Key facts
- Blend reported Q2 revenue of $33.8 million, a 7% increase year-over-year.
- Software platform revenue rose 7% to $31.4 million.
- The company's GAAP operating loss narrowed to $1.6 million from $4.8 million.
- Non-GAAP operating income increased to $7 million.
- Blend launched its new AI-powered Autopilot product.
- The company repurchased 11 million shares for $18.2 million.
Blend Labs reported stronger second-quarter results, with revenue increasing 7% year-over-year to $33.8 million, primarily driven by growth in its software platform business. The digital mortgage technology provider also saw its operating loss narrow to $1.6 million on a GAAP basis, and its non-GAAP operating income rose to $7 million. The company highlighted the rollout and adoption of its new AI-powered Autopilot product, which became commercially available on July 1 and is showing early signs of improving loan clearance times and conversion rates.
Software platform revenue grew 7% to $31.4 million, while professional services revenue increased to $2.4 million. Blend's non-GAAP gross margin improved to 78% from 76%. The company ended the quarter with $44.9 million in cash and no debt. During the quarter, Blend repurchased 11 million shares for $18.2 million.
Nima Ghamsari, co-founder and head of Blend, characterized the quarter as "disciplined, profitable" and emphasized the company's agentic-first approach with Blend 3.0, which has reportedly increased engineering team throughput by 3.6x since January. The company added or expanded 14 customer contracts, including six deals involving the Autopilot platform.
Looking ahead, Blend forecasts third-quarter revenue between $31.5 million and $33.5 million, with non-GAAP operating income projected from $3.5 million to $4.5 million. For the fourth quarter, Blend anticipates a more conservative market outlook, expecting total mortgage volumes to drop approximately 11% year-over-year due to a "higher for longer" rate environment, with Blend’s funded loan volumes projected to decrease by 10% to 15%.