Q3 2025 Blend Labs Inc Earnings Call Transcript
Key Points
- Blend Labs Inc (BLND) achieved its fifth consecutive quarter of non-GAAP operating profitability, exceeding the high end of its guidance.
- The company signed 14 new deals and expansions in the third quarter, including a significant 7-figure expansion with a top 20 U.S. bank for solar home equity lending.
- Blend Labs Inc (BLND) reported strong growth in its Consumer Banking Suite, which now represents 39% of total revenue, up from 29% a year ago.
- The company's pipeline activity is robust, with a 60% year-over-year increase, indicating strong future growth potential.
- Blend Labs Inc (BLND) is making targeted investments in AI and its Rapid Suite products, which are expected to drive significant future growth and operational efficiency.
- The Mortgage Suite revenue declined by 18% year-over-year due to strategic transitions to lower revenue but higher-margin partnership models and some customer churn.
- The company anticipates further market share headwinds in 2026, primarily due to lower volume from Mr. Cooper.
- Blend Labs Inc (BLND) expects a slight decrease in total revenue for the fourth quarter of 2025 compared to the third quarter.
- The economic value per funded loan (evPFL) is expected to decrease to approximately $83 to $84 in the fourth quarter, reflecting near-term pressures.
- Free cash flow for the third quarter was negative $5 million, although the year-to-date total remains positive at $1.5 million.
Thank you for standing by. My name is Amy, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Blend Labs, Inc. third-quarter 2025 earnings call. (Operator Instructions)
It is now my pleasure to turn the call over to Meg Nunnally.
You may begin.
Good afternoon, and welcome to Blend's financial results conference call for the third-quarter 2025. I'm Meg Nunnally, Blend's Head of Investor Relations. Joining me today is Nima Ghamsari, our Co-Founder and Head of Blend; and Jason Ream, our Head of Finance and Administration. Before we start today's call, I'd like to note that we also refer to certain non-GAAP measures, which are reconciled to GAAP measures in today's earnings release and in the appendix to our supplemental slides. Non-GAAP measures are not intended to be a substitute for GAAP results.
Unless otherwise stated, all financial results we'll discuss today, including our profitability, refer to non-GAAP. Also, certain
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