When Will Blend Labs, Inc. (NYSE:BLND) Turn A Profit?

With the business potentially at an important milestone, we thought we'd take a closer look at Blend Labs, Inc.'s (NYSE:BLND) future prospects. Blend Labs, Inc. engages in the provision of cloud-based software platform solutions for financial services firms in the United States. The US$1.3b market-cap company posted a loss in its most recent financial year of US$185m and a latest trailing-twelve-month loss of US$86m shrinking the gap between loss and breakeven. As path to profitability is the topic on Blend Labs' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Blend Labs

Blend Labs is bordering on breakeven, according to the 7 American Software analysts. They expect the company to post a final loss in 2025, before turning a profit of US$7.8m in 2026. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 93%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Blend Labs' growth isn’t the focus of this broad overview, however, bear 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.

Before we wrap up, there’s one aspect worth mentioning. Blend Labs currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Blend Labs, so if you are interested in understanding the company at a deeper level, take a look at Blend Labs' company page on Simply Wall St. We've also compiled a list of important factors you should further research:

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.