Blend Labs reported stronger-than-expected Q1 results, driven by mortgage and consumer banking growth, and outlined AI-driven expansion plans.
Blend Labs (NYSE:BLND) posted Q1 revenue of $30.8 million, a 15% year-over-year increase, exceeding guidance alongside $4.1 million in non-GAAP operating income. The company cited 18% growth in its mortgage suite and 12% in consumer banking as key drivers, ending the quarter with $59 million in cash and no debt.
The company’s AI product, Autopilot, is gaining traction with 65 lenders activated and 22 live in production, touching over 7,000 applications. Blend plans to monetize Autopilot starting in June, projecting it could add 10% to 15% to top-line growth by 2027. However, Q2 guidance remains cautious, with revenue expected between $32 million and $34 million amid higher mortgage rates and softer refinancing conditions.
Management warned of a potential 100-basis-point headwind to 2026 market share due to volume roll-off at a large customer. The quarter also saw 15 new deals, including partnerships with a top 20 bank and another top 100 bank.