Blend Labs Q3 2026: Revenue Beats but Earnings Miss, Q4 Guidance Steps Down

Blend Labs reported Q3 2026 revenue of $32.91 million, edging 1.36% past analyst expectations, but its adjusted earnings per share came in at $0.00, missing the $0.0075 consensus estimate entirely. The company is generating sales momentum that has yet to translate into consistent per-share profitability.

Management closed 26 new deals and expansions in the quarter, including a new top-10 bank logo, and CEO Nima Ghamsari called it the best sales quarter in more than three years. The AI-driven Autopilot product grew from six customers to ten in roughly two months, and Ghamsari noted the pipeline behind it is now large enough to size.

Underneath that optimism, the segment picture was uneven. The Consumer Banking Suite grew 5% year over year to $13.19 million, but the Mortgage Suite, which at $17.41 million is the larger piece of the business, declined 2% year over year. Professional Services also edged down 1%, leaving overall revenue essentially flat on an annual basis despite the sequential deal activity.

Cost discipline provided a meaningful offset. Total operating expenses fell to $26.40 million from $29.63 million a year earlier, narrowing the GAAP operating loss to $2.65 million. Non-GAAP operating income reached $4.9 million, above the high end of guidance.

Q4 2026 revenue guidance of $27.7 million to $29.7 million implies a meaningful sequential step-down from the $32.91 million just reported. Management is pointing to non-GAAP operating income of $2.3 million to $3.3 million for Q4, holding profitability, but the revenue trajectory heading into year-end will test whether the pipeline Ghamsari described converts quickly enough to offset the seasonal and macro pressures on mortgage origination volumes.