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Jun 30
Blend Q2 2025 Earnings Report
Estimated Revenue:$32M
-23.3% YoY
Estimated EPS:$0.02
+139.0% YoY
Key Takeaways
Blend reported a strong second quarter in 2025, achieving its fourth consecutive quarter of year-over-year revenue growth and non-GAAP operating profit. The company saw accelerated sales momentum with 23 new or expanded deals, more than doubling the first quarter's deal count, and ended the quarter with a record remaining performance obligations (RPO) balance of $190.4 million. GAAP loss from operations significantly improved, and non-GAAP diluted net income per share reached $0.00.
Blend achieved its fourth consecutive quarter of year-over-year revenue growth and non-GAAP operating profit.
Sales momentum accelerated in Q2 2025 with 23 new or expanded deals, more than double the previous quarter.
The company ended the second quarter with a record remaining performance obligations (RPO) balance of $190.4 million.
GAAP loss from operations improved to $4.6 million in Q2 2025, compared to $13.1 million in the same period last year.
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
Blend expects total revenue for Q3 2025 to be between $31.5 million and $33.5 million, with non-GAAP Net Operating Income projected between $3.0 million and $4.5 million. The company anticipates a marginal increase in U.S. aggregate industry mortgage originations in Q3 2025, followed by a slight decrease in Q4 2025 in line with normal seasonal patterns.
Positive Outlook
- Expected continued revenue growth in Q3 2025.
- Anticipated non-GAAP Net Operating Income for Q3 2025.
- Expectation of marginally higher U.S. aggregate industry mortgage originations in Q3 2025.
- Guidance reflects continued focus on platform strength and execution.
- The sale of Title365 is expected to transition Blend’s title services to a higher-margin partnership model.
Challenges Ahead
- Economic conditions, including those affecting real estate and mortgage activity, remain highly uncertain.
- The financial condition of some financial customers remains highly uncertain.
- A slight decrease in mortgage volume is expected between Q3 2025 and Q4 2025 due to normal seasonal patterns.
- Forward-looking GAAP equivalent to non-GAAP Net Operating Income outlook and GAAP reconciliation are not provided due to uncertainty.
- Stock-based compensation, hiring and retention needs, and future stock prices could impact financial results.
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Key Statistics
Market Cap
$777M
P/E Ratio
-13.25
Sector
N/A
Industry
N/A
52-Week High
$4.39
52-Week Low
$2.73
GAAP Gross Profit Margin
74%
Non-GAAP Gross Profit Margin
76%
GAAP Software Platform Gross Margin
78%
Non-GAAP Software Platform Gross Margin
80%
GAAP Professional Services Gross Margin
20%