Blend Labs (BLND) Q3 2026 Earnings Report

The call was operationally strong, with record sales activity, accelerating Autopilot adoption, significant product launches, solid profitability, strong cash liquidity, and a growing 2027 pipeline. However, these achievements were offset by a materially worsening mortgage market, expected Q4 revenue and margin declines, weak industry volume expectations through 2027, and a historical decline in trailing EVPFL. Overall, the number and strength of business execution highlights outweighed the macro-driven challenges, while management acknowledged that growth will depend on converting the Autopilot and Rapid pipeline rather than receiving help from the market.

For the fourth quarter, management expects market volume to be between 850 thousand to 910 thousand units, down 28% to 33% year over year; total revenue to be between $27.7 million and $29.7 million, a decline of approximately 8% to 15% year over year; mortgage suite revenue to be down 23% to 28% year over year; economic value per funded loan of approximately $86 to $87, up from $81 in the third quarter; consumer banking suite revenue growth of between positive 2% and positive 10%; and non GAAP operating income of between $2.3 million and $3.3 million, implying a non GAAP operating margin at the midpoint approximately 10%. The fourth quarter outlook includes only Autopilot revenue under contracts signed today, and none of the pipeline described is included. For 2027, management expects first quarter industry volume to be down around 30% year over year, at least as steep as the fourth quarter, full-year industry volume to be down high single digits to low double digits compared with 2026, with most of the year over year decline in the first half, and full-year EVPFL to be up mid single digit percentages year over year, with more upside than downside to the estimates.