Blend Labs (BLND) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $32.9M, up 1% YoY; non-GAAP operating income of $4.9M exceeded the high end of guidance.

• Signed 26 new deals and expansions, including a top-10 bank; the strongest sales quarter in more than three years, with deal value over 2x the first two quarters combined.

Financial highlights

• Q3 non-GAAP gross profit was $25.4M; non-GAAP operating expenses were $20.5M, down 3% YoY. GAAP operating expenses fell 11% to $26.4M.

• Q3 GAAP gross profit was $23.8M, down 2%; net loss was $1.9M versus net income of $12.1M, with the prior-year comparison including a non-recurring investment gain.

• Nine-month revenue increased 7% to $97.6M; non-GAAP operating income was $16.0M versus $9.7M, and free cash flow was $14.3M versus $1.5M.

• Nine-month operating cash flow was $17.0M; cash, cash equivalents and marketable securities totaled $44.2M at September 30, with no debt.

Outlook and guidance

• Q4 revenue guidance is $27.7M–$29.7M, down 8%–15% YoY; non-GAAP operating income guidance is $2.3M–$3.3M.

• Q4 Mortgage Suite revenue is expected down 23%–28% YoY; Consumer Banking Suite revenue is expected to grow 2%–10%.

• Q4 evPFL is expected at $86–$87; 2027 evPFL is expected to rise by mid-single-digit percentages YoY.

• 2027 industry volume is expected down high-single to low-double digits YoY, with most decline in H1; Q1 volume is expected down ~30% YoY.

• Autopilot Q4 pipeline deals could contribute $5M to 2027 revenue, not included in Q4 guidance.