Blend Labs(US:BLND)2025-05-08 20:06Financial Performance - Blend's platform revenue for Q1 2025 was $26.8 million, an increase of $2.9 million or 12% year-over-year[4] - Total revenue for the three months ended March 31, 2025, was $26.77 million, representing a 12% increase from $23.84 million in the same period of 2024[49] - Gross profit for the same period was $18,958,000, up from $16,042,000, indicating a growth of 11.9%[38] - Gross profit for the software platform was $18.40 million with a gross margin of 76% for Q1 2025, compared to $16.56 million and 76% gross margin in Q1 2024[45] - GAAP gross profit margin improved to 71% in Q1 2025, up from 67% in Q1 2024[9] - Non-GAAP net income from continuing operations for Q1 2025 was $2.04 million, a significant improvement from a loss of $15.22 million in Q1 2024[49] - The company reported a GAAP net loss from continuing operations of $6.61 million for Q1 2025, down from a loss of $20.71 million in Q1 2024[49] - Non-GAAP diluted net loss per share attributable to common stockholders for continuing operations was $(0.04), an improvement from $(0.08) in the previous year[38] - Loss from operations improved to $(7,693,000) compared to $(21,221,000) in the prior year, reflecting a 63.7% reduction in losses[38] - Loss from continuing operations decreased to $6,609 thousand from $20,709 thousand year-over-year[40] Cash Flow and Liquidity - Cash provided by operating activities was $20.1 million in Q1 2025, compared to cash used of $3.0 million in Q1 2024, marking a significant improvement[9] - Free cash flow reached $15.5 million in Q1 2025, compared to a negative $5.0 million in Q1 2024, indicating the first positive free cash flow in the company's history[9] - The company achieved a free cash flow margin of 58% in Q1 2025, a significant increase from a negative 21% in Q1 2024[49] - Cash and cash equivalents increased to $56,244,000 as of March 31, 2025, compared to $38,011,000 at the end of 2024, a growth of 48%[36] - Total cash, cash equivalents, and restricted cash at the end of the period was $61,267 thousand, down from $82,602 thousand a year earlier[40] - The company reported a net cash provided by investing activities of $3,228 thousand, a decrease from $60,621 thousand in the previous year[40] - The company reported a net increase in cash, cash equivalents, and restricted cash of $18,442 thousand, compared to an increase of $53,562 thousand in the prior year[40] Operational Efficiency - Total operating expenses decreased to $26,651,000 from $37,263,000, a reduction of 28.6% year-over-year[38] - GAAP operating expenses decreased to $26.65 million in Q1 2025 from $37.26 million in Q1 2024, reflecting cost efficiency measures[47] - Stock-based compensation for the period was $6,048 thousand, down from $8,045 thousand in the prior year[40] - Stock-based compensation expenses decreased to $6.05 million in Q1 2025 from $8.05 million in Q1 2024, reflecting a reduction in equity-based awards[51] Future Outlook - The company expects Q2 2025 platform revenue to be between $30.5 million and $32.5 million, reflecting anticipated growth in U.S. mortgage originations[7] - For the full year 2025, Blend projects non-GAAP operating expenses to be between $85.0 million and $90.0 million[8] Market Position - The company closed nearly three times as many deals in Q1 2025 compared to the same period last year, including a significant partnership with a top 25 credit union[5] - Record first quarter signings resulted in total remaining performance obligations of $158.1 million, representing a 70% increase year-over-year[4] - The company serves 10 of the top 20 mortgage servicers in the U.S., highlighting its growing market presence[5] - Economic Value per Funded Loan is used to measure success in broadening client relationships and selling additional products through the software platform[24] Debt Management - The company repaid all outstanding debt in April 2024, eliminating any debt service obligations[30]