Blend Labs Aims for $190M Revenue, 43% Consumer Banking Growth Amid AI and Platform Strategy Advancements.

Blend Labs aims to reach a target of $190M revenue per year and achieve 43% growth in consumer banking while advancing its AI and platform strategy. The company has posted 4 consecutive quarters of year-over-year total revenue growth and non-GAAP operating profitability.

Blend Labs, Inc. (BLND) reported robust financial performance for the second quarter of 2025, showcasing 4 consecutive quarters of year-over-year total revenue growth and non-GAAP operating profitability. The company's CEO and Co-Founder, Nima Ghamsari, highlighted significant achievements during the earnings call, including a 10% year-over-year increase in total revenue to $31.5 million, driven by a 43% growth in consumer banking suite revenue [1].

Ghamsari emphasized Blend Labs' strategic focus on expanding market share, increasing take rate with existing customers, and growing the consumer banking business. Consumer banking now represents 36% of total revenue, up from 28% a year ago, with year-over-year growth of 43% in that segment. The company is also piloting a new AI tool that aims to enhance document processing, data analysis, and origination guidelines [1].

Amir Jafari, the outgoing Head of Finance & Administration, noted that total revenue in the second quarter of 2025 was $31.5 million, ahead of the midpoint of the company's guidance and up 10% year-over-year. Consumer banking suite revenue reached $11.4 million, while mortgage suite revenue decreased 3% to $18 million. The company reported a non-GAAP gross margin of 76% and a non-GAAP operating margin of 15% for the quarter [1].

Looking ahead, Blend Labs expects third quarter total revenue between $31.5 million and $33.5 million, with the midpoint representing a 2% year-over-year decline. The company anticipates non-GAAP operating income to be between $3 million and $4.5 million, with operating expenses for 2025 expected to be in the range of $85 million to $90 million [1].

The earnings call also touched on the company's plans to sell Title365 to Covius and transition to a software-first model. Blend Labs aims to reach a target of $190 million in revenue per year and achieve 43% growth in consumer banking while advancing its AI and platform strategy. Management remains vigilant about near-term headwinds in mortgage pricing and is actively optimizing its business model to drive long-term value for customers and shareholders [1].

Analysts showed a generally positive tone, focusing on sales momentum, product adoption, and technology investments. Management maintained a confident tone in prepared remarks, emphasizing stability, growth, and innovation. The company's customer-focused metrics and product strategy were highlighted during the Q&A session [1].

References:
[1] https://seekingalpha.com/news/4482761-blend-labs-targets-190m-rpo-and-43-percent-consumer-banking-growth-while-advancing-ai-and