Blend Labs (BLND) TTM Loss Improvement Challenges Bearish Profitability Narratives

Blend Labs (BLND) just posted its FY 2025 fourth quarter numbers, with revenue of US$32.4 million and a basic EPS loss of US$0.03, while net income excluding extra items came in at a loss of US$7.1 million. The company has seen quarterly revenue move from US$41.4 million in Q4 2024 to US$32.4 million in Q4 2025, with basic EPS shifting from a loss of US$0.03 in Q4 2024 to a loss of US$0.03 in the latest quarter. As a result, this reporting period is likely to draw attention to how the loss profile and broader revenue base are influencing underlying margins.

See our full analysis for Blend Labs.

With the headline numbers on the table, the next step is to see how this earnings print lines up with the widely followed narratives around growth, profitability, and the path forward for Blend Labs.

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TTM loss narrows to US$20.3 million

• On a trailing twelve month basis, Blend Labs reported total revenue of US$123.5 million and a net income loss excluding extra items of US$20.3 million for FY 2025, compared with a loss of US$60.5 million on US$162.0 million of revenue a year earlier.
• What stands out for the bullish narrative is that the long term data points to losses improving at about 19.4% per year over five years, while trailing twelve month revenue is described as growing around 13% per year. Bulls see the current US$20.3 million loss as part of a longer trend toward better earnings, even though the most recent quarter still showed a loss of US$7.1 million and Basic EPS of about US$0.03 in the red.

Supporters who think earnings can move from a US$20.3 million trailing loss to positive territory are watching how quickly the income statement is changing quarter by quarter, not just the latest headline numbers. 🐂 Blend Labs Bull Case

Volatile EPS swing within FY 2025

• Within FY 2025 alone, Basic EPS moved from a loss of about US$0.05 in Q1 to a profit of about US$0.03 in Q3, then back to a loss of about US$0.03 in Q4, while quarterly net income excluding extra items ranged from a loss of US$12.1 million in Q1 to a profit of US$7.9 million in Q3 and a loss of US$7.1 million in Q4.
• Bears focus on this choppy pattern and argue it lines up with their view that reliance on mortgage related activity and large deals can make results fragile, pointing out that trailing twelve month net income is still a loss of US$20.3 million and profitability metrics are reported as negative, even as some quarters like Q3 2025 briefly showed positive net income of US$7.9 million and Basic EPS above zero.
• That mix of one profitable quarter and several loss making ones is what cautious investors flag when they talk about exposure to mortgage cycles and client concentration risk.
• It also feeds into their concern that higher spending to keep up with new technology could limit how quickly those positive quarters become consistent across an entire year.

For anyone leaning toward the cautious side, this back and forth between profitable and loss making quarters is a reminder to look closely at how repeatable the better quarters really are. 🐻 Blend Labs Bear Case

Mixed signals from growth forecasts and valuation

• The analysis data cites forecast revenue growth of about 13% per year and forecast earnings growth of about 66.5% per year, alongside a current P/S of 3.8x that sits above both the US software industry average of 3.5x and the peer average of 3.3x. The DCF fair value is given as US$3.33 against a current share price of US$1.82.
• Analysts' consensus narrative balances these figures by pointing to expected revenue and margin improvement on one side and current unprofitability on the other, so the 3.8x P/S and the gap between the US$1.82 share price and the US$3.33 DCF fair value are often used together to show how growth expectations and ongoing losses are both being priced in at the same time.
• Supporters of the growth story lean on the 13% revenue growth rate and strong earnings growth forecasts when they look at that DCF fair value premium to the current share price.
• More cautious investors look at the higher P/S multiple and the fact that trailing twelve month net income is still a loss of US$20.3 million before they decide how comfortable they are with those growth assumptions.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Blend Labs on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mixed picture of losses, forecasts, and valuation has you thinking hard, act quickly and review the underlying data for yourself. Pay particular attention to the company specific positives that analysts are watching in our breakdown of 3 key rewards.

Explore Alternatives

Blend Labs is still working through a US$20.3 million trailing loss, inconsistent quarterly EPS, and reliance on mortgage related activity that keeps results choppy.

If that mix of ongoing losses and earnings swings feels uncomfortable, take a few minutes to scan our 67 resilient stocks with low risk scores and compare steadier options against this profile.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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