Blend Labs, Inc. (NYSE:BLND) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Blend Labs, Inc. engages in the provision of cloud-based software platform solutions for financial services firms in the United States. The US$1.2b market-cap company’s loss lessened since it announced a US$185m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$86m, as it approaches breakeven. The most pressing concern for investors is Blend Labs' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Blend Labs

According to the 7 industry analysts covering Blend Labs, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$7.8m in 2026. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 93%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Blend Labs' upcoming projects, but, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. Blend Labs currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on Blend Labs, so if you are interested in understanding the company at a deeper level, take a look at Blend Labs' company page on Simply Wall St. We've also put together a list of important factors you should further research:

1. Valuation: What is Blend Labs worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Blend Labs is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Blend Labs’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.