Blend Labs : First Quarter 2026 Quarterly Supplement

Published: 2026-05-07 19:41:18 ET BLND

Published on 05/07/2026 at 07:41 pm EDT - Modified on 05/07/2026 at 07:45 pm EDT

Q1 2026 Earnings

Supplemental Slides

May 7, 2026

First Quartєr 2026 Highlights

Results Ahead of Guidance

Total revenue and non-GAAP operating income both above the high end of guidance.

Growing Customer Base

Added or expanded 15 customer relationships in the first quarter - with pipeline up more than 40% year-over-year.

Returning Capital to Shareholders

Repurchased 11.2 million shares in the first quarter for

$18.6 million - $31.4 million remaining on the existing authorization at quarter end.

Kєy Financial Rєsults

73%

76%

78%

80%

Revenue

$123.6

$109.5

$8.3

$115.8

Q1 2026

+15% Y/Y

$26.8

$2.5

$30.8

$2.9

2023

2024

2025

Q1 2025

Q1 2026

Mortgage Suite

Consumer Banking Suite

Professional Services

$14.7

$17.2

$9.6

$10.8

$69.2

$73.3

$77.6

$23.6

$33.7

$45.2

$8.8

$9.1

Non-GAAP Gross Margin

Q1 2026

+700 bps Y/Y

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

$4.1

$4.3

$4.6

$5.4

Non-GAAP Operating Income

Q1 2026

+449% Y/Y

$0.7

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

Rєvєnuє Trєnds

Mortgage Suite*

Q1 2025

Q2 2025

Q3 2025

Q4 2025

Q1 2026

Y/Y Growth (3)%

(3)%

(18)%

18%

$14.7

$17.2

$17.8

$18.0

$18.8

Consumer Banfiing Suite**

Q1 2025

Q2 2025

Q3 2025

Q4 2025

Q1 2026

Y/Y Growth 45%

43%

32%

22%

12%

$9.6

$10.8

$11.5

$12.6

$ in millions

*See Note 1 included in the Footnotes slide of the Appendix. **See Note 3 included in the Footnotes slide of the Appendix.

Mortgagє Suitє Mєtrics

Economic Value Per Funded Loan (evPFL)**

$93

$11

Add-on products***

Partnerships

Core software

2026****

Q4 2025

Q3 2025

Q2 2025

Q1 2025

$75

$76

$77

$84

$83

$86

$10

$88

$10

Funded Loan Volume*

Q1 2025

Q2 2025

Q3 2025

Q4 2025

Q1 2026

Y/Y Growth (7)%

(1)%

11%

29%

145.1

186.7

201.1

203.9

210.8

Units in thousands

*See Note 2 included in the Footnotes slide of the Appendix. **Figures may not sum due to rounding. See Note 4 included in the Footnotes slide of the Appendix.

***Represents add-on products that transitioned to a partnership model.

****Includes estimated transactions from funded loan reports not yet received.

Marfiєt Sharє

14%

17%

19%

21%

22%

Market share has decreased since 2023 due to churn notices received primarily in 2023 and 2024

% of HMDA Originations

Initial release of 2025 HMDA data in early April shows 4.4 million mortgage originations, which translates to market share of 17% for 2025

2021 2022 2023 2024 2025

Blend funded loans

HMDA mortgage originations*

1,816k 1,234k 808k 750k 761k

13.0 million 6.0 million 3.7 million 4.0 million 4.4 million

* See Note 1 included in Appendix for the definition of HMDA Mortgage Originations.

Q1 2026 - Year over Year Bridge

$1.6

$20.7

$18.8

$(0.3)

Q1 2025

Sales G Marketing

Research G Development

General G Administrative

Q1 2026

$0.6

$97.0

$79.7

2024

2025

General G Administrative Research G Development Sales and Marketing

$28.0

$31.3

$26.0

$35.2

$25.7

$30.4

In millions

Non-GAAP Operating Expenses

Illustrative Hypothetical Share Count Under Various Stocfi Price Scenarios

(in thousands)

Illustrative Shares at various BLND stocfi prices

$1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00

Common Stocfi

As of 3/31/2026

Class A common stock outstanding

244,080

Class B common stock outstanding

3,256

Total Common Stocfi

247,336

Preferred Stocfi

Series A redeemable convertible preferred stock1

46,154

Stocfi-based compensation awards

Outstanding stock options2

14,768

294

2,271

4,577

6,247

7,314

8,026

8,536

8,940

Non-plan Co-Founder and Head of Blend options

20,194

Unvested restricted stock units3

14,054

Unvested performance stock awards3

7,627

1,892

Total stocfi-based compensation awards

56,643

14,348

16,325

18,631

20,301

21,368

22,080

24,482

24,886

Warrants

Series G Warrant

598

Common Stock Warrants4

11,111

1,111

2,778

3,968

4,861

TOTAL

361,842

261,684

263,662

265,968

313,792

315,969

318,348

321,940

323,237

Note: These scenarios assume Blend uses the option and warrant exercise proceeds to purchase shares at the prevailing market price. These scenarios do not contemplate the add back of unrecognized stock-based compensation cost as additional assumed proceeds as would be required for the purposes of calculating dilutive shares under US GAAP. Additional information regarding Blend's Common Stock, Preferred Stock, Stock-based compensation awards and Warrants can be found on Blend's Investor Relations website at investor.blend.com and in Blend's SEC filings.

Assumes all Preferred Stock is dilutive on an "as-converted" basis when the prevailing market price is in excess of $3.25. The scenarios do contemplate potential anti-dilution due to the application of the two class method as would be required for the purposes of calculating dilutive shares under US GAAP.

Assumes all options outstanding with a strike price less than the prevailing market price are "in the money" and counted towards dilution.

Restricted stock units and performance stock awards are presented on a gross basis. Under net share settlement, the dilution from restricted stock units will equate to approximately 60% of the total gross shares.

These warrants expired on April 29, 2026.

Quarterly Guidance1

Q2 total revenue growth of 1% to 7% year-over-year. Assumes mortgage suite growth of 4% to 10% and consumer banking suite growth of (2)% to 4%.

No Autopilot revenue assumed in Q2; free trial runs through June.

Assumes Q2 evPFL of approximately $79-80.

Q2 2026

$32.0M - $34.0M

$5.5M - $6.5M

1 See Note 4 and 5 included in the Footnotes slide of the Appendix.

©Blend 2026

Revenue Disaggregation

(dollars in thousands)

Three Months Ended March 31,

2026 2025

Blend Platform: YoY change

Mortgage Suite

$ 17,232

56 %

$ 14,658

55 %

18 %

Consumer Banking Suite

10,761

35 %

9,644

36 %

12 %

Total Software Platform

27,993

91 %

24,302

91 %

15 %

Professional Services

2,850

9 %

2,543

9 %

12 %

Total revenue

$ 30,843

100 %

$ 26,845

100 %

15 %

*Amounts are presented on "continuing operations" (Blend Platform segment-only) basis

GAAP Financial Results

(in thousands)

Three Months Ended March 31,

2026

2025

Revenue

Software platform

27,993

24,302

Professional services

2,850

2,543

Total revenue

30,843

26,845

Cost of revenue

Software platform

5,768

5,898

Professional services

1,710

1,947

Total cost of revenue

7,478

7,845

Gross profit

23,365

19,000

Operating expenses:

Research and development

9,413

7,842

Sales and marketing

6,198

7,188

General and administrative

12,153

11,231

Restructuring

662

719

Total operating expenses

28,426

26,980

Loss from operations

(5,061)

(7,980)

Other income (expense), net

1,114

Loss before income taxes

(5,021)

(6,866)

Income tax expense

(63)

(30)

Loss before equity in losses of equity method investees

(5,084)

(6,896)

Equity in losses of equity method investees, net of tax

(381)

Loss from continuing operations

(5,465)

(6,896)

Loss from discontinued operations

(2,584)

(2,803)

Net loss

(8,049)

(9,699)

Less: Net loss attributable to noncontrolling interest included in discontinued operations

182

Net loss attributable to Blend Labs, Inc.

(8,049)

(9,517)

Less: Accretion of redeemable noncontrolling interest to redemption value from discontinued operations

(1,254)

Less: Accretion of Series A redeemable convertible preferred stock to redemption value

(4,731)

(4,202)

Net loss attributable to Blend Labs, Inc. common stockholders

(12,780)

(14,973)

GAAP Financial Results (cont.)

(in thousands except per share amounts)

Three Months Ended March 31,

2026

2025

Net loss per share attributable to Blend Labs, Inc. common stockholders - basic and diluted:

Continuing operations

(0.04)

Discontinued operations

(0.01)

(0.02)

Net loss per share attributable to Blend Labs, Inc. common stockholders

(0.05)

(0.06)

Weighted average shares used in calculating net loss per share:

Basic and diluted 255,630 258,832

Reconciliation of GAAP to Non-GAAP Measures

(dollars in thousands)

Three Months Ended March 31,

2026

2025

Gross Profit Reconciliation

Gross Profit

Gross Margin

Gross Profit

Gross Margin

Blend Platform

GAAP Software platform

$ 22,225

79 % $

18,404

76 %

Stock-based compensation(1)

Amortization of capitalized internal-use software(7)

1,273

388

Non-GAAP Software platform

23,501

84 %

18,793

77 %

GAAP Professional services

1,140

40 %

596

23 %

Stock-based compensation(1)

119

169

Non-GAAP Professional services

1,259

44 %

765

30 %

GAAP Gross Profit

23,365

76 %

19,000

71 %

Stock-based compensation(1)

122

170

Amortization of capitalized internal-use software(7)

1,273

388

Non-GAAP Gross Profit

$ 24,760

80 % $

19,558

73 %

Reconciliation of GAAP to Non-GAAP Measures (cont.)

(in thousands)

Three Months Ended March 31,

2026

2025

GAAP operating expenses

$ 28,426

$ 26,980

Non-GAAP adjustments:

Stock-based compensation(1)

6,658

5,926

Workforce reduction costs(2)

662

719

Abandoned and terminated facilities costs(3)

507

Litigation contingencies and related professional services costs(4)

787

Transaction-related costs(5)

174

146

Impairment of capitalized internal-use software(6)

260

Non-GAAP operating expenses

$ 20,672

$ 18,814

Reconciliation of GAAP to Non-GAAP Measures (cont.)

(in thousands)

Three Months Ended March 31,

2026

2025

GAAP loss from operations

$ (5,061)

$ (7,980)

Non-GAAP adjustments:

Stock-based compensation(1)

6,780

6,096

Workforce reduction costs(2)

662

719

Abandoned and terminated facilities costs(3)

507

Litigation contingencies and related professional services costs(4)

787

Transaction-related costs(5)

174

146

Impairment of capitalized internal-use software(6)

260

Amortization of capitalized internal-use software(7)

1,273

388

Non-GAAP income from operations

$ 4,088

$ 744

GAAP operating margin

(16)%

(30)%

Non-GAAP operating margin

13 %

3 %

Reconciliation of GAAP to Non-GAAP Measures (cont.)

(in thousands)

Three Months Ended March 31,

2026

2025

GAAP net loss from continuing operations

(5,465)

(6,896)

Non-GAAP adjustments:

Stock-based compensation(1)

6,780

6,096

Workforce reduction costs(2)

662

719

Abandoned and terminated facilities costs(3)

507

Litigation contingencies and related professional services costs(4)

787

Transaction-related costs(5)

174

146

Impairment of capitalized internal-use software(6)

260

Amortization of capitalized internal-use software(7)

1,273

388

Foreign currency gains and losses(8)

286

(20)

Equity in losses of equity method investees(9)

381

Non-GAAP net income from continuing operations

4,351

1,808

Reconciliation of GAAP to Non-GAAP Measures (cont.)

(in thousands, except per share amounts)

Three Months Ended March 31,

2026

2025

GAAP diluted net loss per share from continuing operations attributable to common stocfiholders

(0.04)

Per share impact of non-GAAP expenses(10)

0.04

0.03

Non-GAAP diluted income (loss) per share from continuing operations attributable to common stocfiholders

0.00

(0.01)

GAAP diluted weighted average shares used in calculating net loss per share

255,630

258,832

Non-GAAP diluted weighted average shares used in calculating net income (loss) per share

255,630

258,832

Three Months Ended March

31,

Stocfi-based compensation by function:

2026

2025

Cost of revenue

122

170

Research and development(11)

1,661

1,684

Sales and marketing

282

720

General and administrative

4,715

3,522

Total

6,780

6,096

Reconciliation of GAAP to Non-GAAP Measures (cont.)

(in thousands)

Three Months Ended March 31,

2026

2025

GAAP research and development expense

9,413

7,842

Non-GAAP adjustments:

Stock-based compensation(1)

1,661

1,684

Abandoned and terminated facilities costs(3)

193

Impairment of capitalized internal-use software(6)

260

Non-GAAP research and development expense

7,492

5,884

GAAP sales and marfieting expense

6,198

7,188

Non-GAAP adjustments:

Stock-based compensation(1)

282

720

Abandoned and terminated facilities costs(3)

203

Non-GAAP sales and marfieting expense

5,916

6,265

GAAP general and administrative expense

12,153

11,231

Non-GAAP adjustments:

Stock-based compensation(1)

4,715

3,522

Abandoned and terminated facilities costs(3)

111

Litigation contingencies and related professional services costs(4)

787

Transaction-related costs(5)

174

146

Non-GAAP general and administrative expense

7,264

6,665

Reconciliation of GAAP to Non-GAAP Measures (cont.)

(dollars in thousands)

Three Months Ended March 31,

2026

2025

Net cash provided by operating activities - continuing operations

$ 8,462

$ 19,811

Additions to property, equipment and internal-use software development costs

(1,117)

(4,313)

Free cash flow

7,345

15,498

Revenue

$ 30,843

$ 26,845

Free cash flow margin

24 %

58 %

Disclaimer

Blend Labs Inc. published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 23:35 UTC.