Blend posts smaller Q3 loss, warns of steeper mortgage revenue drop ahead

Blend Labs narrowed its loss in the third quarter and logged its strongest period of sales in more than three years, even as rising mortgage rates pressured loan volumes and its core mortgage suite revenue declined. Total revenue in the third quarter was $32.9 million, up 1% from the same period in 2025, the company reported Thursday. GAAP operating loss was $2.6 million, an improvement from a $5.3 million loss a year earlier. “The market got harder, but we’re moving faster than ever,” Nima Ghamsari, co-founder and head of Blend, told analysts on an earnings call. “When we spoke in August, mortgage rates were about 6.8%. After the Fed raised rates in September, they hit a high of north of 7.5%. And as you can expect, applications dropped with them — purchase and refinance both.” Blend closed 26 new deals and expansions during the quarter. In dollar terms, the company said, these moves represented more than twice the combined value of its first- and second-quarter deals. Churn notices in the quarter represented about $2 million of annual revenue, an improvement from roughly $3 million in the second quarter. Based on a lighter churn environment in the first quarter and subsequent imp...