Blend Labs Corporate Overview 2026 Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Blend's future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $31.5 million, a 10% year-over-year increase, marking the fourth consecutive quarter of growth [23][24] - Non-GAAP gross profit was $24 million, with a non-GAAP gross margin of 76%, up from 71% in 2024 [26] - Non-GAAP operating income was $4.7 million, representing a non-GAAP operating margin of 15% [27] - Free cash flow for the quarter was negative $9 million, compared to negative $5.1 million in the same quarter last year [27] - Remaining performance obligations (RPO) reached a record $190 million, up from $158 million in 2024 [30] Business Line Data and Key Metrics Changes - Consumer banking revenue increased by 43% year-over-year to $11.4 million, now representing 36% of total revenue, up from 28% a year ago [18][24] - Mortgage suite revenue decreased by 3% year-over-year to $18 million, primarily due to lower economic value per funded loan (eVPFL) [24] - eVPFL for 2025 was $88, down from $97 a year ago, attributed to the shift to a partnership model [24][29] Market Data and Key Metrics Changes - The estimated market volumes for 2025 are projected to be between 4.24 million and 4.64 million, representing year-over-year growth of 5% to 15% [31] - The second quarter market volume estimate was between 1.15 million and 1.25 million units, with expectations for slight downticks in Q3 and Q4 [32] Company Strategy and Development Direction - The company is focused on expanding market share through new customer acquisitions and deepening relationships with existing customers [6][12] - The strategic shift to a simplified platform model aims to enhance operational efficiency and capitalize on market recovery [22] - The introduction of products like Rapid Refi and Blend Close is expected to drive future revenue growth and improve customer engagement [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current market challenges and capitalize on future opportunities [19] - The company has stabilized its customer base, reporting zero churn notices in 2025, which positions it well for future growth [10][41] - Management anticipates that the upcoming AI tools will enhance operational efficiency and customer service, further driving growth [20][72] Other Important Information - The company repurchased approximately 1.3 million shares worth over $4 million, with $20.9 million remaining under the repurchase authorization [27] - A definitive agreement to sell Title 365 to Covius was announced, aligning with the company's software-first model [22] Q&A Session Summary Question: Factors contributing to potential volume unlock - Management noted that small rate movements significantly impact customer volume, and the home equity business is helping to insulate against rate fluctuations [36][39] Question: Implementation and ramp of large customer - The ramp for large customers will come from mortgage solutions and the adoption of new products like Blend Close and Rapid Refi [43][46] Question: Mix of new logos versus expansions - Management indicated that many new logos are competitive takeaways, and the company is seeing a good pipeline of new customers [49][50] Question: Rule of 40 guidance - Management is monitoring the macro environment and will provide updates in future calls regarding the Rule of 40 [58] Question: Investment needed for AI initiatives - The company is early in its AI journey, focusing on internal efficiency and customer outcomes, with no specific investment number provided [70][72]