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Mar 31
Blend Q1 2025 Earnings Report
Blend Labs, Inc. announced its first quarter 2025 financial results, highlighting a third consecutive quarter of year-over-year growth driven by renewed customer momentum.
Key Takeaways
Blend Labs, Inc. reported strong first quarter 2025 financial results, with total revenue of $26.77 million, exceeding consensus estimates. The company achieved positive free cash flow for the first time in its history, driven by increased cash provided by operating activities. Key drivers included significant customer growth, accelerated adoption of Rapid Home Lending solutions, and strategic partnerships with leading mortgage servicers. The company also initiated a process to sell its Title365 business to focus on its software-first model.
Blend Platform revenue reached $26.8 million, surpassing consensus estimates and guidance midpoint.
The company achieved record first quarter signings, with total remaining performance obligations increasing by 70% year-over-year to $158.1 million.
Blend generated $20.1 million in cash from operating activities and $15.5 million in free cash flow, marking its first quarter with positive free cash flow.
The company entered an exclusive process to sell its Title365 title insurance business, aligning with its strategic shift to a software-first model.
Blend
Blend
Blend Revenue by Segment
Revenue by Segment
Mortgage Suite Revenue
CapyFin.comConsumer Banking Suite Revenue
CapyFin.comTotal Software Platform Revenue
CapyFin.comProfessional Services Revenue
CapyFin.com Forward Guidance
For the second quarter of 2025, Blend expects Platform Revenue to be between $30.5 million and $32.5 million, and Non-GAAP Net Operating Income to be between $3.5 million and $5.0 million. For the full year 2025, Blend anticipates Non-GAAP Operating Expenses to be between $85.0 million and $90.0 million.
Positive Outlook
- Expectation of higher U.S. aggregate industry mortgage originations in Q2 2025 compared to Q1 2025.
- Application volume observed to date through customer base supports positive outlook.
- Analysis of latest relevant macroeconomic data, including mortgage market size, indicates favorable conditions.
- Expected mortgage market size for Q2 2025 is between 1,150,000 and 1,250,000 units.
- Incorporation of expected impact from transition of add-on products to a partnership model and expansion of platform strategy.
Challenges Ahead
- Economic conditions, including real estate and mortgage activity, remain highly uncertain.
- Financial condition of some financial customers remains highly uncertain.
- Uncertainty regarding stock-based compensation due to hiring, retention needs, and future stock prices.
- Potential variability of stock-based compensation.
- Non-recurring, infrequent, or unusual items may impact financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income