Blend Labs (BLND)
NYSE:BLND
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Blend Labs
(NYSE:BLND)
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Rating:48Neutral
Price Target:
$1.50
▼(-25.00% Downside)
Action:ReiteratedDate:04/01/26
The score is held back primarily by still-weak fundamentals (ongoing losses, negative equity, and 2025 revenue decline) and a bearish technical trend. These are partially offset by improving cash generation, a debt-free balance sheet, and a generally constructive earnings update with product/pipeline momentum, though near-term guidance softness and revenue-control weaknesses temper confidence.
Positive Factors
Positive free cash flow generation
Blend's swing to positive operating and free cash flow in 2025 indicates the business can generate internal funding for operations and selective reinvestment. Sustained cash generation reduces refinancing need, supports strategic investments and buybacks, and materially lowers solvency risk if maintained.
Negative Factors
Persisting net losses and negative equity
Ongoing GAAP losses and a negative equity balance limit strategic optionality and make future capital raises more dilutive or costly. If losses reaccelerate, negative equity can impede access to favorable financing and constrain merger, hiring or sales initiatives over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive free cash flow generation
Blend's swing to positive operating and free cash flow in 2025 indicates the business can generate internal funding for operations and selective reinvestment. Sustained cash generation reduces refinancing need, supports strategic investments and buybacks, and materially lowers solvency risk if maintained.
Read all positive factors
Blend Labs (BLND) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$514.23M
Dividend YieldN/A
Average Volume (3M)4.47M
Price to Earnings (P/E)―
Beta (1Y)1.64
Revenue Growth-15.41%
EPS Growth71.18%
CountryUS
Employees540
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.00
Shares Outstanding253,858,350
10 Day Avg. Volume4,977,448
30 Day Avg. Volume4,472,184
Financial Highlights & Ratios
PEG Ratio1.98
Price to Book (P/B)-25.77
Price to Sales (P/S)6.37
P/FCF Ratio-9.72K
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue5.06
Enterprise Value/Gross Profit6.86
Enterprise Value/Ebitda-36.50
Forecast
1Y Price Target
$3.70Price Target Upside85.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.06
Revenue Forecast (FY)$137.10M
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 e...
How the Company Makes Money
Blend primarily makes money by selling access to its software platform to financial institutions and related partners. Revenue is generated through software and platform fees that may be structured as subscription-based arrangements, transaction/u...
Blend Labs Earnings Call Summary
Earnings Call Date:Mar 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
Overall the call was constructive: Blend reported sequential and year-over-year gains in key operating metrics (revenue +7% YoY, positive free cash flow, improved gross margin), a return to mortgage revenue growth, a meaningful product launch (Autopilot) with early customer adoption, a larger pipeline (+40% YoY) and a strong balance sheet (0 debt, $68M cash). Notable negatives include a disclosed material weakness in revenue controls, Q1 guidance signaling lower revenue and margin versus Q4, Consumer Banking churn and concentration risk, and an accounting change that temporarily increases reported R&D expense. On balance, the operational and product momentum and financial strength outweigh the near-term reporting and concentration issues.Positive Updates
Strong Q4 Revenue and Profitability
Q4 revenue of $32.4M (up 7% YoY) came in near the high end of guidance. Non-GAAP operating income was $5.4M (above the high end of guidance) with a non-GAAP operating margin of 17%. Non-GAAP gross margin improved to 80% (from 78% prior quarter).
Negative Updates
Material Weakness in Revenue Controls
Company identified a material weakness in internal control over financial reporting for the revenue process for the year ended Dec 31, 2025 and disclosed immaterial out-of-period adjustments for the first three quarters of 2025. This represents governance/audit risk and will be detailed in the 10-K.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Q4 Revenue and Profitability
Q4 revenue of $32.4M (up 7% YoY) came in near the high end of guidance. Non-GAAP operating income was $5.4M (above the high end of guidance) with a non-GAAP operating margin of 17%. Non-GAAP gross margin improved to 80% (from 78% prior quarter).
Read all positive updates
Company Guidance
Blend guided Q1 2026 revenue of $28.5–$30.0 million (≈6%–12% YoY), with Mortgage Suite expected to grow at or above the high end of that range as market volume is modeled at 1.1–1.2 million units and economic value per funded loan (EV PFL) is expected at $84–$85 (vs. $83 in Q4); Consumer Banking is expected to be more muted and to start Q1 at a little under $11 million. They forecast Q1 non‑GAAP operating income of $2–$3 million (midpoint margin just under 10%), expect non‑GAAP R&D of about $7 million (a ~20% YoY increase) while underlying cash R&D before capitalization should decline roughly 15% due to early adoption of ASU 2025‑06, and warned that typical Q1 seasonality plus the accounting change will create a near‑term reported leverage headwind that should narrow through the year.Blend Labs Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
41
Neutral
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 123.51M | 162.02M | 156.85M | 235.20M | 234.50M |
| Gross Profit | 91.09M | 90.54M | 81.14M | 89.65M | 115.99M |
| EBITDA | -17.12M | -31.74M | -143.21M | -726.85M | -182.94M |
| Net Income | -6.80M | -49.60M | -185.32M | -768.61M | -171.34M |
Balance Sheet | |||||
| Total Assets | 170.04M | 178.01M | 206.06M | 432.76M | 1.11B |
| Cash, Cash Equivalents and Short-Term Investments | 68.32M | 98.48M | 136.92M | 354.15M | 547.23M |
| Total Debt | 160.97M | 3.83M | 149.69M | 231.98M | 232.31M |
| Total Liabilities | 200.60M | 181.99M | 179.12M | 268.84M | 301.89M |
| Stockholders Equity | -30.55M | -56.36M | -19.24M | 123.17M | 774.64M |
Cash Flow | |||||
| Free Cash Flow | -81.00K | -22.89M | -128.21M | -192.49M | -129.39M |
| Operating Cash Flow | 11.51M | -13.04M | -127.62M | -190.42M | -127.50M |
| Investing Cash Flow | 18.54M | 45.40M | 127.31M | 99.43M | -633.91M |
| Financing Cash Flow | -32.59M | -21.06M | -90.96M | 2.22M | 933.57M |
Blend Labs Technical Analysis
Neutral
2.00
Price Trends
1.88
Positive
2.48
Negative
2.99
Negative
Market Momentum
>-0.01
Negative
62.34
Neutral
85.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLND, the sentiment is Neutral. The current price of 2 is above the 20-day moving average (MA) of 1.67, above the 50-day MA of 1.88, and below the 200-day MA of 2.99, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 85.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BLND.
Blend Labs Risk Analysis
Blend Labs disclosed 67 risk factors in its most recent earnings report. Blend Labs reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Blend Labs Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $640.14M | 10.53 | 73.23% | ― | 9.63% | -112.71% | |
69 Neutral | $1.80B | -93.17 | -6.73% | ― | 19.87% | -136.93% | |
69 Neutral | $700.62M | 17.45 | 8.24% | ― | 3.62% | -20.45% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $337.56M | ― | -22.88% | ― | 13.09% | 32.34% | |
48 Neutral | $514.23M | -115.75 | -12.90% | ― | -15.41% | 71.18% |
* Technology Sector Average
BLND
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Blend Labs Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Blend Labs Announces Strong 2025 Results, New Buyback Plan
Positive
Mar 10, 2026
On March 10, 2026, Blend Labs reported preliminary results showing a stronger fourth quarter and full year 2025, with revenue rising 7% to $123.5 million and software platform sales up 7%, while GAAP operating loss narrowed sharply and non-GAAP op...
Business Operations and StrategyM&A Transactions
Blend Labs divests Title365 to sharpen fintech focus
Positive
Mar 2, 2026
On March 1, 2026, Blend Labs, Inc. completed the sale of substantially all assets and liabilities of Title365 Company, its title insurance business, to Covius Services, LLC. The divestiture marks Blend’s exit from direct participation in tit...
Business Operations and StrategyExecutive/Board Changes
Blend Labs Appoints Matt Thomson as New Head of Revenue
Positive
Jan 6, 2026
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 p...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.