Mortgage lending software firm Blend Labs Q3 revenue slightly beats estimates on new customer wins

Blend Labs

06/11/2025 21:18

Overview

Blend Labs Q3 revenue beats analyst expectations despite 1% yr/yr decline

Non-GAAP operating income rises significantly yr/yr, reflecting improved profitability

Company adds or expands 14 customer relationships, boosting pipeline by 60% yr/yr

Outlook

Blend forecasts Q4 2025 revenue of $31M to $32.5M

Company expects Q4 2025 non-GAAP net operating income of $2.5M to $3.5M

Blend anticipates Q1 2026 mortgage volume decline, citing seasonal patterns

Result Drivers

NEW CUSTOMER WINS - Blend added or expanded 14 customer relationships, increasing the pipeline by 60% yr/yr

PROFESSIONAL SERVICES GROWTH - Professional services revenue rose 18% yr/yr, offsetting some software revenue decline

NON-GAAP PROFITABILITY - Significant increase in non-GAAP operating income yr/yr, reflecting improved profitability

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$32.86 mln
$32.80 mln (7 Analysts)
Q3 Net Income
$12.53 mln
Q3 Gross Profit
$24.46 mln
Q3 Income from operations
-$4.91 mln
Q3 Pretax Profit
$12.44 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $4.80, about 32.9% above its November 5 closing price of $3.22

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

Press Release: ID:nBw5glnP2a

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(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.)