Blend Labs, Inc.

Total revenue was $33.8 million, up 7% year over year, near the high end of the $32 million to $34 million guidance range. Mortgage Suite revenue was $19.2 million, up 7% year over year; Consumer Banking suite revenue was $12.2 million, up 6%; and professional services revenue was $2.4 million. Funded mortgage loans were approximately 233,000, up 14% year over year, and economic value per funded loan was $79, down from $83 in Q1 and consistent with prior guidance. Non-GAAP gross profit was $26.5 million and non-GAAP gross margin was 78.3%, up from 76.1% a year ago. Non-GAAP operating income was $7 million, above the $5.5 million to $6.5 million guidance range, and free cash flow was $6.9 million. The company ended with $44.9 million in cash, cash equivalents, and marketable securities, and zero debt. For Q3, Blend guided total revenue to $31.5 million to $33.5 million, or approximately negative 4% to positive 2% year over year. It expects Blend funded loan volume of about 200,000 to 210,000 loans, economic value per funded loan of about $80 to $81, and non-GAAP operating income of $3.5 million to $4.5 million. For Q4, management said it expects total market size of 1.105 million to 1.165 million units and Blend funded loan volume of about 180,000 to 190,000 loans, down about 10% to 15% year over year at the midpoint. Management also cautioned investors not to model meaningful Autopilot revenue yet.

Nima Ghamsari framed the quarter around two strategic pillars: Autopilot, the agentic product for customers, and Blend 3.0, the company’s internal shift to an agent-first operating model. He said the early Autopilot data is encouraging and that large lenders are leaning in, but also emphasized that monetization will take time because the market is regulated and large customers move through governance slowly. His tone was confident and long-term oriented, repeatedly pointing to 2027 and beyond rather than near-term revenue.

Jason Ream focused on the hard numbers, profitability, and a more cautious second-half outlook. He highlighted 78.3% gross margin, $7 million of non-GAAP operating income, $6.9 million of free cash flow, and $44.9 million of cash with zero debt, while also noting the company repurchased 11 million shares in Q2 and 22.2 million shares year to date. On outlook, he said Fannie Mae’s market forecast has been revised down, refinance activity remains muted, and Blend saw an uptick in churn notices tied mainly to customers moving to lower-cost or free point solutions; he said the revenue impact should be manageable in the low single digits of annual revenue.

Analysts pressed on whether the early Autopilot momentum still supports the earlier view of potentially 10% to 15% incremental revenue growth in 2027. Nima said he would not add further guidance, but reiterated that the pipeline is strong and that major financial institutions are increasingly pushing internal approvals, while stressing that the business is being built for compounding benefits over time. Questions also focused on whether Autopilot will extend into consumer banking, the credit union pipeline, churn notices, and broker-channel share shifts; management said Autopilot is already built into the platform but not yet live for consumer banking, that credit unions are a strong fit for self-serve workflows, and that churn appears to be mostly customers moving to cheaper existing providers rather than a broad trend.