SAN FRANCISCO--(BUSINESS WIRE)--March 10, 2026--
Blend Labs, Inc. (NYSE: BLND), a leading origination platform for digital banking solutions, today announced its preliminary fourth quarter and full year 2025 financial results. Blend also announced that its Board of Directors authorized a share repurchase program providing for the repurchase of up to $50 million of its Class A common stock.
"I am pleased to report that Blend finished fiscal year 2025 with a strong fourth quarter, coming in near the high end of our revenue guidance and beating the high end of our non-GAAP operating income guidance," said Nima Ghamsari, Co-founder and Head of Blend. "What excites me most going into 2026 is not just our growing roster of customers -- it's what we're now able to offer them. Blend Autopilot, our new AI agent, is already live with large customers and is attacking the $11,000 cost-to-originate head-on. We have built a profitable, scalable platform, and now we have the tools to fundamentally rewire how our customers operate."
Fourth Quarter Highlights
-- Results Ahead of Guidance: Total revenue near the high end of guidance
and non-GAAP operating income above the high end of guidance.
-- Growing Customer Base: Added or expanded 10 customer relationships in
the fourth quarter -- with pipeline up approximately 40% year-over-year.
-- Returning Capital to Shareholders: Repurchased 5.1 million shares in
the fourth quarter for more than $15 million, bringing the year-to-date
total to $25 million.
Fourth Quarter 2025
Fourth quarter revenue was $32.4 million, an increase of 7% compared to the fourth quarter of 2024. Software platform revenue was $30.3 million, up 10% year-over-year, and Professional services revenue was $2.1 million compared to $2.5 million in the fourth quarter of 2024. Total GAAP gross profit margin was 76%, up from 74% in the fourth quarter of 2024, and non-GAAP gross profit margin was 80%, up from 75% in the same period last year. GAAP operating loss was $3.6 million, compared to a loss of $3.3 million in the fourth quarter of 2024. Non-GAAP operating income was $5.4 million, up from $3.7 million in the same period last year.
GAAP diluted net loss from continuing operations attributable to common stockholders per share was $0.03 compared to a loss of $0.03 in the fourth quarter of 2024. Non-GAAP diluted net income from continuing operations attributable to common stockholders per share was break-even ($0.00) in both the fourth quarter of 2025 and the same period last year.
Full Year 2025
Full year revenue was $123.5 million, an increase of 7% compared to 2024. Software platform revenue was $114.4 million, up 7% year-over-year and Professional services revenue was $9.1 million compared to $8.8 million in 2024. Total GAAP gross profit margin was 74%, up from 72% in 2024, and non-GAAP gross profit margin was 77%, up from 73% in 2024. GAAP operating loss was $21.8 million, an improvement from a loss of $48.8 million in 2024. Non-GAAP operating income was $15.1 million, up from a loss of $12.8 million in 2024.
GAAP diluted net loss from continuing operations attributable to common stockholders per share was $0.07 compared to a loss of $0.21 in 2024. Non-GAAP diluted net income from continuing operations attributable to common stockholders per share was $0.01 in 2025 compared to a loss of $0.10 in 2024.
The financial information in this press release reflects preliminary estimates and remains subject to completion of the company's financial closing procedures and review by the company's independent registered public accounting firm. Financial results will not be final until Blend files its Annual Report on Form 10-K for the period.
First Quarter Outlook
Blend is providing guidance for the first quarter of 2026 as follows:
$ in millions
------------------------- ---------------
Q1 2026 Guidance
------------------------------------------
Total Revenue $28.5M - $30.0M
------------------------- ---------------
Non-GAAP Operating Income $2.0M - $3.0M
------------------------- ---------------
Blend's first quarter 2026 guidance reflects certain assumptions and expectations related to U.S. aggregate industry mortgage originations. We view the mortgage market size based on the Home Mortgage Disclosure Act ("HMDA"). Our first quarter 2026 market size expectation is 1.10 million to 1.20 million units. For the second quarter of 2026 we expect a sequential volume increase, in line with normal seasonal patterns. Our current expectation for the second quarter of 2026 is 1.50 to 1.60 million units.
We have not provided the forward-looking GAAP equivalent to our non-GAAP Operating Income outlook, or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, stock-based compensation, which is affected by our hiring and retention needs and future prices of our stock, and non-recurring, infrequent or unusual items.
Webcast Information
On Thursday, March 10 at 4:30 pm ET, Blend will host a live discussion of its fourth quarter and full year 2025 financial results. A link to the live discussion will be made available on the Company's investor relations website at https://investor.blend.com. A replay will also be made available following the discussion at the same website.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may relate to, but are not limited to, quotations of management; the "First Quarter Outlook" section above; Blend's expectations regarding its financial condition and operating performance, including growth opportunities, investments and plans for future operations and competitive position; Blend's partnerships and expectations related to such partnerships on Blend's products and business; Blend's products, pipeline, and technologies; Blend's customers and customer relationships, including the businesses of such customers and their positions in the market; Blend's ability to achieve or maintain profitability in the future; projections for mortgage loan origination volumes, including projections provided by third parties; and other macroeconomic and industry conditions. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should, " "expect," "plan," "anticipate," "could," "would," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these terms or other comparable terminology that concern Blend's expectations, strategy, plans or intentions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by which such performance or results will be achieved, if at all.
Forward-looking statements are based on information available at the time those statements are made and/or management's good faith beliefs and assumptions as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include the risks that: ongoing uncertainty or deterioration in economic conditions, such as increased mortgage interest rates, credit availability, real estate prices, tariffs and regulatory changes, inflation or consumer confidence, adversely affect our industry, markets and business; we fail to retain our existing customers or to acquire new customers in a cost-effective manner; our customers fail to maintain their utilization of our products and services; our relationships with any of our key customers were to be terminated or the level of business with them significantly reduced over time; we are unable to compete in highly competitive markets; we are unable to manage our growth; we are unable to make accurate predictions about our future performance due to our limited operating history in an evolving industry and evolving markets; our restructuring actions do not result in the desired outcomes or adversely affect our business, impairment charges on certain assets have an adverse effect on our financial condition and results of operations; changes to our expectations regarding our share repurchase program; our strategic initiatives, including our decision to exit our Title business, could adversely affect our financial condition; or we are unable to generate sufficient cash flows or otherwise maintain sufficient liquidity to fund our operations and satisfy our liabilities. Further information on these risks and other factors that could affect our financial results are set forth in our filings with the Securities and Exchange Commission, including in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 and will be set forth in our Annual Report on Form 10-K for the year ended December 31, 2025. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. These factors could cause actual results, performance, or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements
contained in this press release. Except as required by law, Blend does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.
About Non-GAAP Financial Measures and Other Performance Metrics
In addition to financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain, and the conference call will contain, non-GAAP financial measures, including non-GAAP gross profit and non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss) from continuing operations, and non-GAAP diluted net income (loss) per share from continuing operations attributable to common stockholders. Our management uses these non-GAAP financial measures internally in analyzing our financial results and believes they are useful to investors, as a supplement to the corresponding GAAP financial measures, in evaluating our ongoing operational performance and trends, in allowing for greater transparency with respect to measures used by our management in their financial and operational decision making, and in comparing our results of operations with other companies in the same industry, many of which present similar non-GAAP financial measures to help investors understand the operational performance of their businesses.
We adjust the following items from our non-GAAP financial measures as detailed in the reconciliations below:
Stock-based compensation. We exclude stock-based compensation, which is a non-cash expense, from our non-GAAP financial measures because we believe that excluding this cost provides meaningful supplemental information regarding operational performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective assumptions, and expense related to stock-based awards can vary significantly based on the timing, size and nature of awards granted.
Workforce reduction costs. We exclude restructuring costs related to workforce reductions as these costs primarily include employee severance and other costs directly associated with resource realignments incurred in connection with changing strategies or business conditions. These costs can vary significantly in amount and frequency based on the nature of the actions as well as the changing needs of our business and we believe that excluding them provides easier comparability of pre- and post-restructuring operating results.
Abandoned and terminated facilities costs. In the third quarter of 2024, we abandoned our headquarters in San Francisco, California and early terminated our office lease in Omaha. We exclude costs related to abandoned and terminated leases as these costs related to a one-time strategic business decision, are non-recurring or short-term in nature and are not reflective of our ongoing operations. Thus we believe that excluding these charges for purposes of calculating the non-GAAP financial measures provides more meaningful period to period comparisons.
Compensation realignment costs. We exclude the compensation realignment costs incurred in connection with the change in our compensation strategy from our non-GAAP financial measures. These costs relate to amortization of one-time two-installment cash bonus payment made to certain employees in lieu of previously committed equity-based awards, driven by an organizational initiative to standardize our equity compensation program. We believe that excluding these charges for purposes of calculating the non-GAAP financial measures provides more meaningful period to period comparisons.
Litigation contingencies and related professional services costs. We exclude costs related to litigation contingencies, which represent reserves for legal settlements, as well as the related professional service fees incurred related to these matters. These costs are non-recurring in nature and we do not believe they have a direct correlation to the operation of our business.
Transaction-related costs. We exclude costs related to strategic transactions from our non-GAAP financial measures as we do not consider these costs to be related to organic continuing operations of our business or relevant to assessing the long-term performance of the impact of such transactions. These adjustments allow for more accurate comparisons of the financial results to historical operations and forward looking guidance. These non-recurring costs include financial advisory, legal, and other transactional costs incurred in connection with investing or divesting activities.
Impairment of capitalized internal-use software. We exclude the impairment of capitalized internal-use software because we do not believe this non-cash expense has a direct correlation to the operation of our business and is non-recurring in nature.
Amortization of capitalized internal-use software. We exclude the amortization of capitalized internal-use software because we do not believe this non-cash expense has a direct correlation to the operation of our business.
Executive transition costs. We exclude costs associated with transitions of executive officers as these costs relate to an infrequent strategic business decisions, are short-term in nature and are not reflective of our ongoing operations. Thus we believe that excluding these charges for purposes of calculating the non-GAAP financial measures provides more meaningful period to period comparisons.
Gain on sale of insurance business. We exclude the gain on sale of our insurance business to a third party, which is comprised of the excess consideration received for the net assets transferred as part of the sale agreement. This gain is non-recurring in nature and we do not believe it has a direct correlation to the operation of our business.
Loss on transfer of subsidiary. We exclude loss on transfer of our subsidiary in India to a third party, which is primarily comprised of impairment charges related to certain assets transferred as part of the agreement, costs incurred to settle certain liabilities arising from the agreement, and one-time legal costs incurred to facilitate the transaction. These costs are non-recurring in nature and we do not believe they have a direct correlation to the operation of our business.
Gain on investment in equity securities. We exclude gains related to the carrying value adjustments of non-marketable equity securities because we do not believe these non-cash gains have a direct correlation to the operation of our business.
Loss on extinguishment of debt. We exclude the write offs of unamortized debt issuance costs and debt discounts related to the extinguishment of our term loan and termination of the credit agreement from our non-GAAP financial measures. These costs are non-recurring in nature and we do not believe they have a direct correlation to the operation of our business.
Foreign currency gains and losses. We exclude unrealized gains and losses resulting from remeasurement of assets and liabilities from foreign currency into the functional currency as we do not believe these gains and losses to be indicative of our business performance and excluding these gains and losses provides information consistent with how we evaluate our operating results.
Changes in non-GAAP EPS metric. We have historically reported non-GAAP basic (consolidated) net loss per share as our earnings per share metric, as we believed the metric was most appropriate in light of our ongoing net losses. As our business has evolved and we've been able to achieve non-GAAP net income in recent periods, we no longer view non-GAAP basic (consolidated) net loss per share as useful or appropriate to understanding our earnings per share metric. Therefore, we no longer use, and we will not disclose, basic (consolidated) net loss per share. Instead, we will disclose non-GAAP diluted net income (loss) per share attributable to common stockholders. The historical periods presented herein have been recast to the updated metric for purposes of comparability.
Economic Value per Funded Loan. In our Mortgage Suite, Economic Value per Funded Loan represents the contractual rates for mortgage and mortgage-related products multiplied by the number of loans funded or transactions completed, as applicable, by a customer in the specified period (economic value), divided by the total number of loans funded by all Mortgage Suite customers in that same period. Economic value per funded loan is segregated into three categories: 1) core software, 2) add-on products and 3) partnerships. Core software consists of economic value generated through Mortgage and Blend Close. Add-on products transitioning to partnership models consists of economic value generated through Blend Income Verification and Blend Insurance Agency, prior to their transition to partnership models. Partnerships consists of economic value generated from partners through our integrated marketplace. The value derived from products associated with the mortgage application stage is aligned with the timing of funding the related loan (typically a 1-3 month delay from the time of application). Additionally, the value that is associated with fixed platform fees is recognized as revenue ratably over the contractual period, which naturally creates peaks and troughs that align with quarters of low and high mortgage loans funded. We use Economic Value per Funded Loan to measure our success at broadening the client relationships from the underlying mortgage transactions and selling additional products through our software platform.
Our non-GAAP financial measures also include non-GAAP operating margin, which is defined as non-GAAP income (loss) from operations divided by total revenue. We believe that the presentation of non-GAAP operating margin provides useful information to investors as it is one of the metrics we use to assess our operating and financial performance, and also may be a useful metric for investors to compare our operating and financial results with other companies in our industry.
In addition, our non-GAAP financial measures include the following measures related to our liquidity: free cash flow, unlevered free cash flow and free cash flow margin. Free cash flow is defined as net cash flow from operating activities less cash spent on additions to property, equipment, internal-use software and intangible assets. Unlevered free cash flow is defined as free cash flow before cash paid for interest on our outstanding debt. Free cash flow margin is defined as free cash flow divided by total revenue. We believe information regarding free cash flow and free cash flow margin provides useful information to investors as a basis for comparing our performance with other companies in our industry and as a measurement of the cash generation that is available to invest in our business and meet our financing needs. We present unlevered free cash flow primarily for historical comparisons. In April 2024, we repaid in full all amounts outstanding and payable under our debt obligations and therefore eliminated any debt service obligations.
We have not separately adjusted for certain tax-related impacts of our non-GAAP financial measures, as they are not material to our overall non-GAAP results for the periods presented.
It is important to note that the particular items we exclude from, or include in, our non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. In addition, other companies may utilize metrics that are not similar to ours.
The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in our financial statements. Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results. Management encourages investors and others to review Blend's financial information in its entirety and not rely on a single financial measure.
About Blend
Blend Labs, Inc., (NYSE: BLND) is a leading origination platform for digital banking solutions. Financial providers-- from large banks, fintechs, and credit unions to community and independent mortgage banks--use Blend's platform to transform banking experiences for their customers. Better banking starts on Blend. To learn more, visit blend.com.
Blend Labs, Inc.
Consolidated Balance Sheets
(In thousands, except per share amounts)
December 31, 2025 December 31, 2024
------------------- ---------------------
Assets
Current assets:
Cash and cash equivalents $ 43,578 $ 38,011
Marketable securities and
other investments 24,739 56,233
Trade and other receivables,
net of allowance for credit
losses of $112 and $50,
respectively 8,786 14,656
Prepaid expenses and other
current assets 15,121 16,725
Current assets held for sale
from discontinued
operations 5,640 9,618
-------------- --------------
Total current assets 97,864 135,243
Property and equipment, net 22,997 11,672
Operating lease right-of-use
assets 1,394 339
Deferred contract costs 3,425 2,868
Other non-current assets 41,425 21,906
Non-current assets held for
sale from discontinued
operations 2,940 6,057
-------------- --------------
Total assets $ 170,045 $ 178,085
============== ==============
Liabilities, redeemable equity
and stockholders' equity
Current liabilities:
Accounts payable $ 1,826 $ 1,620
Deferred revenue 19,464 19,240
Accrued compensation 4,555 3,315
Other current liabilities 8,872 9,740
Current liabilities held for
sale from discontinued
operations 4,816 5,107
-------------- --------------
Total current liabilities 39,533 39,022
Other non-current
liabilities 1,415 278
Non-current liabilities held
for sale from discontinued
operations 154 1,103
-------------- --------------
Total liabilities 41,102 40,403
Commitments and contingencies
Redeemable noncontrolling
interest - held for sale from
discontinued operations -- 52,375
Series A redeemable
convertible preferred stock,
par value $0.00001 per share:
200,000 shares authorized as
of December 31, 2025 and
December 31, 2024, 150 shares
issued and outstanding as of
December 31, 2025 and
December 31, 2024,
respectively 159,495 141,663
Stockholders' equity:
Class A, Class B and Class C
Common Stock, par value
$0.00001 per share: 3,000,000
(Class A 1,800,000, Class B
600,000, Class C 600,000)
shares authorized as of
December 31, 2025 and
December 31, 2024; 256,043
(Class A 252,787, Class B
3,256, Class C 0) and 258,173
(Class A 254,426, Class B
3,747, Class C 0) shares
issued and outstanding as of
December 31, 2025 and
December 31, 2024,
respectively 2 2
Additional paid-in capital 1,360,704 1,328,015
Accumulated other
comprehensive income 597 602
Accumulated deficit (1,391,855) (1,384,975)
-------------- --------------
Total stockholders' equity (30,552) (56,356)
-------------- --------------
Total liabilities, redeemable
equity and stockholders'
equity $ 170,045 $ 178,085
============== ==============
Blend Labs, Inc. Consolidated Statements of Operations and
Comprehensive Income (Loss) (In thousands, except per share
amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- ----------------------
2025 2024 2025 2024
------- ------- ------- -------
Revenue
Software platform $ 30,269 $ 27,637 $114,367 $106,914
Professional
services 2,099 2,485 9,139 8,848
------- ------- ------- -------
Total revenue 32,368 30,122 123,506 115,762
------- ------- ------- -------
Cost of revenue
Software platform 6,218 5,964 25,312 23,107
Professional
services 1,666 1,820 7,106 9,434
------- ------- ------- -------
Total cost of
revenue 7,884 7,784 32,418 32,541
------- ------- ------- -------
Gross profit 24,484 22,338 91,088 83,221
Operating expenses:
Research and
development 8,809 8,861 32,843 46,087
Sales and
marketing 7,063 6,178 29,073 34,410
General and
administrative 12,211 10,476 50,115 45,687
Restructuring 31 95 871 5,882
------- ------- ------- -------
Total operating
expenses 28,114 25,610 112,902 132,066
------- ------- ------- -------
Loss from operations (3,630) (3,272) (21,814) (48,845)
Interest expense -- -- -- (6,747)
Other income
(expense), net 1,377 1,067 20,857 12,941
------- ------- ------- -------
Loss before income
taxes (2,253) (2,205) (957) (42,651)
Income tax expense (151) (16) (249) (109)
------- ------- ------- -------
Loss from
continuing
operations (2,404) (2,221) (1,206) (42,760)
Net (loss) income
from
discontinued
operations (177) 1,513 (5,856) (659)
------- ------- ------- -------
Net loss (2,581) (708) (7,062) (43,419)
------- ------- ------- -------
Less: Net (loss)
income
attributable to
noncontrolling
interest
included in
discontinued
operations -- (117) 182 74
------- ------- ------- -------
Net loss
attributable
to Blend Labs,
Inc. (2,581) (825) (6,880) (43,345)
------- ------- ------- -------
Less: Accretion of
redeemable
noncontrolling
interest to
redemption value
from discontinued
operations -- (1,511) (1,254) (6,259)
Less: Accretion of
Series A redeemable
convertible
preferred stock to
redemption value (4,696) (4,170) (17,832) (10,879)
------- ------- ------- -------
Net loss
attributable
to Blend Labs,
Inc. common
stockholders $ (7,277) $ (6,506) $(25,966) $(60,483)
======= ======= ======= =======
Net loss per share attributable to Blend Labs, Inc. common
stockholders - basic and diluted:
Continuing
operations $ (0.03) $ (0.03) $ (0.07) $ (0.21)
Discontinued
operations $ 0.00 $ 0.00 $ (0.03) $ (0.03)
Net loss per
share
attributable
to Blend Labs,
Inc. common
stockholders $ (0.03) $ (0.03) $ (0.10) $ (0.24)
Weighted average
shares used in
calculating net loss
per share:
Basic and
diluted 258,121 256,735 258,949 253,921
Comprehensive loss:
Net loss $ (2,581) $ (708) $ (7,062) $(43,419)
Unrealized
(loss) gain on
marketable
securities -- (215) (100) 87
Foreign
currency
translation
gain 42 52 95 74
------- ------- ------- -------
Comprehensive loss (2,539) (871) (7,067) (43,258)
Less: Comprehensive
(loss) income
attributable to
noncontrolling
interest -- (117) 182 74
------- ------- ------- -------
Comprehensive
loss
attributable
to Blend Labs,
Inc. $ (2,539) $ (988) $ (6,885) $(43,184)
======= ======= ======= =======
Blend Labs, Inc.
Consolidated Statements of Cash Flows
(In thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- -----------------------
2025 2024 2025 2024
------- ------- ------- --------
Operating activities
Net loss $ (2,581) $ (708) $ (7,062) $ (43,419)
Less: Net (loss)
income from
discontinued
operations (177) 1,513 (5,856) (659)
------- ------- ------- --------
Net loss from
continuing
operations (2,404) (2,221) (1,206) (42,760)
Adjustments to
reconcile net loss to
net cash used in
operating
activities:
Stock-based
compensation 7,478 6,050 28,955 27,941
Depreciation and
amortization 1,200 273 3,288 1,339
Amortization of
deferred
contract costs 451 289 1,626 1,068
Amortization of
debt discount
and issuance
costs -- -- -- 690
Amortization of
operating lease
right-of-use
assets 181 87 531 2,062
Accelerated
amortization of
right-of-use
asset in
connection with
lease
abandonment -- -- -- 2,992
Gain on
conversion of
note receivable
to investment in
equity
securities 825 -- 825 --
Gain on
investment in
equity
securities -- -- (16,580) (4,417)
Loss on
extinguishment
of debt -- -- -- 5,476
Gain on sale of
insurance
business -- -- -- (9,213)
Other 43 (325) (312) (1,927)
Changes in
operating assets
and liabilities:
Trade and other
receivables 3,535 (136) 5,760 4,765
Prepaid
expenses and
other assets,
current and
non-current (2,789) (723) (7,080) (432)
Deferred
contract
costs,
non-current (289) (805) (557) (415)
Accounts
payable 1,054 392 206 (291)
Deferred
revenue (5,773) (617) (548) 10,256
Accrued
compensation (159) (1,800) 807 (2,109)
Operating lease
liabilities (136) (1,246) (2,769) (2,922)
Other
liabilities,
current and
non-current (321) (2,395) 1,452 (303)
------- ------- ------- --------
Net cash provided by
(used in) operating
activities -
continuing
operations 2,896 (3,177) 14,398 (8,200)
Net cash used in
operating activities
- discontinued
operations (1,358) (1,409) (2,886) (4,844)
------- ------- ------- --------
Net cash provided by
(used in) operating
activities 1,538 (4,586) 11,512 (13,044)
------- ------- ------- --------
Investing activities
Purchases of
marketable
securities (4,995) (5,609) (35,485) (102,030)
Sale of
available-for-sale
securities -- -- 20,827 100,327
Maturities of
marketable
securities 2,500 11,300 46,727 53,150
Additions to
property, equipment
and internal-use
software development
costs (1,559) (2,497) (11,593) (9,741)
Proceeds from sale of
insurance business -- -- -- 9,075
Cash received in
connection with
conversion of note
receivable to
investment in equity
securities 2,255 -- 2,255 --
Investment in
non-marketable
equity securities -- -- (4,000) --
Investment in note
receivable -- (5,000) -- (5,000)
Other -- -- -- (283)
------- ------- ------- --------
Net cash (used in)
provided by
investing activities
- continuing
operations (1,799) (1,806) 18,731 45,498
Net cash used in
investing activities
- discontinued
operations (13) (83) (195) (103)
------- ------- ------- --------
Net cash (used in)
provided by
investing
activities (1,812) (1,889) 18,536 45,395
------- ------- ------- --------
Financing activities
Proceeds from
exercises of stock
options, including
early exercises, net
of repurchases 147 789 1,652 1,658
Taxes paid related to
net share settlement
of equity awards (1,981) (7,112) (9,369) (18,115)
Share repurchases (15,727) -- (24,870) --
Repayment of
long-term debt -- -- -- (144,500)
Net proceeds from the
issuance of the
Series A redeemable
convertible
preferred stock and
the Haveli Warrant -- -- -- 149,375
Payment for issuance
costs related to the
Series A redeemable
convertible
preferred stock and
the Haveli Warrant -- -- -- (9,480)
------- ------- ------- --------
Net cash used in
financing activities
- continuing
operations (17,561) (6,323) (32,587) (21,062)
------- ------- ------- --------
Effect of exchange
rates on cash, cash
equivalents, and
restricted cash -- -- -- (5)
Net (decrease)
increase in cash,
cash equivalents,
and restricted cash (17,835) (12,798) (2,539) 11,284
Cash, cash
equivalents, and
restricted cash at
beginning of period 64,833 62,335 49,537 38,253
Cash, cash
equivalents, and
restricted cash at
end of period $ 46,998 $ 49,537 $ 46,998 $ 49,537
------- ------- ------- --------
Less: Cash, cash
equivalents and
restricted cash
included in current
assets held for sale
from discontinued
operations 3,420 6,503 3,420 6,503
Cash, cash
equivalents and
restricted cash, end
of period, excluding
current assets held
for sale from
discontinued
operations $ 43,578 $ 43,034 $ 43,578 $ 43,034
======= ======= ======= ========
Reconciliation of
cash, cash
equivalents, and
restricted cash
within the
consolidated balance
sheets:
Cash and cash
equivalents $ 43,578 $ 38,011 $ 43,578 $ 38,011
Restricted cash -- 5,023 -- 5,023
------- ------- ------- --------
Total cash, cash
equivalents, and
restricted cash $ 43,578 $ 43,034 $ 43,578 $ 43,034
======= ======= ======= ========
Supplemental
disclosure of cash
flow information:
Cash paid for
income taxes
State and Local
Texas $ -- $ -- $ 64 $ 52
Foreign
India $ 72 $ -- $ 325 $ 24
------- ------- ------- --------
Total income
taxes paid, net $ 72 $ -- $ 389 $ 76
======= ======= ======= ========
Cash paid for
interest $ -- $ -- $ -- $ 6,150
Supplemental
disclosure of
non-cash investing
and financing
activities:
Reclassification
of redeemable
noncontrolling
interest related
to discontinued
operations to
equity $ -- $ -- $ 52,675 $ --
Vesting of early
exercised stock
options $ -- $ -- $ -- $ 363
Operating lease
liabilities
arising from
obtaining new or
modified
right-of-use
assets $ (19) $ (53) $ 1,565 $ 1,098
Stock-based
compensation
included in
capitalized
internal-use
software
development
costs $ 225 $ 509 $ 3,162 $ 2,450
Accretion of
redeemable
noncontrolling
interest related
to discontinued
operations to
redemption
value $ -- $ 1,511 $ 1,254 $ 6,259
Accretion of
Series A
redeemable
convertible
preferred stock
to redemption
value $ 4,696 $ 4,170 $ 17,832 $ 10,879
Covered Warrant
received in
connection with
strategic
partnership and
sale of
insurance
business $ -- $ -- $ -- $ 222
Capitalized
internal-use
software
development
costs included
in accrued
compensation $ 129 $ 155 $ 129 $ 155
Blend Labs, Inc.
Revenue Disaggregation
(In thousands)
Three Months Ended December 31,
-------------------------------------------
2025 2024
--------------------- --------------------
YoY change
Mortgage Suite $ 18,797 58% $ 18,179 60% 3%
Consumer
Banking Suite 11,472 36% 9,458 32% 21%
------ ---- ------- ---
Total
software
platform 30,269 94% 27,637 92% 10%
Professional
services 2,099 6% 2,485 8% (16)%
------ -------
Total revenue $ 32,368 100% $ 30,122 100% 7%
====== =======
Twelve Months Ended December 31,
-----------------------------------------
2025 2024
---------------------- -----------------
YoY change
Mortgage Suite $ 69,131 56% $ 73,257 64% (6)%
Consumer
Banking Suite 45,236 37% 33,657 28% 34%
------- ---- ------- ---
Total
software
platform 114,367 93% 106,914 92% 7%
Professional
services 9,139 7% 8,848 8% 3%
------- -------
Total revenue $ 123,506 100% $115,762 100% 7%
======= =======
Blend Labs, Inc.
Reconciliation of GAAP to non-GAAP Measures
(In thousands)
Three Months Ended December 31, Twelve Months Ended December 31,
------------------------------------ -------------------------------------
2025 2024 2025 2024
----------------- ----------------- ----------------- ------------------
Gross Profit Gross Gross Gross Gross Gross Gross Gross Gross
Reconciliation Profit Margin Profit Margin Profit Margin Profit Margin
Blend Platform
GAAP Software
platform $24,051 79% $21,673 78% $89,055 78% $83,807 78%
Stock-based
compensation(1) 6 3 8 13
Amortization of
capitalized
internal-use
software(8) 1,143 249 3,133 491
------ -------- ------ -------- ------ -------- ------ --------
Non-GAAP Software
platform 25,200 83% 21,925 79% 92,196 81% 84,311 79%
------ --- ------ --- ------ --- ------ ---
GAAP Professional
services 433 21% 665 27% 2,033 22% (586) (7)%
Stock-based
compensation(1) 128 141 535 497
Amortization of
capitalized
internal-use
software(8) -- -- -- --
------ -------- ------ -------- ------ -------- ------ --------
Non-GAAP
Professional
services 561 27% 806 32% 2,568 28% (89) (1)%
------ --- ------ --- ------ --- ------ ---
GAAP Gross Profit 24,484 76% 22,338 74% 91,088 74% 83,221 72%
Stock-based
compensation(1) 134 144 543 510
Amortization of
capitalized
internal-use
software(8) 1,143 249 3,133 491
------ -------- ------ -------- ------ -------- ------ --------
Non-GAAP Gross Profit $25,761 80% $22,731 75% $94,764 77% $84,222 73%
------ --- ------ --- ------ --- ------ ---
Blend Labs, Inc.
Reconciliation of GAAP to non-GAAP Measures
(In thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------- ---------------------------
2025 2024 2025 2024
------ ------ --- ------- ------- ---
GAAP operating
expenses $28,114 $25,610 $112,902 $132,066
Non-GAAP
adjustments:
Stock-based
compensation(1) 7,344 5,906 28,412 27,431
Workforce reduction
costs(2) 31 95 871 5,882
Abandoned and
terminated
facilities
costs(3) (104) 537 1,667 537
Compensation
realignment
costs(4) -- -- -- 1,155
Executive transition
costs(9) 472 -- 743 --
Litigation
contingencies and
related
professional
services costs(5) 15 -- 874 53
Transaction-related
costs(6) 21 -- 490 --
Impairment of
capitalized
internal-use
software(7) -- -- 135 --
------ ------ --- ------- ------- ---
Non-GAAP operating
expenses $20,335 $19,072 $ 79,710 $ 97,008
====== ====== === ======= ======= ===
GAAP loss from
operations $(3,630) $(3,272) $(21,814) $(48,845)
Non-GAAP
adjustments:
Stock-based
compensation(1) 7,478 6,050 28,955 27,941
Workforce reduction
costs(2) 31 95 871 5,882
Abandoned and
terminated
facilities
costs(3) (104) 537 1,667 537
Compensation
realignment
costs(4) -- -- -- 1,155
Executive transition
costs(9) 472 -- 743 --
Litigation
contingencies and
related
professional
services costs(5) 15 -- 874 53
Transaction-related
costs(6) 21 -- 490 --
Impairment of
capitalized
internal-use
software(7) -- -- 135 --
Amortization of
capitalized
internal-use
software(8) 1,143 249 3,133 491
------ ------ --- ------- ------- ---
Non-GAAP income
(loss) from
operations $ 5,426 $ 3,659 $ 15,054 $(12,786)
====== ====== === ======= =======
GAAP operating
margin (11)% (11)% (18)% (42)%
Non-GAAP operating
margin 17% 12% 12% (11)%
GAAP net loss from
continuing
operations $(2,404) $(2,221) $ (1,206) $(42,760)
Non-GAAP
adjustments:
Stock-based
compensation(1) 7,478 6,050 28,955 27,941
Loss on
extinguishment of
debt(13) -- -- -- 5,531
Workforce reduction
costs(2) 31 95 871 5,882
Abandoned and
terminated
facilities
costs(3) (104) 537 1,667 537
Compensation
realignment
costs(4) -- -- -- 1,155
Executive transition
costs(9) 472 -- 743 --
Litigation
contingencies and
related
professional
services costs(5) 15 -- 874 53
Transaction-related
costs(6) 21 -- 490 --
Impairment of
capitalized
internal-use
software(7) -- -- 135 --
Amortization of
capitalized
internal-use
software(8) 1,143 249 3,133 491
Gain on investment
in equity
securities(10) -- -- (16,580) (4,417)
Foreign currency
gains and
losses(11) 81 97 283 116
Loss on transfer of
subsidiary(12) -- -- -- 601
Gain on sale of
insurance
business(14) -- -- -- (9,239)
------ ------ --- ------- -------
Non-GAAP net income
(loss) from
continuing
operations $ 6,733 $ 4,807 $ 19,365 $(14,109)
====== ====== === ======= =======
Blend Labs, Inc.
Reconciliation of GAAP to non-GAAP Measures
(In thousands, except per share amounts)
Three Months Ended December Twelve Months Ended
31, December 31,
--------------------------- ---------------------------
2025 2024 2025 2024
------- ------- --- ------- ------- ---
GAAP diluted
net loss per
share from
continuing
operations
attributable
to common
stockholders $ (0.03) $ (0.03) $ (0.07) $ (0.21)
Per share
impact of
non-GAAP
expenses(15) 0.03 0.03 0.08 0.11
------- ------- --- ------- ------- ---
Non-GAAP
diluted
income (loss)
per share
from
continuing
operations
attributable
to common
stockholders $ 0.00 $ 0.00 $ 0.01 $ (0.10)
======= ======= === ======= =======
GAAP diluted
weighted
average
shares used
in
calculating
net loss per
share 258,121 256,735 258,949 253,921
Non-GAAP
diluted
weighted
average
shares used
in
calculating
net income
(loss) per
share 265,369 272,200 266,351 253,921
Three Months Ended December Twelve Months Ended
31, December 31,
--------------------------- ---------------------------
2025 2024 2025 2024
------- ------- --- ------- ------- ---
Net cash
provided by
(used in)
operating
activities -
continuing
operations $ 2,896 $ (3,177) $ 14,398 $ (8,200)
Additions to
property,
equipment and
internal-use
software
development
costs (1,559) (2,497) (11,593) (9,741)
------- ------- ------- -------
Free cash
flow 1,337 (5,674) 2,805 (17,941)
Cash paid for
interest -- -- -- 6,150
------- ------- --- ------- ------- ---
Unlevered
free cash
flow $ 1,337 $ (5,674) $ 2,805 $(11,791)
Revenue $ 32,368 $ 30,122 $123,506 $115,762
Free cash
flow
margin 4% (19)% 2% (15)%
Notes:
(1) Stock-based compensation represents the non-cash grant date fair
value of stock-based instruments utilized to incentivize our employees,
for which the expense is recognized over the applicable vesting or
performance period.
Three Months Ended Twelve Months Ended December
December 31, 31,
------------------------- ----------------------------
Stock-based
compensation by
function: 2025 2024 2025 2024
---------- ------------- ---------- ----------------
Cost of revenue $ 134 $ 144 $ 543 $ 510
Research and
development * 1,673 1,782 6,292 9,870
Sales and
marketing 827 831 2,864 3,546
General and
administrative 4,844 3,293 19,256 14,015
--- ----- --- -------- ------ ------------
Total $ 7,478 $ 6,050 $ 28,955 $ 27,941
=== ===== === ======== ====== ============
* Net of $0.2 million and $3.2 million of additions to capitalized
internal-use software for three and twelve months ended December 31, 2025 and
$1.6 million and $2.5 million for the three and twelve months ended December
31, 2024.
(2) Workforce reduction costs represent expenses incurred in connection with
the workforce restructuring actions executed as part of our broader efforts to
improve cost efficiency.
(3) Abandoned and terminated facilities costs represent charges related to the
early termination of a leased facility and abandonment of another leased
facility as part of our broader efforts to better align our operating
structure with our business activities.
(4) Compensation realignment costs relate to amortization of one-time cash
bonus payment (paid in two installments in March and May 2023) to certain
employees in lieu of previously committed equity-based awards, driven by an
organizational initiative to standardize our equity compensation program.
(5) Litigation contingencies and related professional services costs represent
reserves for legal settlements and related professional service fees that are
unusual or infrequent costs associated with our operating activities.
(6) Transaction-related costs include non-recurring financial advisory, legal,
and other transactional costs incurred in connection with investing or
divesting activities recorded within general and administrative expense.
(7) Impairment of capitalized internal-use software represents the non-cash
expense related to the write-off of certain internal-use software projects.
(8) Amortization of capitalized internal-use software represents the non-cash
amortization expense related to our developed technology that is amortized
over the estimated useful life.
(9) Executive transition costs relate to the departure of one of our
executives.
(10) Gain on investment in equity securities represents an adjustment to the
carrying value of the non-marketable security without a readily determinable
fair value to reflect observable price changes.
(11) Foreign currency gains and losses include transaction gains and losses
incurred in connection with our operations in India.
(12) Loss on transfer of subsidiary represents a loss recognized in connection
with the transfer of our subsidiary in India to a third-party and includes
impairment charges related to certain assets transferred as part of the
agreement, costs incurred to settle certain liabilities arising from the
agreement, and one-time legal costs incurred to facilitate the transaction.
(13) Loss on extinguishment of debt represents a write off of unamortized debt
issuance costs and debt discounts related to the extinguishment of our term
loan.
(14) Gain on sale of insurance business represents the gain recognized in
connection with the sale of certain assets of our insurance agency, partially
offset by transaction costs.
(15) Per share impact of non-GAAP expenses represents the per share impact of
aggregated non-GAAP items included in (1) through (14).
View source version on businesswire.com: https://www.businesswire.com/news/home/20260310114972/en/
CONTACT: Investor Relations
ir@blend.com
Media
press@blend.com
(END) Dow Jones Newswires
March 10, 2026 16:00 ET (20:00 GMT)
Comments