Blend Labs Inc. Reports Strong Third Quarter 2025 Financial Results

In a notable achievement, Blend's total revenue and non-GAAP operating income for the third quarter both surpassed the mid-point of the company’s guidance. Specifically, the company reported third quarter revenue of $32.9 million, marking a slight decrease of 1% compared to the same period last year. However, the performance was bolstered by significant growth in its professional services sector.

Blend's gross profit margins remained robust, with a total GAAP gross profit margin of 74%, unchanged from Q3 2024, while the non-GAAP gross profit margin improved to 78%, up from 75% in the previous year.

On the operating side:

Despite facing challenges, the company also reported a shift to profitability on a diluted net income per share basis, with GAAP diluted net income attributable to common stockholders at $0.02, compared to a loss of $0.02 in Q3 2024. Non-GAAP diluted net income per share was $0.00, up from a loss of $0.01 in the same period last year.

The third quarter saw Blend add or expand 14 customer relationships, including notable new agreements with a top 20 bank and a significant renewal and expansion with a consumer banking client across six product lines. This growth contributed to a pipeline that has increased approximately 60% year-over-year.

Nima Ghamsari, Co-founder and Head of Blend, expressed optimism about the company’s trajectory, stating, “When I look at the macro environment finally showing signs of life—particularly the potential for lower rates—and combine it with the specific momentum we are generating ourselves, I have never been more excited about our business.”

Looking ahead, Blend provided guidance for the fourth quarter of 2025, projecting total revenue between $31.0 million and $32.5 million and non-GAAP net operating income in the range of $2.5 million to $3.5 million. The outlook is based on expectations regarding U.S. mortgage origination volumes, which are projected to be between 1.13 million and 1.23 million units for Q4 2025.

However, the company also noted the potential for a sequential volume decline in the first quarter of 2026, aligning with usual seasonal patterns, with expectations set between 1.07 million and 1.17 million units.

Blend Labs, Inc.'s third quarter results demonstrate a resilient performance amid market fluctuations, showcasing both revenue growth and improved profitability metrics. As the company navigates through the evolving landscape of digital banking solutions, the expansion of its customer base and positive macroeconomic indicators provide a foundation for future growth. Investors and analysts alike will be keen to monitor how these developments unfold as Blend approaches the end of 2025.

For those interested in further details, Blend will host a live discussion of its financial results on November 6, 2025, at 4:30 PM ET, with a replay available on the company’s investor relations website.