Blend Labs (BLND) investor relations material

Executive summary

• Q1 2026 revenue and non-GAAP operating income exceeded guidance, reflecting strong growth in mortgage and consumer banking, operational improvements, and efficiency initiatives.

• Customer base expanded with 15 new or expanded relationships, and the sales pipeline increased over 40% year-over-year as of March 31.

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

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

• Autopilot AI orchestration layer gained rapid adoption, with 65 lenders activated and 22 live in production, driving productivity improvements.

Financial highlights

• Q1 2026 revenue grew 15% year-over-year to $30.8 million, with software platform revenue at $28.0 million and professional services at $2.9 million.

• Non-GAAP gross margin reached 80.3% (up from 72.9% in Q1 2025); GAAP gross margin improved to 76% from 71% year-over-year.

• Non-GAAP operating income was $4.1 million (13% margin), up 10 points year-over-year; GAAP operating loss narrowed to $5.1 million from $8.0 million.

• Free cash flow was $7.3 million, with a free cash flow margin of 24%; cash and equivalents totaled $59 million with zero debt.

• Net loss attributable to common stockholders narrowed to $8.0 million from $9.7 million year-over-year.

Outlook and guidance

• Q2 2026 revenue expected between $32 million and $34 million, up 1%-7% year-over-year; non-GAAP operating income guidance is $5.5 million–$6.5 million.

• Mortgage suite revenue projected to grow 4%-10% year-over-year; consumer banking suite revenue growth forecasted at -2% to +4% for Q2.

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

• Macro uncertainty from rising mortgage rates and soft refi activity may moderate growth in the second half of 2026.

• No Autopilot revenue assumed in Q2 2026 as the free trial continues through June; updates expected after trial period.