Blend's Third-Quarter Revenue Growth Falls to 1%

The Tip Desk · November 5, 2026 · 2 min read

The digital banking platform posted $32.9 million of third-quarter revenue and $4.9 million of non-GAAP operating income, and guided fourth-quarter revenue to $27.7 million–$29.7 million.

Blend Labs, Inc. (BLND), a digital banking platform, reported third-quarter 2026 revenue of $32.9 million, up 1% from a year earlier, after 7% year-over-year growth in the second quarter and 15% growth in the first.

The sequential slowdown was the quarter’s defining turn. Software platform revenue was $30.6 million, up 1% from a year earlier, and professional services revenue was $2.3 million, essentially unchanged from $2.3 million in the third quarter of 2025.

The company said total revenue landed in the top half of its $31.5 million to $33.5 million third-quarter range and that non-GAAP operating income was above the high end of its $3.5 million to $4.5 million outlook.

Non-GAAP operating income was $4.9 million, up from $4.3 million a year earlier, and non-GAAP operating margin was 15%. GAAP operating loss was $2.6 million, compared with a $5.3 million loss in the third quarter of 2025. GAAP diluted net loss from continuing operations attributable to common stockholders was $0.03 a share, versus $0.02 of income a year earlier. Non-GAAP diluted net income from continuing operations was $0.00 a share in both periods.

GAAP gross profit margin was 72%, down from 74% a year earlier. Non-GAAP gross profit margin was 77%, down from 78%.

Mortgage Suite revenue was $17.4 million, down 2% from a year earlier. Consumer Banking Suite revenue was $13.2 million, up 5%.

Co-founder and Head of Blend Nima Ghamsari said the company had its best sales quarter in more than three years, closing 26 new deals and expansions, including a new top-10 bank logo. Autopilot customers rose to ten from six in early August. The second quarter had added or expanded 14 customer relationships; the first quarter added or expanded 15.

Ghamsari said the pipeline behind Autopilot is now big enough to size and that the company is focused on converting that pipeline.

Free cash flow was $8 thousand in the third quarter, versus a $5.0 million outflow a year earlier. Cash and cash equivalents were $20.7 million at September 30, 2026, down from $45.1 million at year-end 2025.

For the fourth quarter of 2026, Blend is guiding to revenue of $27.7 million to $29.7 million and non-GAAP operating income of $2.3 million to $3.3 million. The company said it has not provided a GAAP equivalent of the non-GAAP operating income outlook because of uncertainty around stock-based compensation and non-recurring items.