Blend Labs (BLND) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $33.8M, up 7% year-over-year, near the high end of guidance, with non-GAAP operating income above guidance and a 21% margin.

• Commercial launch of Autopilot AI agent on July 1, with six lenders signed, over 45,000 loans processed, and 14 new or expanded customer relationships in Q2.

• 11M shares repurchased for $18.2M in Q2, with $13.2M remaining on the buyback authorization.

• Internal transformation to an agentic-first company (Blend 3.0) driving 3.6x engineering throughput year-to-date.

• Macro headwinds from rising mortgage rates and market volatility continue to mute activity, especially in refinance.

Financial highlights

• Q2 2026 total revenue: $33.8M, up 7% year-over-year, with software platform revenue at $31.4M and professional services at $2.4M (+12% YoY).

• Non-GAAP gross margin: 78.3%, up from 76.1% last year; GAAP gross margin: 74%.

• Non-GAAP operating income: $7.0M (20.6%–21% margin), up 51% year-over-year; GAAP operating loss narrowed to $1.6M.

• Free cash flow: $6.9M (20% margin), up from negative $9.0M (-29% margin) YoY.

• Ended quarter with $44.9M in cash and zero debt.

Outlook and guidance

• Q3 2026 revenue guidance: $31.5M–$33.5M (-4% to +2% YoY growth); non-GAAP operating income: $3.5M–$4.5M.

• Q3 funded loan volume projected at 200,000–210,000 units; Q4 at 180,000–190,000 units.

• Q4 2026 funded loan volume expected to decline 10%–15% YoY due to macro headwinds.

• Conservative outlook on refinance volumes and overall market size, reflecting higher rates and increased churn.

• Management expects continued sensitivity to mortgage origination volumes and believes current liquidity is sufficient for at least 12 months.