Blend Labs stock falls 10% as Q4 earnings miss estimates

Published 27/02/2025, 22:32
Blend Labs stock falls 10% as Q4 earnings miss estimates

NEW YORK - Blend Labs , Inc. (NYSE:BLND) reported fourth-quarter earnings that slightly missed analyst expectations, sending its stock tumbling 10% in after-hours trading on Thursday.

The mortgage and banking software provider posted adjusted earnings per share of $0.00, falling short of the $0.01 consensus estimate. Revenue for the quarter came in at $41.4 million, just above the $41.38 million analysts had projected and up 15% YoY.

Blend’s Consumer Banking Suite continued to show strong growth, with revenue increasing 48% YoY to $9.5 million. However, this was not enough to offset the slight earnings miss that appears to have disappointed investors.

"2024 was a pivotal year for Blend. In Q4, we brought on several new customers, including PHH Mortgage and a top 10 U.S. bank," said Nima Ghamsari, Head of Blend. "We achieved 42% annual revenue growth in our Consumer Banking business, reinforcing its promise as an emerging growth driver."

The company reported a GAAP loss from operations of $1.8 million, significantly improved from a $21.9 million loss in the same quarter last year. Non-GAAP income from operations was $5.2 million, representing a 13% operating margin.

For the first quarter of 2025, Blend expects Blend Platform segment revenue between $25.0 million and $27.0 million. The company also raised its Consumer Banking Suite revenue growth target for 2023 to 2026, increasing the compound annual growth rate from 35% to 40%.

Despite the earnings miss, Blend highlighted its progress in expanding partnerships and launching new products like its Rapid Home Lending solutions, which aim to improve efficiency in refinance and home equity lending.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.