EBIT and net income margins, and negative stockholders' equity, indicating financial instability. Despite some improvement in free cash flow, the overall financial position remains precarious.

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	144.88M	162.02M	156.85M	235.20M	234.50M	96.03M
Gross Profit	92.99M	90.54M	81.14M	89.65M	115.99M	61.74M
EBITDA	-10.24M	-49.62M	-143.21M	-726.85M	-182.94M	-68.24M
Net Income	-23.67M	-49.60M	-185.32M	-768.61M	-171.34M	-74.62M
Balance Sheet
Total Assets	183.07M	178.01M	206.06M	432.76M	1.11B	215.75M
Cash, Cash Equivalents and Short-Term Investments	88.30M	98.48M	136.92M	354.15M	547.23M	151.72M
Total Debt	2.38M	3.83M	149.69M	231.98M	232.31M	16.58M
Total Liabilities	205.64M	181.99M	179.12M	268.84M	301.89M	52.41M
Stockholders Equity	-22.57M	-56.36M	-19.24M	123.17M	774.64M	163.34M
Cash Flow
Free Cash Flow	-3.13M	-22.89M	-128.21M	-192.49M	-129.39M	-66.33M
Operating Cash Flow	11.21M	-13.04M	-127.62M	-190.42M	-127.50M	-65.01M
Investing Cash Flow	2.25M	45.40M	127.31M	99.43M	-633.91M	-7.92M
Financing Cash Flow	-19.38M	-21.06M	-90.96M	2.22M	933.57M	90.76M

Blend Labs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 3.05 is below the 20-day moving average (MA) of 3.30, below the 50-day MA of 3.37, and below the 200-day MA of 3.73, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 30.99 is Neutral, 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	78 Outperform	$1.21B	9.57	21.16%	―	6.79%	12.97%
VTEX	62 Neutral	$745.27M	74.99	5.33%	―	4.51%	8241.83%
RSKD	62 Neutral	$842.57M	―	-10.16%	―	7.96%	5.67%
Sector *	61 Neutral	$35.97B	6.65	-7.26%	1.99%	8.60%	-7.54%
DSP	59 Neutral	$598.04M	289.58	5.20%	―	30.92%	―
FSLY	58 Neutral	$1.02B	―	-15.34%	―	7.43%	16.14%
BLND	50 Neutral	$736.48M	―	-93.00%	―	-4.76%	67.62%

Blend Labs Corporate Events

Blend Labs Reports Q2 2025 Financial Results

On August 7, 2025, Blend Labs announced its financial results for the second quarter of 2025, highlighting a fourth consecutive quarter of year-over-year revenue growth and non-GAAP profitability. The company reported a total revenue of $31.5 million, driven by a 43% increase in Consumer Banking Suite revenue, despite a slight decrease in Mortgage Suite revenue. Blend’s sales momentum was strong, with 23 new or expanded deals, including three new independent mortgage banks. The company also achieved a record remaining performance obligations balance of $190.4 million. Additionally, Blend announced the sale of Title365 to Covius, aiming to transition to a higher-margin partnership model for its title services. The company provided guidance for the third quarter of 2025, expecting marginally higher U.S. mortgage originations compared to the second quarter.

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 Appoints Jason Ream as Head of Finance

On August 7, 2025, Blend Labs announced the appointment of Jason Ream as the new Head of Finance and Administration, succeeding Amir Jafari. Ream, who brings over 25 years of experience in financial leadership roles, is expected to drive sustainable growth and operational discipline at Blend. This leadership transition is seen as a pivotal step in Blend’s growth and profitability journey, with Ream’s expertise aligning with the company’s strategic direction to evolve as a durable platform partner in the banking and lending industry.

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 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.