Blend Labs (BLND) AI Stock Analysis

• Market Cap: $922.93M
• Dividend Yield: N/A
• Average Volume (3M): 1.77M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: -0.40%
• EPS Growth: 63.36%
• Country: US
• Employees: 540
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 254,775,970
• 10 Day Avg. Volume: 1,624,294
• 30 Day Avg. Volume: 1,771,391
• PEG Ratio: -1.82
• Price to Book (P/B): -54.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -583.79
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 3.90
• Enterprise Value/Gross Profit: 103.49
• Enterprise Value/Ebitda: -4.66
• 1Y Price Target: $5.42
• Price Target Upside: 49.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 56 Neutral
• Price Target: $3.50 ▼(-3.31%Downside)

Blend Labs' overall stock score is driven by significant financial challenges and a negative valuation profile. However, the positive sentiment from the earnings call and strategic corporate events, such as the shift to a software-first model, provide some optimism. Technical indicators suggest moderate stability, but the financial instability remains a primary concern.

Positive Factors

Growth Opportunities

Blend reported first-quarter results slightly ahead of Street expectations, with Platform revenues showing strength as customers continue to look to invest ahead of an expected mortgage volume recovery.

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

Competitive Environment

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

Competitive Threat

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. 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 ongoing losses and negative equity. Despite marginal improvements in cash flow management, the company's financial instability poses substantial risks. Strategic restructuring and a focus on revenue growth are crucial.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	162.02M	156.85M	235.20M	234.50M	96.03M
Gross Profit	90.54M	81.14M	89.65M	115.99M	61.74M
EBITDA	-49.62M	-143.21M	-726.85M	-182.94M	-68.24M
Net Income	-49.60M	-185.32M	-763.81M	-169.14M	-74.62M
Balance Sheet
Total Assets	178.01M	206.06M	432.76M	1.11B	215.75M
Cash, Cash Equivalents and Short-Term Investments	98.48M	136.92M	354.15M	547.23M	151.72M
Total Debt	3.83M	149.69M	231.98M	228.45M	16.58M
Total Liabilities	181.99M	179.12M	268.84M	301.89M	52.41M
Stockholders Equity	-56.36M	-19.24M	123.17M	774.64M	163.34M
Cash Flow
Free Cash Flow	-22.89M	-128.21M	-192.49M	-129.39M	-66.33M
Operating Cash Flow	-13.04M	-127.62M	-190.42M	-127.50M	-65.01M
Investing Cash Flow	45.40M	127.31M	99.43M	-633.91M	-7.92M
Financing Cash Flow	-21.06M	-90.96M	2.22M	933.57M	90.76M

Blend Labs Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.62
• 50DMA: Positive
• 100DMA: Positive
• 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 3.62 is above the 20-day moving average (MA) of 3.50, above the 50-day MA of 3.49, and below the 200-day MA of 3.76, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 78.71 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
YALA	81 Outperform	$1.23B	10.09	21.03%	―	6.40%	9.72%
RSKD	69 Neutral	$866.60M	―	-9.00%	―	9.30%	24.96%
DSP	69 Neutral	$925.36M	491.36	4.15%	―	30.64%	―
VTEX	67 Neutral	$1.13B	75.20	6.26%	―	7.71%	―
FSLY	61 Neutral	$1.04B	―	-15.78%	―	6.26%	-9.54%
BLND	56 Neutral	$922.93M	―	-93.00%	―	-0.40%	63.36%
Sector *	50 Neutral	C$3.11B	2.45	-63.12%	2.58%	4.49%	-5.92%

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.