Digital lending platform Blend Labs' Q4 revenue beats estimates

Blend Labs

10/03/2026 20:09

Overview

Digital banking platform's preliminary Q4 revenue rose 7% yr/yr, beating analyst expectations

Company announced $50 mln share buyback, repurchased $15 mln in Q4

Outlook

Blend Labs sees Q1 2026 revenue between $28.5 mln and $30.0 mln

Company expects Q1 2026 non-GAAP operating income of $2.0 mln to $3.0 mln

Blend Labs expects Q2 2026 mortgage origination volumes to rise sequentially

Result Drivers

CUSTOMER GROWTH - Co said it added or expanded 10 customer relationships in Q4, with sales pipeline up about 40% yr/yr

MARGIN IMPROVEMENT - Gross profit margin increased to 76% from 74% in Q4 2024 (GAAP), and to 80% from 75% (non-GAAP)

Company press release: ID:nBw5kC99Ya

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$32.37 mln
$31.78 mln (7 Analysts)
Q4 Net Income
-$2.58 mln
Q4 Gross Profit
$24.48 mln
Q4 Income from operations
-$3.63 mln
Q4 Pretax Profit
-$2.25 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Blend Labs Inc is $3.90, about 133.5% above its March 9 closing price of $1.67

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 38 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)