Blend Labs (BLND) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 2025 results with revenue of $32.4M and non-GAAP operating income of $5.4M, both near or above guidance high ends.

• Ended the quarter with zero debt and $68M+ in cash and securities, reflecting a lean, cash-generating model.

• Repurchased 5.1M shares in Q4 for over $15M, completing a $25M buyback for 2025; new $50M buyback program authorized.

• Signed or expanded 10 customer relationships in Q4, with the pipeline up 40% year-over-year.

• Launched Blend Autopilot, an AI-driven agent for origination, with rapid adoption by large customers.

Financial highlights

• Q4 2025 revenue: $32.4M, up 7% year-over-year; software platform revenue up 10%, professional services down 16%.

• Mortgage Suite revenue: $18.8M, up 3% year-over-year; funded loan growth 11% in Q4 to 210.8K units.

• Consumer Banking Suite revenue: $11.5M, up 21% year-over-year, but down 10% sequentially due to customer churn and seasonality.

• Non-GAAP gross profit: $25.8M; non-GAAP gross margin: 80%, up from 75% last year and 78% last quarter.

• Non-GAAP operating income: $5.4M (17% margin); free cash flow: $1.3M in Q4, $2.8M for 2025.

Outlook and guidance

• Q1 2026 revenue guidance: $28.5M–$30M (6–12% growth over Q1 2025); midpoint implies 9% YoY growth.

• Mortgage Suite expected to drive growth; consumer banking growth to be muted.

• Q1 2026 non-GAAP operating income: $2M–$3M (midpoint margin just under 10%).

• Non-GAAP R&D expense for Q1 2026: ~$7M (20% YoY increase), but underlying cash R&D expected to decline 15%.

• Mortgage market size expected at 1.10–1.20M units in Q1 2026, rising to 1.50–1.60M in Q2 2026.