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$1.3b market-cap company posted a loss in its most recent financial year of US$185m and a latest trailing-twelve-month loss of US$86m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Blend Labs will turn a profit, with the big question being "when will the company breakeven?" In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

According to the 7 industry analysts covering Blend Labs, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$7.8m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 93% is expected, which is extremely buoyant. 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 forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that Blend Labs has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high 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 key factors you should look at:

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.