Blend Labs, Inc 8-K, filed Nov 5, 2026
Blend Labs, Inc. (BLND)
8-K
2026-11-05
For: 2026-11-05
View Original
Added on
November 05, 2026
About this 8-K
Blend Labs, Inc filed this 8-K on November 5, 2026.
Blend Labs, Inc. reported third-quarter revenue of $32.9 million, up 1%, and non-GAAP operating income of $4.9 million. It closed 26 new deals and expansions and signed its tenth Autopilot customer, up from six in early August. AI summary
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): November 5, 2026
(Exact name of Registrant, as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||||||||
(Address of principal executive offices, including zip code)
(650 ) 550-4810
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On November 5, 2026, Blend Labs, Inc. (the “Company” or “Blend”) issued a press release announcing its financial results for the fiscal quarter ended September 30, 2026. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.
Item 7.01 Regulation FD Disclosure
On November 5, 2026, Blend posted supplemental investor materials on the investor relations section of its website (investor.blend.com). Blend announces material information to the public about Blend, its products and services and other matters through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, the investor relations section of its website (investor.blend.com), its blog (blend.com/blog) and its X account (@blendlabsinc) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.
The information in Item 2.02 and Item 7.01 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | |||||
| 99.1 | |||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Blend Labs, Inc. | ||||||||
Date: | ||||||||
| By: | /s/ Jason Ream | |||||||
| Name: | Jason Ream | |||||||
| Title: | Head of Finance and Administration (Principal Financial Officer) | |||||||
Blend Announces Third Quarter 2026 Financial Results
November 5, 2026
SAN FRANCISCO -- Blend Labs, Inc. (NYSE: BLND), a leading digital banking platform, today announced its third quarter 2026 financial results.
“We had our best sales quarter in more than three years,” said Nima Ghamsari, Co-founder and Head of Blend. “Autopilot went from six customers to ten, and the pipeline behind it is now big enough to size. We can’t control the market, but what we can control is converting that pipeline, and that is where the company is focused.”
Third Quarter Highlights
•Solid Results: Total revenue in the top half of guidance and non-GAAP operating income above the high end of guidance.
•New Deals and Expansions: Closed 26 new deals and expansions, including a new top-10 bank logo — our best sales quarter in more than three years.
•Autopilot Momentum: Signed our tenth Autopilot customer, up from six in early August.
Third quarter revenue was $32.9 million, an increase of 1% compared to the third quarter of 2025. Software platform revenue was $30.6 million, up 1% year-over-year, and Professional services revenue was $2.3 million compared to $2.3 million in the third quarter of 2025. Total GAAP gross profit margin was 72%, compared to 74% in the third quarter of 2025, and non-GAAP gross profit margin was 77%, down from 78% in the same period last year. GAAP operating loss was $2.6 million, compared to a loss of $5.3 million in the third quarter of 2025. Non-GAAP operating income was $4.9 million, up from $4.3 million in the same period last year.
GAAP diluted net loss from continuing operations attributable to common stockholders per share was $0.03 in the third quarter of 2026, compared to GAAP diluted net income from continuing operations attributable to common stockholders per share of $0.02 in the same period last year. Non-GAAP diluted net income from continuing operations attributable to common stockholders per share was $0.00 in the third quarter of 2026 and in the third quarter of 2025.
Fourth Quarter Outlook
Blend is providing guidance for the fourth quarter of 2026 as follows:
| $ in millions | |||||
| Q4 2026 Guidance | |||||
| Total Revenue | $27.7M - $29.7M | ||||
| Non-GAAP Operating Income | $2.3M - $3.3M | ||||
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. Accordingly, a reconciliation of this forward-looking non-GAAP measure to the most directly comparable GAAP measure is not available without unreasonable efforts.
Webcast Information
On Thursday, November 5 at 4:30 pm ET, Blend will host a live discussion of its third quarter 2026 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 “Fourth Quarter Outlook” section above; Blend’s expectations regarding its financial condition and operating performance, including growth expectations and 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, sales 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 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 Annual Report on Form 10-K for the year ended December 31, 2025, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 and will be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. 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. 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.
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.
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.
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.
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.
Equity in losses of equity method investees, net of tax. We exclude our share of earnings of our equity method investee as we do not believe these earnings to be indicative of our business performance and excluding these earnings provides information consistent with how we evaluate our operating results.
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 consists of economic value historically generated through Blend Income Verification and Blend Insurance Agency, which have transitioned to partnership models; following the transition, economic value from these products is reported under Partnerships. 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, 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. 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 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 (NYSE: BLND) is a leading digital banking platform that helps financial institutions make lending simpler, faster, and more efficient. Banks, credit unions, fintechs, and mortgage lenders use Blend to power home lending and consumer banking, with Autopilot increasingly scaling intelligence across the lending lifecycle. In 2025, Blend helped financial institutions process nearly $1.3 trillion in loan applications. Learn more at blend.com.
Blend Labs, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 20,675 | $ | 45,061 | |||||||
| Marketable securities and other investments | 23,483 | 24,739 | |||||||||
| Trade and other receivables, net of allowance for credit losses of $89 and $112, respectively | 10,566 | 8,786 | |||||||||
| Prepaid expenses and other current assets | 21,397 | 17,257 | |||||||||
| Current assets held for sale from discontinued operations | — | 3,958 | |||||||||
| Total current assets | 76,121 | 99,801 | |||||||||
| Property and equipment, net | 21,312 | 22,997 | |||||||||
| Operating lease right-of-use assets | 1,828 | 1,394 | |||||||||
| Deferred contract costs | 4,078 | 3,425 | |||||||||
| Other non-current assets | 40,475 | 41,425 | |||||||||
| Non-current assets held for sale from discontinued operations | — | 1,003 | |||||||||
| Total assets | $ | 143,814 | $ | 170,045 | |||||||
| Liabilities, redeemable equity and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 1,261 | $ | 1,858 | |||||||
| Deferred revenue | 27,131 | 19,385 | |||||||||
| Accrued compensation | 5,559 | 4,560 | |||||||||
| Other current liabilities | 10,259 | 11,523 | |||||||||
| Current liabilities held for sale from discontinued operations | — | 2,128 | |||||||||
| Total current liabilities | 44,210 | 39,454 | |||||||||
| Other non-current liabilities | 1,896 | 1,569 | |||||||||
| Total liabilities | 46,106 | 41,023 | |||||||||
| Commitments and contingencies | |||||||||||
Series A redeemable convertible preferred stock, par value $0.00001 per share: 200,000 shares authorized as of September 30, 2026 and December 31, 2025, 150 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively | 174,284 | 159,495 | |||||||||
| 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 September 30, 2026 and December 31, 2025; 238,270 (Class A 235,014, Class B 3,256, Class C 0) and 256,043 (Class A 252,787, Class B 3,256, Class C 0) shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively | 2 | 2 | |||||||||
| Additional paid-in capital | 1,326,044 | 1,360,704 | |||||||||
| Accumulated other comprehensive income | 632 | 597 | |||||||||
| Accumulated deficit | (1,403,254) | (1,391,776) | |||||||||
| Total stockholders’ equity | (76,576) | (30,473) | |||||||||
| Total liabilities, redeemable equity and stockholders’ equity | $ | 143,814 | $ | 170,045 | |||||||
Blend Labs, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Software platform | $ | 30,593 | $ | 30,362 | $ | 89,990 | $ | 84,129 | |||||||||||||||
| Professional services | 2,317 | 2,333 | 7,600 | 7,040 | |||||||||||||||||||
| Total revenue | 32,910 | 32,695 | 97,590 | 91,169 | |||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||||
| Software platform | 7,300 | 6,637 | 20,220 | 19,094 | |||||||||||||||||||
| Professional services | 1,852 | 1,780 | 5,362 | 5,440 | |||||||||||||||||||
| Total cost of revenue | 9,152 | 8,417 | 25,582 | 24,534 | |||||||||||||||||||
| Gross profit | 23,758 | 24,278 | 72,008 | 66,635 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Research and development | 8,423 | 8,705 | 26,519 | 24,034 | |||||||||||||||||||
| Sales and marketing | 8,196 | 7,873 | 21,134 | 22,010 | |||||||||||||||||||
| General and administrative | 9,785 | 12,954 | 32,972 | 37,904 | |||||||||||||||||||
| Restructuring | — | 93 | 666 | 840 | |||||||||||||||||||
| Total operating expenses | 26,404 | 29,625 | 81,291 | 84,788 | |||||||||||||||||||
| Loss from operations | (2,646) | (5,347) | (9,283) | (18,153) | |||||||||||||||||||
| Other income (expense), net | 319 | 17,348 | 580 | 19,480 | |||||||||||||||||||
| Income (loss) before income taxes | (2,327) | 12,001 | (8,703) | 1,327 | |||||||||||||||||||
| Income tax expense | (109) | (27) | (291) | (98) | |||||||||||||||||||
| Income (loss) before equity in losses of equity method investees | (2,436) | 11,974 | (8,994) | 1,229 | |||||||||||||||||||
| Equity in losses of equity method investees, net of tax | — | — | (719) | — | |||||||||||||||||||
| Income (loss) from continuing operations | (2,436) | 11,974 | (9,713) | 1,229 | |||||||||||||||||||
| Income (loss) from discontinued operations | 490 | 122 | (1,765) | (5,679) | |||||||||||||||||||
| Net income (loss) | (1,946) | 12,096 | (11,478) | (4,450) | |||||||||||||||||||
| Less: Net loss attributable to noncontrolling interest included in discontinued operations | — | — | — | 182 | |||||||||||||||||||
| Net income (loss) attributable to Blend Labs, Inc. | (1,946) | 12,096 | (11,478) | (4,268) | |||||||||||||||||||
| Less: Accretion of redeemable noncontrolling interest to redemption value from discontinued operations | — | — | — | (1,254) | |||||||||||||||||||
| Less: Accretion of Series A redeemable convertible preferred stock to redemption value | (5,131) | (4,558) | (14,789) | (13,136) | |||||||||||||||||||
| Net income (loss) attributable to Blend Labs, Inc. common stockholders | $ | (7,077) | $ | 7,538 | $ | (26,267) | $ | (18,658) | |||||||||||||||
| Net income (loss) per share attributable to Blend Labs, Inc. common stockholders: | |||||||||||||||||||||||
| Basic: | |||||||||||||||||||||||
| Continuing operations | $ | (0.03) | $ | 0.02 | $ | (0.10) | $ | (0.04) | |||||||||||||||
| Discontinued operations | $ | 0.00 | $ | 0.00 | $ | (0.01) | $ | (0.03) | |||||||||||||||
| Net income (loss) per share attributable to Blend Labs, Inc. common stockholders | $ | (0.03) | $ | 0.02 | $ | (0.11) | $ | (0.07) | |||||||||||||||
| Diluted: | |||||||||||||||||||||||
| Continuing operations | $ | (0.03) | $ | 0.02 | $ | (0.10) | $ | (0.04) | |||||||||||||||
| Discontinued operations | $ | — | $ | — | $ | (0.01) | $ | (0.03) | |||||||||||||||
| Net income (loss) per share attributable to Blend Labs, Inc. common stockholders | $ | (0.03) | $ | 0.02 | $ | (0.11) | $ | (0.07) | |||||||||||||||
| Weighted average shares used in calculating net income (loss) per share: | |||||||||||||||||||||||
| Basic: | 237,331 | 259,631 | 244,223 | 259,228 | |||||||||||||||||||
| Diluted | 237,331 | 268,719 | 244,223 | 259,228 | |||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Comprehensive income (loss): | |||||||||||||||||||||||
| Net income (loss) | $ | (1,946) | $ | 12,096 | $ | (11,478) | $ | (4,450) | |||||||||||||||
| Unrealized loss on marketable securities | (48) | (62) | (212) | (100) | |||||||||||||||||||
| Foreign currency translation gain | 57 | 103 | 247 | 53 | |||||||||||||||||||
| Comprehensive income (loss) | (1,937) | 12,137 | (11,443) | (4,497) | |||||||||||||||||||
| Less: Comprehensive loss attributable to noncontrolling interest included in discontinued operations | — | — | — | 182 | |||||||||||||||||||
| Comprehensive income (loss) attributable to Blend Labs, Inc. | $ | (1,937) | $ | 12,137 | $ | (11,443) | $ | (4,315) | |||||||||||||||
Blend Labs, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Operating activities | |||||||||||||||||||||||
| Net income (loss) | $ | (1,946) | $ | 12,096 | $ | (11,478) | $ | (4,450) | |||||||||||||||
| Less: Net income (loss) from discontinued operations | 490 | 122 | (1,765) | (5,679) | |||||||||||||||||||
| Net income (loss) from continuing operations | (2,436) | 11,974 | (9,713) | 1,229 | |||||||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||||||
| Stock-based compensation | 6,033 | 7,799 | 19,791 | 21,477 | |||||||||||||||||||
| Depreciation and amortization | 1,566 | 1,041 | 4,417 | 2,088 | |||||||||||||||||||
| Amortization of deferred contract costs | 227 | 429 | 1,019 | 1,175 | |||||||||||||||||||
| Amortization of operating lease right-of-use assets | 125 | 151 | 335 | 350 | |||||||||||||||||||
| Gain on investment in equity securities | — | (16,580) | — | (16,580) | |||||||||||||||||||
Equity in losses of equity method investees, net of tax | — | — | 719 | — | |||||||||||||||||||
| Other | 54 | (39) | 676 | (355) | |||||||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||||||
| Trade and other receivables | 3,911 | 2,731 | (1,752) | 2,225 | |||||||||||||||||||
| Prepaid expenses and other assets, current and non-current | (5,319) | (3,572) | (4,940) | (4,291) | |||||||||||||||||||
| Deferred contract costs, non-current | (865) | 263 | (653) | (268) | |||||||||||||||||||
| Accounts payable | 761 | (429) | (679) | (848) | |||||||||||||||||||
| Deferred revenue | (4,352) | (7,158) | 7,746 | 5,194 | |||||||||||||||||||
| Accrued compensation | 2,035 | 1,650 | 1,048 | 966 | |||||||||||||||||||
| Operating lease liabilities | (121) | (712) | (327) | (2,633) | |||||||||||||||||||
| Other liabilities, current and non-current | (842) | (431) | (710) | 1,773 | |||||||||||||||||||
| Net cash provided by (used in) operating activities - continuing operations | 777 | (2,883) | 16,977 | 11,502 | |||||||||||||||||||
| Net cash provided by (used in) operating activities - discontinued operations | 86 | (757) | (835) | (1,528) | |||||||||||||||||||
| Net cash provided by (used in) operating activities | 863 | (3,640) | 16,142 | 9,974 | |||||||||||||||||||
| Investing activities | |||||||||||||||||||||||
| Purchases of marketable securities | (1,961) | (6,741) | (6,927) | (30,490) | |||||||||||||||||||
| Sale of available-for-sale securities | — | 19,968 | — | 20,827 | |||||||||||||||||||
| Maturities of marketable securities | — | 16,500 | 8,000 | 44,227 | |||||||||||||||||||
| Additions to property, equipment and internal-use software development costs | (769) | (2,122) | (2,711) | (10,034) | |||||||||||||||||||
| Investment in non-marketable equity securities | — | — | — | (4,000) | |||||||||||||||||||
| Net cash (used in) provided by investing activities - continuing operations | (2,730) | 27,605 | (1,638) | 20,530 | |||||||||||||||||||
| Net cash provided by (used in) investing activities - discontinued operations | 514 | (62) | 1,624 | (182) | |||||||||||||||||||
| Net cash (used in) provided by investing activities | (2,216) | 27,543 | (14) | 20,348 | |||||||||||||||||||
| Financing activities | |||||||||||||||||||||||
| Proceeds from exercises of stock options, including early exercises, net of repurchases | — | 712 | 96 | 1,505 | |||||||||||||||||||
| Taxes paid related to net share settlement of equity awards | (1,276) | (1,886) | (3,340) | (7,388) | |||||||||||||||||||
| Share repurchases | — | (5,025) | (37,241) | (9,143) | |||||||||||||||||||
| Net cash used in financing activities - continuing operations | (1,276) | (6,199) | (40,485) | (15,026) | |||||||||||||||||||
| Effect of exchange rates on cash, cash equivalents, and restricted cash | (7) | — | (31) | — | |||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | (2,636) | 17,704 | (24,388) | 15,296 | |||||||||||||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 25,246 | 47,129 | 46,998 | 49,537 | |||||||||||||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 22,610 | $ | 64,833 | $ | 22,610 | $ | 64,833 | |||||||||||||||
| Less: Cash, cash equivalents and restricted cash included in current assets held for sale from discontinued operations | — | 4,789 | — | 4,789 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash, end of period, excluding current assets held for sale from discontinued operations | $ | 22,610 | $ | 60,044 | $ | 22,610 | $ | 60,044 | |||||||||||||||
Reconciliation of cash, cash equivalents, and restricted cash within the condensed consolidated balance sheets: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 20,675 | $ | 55,021 | $ | 20,675 | $ | 55,021 | |||||||||||||||
| Restricted cash | 1,935 | 5,023 | 1,935 | 5,023 | |||||||||||||||||||
| Total cash, cash equivalents, and restricted cash | $ | 22,610 | $ | 60,044 | $ | 22,610 | $ | 60,044 | |||||||||||||||
| Supplemental disclosure of cash flow information: | |||||||||||||||||||||||
| Cash paid for income taxes | |||||||||||||||||||||||
| State and local | |||||||||||||||||||||||
| Texas | $ | — | $ | — | $ | 80 | $ | 64 | |||||||||||||||
| Foreign | |||||||||||||||||||||||
| India | $ | 106 | $ | — | $ | 217 | $ | 136 | |||||||||||||||
| Total income taxes paid, net | $ | 106 | $ | — | $ | 297 | $ | 200 | |||||||||||||||
| Cash paid for interest | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Supplemental disclosure of non-cash operating, investing and financing activities: | |||||||||||||||||||||||
| Reclassification of redeemable noncontrolling interest related to discontinued operations to equity | $ | — | $ | — | $ | — | $ | 52,675 | |||||||||||||||
| Operating lease liabilities arising from obtaining new or modified right-of-use assets | $ | — | $ | (56) | $ | 760 | $ | 1,584 | |||||||||||||||
| Stock-based compensation included in capitalized internal-use software development costs | $ | 92 | $ | 559 | $ | 330 | $ | 2,836 | |||||||||||||||
| Accretion of redeemable noncontrolling interest related to discontinued operations to redemption value | $ | — | $ | — | $ | — | $ | 1,254 | |||||||||||||||
| Accretion of Series A redeemable convertible preferred stock to redemption value | $ | 5,131 | $ | 4,558 | $ | 14,789 | $ | 13,136 | |||||||||||||||
| Consideration receivable in connection with the sale of title assets | $ | 52 | $ | — | $ | 52 | $ | — | |||||||||||||||
| Capitalized internal-use software development costs included in accrued compensation | $ | 105 | $ | 253 | $ | 105 | $ | 253 | |||||||||||||||
| Additions to property, equipment and internal-use software development costs included in accrued expenses and accounts payable | $ | 82 | $ | — | $ | 82 | $ | — | |||||||||||||||
Blend Labs, Inc.
Revenue Disaggregation
(In thousands)
(Unaudited)
| Three Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| YoY change | |||||||||||||||||||||||
| Mortgage Suite | $ | 17,406 | 53 | % | $ | 17,761 | 54 | % | (2) | % | |||||||||||||
| Consumer Banking Suite | 13,187 | 40 | % | 12,601 | 39 | % | 5 | % | |||||||||||||||
| Total software platform | 30,593 | 93 | % | 30,362 | 93 | % | 1 | % | |||||||||||||||
| Professional services | 2,317 | 7 | % | 2,333 | 7 | % | (1) | % | |||||||||||||||
| Total revenue | $ | 32,910 | 100 | % | $ | 32,695 | 100 | % | 1 | % | |||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| YoY change | |||||||||||||||||||||||
| Mortgage Suite | $ | 53,878 | 55 | % | $ | 50,407 | 55 | % | 7 | % | |||||||||||||
| Consumer Banking Suite | 36,112 | 37 | % | 33,722 | 37 | % | 7 | % | |||||||||||||||
| Total software platform | 89,990 | 92 | % | 84,129 | 92 | % | 7 | % | |||||||||||||||
| Professional services | 7,600 | 8 | % | 7,040 | 8 | % | 8 | % | |||||||||||||||
| Total revenue | $ | 97,590 | 100 | % | $ | 91,169 | 100 | % | 7 | % | |||||||||||||
Blend Labs, Inc.
Reconciliation of GAAP to non-GAAP Measures
(In thousands)
(Unaudited)
| Three Months Ended September 30, | |||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| Gross Profit Reconciliation | Gross Profit | Gross Margin | Gross Profit | Gross Margin | |||||||||||||||||||||||||
| Blend Platform | |||||||||||||||||||||||||||||
| GAAP Software platform | $ | 23,293 | 76 | % | $ | 23,725 | 78 | % | |||||||||||||||||||||
Stock-based compensation(1) | (5) | — | |||||||||||||||||||||||||||
Amortization of capitalized internal-use software(8) | 1,488 | 1,001 | |||||||||||||||||||||||||||
| Non-GAAP Software platform | 24,776 | 81 | % | 24,726 | 81 | % | |||||||||||||||||||||||
| GAAP Professional services | 465 | 20 | % | 553 | 24 | % | |||||||||||||||||||||||
Stock-based compensation(1) | 152 | 123 | |||||||||||||||||||||||||||
Amortization of capitalized internal-use software(8) | — | — | |||||||||||||||||||||||||||
| Non-GAAP Professional services | 617 | 27 | % | 676 | 29 | % | |||||||||||||||||||||||
| GAAP Gross Profit | 23,758 | 72 | % | 24,278 | 74 | % | |||||||||||||||||||||||
Stock-based compensation(1) | 147 | 123 | |||||||||||||||||||||||||||
Amortization of capitalized internal-use software(8) | 1,488 | 1,001 | |||||||||||||||||||||||||||
| Non-GAAP Gross Profit | $ | 25,393 | 77 | % | $ | 25,402 | 78 | % | |||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| Gross Profit Reconciliation | Gross Profit | Gross Margin | Gross Profit | Gross Margin | |||||||||||||||||||||||||
| Blend Platform | |||||||||||||||||||||||||||||
| GAAP Software platform | $ | 69,770 | 78 | % | $ | 65,035 | 77 | % | |||||||||||||||||||||
Stock-based compensation(1) | 5 | 2 | |||||||||||||||||||||||||||
Amortization of capitalized internal-use software(8) | 4,210 | 1,990 | |||||||||||||||||||||||||||
| Non-GAAP Software platform | 73,985 | 82 | % | 67,027 | 80 | % | |||||||||||||||||||||||
| GAAP Professional services | 2,238 | 29 | % | 1,600 | 23 | % | |||||||||||||||||||||||
Stock-based compensation(1) | 410 | 407 | |||||||||||||||||||||||||||
Amortization of capitalized internal-use software(8) | — | — | |||||||||||||||||||||||||||
| Non-GAAP Professional services | 2,648 | 35 | % | 2,007 | 29 | % | |||||||||||||||||||||||
| GAAP Gross Profit | 72,008 | 74 | % | 66,635 | 73 | % | |||||||||||||||||||||||
Stock-based compensation(1) | 415 | 409 | |||||||||||||||||||||||||||
Amortization of capitalized internal-use software(8) | 4,210 | 1,990 | |||||||||||||||||||||||||||
| Non-GAAP Gross Profit | $ | 76,633 | 79 | % | $ | 69,034 | 76 | % | |||||||||||||||||||||
Blend Labs, Inc.
Reconciliation of GAAP to non-GAAP Measures
(In thousands)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP operating expenses | $ | 26,404 | $ | 29,625 | $ | 81,291 | $ | 84,788 | |||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation(1) | 5,886 | 7,676 | 19,376 | 21,067 | |||||||||||||||||||
Workforce reduction costs(2) | — | 93 | 666 | 840 | |||||||||||||||||||
Abandoned and terminated facilities costs(3) | — | 371 | — | 1,771 | |||||||||||||||||||
Executive transition costs(4) | — | 271 | — | 271 | |||||||||||||||||||
Litigation contingencies and related professional services costs(5) | — | — | — | 859 | |||||||||||||||||||
Transaction-related costs(6) | 14 | 75 | 192 | 469 | |||||||||||||||||||
Impairment of capitalized internal-use software(7) | — | 23 | 378 | 135 | |||||||||||||||||||
| Non-GAAP operating expenses | $ | 20,504 | $ | 21,116 | $ | 60,679 | $ | 59,376 | |||||||||||||||
| GAAP loss from operations | $ | (2,646) | $ | (5,347) | $ | (9,283) | $ | (18,153) | |||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation(1) | 6,033 | 7,799 | 19,791 | 21,476 | |||||||||||||||||||
Workforce reduction costs(2) | — | 93 | 666 | 840 | |||||||||||||||||||
Abandoned and terminated facilities costs(3) | — | 371 | — | 1,771 | |||||||||||||||||||
Executive transition costs(4) | — | 271 | — | 271 | |||||||||||||||||||
Litigation contingencies and related professional services costs(5) | — | — | — | 859 | |||||||||||||||||||
Transaction-related costs(6) | 14 | 75 | 192 | 469 | |||||||||||||||||||
Impairment of capitalized internal-use software(7) | — | 23 | 378 | 135 | |||||||||||||||||||
Amortization of capitalized internal-use software(8) | 1,488 | 1,001 | 4,210 | 1,990 | |||||||||||||||||||
| Non-GAAP income from operations | $ | 4,889 | $ | 4,286 | $ | 15,954 | $ | 9,658 | |||||||||||||||
GAAP operating margin | (8) | % | (16) | % | (10) | % | (20) | % | |||||||||||||||
Non-GAAP operating margin | 15 | % | 13 | % | 16 | % | 11 | % | |||||||||||||||
| GAAP net income (loss) from continuing operations | $ | (2,436) | $ | 11,974 | $ | (9,713) | $ | 1,229 | |||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation(1) | 6,033 | 7,799 | 19,791 | 21,476 | |||||||||||||||||||
Workforce reduction costs(2) | — | 93 | 666 | 840 | |||||||||||||||||||
Abandoned and terminated facilities costs(3) | — | 371 | — | 1,771 | |||||||||||||||||||
Executive transition costs(4) | — | 271 | — | 271 | |||||||||||||||||||
Litigation contingencies and related professional services costs(5) | — | — | — | 859 | |||||||||||||||||||
Transaction-related costs(6) | 14 | 75 | 192 | 469 | |||||||||||||||||||
Impairment of capitalized internal-use software(7) | — | 23 | 378 | 135 | |||||||||||||||||||
Amortization of capitalized internal-use software(8) | 1,488 | 1,001 | 4,210 | 1,990 | |||||||||||||||||||
Foreign currency gains and losses(9) | 82 | 205 | 419 | 202 | |||||||||||||||||||
Gain on investment in equity securities(10) | — | (16,580) | — | (16,580) | |||||||||||||||||||
Equity in losses of equity method investees(11) | — | — | 719 | — | |||||||||||||||||||
| Non-GAAP net income from continuing operations | $ | 5,181 | $ | 5,232 | $ | 16,662 | $ | 12,662 | |||||||||||||||
Blend Labs, Inc.
Reconciliation of GAAP to non-GAAP Measures
(In thousands, except per share amounts)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP diluted net income (loss) per share from continuing operations attributable to common stockholders | $ | (0.03) | $ | 0.02 | $ | (0.10) | $ | (0.04) | |||||||||||||||
Per share impact of non-GAAP expenses(12) | 0.03 | (0.02) | 0.11 | 0.04 | |||||||||||||||||||
Non-GAAP diluted income (loss) per share from continuing operations attributable to common stockholders | $ | 0.00 | $ | 0.00 | $ | 0.01 | $ | 0.00 | |||||||||||||||
GAAP diluted weighted average shares used in calculating net loss per share | 237,331 | 268,719 | 244,223 | 259,228 | |||||||||||||||||||
Non-GAAP diluted weighted average shares used in calculating net income (loss) per share | 239,451 | 268,719 | 246,781 | 259,228 | |||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net cash provided by (used in) operating activities - continuing operations | $ | 777 | $ | (2,883) | $ | 16,977 | $ | 11,502 | |||||||||||||||
| Additions to property, equipment and internal-use software development costs | (769) | (2,122) | (2,711) | (10,034) | |||||||||||||||||||
| Free cash flow | 8 | (5,005) | 14,266 | 1,468 | |||||||||||||||||||
| Revenue | $ | 32,910 | $ | 32,695 | $ | 97,590 | $ | 91,169 | |||||||||||||||
| Free cash flow margin | — | % | (15) | % | 15 | % | 2 | % | |||||||||||||||
| 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 September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||
| Stock-based compensation by function: | 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||
| Cost of revenue | $ | 147 | $ | 123 | $ | 415 | $ | 409 | |||||||||||||||||||||
| Research and development * | 1,454 | 1,663 | 4,611 | 4,619 | |||||||||||||||||||||||||
| Sales and marketing | 991 | 699 | 2,067 | 2,037 | |||||||||||||||||||||||||
| General and administrative | 3,441 | 5,314 | 12,698 | 14,412 | |||||||||||||||||||||||||
| Total | $ | 6,033 | $ | 7,799 | $ | 19,791 | $ | 21,477 | |||||||||||||||||||||
* Net of $0.1 million and $0.3 million of additions to capitalized internal-use software for the three and nine months ended September 30, 2026 and $0.6 million and $2.8 million for the three and nine months ended September 30, 2025 | ||||||||||||||||||||||||||
(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) Executive transition costs relate to the departure of one of our executives. | ||||||||||||||||||||||||||
(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) Foreign currency gains and losses include remeasurement of assets and liabilities from foreign currency into the functional currency in connection with our operations in India. | ||||||||||||||||||||||||||
| (10) Gain on investment in equity securities represents an adjustments to the carrying value of the non-marketable security without a readily determinable fair value to reflect observable price changes. | ||||||||||||||||||||||||||
| (11) Equity in losses of equity method investees reflects our share of the investees’ net loss under the equity method of accounting. | ||||||||||||||||||||||||||
| (12) Per share impact of non-GAAP expenses represents the per share impact of aggregated non-GAAP items included in (1) through (11). | ||||||||||||||||||||||||||
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