Blend Labs, Inc. reported a total revenue of $26.8 million for the first quarter of 2025, marking a 12% increase from $23.8 million in the same period last year. The growth was driven by a 45% rise in revenue from the Consumer Banking Suite, which reached $9.6 million, while revenue from the Mortgage Suite decreased by 3% to $14.6 million. The company’s gross profit also improved, rising to $19.0 million, resulting in a gross margin of 71%, up from 67% in the prior year. Despite the revenue growth, Blend Labs recorded a net loss of $9.4 million, a significant reduction from the $20.7 million loss reported in the first quarter of 2024.
The company has undergone substantial operational changes, including a strategic decision to exit its Title business, which has been classified as discontinued operations. This move is part of Blend's broader strategy to focus on its core software platform and expand its partner ecosystem. The restructuring efforts have led to a reduction in operating expenses, which fell by 28% to $26.7 million compared to the previous year. Notably, research and development expenses decreased by 47% to $7.5 million, reflecting a shift in resource allocation following workforce reductions.
In terms of customer engagement, Blend Labs reported a notable increase in transaction volumes within its Consumer Banking Suite, attributed to higher home equity and deposit account openings. The company also indicated a shift in customer contracts from subscription-based to prepaid multi-year usage arrangements, which may impact future revenue recognition. As of March 31, 2025, Blend had cash and cash equivalents totaling $56.2 million, alongside marketable securities of $48.6 million, providing a solid liquidity position to support ongoing operations and strategic initiatives.
Looking ahead, Blend Labs anticipates that mortgage origination activity will improve in the second quarter of 2025, driven by application volume trends observed in its customer base. However, the company remains cautious about the potential impacts of macroeconomic factors, including interest rate fluctuations and housing market conditions, on its business performance. The management emphasized its commitment to disciplined cost management and efficient investment strategies to navigate the current economic landscape while pursuing growth opportunities in new markets.
About Blend Labs, Inc.
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