Blend Labs Q2 Earnings Call: Strong Growth Amid Challenges

Blend Labs reported Q2 revenue growth of 10% YoY to $31.5 million, driven by a 43% YoY increase in its consumer banking suite. However, mortgage suite revenue decreased by 3% to $18 million, and the company expects continued challenges with its economic value per funded loan. Blend also reported a record RPO balance of $190 million and 23 new or expanded deals, including three new logos in the independent mortgage bank vertical.

Blend Labs, Inc. (BLND) has released its Q2 2025 financial results, showcasing a 10% year-over-year (YoY) revenue growth to $31.5 million. The company's Consumer Banking Suite revenue surged by 43% to $11.4 million, driving the overall revenue increase. However, mortgage suite revenue decreased by 3% to $18.0 million, reflecting ongoing market challenges [3].

The company reported a record remaining performance obligations (RPO) balance of $190.4 million, driven by a $50 million renewal and expansion. Blend Labs also secured 23 new or expanded deals, including three new logos in the independent mortgage bank vertical [1].

Despite the positive revenue growth, Blend Labs continues to face GAAP losses. The company reported a GAAP net loss of $11.0 million for Q2 2025, or $0.03 per share from continuing operations. The company's non-GAAP operating margin remained at 15%, marking its fourth consecutive quarter of non-GAAP operating profitability [3].

Looking ahead, Blend Labs expects Q3 2025 revenue between $31.5 million and $33.5 million, with non-GAAP net operating income projected between $3.0 million and $4.5 million. The company anticipates a slight increase in mortgage originations in Q3 relative to Q2 [3].

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/BLND-N/pressreleases/34013455/blend-labs-reports-q2-2025-financial-results/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_PLXDAFAF8:0-blend-labs-reports-q2-revenue-slightly-below-estimates/
[3] https://www.investing.com/news/company-news/blend-labs-q2-2025-slides-consumer-banking-revenue-surges-43-operating-profitability-continues-93CH-4179124