Key facts
- Blend's mortgage suite revenue was $17.4 million in the third quarter, down 2% year over year.
- The platform handled 194,000 funded mortgages in the quarter, a 4% decline, at $81 economic value per loan.
- Churn notices in the quarter represented about $2 million of annual revenue, down from roughly $3 million in the second quarter.
- Blend said year-to-date gross revenue retention is in the mid-90% range.
- Blend ended the quarter with $44.2 million in cash, cash equivalents and marketable securities, and no debt.
- Keefe, Bruyette & Woods said upside in Blend shares will be capped until revenue growth accelerates.
Blend Labs narrowed its third-quarter loss and reported its strongest sales period in more than three years, while guiding fourth-quarter revenue lower as rising mortgage rates weighed on loan volumes.
Total revenue in the quarter was $32.9 million, up 1% from the same period in 2025, the company reported on November 5, 2026. GAAP operating loss was $2.6 million, compared with a $5.3 million loss a year earlier.
Blend closed 26 new deals and expansions during the quarter. In dollar terms, the company said, these represented more than twice the combined value of its first- and second-quarter deals. Churn notices in the quarter represented about $2 million of annual revenue, an improvement from roughly $3 million in the second quarter, and Blend said year-to-date gross revenue retention is in the mid-90% range.
Revenue from Blend's mortgage suite totaled $17.4 million, down 2% year over year. The platform handled 194,000 funded mortgages, a 4% decline from the same period last year, and economic value per funded loan was $81.
Nima Ghamsari, Blend co-founder and head, told analysts on the earnings call that mortgage rates were about 6.8% in August and reached a high of more than 7.5% after the Fed raised rates in September, and that applications dropped with them. He said the company's priorities include converting its Autopilot pipeline, which grew from six customers to 10, and that "next year the market may not help us."
For the fourth quarter, Blend guided total revenue to a range of $27.7 million to $29.7 million, a decline of about 8% to 15% year over year. Mortgage suite revenue is expected to fall 23% to 28% from the prior-year period, reflecting lower industry volumes and mix shifts. Executives said potential fourth-quarter deals could contribute about $5 million in incremental revenue in 2027 as implementations go live.
Analysts at Keefe, Bruyette & Woods wrote that Blend is "executing on what it can control against a weak mortgage market" and that "early traction with budding AI products (Autopilot) is encouraging." They added that upside in the shares will be capped until there is visibility into a more meaningful and sustained acceleration in revenue growth.
Blend ended the quarter with $44.2 million in cash, cash equivalents and marketable securities, and no debt.