Blend Labs (BLND) investor relations material

Executive summary

• Q1 2026 revenue and non-GAAP operating income exceeded guidance, reflecting strong operational execution and efficiency initiatives.

• Revenue increased 15% year-over-year to $30.8 million, driven by growth in Mortgage and Consumer Banking Suites.

• Customer base expanded with 15 new or expanded relationships; sales pipeline grew over 40% year-over-year.

• Completed the sale of the Title segment, shifting to a platform-first business model and presenting Title results as discontinued operations.

• Share repurchases totaled 11.2 million shares for $18.6 million, with $31.4 million remaining authorized.

Financial highlights

• Q1 2026 revenue was $30.8M, up 15% year-over-year; software platform revenue rose to $28.0M, professional services revenue increased to $2.9M.

• Non-GAAP gross margin reached 80%, up from 73% in Q1 2025; GAAP gross margin improved to 76% from 71% year-over-year.

• Non-GAAP operating income was $4.1M, a 449% increase year-over-year; GAAP operating loss narrowed to $5.1M from $8.0M.

• Free cash flow was $7.3M, with a free cash flow margin of 24%.

• Net loss attributable to common stockholders was $(12.8)M, improved from $(15.0)M in Q1 2025; net loss per share improved to $(0.05) from $(0.06) year-over-year.

Outlook and guidance

• Q2 2026 revenue guidance is $32.0M–$34.0M, representing 1%–7% year-over-year growth; non-GAAP operating income expected between $5.5M and $6.5M.

• Mortgage suite revenue projected to grow 4%–10% year-over-year in Q2; consumer banking suite revenue expected to range from (2)% to 4%.

• Q2 economic value per funded loan (evPFL) expected at $79–$80.

• Management expects continued sensitivity to macroeconomic factors, especially interest rates and mortgage origination volumes.

• Current liquidity is expected to be sufficient for at least the next 12 months; future capital needs depend on growth and market conditions.