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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