Why Is Micro-Cap Stock Blend Labs Surging After Hours?

• The rise in revenue was helped by strong growth in the software and professional services segments.
• Blend Labs’ adjusted diluted net income per share was break-even ($0.00) in both the fourth quarter of 2025 and the same period last year.
• The company said it expects first quarter revenue for 2026 in the range of $28.5 million to $30 million, which was below Wall Street expectations of $31.5 million. 

Blend Labs shares rallied nearly 9% in extended hours of trading on Tuesday after it posted an upbeat fourth quarter result that cheered investors.

The company posted fourth quarter revenue of $32.4 million, an increase of 7% compared to the fourth quarter of 2024.  Analysts on average had expected the revenue of $31.78 million, as per data from fiscal.ai.

The rise in revenue was helped by strong growth in the software and professional services segment. Software platform revenue was $30.3 million, up 10% year-over-year, and Professional services revenue was $2.1 million compared to $2.5 million in the fourth quarter of 2024.

More Details

Blend Labs’ adjusted diluted net income from continuing operations attributable to common stockholders per share was break-even ($0.00) in both the fourth quarter of 2025 and the same period last year.

The company repurchased 5.1 million shares in the fourth quarter for more than $15 million, bringing the year-to-date total to $25 million.

Outlook

The company said it expects first quarter revenue for 2026 in the range of $28.5 million to $30 million, which was below Wall Street expectations of $31.5 million. 

Blend's first quarter 2026 guidance reflects certain assumptions and expectations related to U.S. aggregate industry mortgage originations. “Our first quarter 2026 market size expectation is 1.10 million to 1.20 million units. For the second quarter of 2026 we expect a sequential volume increase, in line with normal seasonal patterns. Our current expectation for the second quarter of 2026 is 1.50 to 1.60 million units,” the company said in its earnings release. 

"What excites me most going into 2026 is not just our growing roster of customers — it's what we're now able to offer them. Blend Autopilot, our new AI agent, is already live with large customers and is attacking the $11,000 cost-to-originate head-on,” said Nima Ghamsari, Co-founder and Head of Blend.

Retail Reaction

Retail sentiment around BLND trended in ‘bullish’ territory amid ‘high’ message volume. 

Shares in the company have fallen nearly 46% year-to-date. 

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