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• Salesforce for mortgage and consumer lenders.
• Stripe for financial institutions' lending operations.

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• Blend Mortgage Suite: A digital platform streamlining the mortgage application, origination, and closing process for lenders and consumers.
• Blend Consumer Banking Suite: An extensible platform for financial institutions to offer digital applications and onboarding for various consumer banking products like personal loans and deposit accounts.
• Blend Income Verification: An automated service for lenders to verify applicant income and employment swiftly.
• Blend Title & Escrow: A service integrating title and escrow operations directly into the digital mortgage workflow for a seamless closing.

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Blend Labs (BLND) primarily sells its cloud-based software platform to other companies, specifically financial institutions. The company's platform helps banks, credit unions, and other lenders streamline their mortgage, home equity, and consumer lending processes.

While Blend Labs serves a diverse customer base and its SEC filings typically indicate that no single customer accounts for a significant portion of its revenue (generally less than 10%), it partners with and provides services to a wide array of prominent financial institutions. Some of the major or notable customers and partners that have publicly used or been associated with Blend's platform include:

• Wells Fargo & Company (NYSE: WFC)
• U.S. Bancorp (NYSE: USB)
• KeyCorp (NYSE: KEY)
• Truist Financial Corporation (NYSE: TFC)
• Regions Financial Corporation (NYSE: RF)
• Other regional banks, credit unions, and independent mortgage lenders across the United States.

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• Amazon Web Services (part of Amazon.com, Inc. - AMZN)
• Twilio Inc. (TWLO)
• Microsoft Corporation (MSFT)
• Google LLC (part of Alphabet Inc. - GOOGL)

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The key risks to Blend Labs' (BLND) business are primarily rooted in its dependence on cyclical markets, ongoing profitability challenges, and intense competition.

1. Market Dependence on Mortgage and Lending Sectors: Blend Labs' revenue is highly susceptible to fluctuations in the mortgage and consumer lending markets, which are directly influenced by interest rates, housing market conditions, and broader economic cycles. Sustained periods of high interest rates, for instance, can significantly depress mortgage volumes, thereby impacting Blend's revenue growth and financial performance. The company's business model is vulnerable to economic downturns and interest rate fluctuations, making it sensitive to macro-economic factors.
2. Lack of Consistent Profitability and Cash Burn: Blend Labs has faced consistent and significant net losses and negative cash flow. The company's long-term viability hinges on its ability to scale revenues sufficiently to offset operating expenses and achieve sustained profitability. Challenges such as slow adoption by banks and institutions, and a lower net value per loan, further exacerbate the difficulty in reaching profitability. There have also been instances where the company faced the risk of being delisted from the NYSE due to its stock price falling below the minimum threshold, indicative of underlying financial pressures.
3. Intense Competition: Blend Labs operates within a highly competitive fintech market, where it contends with both established industry players and emerging startups. This competitive landscape can lead to significant pricing pressures, potential erosion of market share, and the necessity for continuous heavy investment in innovation. Major financial institutions may also opt to develop their own in-house technology solutions rather than purchasing Blend's offerings, posing an additional competitive threat.

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Blend Labs faces significant emerging threats:

• Sustained Decline in Mortgage Origination Volumes: High interest rates have led to a dramatic and prolonged contraction in the mortgage market. This directly impacts Blend's primary revenue source by reducing the number of new loans processed through their platform. Financial institutions, facing reduced activity and profitability, are cutting technology budgets and consolidating vendors, creating intense pricing pressure and leading to delayed or canceled platform implementations for specialized services.

• Market Consolidation and Enhanced Competition: The mortgage technology sector is undergoing significant consolidation, notably the merger of ICE Mortgage Technology (Ellie Mae) and Black Knight. This creates a formidable competitor with a much broader suite of integrated services and an extensive customer base. In a shrinking market, financial institutions may opt for these larger, more integrated solutions from a single vendor, making it challenging for specialized platforms like Blend to compete for new business and retain existing clients.

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• Consumer Use Cases (Broader Consumer Banking): The addressable market opportunity for Blend's consumer use cases, which includes products like deposit accounts, credit cards, personal loans, auto loans, and home equity loans/lines of credit, is estimated at approximately $9.9 billion globally. Within the United States alone, this market is approximately $5.3 billion.
• Mortgage Lending Platform: Banks in the U.S. are currently spending $5.2 billion to originate loans, which represents a significant portion of the addressable market for mortgage software and related services. While the U.S. mortgage market by origination volume was $2.1 trillion as of 2020, Blend's addressable market refers to the software and services provided to facilitate these originations.

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Expected Drivers of Future Revenue Growth for Blend Labs (BLND)

• Expansion of Consumer Banking Suite: Blend Labs is experiencing substantial growth in its Consumer Banking Suite, with revenue increasing significantly year-over-year and quarter-over-quarter. This segment has consistently exceeded the company's growth targets and is a key focus for future expansion, driven by new deployments and increased usage among larger customers.
• Acquisition and Expansion with New and Existing Customers: The company continues to secure new deals and expand its relationships with existing customers across its platform. This includes significant expansions with large financial institutions for various lending solutions, indicating a strong demand for Blend's services and a robust pipeline for future revenue streams.
• Platform Innovation and AI-Driven Solutions: Blend Labs is investing in and launching new platform innovations, particularly in AI-driven financial solutions. The integration of "agentic AI" into core workflows and the positive reception of products like Rapid Home Equity are expected to drive sustained growth by enhancing efficiency and expanding product offerings.
• Mortgage Market Recovery: Despite recent industry headwinds, Blend Labs is strategically positioned to capitalize on an anticipated recovery in mortgage market volumes. The potential for lower mortgage rates in 2026 is viewed as a catalyst for increased origination activity, which would directly benefit the company's Mortgage Suite revenue.
• Shift Towards Higher-Margin Partnerships: Blend Labs is strategically transitioning towards higher-margin, platform-centric partnerships. This focus on more profitable engagements is contributing to improved gross margins and is seen as a way to navigate market challenges and ensure sustainable long-term growth.

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Share Repurchases

• Blend Labs adopted a $25 million share buyback program in August 2024.
• In Q3 2025, Blend Labs repurchased 1.6 million shares totaling $5 million.
• All shares repurchased under the program are retired.

Share Issuance

• Blend Labs conducted an Initial Public Offering (IPO) in July 2021, issuing 20 million shares at $18 per share and raising $360 million.
• Prior to its IPO, Blend had raised $710.5 million in equity capital.
• As of October 31, 2025, there were 256,119,535 Class A common shares outstanding and 3,627,385 Class B common shares outstanding.

Inbound Investments

• Blend Labs raised $710.5 million in equity capital prior to its IPO in July 2021.
• This included a $310 million Series G funding round in January 2021, with Tiger Global and Coatue as lead investors.

Outbound Investments

• Blend Labs acquired Title365, a title insurance agency, in March 2021 for $422.1 million.

Capital Expenditures

• Blend Labs' free cash flow for Q3 2025 was negative $5 million, resulting in a year-to-date positive free cash flow of $1.5 million.
• The company maintains a strong cash position, with $82.3 million in cash and equivalents as of September 30, 2025.
• Future capital expenditures are considered as part of the company's plans for operations.