- **5Q non-GAAP profitability streak**: Blend's disciplined transition to higher-margin partnerships and AI-driven cost reduction.
- **60% pipeline growth**: Consumer Banking Suite now 39% of revenue, up from 29% YoY, driven by Rapid products.
- **$83-84 Q4 evPFL guidance**: Mortgage Suite headwinds from legacy roll-offs, but 2026 focus on Rapid adoption and AI origination reducing $11k loan costs.
- **Mr. Cooper 2028 contract**: Protects $5M+ annual revenue but creates 100bps 2026 share decline, offset by lower rates' 1.13M-1.23M 2026 funded loans outlook.

**【Management Opening Remarks】**
- Blend has achieved 5 consecutive quarters of non-GAAP operating profitability, reflecting strategic transitions to higher-margin partnerships and disciplined cost management.
- CEO Nima Ghamsari highlighted a 60% year-over-year pipeline growth, driven by high-quality deals in consumer banking and mortgage solutions.

**【CEO Commentary】**
- Consumer Banking Suite revenue now represents 39% of total revenue, up from 29% a year ago, driven by sticky, high-margin solutions like Rapid Home Equity and Blend Close.
- Mortgage Suite faces headwinds from legacy customer roll-offs, but 2026 priorities include expanding adoption of Rapid products and AI-driven origination.
- Blend Intelligent Origination, embedded AI, reduces $11,000 in human labor costs per loan, showcasing long-term operational efficiency.

**【CFO Financial Commentary】**
- Q3 2025 total revenue: $32.9M (down 1% YoY), with Consumer Banking Suite up 11% QoQ, Mortgage Suite down 18% YoY.
- Non-GAAP operating income: $4.6M (14% margin), up from $2.5M in Q2 2025.
- Q4 2025 guidance: Revenue $31-32.5M, operating income $2.5-3.5M, evPFL $83-84.

**【Q&A Highlights】**
- Mr. Cooper's 2028 contract protects $5M+ annual revenue but creates 100bps market share headwind in 2026.
- AI adoption in origination reduces manual review costs by 90%, with 100%+ QoQ internal adoption.
- 2026 macro outlook: Lower rates may drive 1.13M-1.23M funded loans, offsetting Mr. Cooper's 100bps share decline.


Blend Labs, Inc. (BLND) Q3 2025 Earnings Call Transcript

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