Blend Labs, Inc. (NYSE:BLND): Is Breakeven Near?

We feel now is a pretty good time to analyse Blend Labs, Inc.'s (NYSE:BLND) business as it appears the company may be on the cusp of a considerable accomplishment. Blend Labs, Inc. provides a cloud-based software platform for financial services firms in the United States. The US$858m market-cap company’s loss lessened since it announced a US$60m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$35m, as it approaches breakeven. The most pressing concern for investors is Blend Labs' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Blend Labs is bordering on breakeven, according to the 7 American Software analysts. They expect the company to post a final loss in 2026, before turning a profit of US$14m in 2027. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 88% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Blend Labs' growth isn’t the focus of this broad overview, though, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

See our latest analysis for Blend Labs

One thing we’d like to point out is that Blend Labs has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Blend Labs to cover in one brief article, but the key fundamentals for the company can all be found in one place – Blend Labs' company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:

1. Valuation: What is Blend Labs worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Blend Labs is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Blend Labs’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.