Blend Reports Stronger Q2 Revenue Driven by Software Growth

Blend Labs reported a stronger second quarter with revenue reaching $33.8 million, marking a 7% increase from the same period in the previous year. This performance exceeded the company's first-quarter revenue of $30.8 million and was driven primarily by the expansion of its software platform business. The digital mortgage technology provider saw its software platform revenue climb to $31.4 million, a 7% year-over-year increase. Complementing this growth, professional services revenue also saw an uptick, rising to $2.4 million from $2.2 million in the prior year's second quarter.

Financially, Blend Labs demonstrated improved profitability by narrowing its operating loss. The company reported a GAAP operating loss of $1.6 million, a significant improvement from the $4.8 million loss recorded in the second quarter of 2025. On a non-GAAP basis, the company's performance was even stronger, with operating income increasing to $7 million, up from $4.6 million in the prior year. The non-GAAP gross margin also saw an improvement, rising to 78% from 76%. Blend Labs concluded the quarter with a healthy financial position, holding $44.9 million in cash, cash equivalents, and marketable securities, and maintained a debt-free status.

Jason Ream, Blend's head of finance and administration, highlighted the company's achievement of its quarterly targets, noting revenue near the high end of projections and profitability exceeding expectations. He also mentioned the strategic return of capital through a share buyback program. The company's GAAP diluted net loss from continuing operations attributable to common stockholders remained stable at 3 cents per share, consistent with the previous year. On a non-GAAP basis, diluted net income from continuing operations achieved break-even, mirroring the second quarter of 2025.

Nima Ghamsari, co-founder and head of Blend, characterized the quarter as "disciplined" and "profitable." He emphasized the company's strategic focus on its new AI-powered Autopilot product and the broader Blend 3.0 initiative. Ghamsari described Blend 3.0 as incorporating "agents we are building inside Blend to help us do our work to serve our customers faster, better and cheaper." He further elaborated that Blend 3.0 is an "agentic-first company," not only in its product offerings but also in its internal operational approach. Ghamsari indicated that the engineering team's efforts are central to this agentic strategy, aiming to enhance efficiency and customer service through AI-driven automation within the Blend ecosystem.