As you might know, Blend Labs, Inc. (NYSE:BLND) just kicked off its latest third-quarter results with some very strong numbers. Results overall were solid, with revenues arriving 7.7% better than analyst forecasts at US$45m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.03 per share, were 7.7% smaller than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Blend Labs

Taking into account the latest results, the consensus forecast from Blend Labs' six analysts is for revenues of US$197.1m in 2025. This reflects a sizeable 26% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 88% to US$0.042. Before this earnings announcement, the analysts had been modelling revenues of US$201.7m and losses of US$0.056 per share in 2025. While the revenue estimates fell, sentiment seems to have improved, with the analysts making a very promising decrease in losses per share in particular.

The consensus price target rose 8.4% to US$3.88, with the analysts increasingly optimistic about shrinking losses, despite the expected decline in revenue. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Blend Labs analyst has a price target of US$4.75 per share, while the most pessimistic values it at US$3.25. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Blend Labs' growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Blend Labs to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Blend Labs analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Blend Labs that we have uncovered.

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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.