Blend Labs (BLND) investor relations material

Market and macro environment

• Mortgage and HELOC markets remain challenging due to high interest rates, but customers are investing for future growth and leveraging technology to prepare for a rebound in 2025–2026.

• Customers have reset their businesses after volume declines from 2021–2023 and are now consolidating market share and growing servicing books.

• Blend’s customer base is concentrated among large banks and credit unions, positioning them well for industry shifts and regulatory stability.

• HELOC demand is strong as consumers tap into home equity, providing a counterbalance to the weak refi market.

Product innovation and AI adoption

• Autopilot, an AI-driven underwriting product, launched in early 2024 and is now live with customers, processing 50,000 applications in Q2.

• Autopilot reduces loan processing cycle times by about three days and significantly increases conversion rates, with one customer seeing pull-through rise from 59% to 72%.

• The product is designed as an open harness, allowing integration with or without Blend’s core platform, opening new standalone sales opportunities.

• Autopilot is expected to drive 10–15% incremental growth by 2027, with a strong pipeline among large banks.

• Rapid Suite enables real-time offers and rate locks, and together with Autopilot, forms a seamless experience from offer to closing.

Financial performance and outlook

• Q2 results were at or above the top end of guidance for net operating income and revenue, despite some churn among smaller customers.

• The business remains profitable since Q3 2024, with a strong balance sheet and no debt.

• Share buybacks have been authorized and executed, reflecting confidence in future growth.

• Blend is focused on maintaining profitability regardless of macro conditions and is investing in AI to drive long-term scalability.