Blend Labs, Inc. Q4 FY2025 earnings call

1. Finished fiscal year 2025 with strong fourth quarter, near high end of revenue guidance and beating high end of non-GAAP operating income guidance. 2. Signed 10 new deals and expansions in Q4, with activity across mortgage and consumer banking suites, including cross-sells. 3. Launched Blend Autopilot, an agent-driven product for origination with real-time intelligence, contextual workflows, seamless updates to application fields, and built for compliance, with seven large customers already using or wanting to use it. 4. Re-imagining internal operations at Blend to be agent-first, with agents taking first pass of work and humans overseeing, including software developers working with agents to write code. 5. Strong cost management, non-GAAP operating expenses down 4% quarter over quarter, free cash flow positive, balance sheet strong with zero debt and cash/securities over $68 million, and share repurchases executed.

Fourth quarter 2025 total revenue was $32.4 million. Mortgage suite revenue was $18.8 million, up 3% year over year, contributing approximately 58% to total revenue. Consumer banking suite revenue was $11.5 million, up 21% year over year, contributing approximately 35.5% to total revenue. Non-GAAP operating income was $5.4 million. Ended the quarter with zero debt and over $68 million in cash and securities.

Expect total revenue for first quarter of 2026 to be between $28.5 million and $30 million, ~6%-12% growth over first quarter 2025. Mortgage suite revenue growth above range high end, consumer banking growth muted. Expect first quarter total non-GAAP operating income to be between $2 million and $3 million. Identified material weakness in revenue process for 2025, with immaterial out-of-period adjustments related to prior quarters.

Forward-looking statements involve substantial risk and uncertainties per SEC filings. Identified material weakness in revenue process for 2025, with immaterial out-of-period adjustments related to prior quarters.

Q: Regarding Blend Autopilot, how much of the $11,000 operational cost is targetable and long-term EVPFL economics?

A: Under promise and over deliver, with material manual effort targetable, and anecdote about customer paying more to outside vendor for part of process.

Q: On expense side and operating leverage with volume recovery?

A: Q1 is re-baselining, variable costs scale with revenue, operating side depends on investment and efficiencies.

Q: On two new mortgage customers, competitive takeaways?

A: Driver is commitment to invest and innovate through cycle, with customers seeing Blend's commitment.

Q: On rapid products uptake and pricing uplift?

A: Rapid has good uptake, with one large bank seeing material pricing uplift from EVPFL, and uptake being a big change management exercise.

Q: On top of funnel, client sales team change and target market?

A: Dedicated client sales team for existing customers to help adopt more products, target market is industry with low friction conversion funnels and automated self-fulfillment.

Q: On OpenAI partnership and agentic world for banks?

A: Viewed as validation of space, with industry needing unified technology and agentic experiences.

Q: On Blend Autopilot cadence and next consumer loans?

A: Autopilot available for all product types, with plans to build agents around analytics, closing process, etc.

Q: On pipeline bundle deals percentage and market share evolution?

A: Directionally bundle deals a key momentum driver, market share calculation based on HMDA data, with a large customer volume roll-off affecting share.

Q: On revenue restatement and RPO?

A: Revenue restatement was immaterial, reallocation of revenue between quarters, RPO short-term will roll off within year, RPO not great gauge for mortgage side.

Q: On Blend Autopilot applicability and adoption?

A: Applicability broad as it addresses stare and compare work, mindset shifted towards AI, with customers eager for capability