Key Highlights

● Second-quarter Revenue was US$33.8 million, up 7% year on year.

● Non-GAAP Operating Income was US$7.0 million, a 21% margin, above guidance.

● Autopilot launched commercially on 1 July 2026 with six lenders signed.

● Blend repurchased 11.0 million shares for US$18.2 million in the quarter.

Latest verified development

Blend Labs, Inc. (NYSE:BLND), which sells digital lending software to banks, Credit unions and Mortgage lenders, last reported results on 6 August 2026. The release was notable for the commercial launch of Autopilot on 1 July 2026, with six lenders signed, and for continued share repurchases.

Management said revenue was near the high end of guidance and non-GAAP operating income above it. Six of the 14 customer relationships added or expanded in the quarter were Autopilot deals; the release does not describe the product in detail.

Second-quarter results

Total revenue was US$33.8 million, up 7% year on year, and software platform revenue was US$31.4 million, also up 7%. The GAAP net loss was US$1.5 million, or US$0.03 per share; the loss from continuing operations was US$1.8 million. Non-GAAP operating income was US$7.0 million, a 21% Margin compared with 15% a year earlier, above the top of the company's guidance.

Non-GAAP gross margin was 78%, up from 76%, while the GAAP Operating Margin remained negative at 5%. The release shows a free Cash Flow margin of 20%, against negative 29% a year earlier. Chief executive Nima Ghamsari said Blend is working toward re-accelerating growth in 2027.

Exiting the Title business

The filing describes the company as exiting its Title business. Income from discontinued operations was US$0.3 million in the quarter, compared with a US$3.0 million loss a year earlier. Assets held for sale were nil at 30 June, against about US$5.0 million at the end of 2025. Reported figures now concentrate on continuing operations, and proceeds from the sale of title assets were not quantified.

Capital allocation and balance sheet

Blend repurchased 11.0 million shares for US$18.2 million in the quarter, an average of roughly US$1.65 per share, leaving US$13.2 million on the authorisation. Cash used in repurchases was US$37.2 million in the first half. Cash and equivalents fell to US$23.3 million from US$45.1 million at the end of 2025, with marketable securities and other investments of US$21.6 million.

The company reports no debt, but it carries US$169.2 million of Series A redeemable convertible preferred stock, and stockholders' Equity was a Deficit of US$74.4 million. Deferred revenue rose to US$31.5 million from US$19.4 million. Total assets fell to US$143.6 million from US$170.0 million, and total liabilities rose to US$48.8 million from US$41.0 million.

Third-quarter guidance

For the third quarter, Blend guided to revenue of US$31.5 million to US$33.5 million and non-GAAP operating income of US$3.5 million to US$4.5 million. That implies a lower margin than the second quarter, and the release does not include full-year guidance.

Autopilot adoption and the buyback balance

Autopilot adoption beyond the first six lenders is the clearest route to the faster growth management is aiming for, set against revenue growth of roughly 7% in the second quarter. The remaining US$13.2 million of buyback capacity sits against cash that fell to US$23.3 million, with the preferred stock still on the balance sheet.

Even the top of the third-quarter revenue range, US$33.5 million, sits below the US$33.8 million reported for the second quarter.