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.)