Blend Rides Mortgage Rebound In Q4, Dismisses ‘saaspocalypse’ Fears

Blend Labs Inc. ended 2025 with a profitable quarter as improved mortgage market conditions supported its business, while executives said the company is largely insulated from the recent “SaaSpocalypse” affecting the software industry.

The company reported non-GAAP operating income of $5.4 million in the fourth quarter, up from $4.3 million in the third quarter and $3.7 million in Q4 2024. For the full year, non-GAAP operating income totaled $15 million, compared with a loss of $12.7 million in 2024.

Business pipeline growth

During the fourth quarter, Blend signed 10 new deals and expansions, including two new mortgage customers, one of which has been a consumer banking client since 2023. Both agreements include bundled mortgage and closing products, which the company said are incrementally accretive to unit economics.

“Our overall pipeline remains robust, up approximately 40% year over year,” CEO Nima Ghamsari said during the company’s earnings call. “We are seeing a structural shift toward bundled deals.”

Total revenue increased 7% year over year to $32.4 million in the fourth quarter and $123.5 million for the full year. 

Revenue in the mortgage suite reached $18.8 million in the fourth quarter, up from $17.7 million in the prior quarter and $18.2 million in the same period a year earlier

“Stabilizing churn and stronger-than-expected macro bolstered our mortgage revenue results,” Jason Ream, the company’s chief financial officer, said during the earnings call. “Blend’s funded loan growth was solid, growing 11% in Q4, and our economic value per funded loan came in at $83 for the fourth quarter, within the guidance range we gave on our last call.”

In the banking suite, revenue declined to $11.5 million in the fourth quarter, compared with $12.6 million in the third quarter, but up from $9.5 million in Q4 2024. Ream said the sequential decline was primarily driven by the churn of one large customer as well as seasonal trends in home equity lending.

What’s ahead in 2026?

Earlier this month, the company officially launched Blend Autopilot, an AI agent designed to operate throughout the company’s origination platform as borrowers move through the application process. Seven clients are already using the tool or want to activate it in the coming days, Ghamsari said.

“It serves as a product that looks at every document, looks at every data field, checks it against the guidelines, runs calculations, creates additional follow-ups, takes action if necessary, and is familiar with the most technical guidelines out there,” he said.

Addressing broader industry concerns about the so-called “SaaSpocalypse” — the market turmoil tied to investor uncertainty about AI’s impact on software companies — Ghamsari said Blend’s revenue model provides a buffer.

Because the company monetizes based on funded loans rather than user seats, AI-driven efficiency for customers does not cannibalize Blend’s revenue, he said.

“In fact, when our AI helps a loan officer close five times as many loans, our revenue scales with their success, which is how we’ve always wanted it,” Ghamsari said. 

Blend ended the year with no debt and more than $68 million in cash and securities. The company repurchased 5.1 million shares — worth $15 million — in the fourth quarter alone, while its board authorized up to $50 million in additional stock repurchases.

Looking ahead, Blend expects first-quarter non-GAAP operating income to range between $2 million and $3 million. Total revenue for the quarter is projected to fall between $28.5 million and $30 million, representing growth of 6% to 12% compared with Q1 2025.

 “We are expecting mortgage suite revenue to grow at or above the high end of that range, but for consumer banking growth to be more muted,” Ream said. 

Blend’s forecast assumes a U.S. mortgage market of 1.1 million to 1.2 million funded loans in the first quarter. That growth is expected to be partially offset by slightly lower economic value per funded loan (estimated at $84 to $85) on a year-over-year basis, due to the transition of certain products to a partner model.