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    Blend Labs (BLND) Is Up 7.4% After Doubling Down On AI Mortgage Automation And Home Equity Plans

    Simply Wall St·12/10/2025 05:17:30
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    • In early December 2025, Blend Labs outlined at the Wells Fargo 9th Annual TMT Summit how it is concentrating on core software, integrating AI to speed up mortgage processing, and expanding its Rapid Suite, following a shift away from non-core operations and a move to non-GAAP operating profitability.
    • The company also revealed plans for its new Rapid Home Equity product, which it expects will significantly increase revenue earned per loan unit, while recent insider share purchases and stronger-than-expected quarterly results have reinforced investor interest in its AI-driven platform focus.
    • We’ll now examine how Blend’s push into AI-enhanced mortgage automation and Rapid Home Equity could reshape its existing investment narrative.

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    Blend Labs Investment Narrative Recap

    To own Blend Labs, you need to believe its AI driven mortgage and banking software can grow fast enough to outweigh cyclical mortgage weakness and historically low revenue per loan. The Wells Fargo TMT Summit update supports that thesis by emphasizing AI integration and non GAAP operating profitability, but the key short term catalyst remains whether Rapid Suite adoption can offset pressure on mortgage volumes, while the biggest risk stays Blend’s dependence on improving unit economics in a still fragile housing market.

    The most relevant update here is Blend’s Rapid Home Equity rollout, which management expects will significantly lift revenue earned per loan unit. For a business that has previously seen revenue per loan squeezed by lower margin partnership models and large contracts with softer upfront pricing, any tangible improvement in unit economics could be critical for offsetting mortgage market cyclicality and supporting the broader AI and consumer banking growth story.

    Yet behind the promise of higher revenue per loan, there is a less obvious risk investors should be aware of around...

    Read the full narrative on Blend Labs (it's free!)

    Blend Labs' narrative projects $197.5 million revenue and $3.4 million earnings by 2028. This requires 5.6% yearly revenue growth and a $38.4 million earnings increase from -$35.0 million today.

    Uncover how Blend Labs' forecasts yield a $4.68 fair value, a 40% upside to its current price.

    Exploring Other Perspectives

    BLND 1-Year Stock Price Chart
    BLND 1-Year Stock Price Chart

    Private investors in the Simply Wall St Community see fair value for Blend Labs from about US$2.04 up to roughly US$5.60, reflecting very different expectations for its prospects. As you weigh those views, remember that Blend’s push into AI enhanced mortgage automation and Rapid Home Equity comes against a backdrop of pressure on mortgage suite revenue and a business model that still needs healthier unit economics to support long term performance.

    Explore 7 other fair value estimates on Blend Labs - why the stock might be worth as much as 68% more than the current price!

    Build Your Own Blend Labs Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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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.