Blend Labs (NYSE:BLND) Issues Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Blend Labs (NYSE:BLND) announced its quarterly earnings data on Thursday. The company reported ($0.02) earnings per share for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.04), Zacks reports. The business had revenue of $33.84 million during the quarter, compared to the consensus estimate of $33.08 million.

Here are the key takeaways from Blend Labs’ conference call:

• Profitable second quarter: Revenue reached $33.8 million, near the high end of guidance, while non-GAAP operating income of $7 million exceeded expectations; gross margin improved to 78.3% and free cash flow was $6.9 million. The company also repurchased 11 million shares during the quarter.
• Autopilot is gaining early traction: More than 65 lenders activated the product during its preview period, over 45,000 loans have been processed, and six lenders have signed commercial contracts. Preliminary customer data indicates 10%-15% higher pull-through, two to four days of cycle-time improvement, and approximately 4.5 hours of fulfillment work automated per loan, though management cautioned that monetization is still early.
• Macro conditions are pressuring the outlook: Higher mortgage rates and muted refinance activity led Blend to take a more conservative view of the second half of 2026. The company expects Q3 revenue of $31.5 million-$33.5 million and Q4 funded-loan volume to decline approximately 10%-15% year over year at the midpoint.
• Churn has increased modestly: Blend saw an uptick in customers notifying the company that they plan to leave, primarily for lower-cost or free point solutions. Management currently estimates the annual revenue impact will be in the low single digits but said the trend remains dynamic and under close watch.
• Pipeline and internal AI adoption are expanding: Late-stage pipeline grew nearly 40% from March to June, including potential large financial-institution and Rapid/Autopilot deals. Internally, engineering throughput has increased 3.6 times with roughly the same headcount, supporting management’s longer-term goal of reaccelerating growth in 2027 and beyond.

Blend Labs Price Performance

Shares of NYSE:BLND traded down $0.06 during mid-day trading on Thursday, reaching $1.96. 3,807,661 shares of the company were exchanged, compared to its average volume of 2,165,565. The firm has a market cap of $473.34 million, a price-to-earnings ratio of -19.55 and a beta of 1.09. The firm’s 50-day simple moving average is $1.75 and its 200 day simple moving average is $1.76. Blend Labs has a 1 year low of $1.17 and a 1 year high of $4.49.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on BLND shares. Citigroup restated a “market outperform” rating on shares of Blend Labs in a report on Tuesday, July 21st. Canaccord Genuity Group reduced their target price on Blend Labs from $5.25 to $4.50 and set a “buy” rating on the stock in a research report on Friday, May 15th. Zacks Research lowered Blend Labs from a “hold” rating to a “strong sell” rating in a research note on Monday, July 13th. The Goldman Sachs Group set a $3.50 price target on Blend Labs in a report on Friday, May 8th. Finally, Weiss Ratings downgraded Blend Labs from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Tuesday, June 2nd. Four equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $3.32.

Institutional Trading of Blend Labs

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. State Street Corp lifted its stake in Blend Labs by 2.0% during the fourth quarter. State Street Corp now owns 5,660,693 shares of the company’s stock worth $17,209,000 after purchasing an additional 112,330 shares in the last quarter. Whitebark Investors LP grew its stake in shares of Blend Labs by 14.7% in the third quarter. Whitebark Investors LP now owns 5,566,198 shares of the company’s stock valued at $20,317,000 after buying an additional 712,315 shares in the last quarter. Marshall Wace LLP raised its holdings in shares of Blend Labs by 157.6% in the 2nd quarter. Marshall Wace LLP now owns 2,522,141 shares of the company’s stock valued at $8,323,000 after buying an additional 1,543,220 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of Blend Labs by 3.7% in the 4th quarter. Goldman Sachs Group Inc. now owns 2,371,755 shares of the company’s stock valued at $7,210,000 after buying an additional 84,773 shares during the period. Finally, Prospect Capital Advisors LLC raised its holdings in shares of Blend Labs by 338.2% in the 3rd quarter. Prospect Capital Advisors LLC now owns 1,820,150 shares of the company’s stock valued at $6,644,000 after buying an additional 1,404,750 shares during the period. Hedge funds and other institutional investors own 52.56% of the company’s stock.

Blend Labs Company Profile

Blend Labs, Inc operates as a financial technology company that offers a digital consumer banking platform designed to simplify and automate the lending and account opening processes for banks and credit unions. Its cloud-native software enables financial institutions to deliver a more seamless customer experience by consolidating multiple steps—such as application intake, identity verification, document collection and underwriting—into a unified digital workflow. Blend’s platform is built to integrate with existing core banking systems and third-party data providers, allowing clients to accelerate loan origination and deposit account opening while maintaining compliance and security standards.

The company’s product suite includes solutions for mortgage origination, home equity lending, consumer personal lending and deposit account opening.