Blend Labs

BLND

Software - Application · Technology

Price

$1.81

+0.03 (+1.69%)

Market Cap

$438.2M

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count rising — dilution

+12.4% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 230.3M (2021) → 258.9M (2025)

Blend Labs makes software that helps banks and lenders process loan applications faster. Its platform is used by mortgage lenders, banks, and credit unions to handle home loans, personal loans, and deposit account openings digitally. The company powers the loan application process for many of the largest U.S. banks, including Wells Fargo and U.S. Bank.

Blend earns money by charging financial institutions a fee each time a consumer completes a transaction through its platform, such as submitting a mortgage application. It operates almost entirely in the United States, where it has built integrations with major banking systems that make it costly for customers to switch providers. However, the company is not yet profitable, and its revenue is closely tied to mortgage origination volume, which fell sharply when interest rates rose — meaning a prolonged high-rate environment remains the central risk to its business recovering.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+15.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+11.8% YoY

YoY Growth Rate

Steady EPS growth

R&D Spend

$33M/ year

↓ Declining (-29% vs prior year)

26.6% of revenue

1.8x the sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

29.2%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$39M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Blend Labs is a rare growth stock that's already generating positive cash flow while growing at 15%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

75.8%

Premium pricing power — 75.8% gross margin

Operating Margin

-14.3%

Losing money on operations — -14.3%

ROCE

-4.1%

Weak — -4.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY

-10.1%

Shrinking sales (-10.1% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-7.6%

Burning cash (-7.6%)

Free cash flow is negative. They are burning cash, not generating it.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity

N/A

Data not available

Interest Cover

N/A

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Not applicable for this business.

🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.

Start free trial