Summary
Blend Labs reported fourth-quarter revenue of $41.4 million, up 14.7% from the prior-year quarter. Full-year revenue was $162.0 million, up 3.3%. Gross profit was $24.7 million in the quarter, up 25.4%, and $90.5 million for the full year, up 11.6%. Gross margin expanded to 59.7% in the quarter from 54.6%, and full-year gross margin rose to 55.9% from 51.7%. The GAAP operating loss was $1.8 million in the quarter, narrowed from $21.9 million in the prior-year quarter. Operating margin improved to negative 4.3% from negative 60.6%. On a non-GAAP basis, income from operations was $5.2 million, and the non-GAAP operating margin was 13%. The non-GAAP gross margin was 61%, up from 55% in the prior-year quarter. Net loss attributable to Blend Labs was $0.8 million in the quarter, narrowed from $30.3 million. Full-year net loss was $43.3 million, narrowed from $178.7 million. Full-year diluted EPS was negative $0.24, improved from negative $0.76.
Cash flow also improved. Cash used in operating activities was $4.6 million in the quarter, up 77.8% from $20.7 million used in the prior-year quarter. For the full year, cash used in operating activities was $13.0 million, up 89.8% from $127.6 million used in the prior year. Free cash flow, a non-GAAP measure, was negative $7.2 million in the quarter and negative $22.9 million for the full year, compared with negative $20.8 million and negative $128.2 million in the respective prior-year periods. Remaining performance obligations were $123.0 million at quarter end, up 29.6% from $94.9 million a year earlier. The company ended the year with no outstanding debt after repaying all amounts under its credit agreement in April 2024.
Operationally, Blend Labs added PHH Mortgage and a top 10 U.S. bank as new customers in the fourth quarter. It expanded home equity lending with two more top 10 U.S. banks by asset size. The company launched Rapid Home Lending solutions, which it says pilot customers used to achieve up to 1.5 times higher pull-through rates and up to 50% faster time to close. A new partnership with Truework aims to speed borrower approvals and expand income and employment coverage. These moves support the Consumer Banking Suite, which management calls an emerging growth driver.
Management guided to a quieter first quarter of 2025. Blend Platform segment revenue is expected to be $25.0 million to $27.0 million. Blend Platform non-GAAP net operating income is expected to be negative $1.0 million to $1.0 million. The outlook assumes U.S. aggregate mortgage originations of 800,000 to 900,000 units in the first quarter of 2025, which would be lower than the fourth quarter of 2024. For the full year 2025, the company targets Consumer Banking Suite revenue CAGR from 2023 to 2026 of 35% to 40%, up from the prior 35% target outlined at its 2023 Investor Day. The company has not provided a GAAP reconciliation for these non-GAAP outlook measures because of uncertainty around stock-based compensation and internal-use software capitalization.
The main risks remain external and operational. The mortgage market is heavily influenced by interest rates, credit availability, real estate prices, inflation, and consumer confidence. Blend Labs depends on a limited number of large financial institution customers, and any loss or reduction in business from those customers could hurt revenue. Competition is intense, and the company has a limited operating history in an evolving industry. Restructuring actions may not deliver the expected cost savings. The Haveli investment brings governance rights and potential dilution. Management also notes that economic conditions and the financial condition of some customers remain highly uncertain, and it expects a more moderate mortgage origination growth rate in 2025 than industry forecasters project.
Blend Labs made clear progress on profitability and cash burn in the fourth quarter. Gross margin expanded, operating loss narrowed, and non-GAAP income from operations turned positive. Still, the company remains unprofitable on a GAAP basis, and full-year revenue growth was modest. First-quarter 2025 guidance implies a sequential decline in Blend Platform revenue, which keeps the focus on mortgage volumes and the Consumer Banking Suite. If Consumer Banking Suite growth continues and expenses stay flat, the company could build on the fourth-quarter momentum. If mortgage activity weakens further, the top line will struggle.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $41.4M | $45.2M | -8.4% | $36.1M | +14.7% |
| Gross profit | $24.7M | $26.0M | -4.9% | $19.7M | +25.4% |
| Gross margin | 59.7% | 57.5% | +2.2 pp | 54.6% | +5.1 pp |
| Research & development | $8.9M | $10.1M | -12.5% | $14.4M | -38.5% |
| Sales & marketing | $6.6M | $9.9M | -33.4% | $11.9M | -44.9% |
| General & administrative | $11.0M | $13.1M | -16.6% | $14.5M | -24.6% |
| Total operating expenses | $26.5M | $39.3M | -32.6% | $41.6M | -36.2% |
| Operating income (loss) | -$1.8M | -$13.3M | +86.6% | -$21.9M | +91.8% |
| Operating margin | -4.3% | -29.5% | +25.2 pp | -60.6% | +56.3 pp |
| Net income (loss) | -$899.0K | -$2.6M | +65.8% | -$30.4M | +97.0% |
| Net margin | -2.2% | -5.8% | +3.6 pp | -84.1% | +82.0 pp |
| Diluted EPS | -$0.03 | -$0.03 | ±$0.00 | -$0.13 | +$0.10 |
| Customers | 23 | — | — | 20 | +15.0% |
Risks
Mortgage originations on our platform decreased in 2024 compared to 2023 amid high interest rates, and MD&A expects aggregate industry mortgage originations to be lower in 1Q25 relative to 4Q24 with a more moderate growth rate in 2025. A large portion of revenue depends on mortgage and mortgage-related transaction volumes.
For 2024, top five Title segment customers accounted for 73.2% of segment revenue, with Mr. Cooper at 46.8%, and 7 Title customers generating more than $1 million represented 79.4% of segment revenue. Blend Platform top five customers were 33.0% of segment revenue.
In April 2024 we issued $150.0 million of Series A Preferred Stock to Haveli, which has board designation and consent rights over debt, dividends, acquisitions and other actions. Conversion or warrant exercise could dilute Class A common stockholders, and redemption rights could impact liquidity.
The filing details risks if we fail to successfully implement AI into our platform or if competitors incorporate AI more quickly. Evolving regulation such as the EU Artificial Intelligence Act and U.S. state laws may require significant changes and expenditures.
Since 2022 we implemented several workforce reductions and in 2024 terminated one lease and abandoned another. Risk factors state there can be no assurance projected cost savings will be achieved and restructuring may harm our ability to recruit, retain and motivate personnel.
As of December 31, 2024, accumulated deficit was $1,385.0 million and net loss narrowed to $43.3 million for FY2024 from $178.7 million for FY2023. We may require additional capital to support growth, which might not be available on acceptable terms.
Our primarily success-based model relies on customer self-reporting of completed transactions for usage and overage fees. Inaccurate or untimely reporting could impair revenue estimation and forecasting, and results have fluctuated period to period.
Failure to realize the full anticipated benefits of the Title365 acquisition has and could continue to adversely affect revenue, expenses and results. Title segment revenue decreased $1.0 million, or 2%, for the year ended December 31, 2024 compared to 2023, primarily on lower title order volume.
SaaS KPIs
All quarters →Free cash flow margin
Free cash flow
Non-GAAP operating margin
Non-GAAP Software Platform Gross Margin
Non-GAAP gross profit margin
Summary, forecast, risks and KPIs are extracted from Blend Labs, Inc.'s SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.