Overview

* Blend Labs ( BLND ) 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/Mis Actual Consensu

s s

Estimate

Q3 Slight $32.86 $32.80

Revenue Beat* mln mln (7

Analysts

)

Q3 Net $12.53

Income mln

Q3 Gross $24.46

Profit mln

Q3 -$4.91

Income mln

from

operatio

ns

Q3 $12.44

Pretax mln

Profit

*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 ( BLND ) 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:

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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.)