Blend posts smaller Q3 loss but warns of mortgage revenue decline

Blend Labs reported a narrower loss in the third quarter and its strongest sales period in over three years, according to HousingWire.

The company's total revenue for Q3 was $32.9 million, a 1% increase from the same quarter in 2025, while its GAAP operating loss improved to $2.6 million from $5.3 million a year earlier.

Blend's mortgage suite revenue declined 2% year over year to $17.4 million, with funded mortgages down 4% to 194,000 and economic value per loan at $81.

Rising mortgage rates, which increased from about 6.8% in August to over 7.5% in September, contributed to a drop in loan applications for both purchases and refinances, the company noted.

Blend expanded its Autopilot product from six to ten customers, seeing strong pipeline growth, and closed 26 new deals and expansions in Q3, more than doubling the value of deals from the first half of the year.

The company expects mortgage revenue to decline further next year and plans to rely on converting its Autopilot pipeline to drive growth.

Lenders are increasingly using Blend's Rapid Mortgage and Rapid Home Equity solutions to reduce per-loan costs and speed up consumer processes amid a compressed market.