Blend Labs (BLND) Q4 2025 earnings summary

Executive summary

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

• Ended 2025 with zero debt and $68.3M in cash and securities, reflecting a lean, cash-generating model.

• Repurchased 5.1M shares in Q4 for over $15M, totaling $25M for the year; 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 was $32.4M, up 7% year-over-year; Mortgage Suite revenue grew 3% to $18.8M; Consumer Banking Suite revenue was $11.5M, up 21%.

• Non-GAAP gross margin improved to 80% in Q4, up from 78% in Q3 and 75% a year ago.

• Non-GAAP operating income for Q4 was $5.4M (17% margin), up 48% year-over-year.

• Free cash flow was $1.3M in Q4 (4% margin) and $2.8M for the year (2% margin).

• Ended 2025 with $68.3M in cash and securities, zero debt; cash and equivalents at year-end: $43.6M.

Outlook and guidance

• Q1 2026 revenue expected between $28.5M–$30M, representing 6–12% year-over-year growth.

• Mortgage Suite revenue to grow at or above this range; Consumer Banking growth to be muted.

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

• Mortgage Suite economic value per funded loan expected at $84–$85 in Q1 2026.

• Q1 2026 market size expected at 1.10M–1.20M units, with Q2 2026 sequential volume increase anticipated.