Blend Labs CEO Says 'I Have Never Been More Excited' Even as the Stock Has Fallen Roughly 46%

"It reflects a tale of two dynamics. We saw continued strength and growth in our Consumer Banking Suite, which was offset by some headwinds to revenue in our mortgage business. Consumer Banking now represents 39% of total revenue, up from 29% a year ago. The mix shift is real and accelerating."

"The cost to originate a mortgage loan is still stubbornly high, nearly $11,000, and roughly 90% of that is human labor. The industry is realizing that bolting on more point solutions only adds complexity and costs. His answer is what he calls Blend Intelligent Origination, an AI layer embedded directly into the platform's existing workflow."

"This isn't another tool. It's an entirely new operating model for lending. Critically, he noted this is not yet in the financial model: I see it as a significant growth opportunity beyond what we shared during our last Investor Day."

"In the third quarter, we signed 14 new deals and expansions. But the quality of these deals is what's most important. The headline deal was a seven-figure expansion with a top 20 U.S. bank for solar home equity lending. The sales pipeline itself is up approximately 60% year-over-year."

Blend Labs CEO Nima Ghamsari expressed optimism despite a 46% stock decline, citing a fundamental business transformation. The company operates two distinct segments: Consumer Banking Suite revenue grew 34% year-over-year to $12.7 million, now representing 39% of total revenue, while Mortgage Suite revenue declined 18% to $17.7 million. The mortgage industry faces a persistent $11,000 cost-per-loan origination challenge, with 90% attributable to human labor. Ghamsari introduced Blend Intelligent Origination, an AI-embedded platform layer designed to fundamentally restructure lending workflows rather than add incremental tools. The sales pipeline increased 60% year-over-year, with 14 new deals signed in Q3, including a significant expansion with a top 20 U.S. bank for solar home equity lending. This AI initiative remains unmodeled in current financial guidance.

Read at 24/7 Wall St.