How is Blend Labs positioning Autopilot for lenders?

Sonal Goyal

28 October 2026 04:59 PM AEDT

How is Blend Labs positioning Autopilot for lenders?

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Key Highlights

Blend's second-quarter 2026 Revenue was $33.8 million, up 7%, with platform revenue of $31.4 million.
Autopilot became commercially available on 1 July 2026, and the company reported six lenders signed.
For the third quarter the company guided to revenue of $31.5 million to $33.5 million and non-GAAP Operating Income of $3.5 million to $4.5 million.

Latest results

Blend Labs, Inc. (NYSE:BLND), whose Class A common shares trade on the New York Stock Exchange, published second-quarter 2026 results on 6 August 2026. Total revenue was $33.8 million, up 7% year on year, and platform revenue, the software element, was $31.4 million, also up 7%.

The company reported a GAAP net loss of $1.5 million, of which $1.8 million came from continuing operations. Net loss attributable to common stockholders was $6.4 million. Non-GAAP operating income was $7.0 million, a Margin of 21%, up from $4.6 million a year earlier, while the GAAP operating loss narrowed to $1.6 million from $4.8 million. Blend did not report an adjusted EBITDA figure in the release, so non-GAAP operating income is the closest comparable measure.

Revenue by suite and cash generation

The Mortgage Suite generated $19.2 million, or 57% of total revenue, up 7%. The Consumer Banking Suite contributed $12.2 million, or 36%, up 6%. Together, these two lines account for most of the revenue base, which shows how dependent the company remains on lenders' use of its software.

Gross margin was unchanged on a GAAP basis at 74%, while non-GAAP gross margin improved to 78% from 76%. Free Cash Flow was $6.9 million, a 20% margin, compared with an outflow of $9.0 million in the second quarter of 2025. The company also repurchased 11.0 million shares for $18.2 million in the quarter, leaving $13.2 million on its authorisation.

Blend also said it is exiting its Title business, as set out in the forward-looking statements section of the release. Title operations are classified as discontinued and held for sale; they produced $0.3 million of income in the second quarter, against a loss of $3.0 million a year earlier.

The Autopilot launch

Autopilot became commercially available on 1 July 2026, and the company reported six lenders signed. It also reported that six of the 14 customer relationships added or expanded in the second quarter were Autopilot deals. Chief executive Nima Ghamsari called the launch the bigger milestone and linked it to re-accelerating growth in 2027, which is a management view rather than a result. The release treats the product as a growth driver, though it does not disclose how much revenue Autopilot generated or is expected to generate.

That absence matters. A new product that has been signed by several customers is an operational milestone, but the financial effect only becomes visible when customers move into production and usage translates into recognised revenue.

Guidance and liquidity

For the third quarter of 2026, Blend guided to total revenue of $31.5 million to $33.5 million and non-GAAP operating income of $3.5 million to $4.5 million. The company did not provide full-year guidance in the release. The range at its midpoint, $32.5 million, sits below the second-quarter result of $33.8 million.

Cash and cash equivalents were $23.3 million at 30 June 2026, with a further $21.6 million of marketable securities and other investments. Those are company-reported balances and the release should be consulted for Debt and other obligations that are not summarised here.

What to watch

Key points ahead include the third-quarter report and how closely actual revenue and non-GAAP operating income track the guided ranges, any update on the number of lenders live on Autopilot, the progress of the Title exit, and the growth rates of the two main suites. Cash generation and the level of net loss attributable to common stockholders also merit attention.

FAQs

Q: What were Blend Labs' second-quarter 2026 results?

A: Total revenue was $33.8 million, up 7%, and platform revenue was $31.4 million. Non-GAAP operating income was $7.0 million, a 21% margin, while the GAAP operating loss narrowed to $1.6 million.

Q: What is Autopilot and how many lenders have signed?

A: Autopilot became commercially available on 1 July 2026, and Blend reported six lenders signed. Six of the 14 customer relationships added or expanded in the second quarter were Autopilot deals.

Q: What is Blend's third-quarter guidance?

A: Blend guided to total revenue of $31.5 million to $33.5 million and non-GAAP operating income of $3.5 million to $4.5 million. It did not provide full-year guidance in the release.

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