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
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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.)