Blend Labs (BLND) AI Stock Analysis

• Market Cap: $923.19M
• Dividend Yield: N/A
• Average Volume (3M): 3.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -4.76%
• EPS Growth: 67.62%
• Country: US
• Employees: 540
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.00
• Shares Outstanding: 255,696,750
• 10 Day Avg. Volume: 3,414,514
• 30 Day Avg. Volume: 3,152,187
• 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: 0.99
• Enterprise Value/Revenue: 6.31
• Enterprise Value/Gross Profit: 9.84
• Enterprise Value/Ebitda: -89.36
• 1Y Price Target: $4.38
• Price Target Upside: 26.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 51 Neutral
• Price Target: $3.50 ▲(1.45% Upside)

Blend Labs' overall score is primarily impacted by its financial instability and negative valuation metrics. While the earnings call provided some positive insights, the company's ongoing financial challenges and bearish technical indicators weigh heavily on the score.

Positive Factors

Revenue Growth

The 10% YoY revenue growth indicates Blend's ability to expand its market presence and adapt its offerings to meet customer needs, suggesting potential for sustained growth.

Market Share Expansion

The addition of new clients and expansion in the IMB vertical enhances Blend's market position, providing a broader customer base and diversified revenue streams, which are crucial for long-term stability.

Improved Operating Margins

Achieving positive non-GAAP operating margins for consecutive quarters reflects operational efficiency improvements, which can lead to sustainable profitability over time.

Negative Factors

Financial Instability

Negative equity indicates financial instability, posing risks to Blend's ability to finance operations and invest in growth, potentially impacting long-term viability.

Negative Free Cash Flow

Negative free cash flow suggests ongoing liquidity challenges, limiting Blend's capacity to reinvest in the business and manage financial obligations effectively.

Decline in Mortgage Suite Revenue

The decline in mortgage suite revenue could indicate challenges in Blend's core market, potentially affecting future revenue stability and growth prospects.

Blend Labs Business Overview & Revenue Model

Company Description

Blend Labs (BLND) is a technology company that specializes in providing a digital platform for financial institutions to streamline their lending processes. The company operates primarily in the fintech sector, focusing on automating the mortgage and consumer lending experience. Blend's core products include its cloud-based software solutions that facilitate loan origination, processing, and management, enabling banks and lenders to enhance efficiency, reduce costs, and improve customer experiences.

How the Company Makes Money

Blend Labs generates revenue through a subscription-based model, charging financial institutions for access to its software platform. Key revenue streams include licensing fees, transaction fees associated with loan origination volume, and professional services such as implementation and consulting. Additionally, Blend has established significant partnerships with major banks and lenders, which not only boosts its credibility in the market but also provides a steady stream of customers and recurring revenue. The company's ability to integrate with existing banking systems and offer customizable solutions further enhances its earning potential.

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: 3.45
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3.45 is above the 20-day moving average (MA) of 3.38, below the 50-day MA of 3.64, and below the 200-day MA of 3.52, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 77.89 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
VTEX	―	$817.01M	82.95	5.33%	―	4.51%	208.14%
MLNK	―	$1.48B	―	-5.41%	―	5.96%	50.29%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SEMR	―	$1.16B	―	-0.50%	―	22.16%	-107.92%
SPT	―	$662.12M	―	-32.50%	―	14.79%	27.52%
OPFI	―	$888.78M	―	-209.49%	―	6.79%	-593.75%
BLND	―	$923.19M	―	―	―	-4.76%	67.62%

Blend Labs Corporate Events

Blend Labs Announces Transition Agreement with Amir Jafari

On October 2, 2025, Blend Labs‘ board approved a transition agreement with Amir Jafari, the former Head of Finance, whose employment ended on October 3, 2025. Jafari will serve as a strategic advisor until January 1, 2026, receiving his base salary and benefits during this period, with additional compensation contingent on certain conditions.

The most recent analyst rating on (BLND) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Blend Labs stock, see the BLND Stock Forecast page.

Blend Labs, Inc. Earnings Call: Growth Amid Challenges

Blend Labs, Inc. Earnings Call: A Mixed Bag of Growth and Challenges

Blend Labs Reports Strong Q2 2025 Financial Results

Blend Labs, Inc. is a prominent platform in the digital banking solutions sector, offering services to a range of financial institutions including banks, fintechs, and mortgage banks. The company recently reported its second quarter 2025 financial results, marking its fourth consecutive quarter of year-over-year revenue growth and achieving a record in remaining performance obligations.

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.