BLND

Blend is a credible turnaround that isn't yet a quality business. The bottom line has healed dramatically: net loss narrowed to -$6.80M in FY2025 from -$43.3M (FY2024), -$179M (FY2023) and a -$720M blowout in FY2022, and operating cash flow swung to +$11.5M (+188%). Gross margin of 73.8% is genuinely SaaS-grade, and the balance sheet carries zero long-term debt, $43.6M cash and a ~2.4x current ratio ($139M current assets vs. $57.6M current liabilities) — enough runway to finish the job. That combination is why this is a hold, not an avoid.

But the quality bar isn't cleared. Revenue is $124M, roughly half the $234–235M of 2021–2022 (partly the Title segment reclassified to discontinued ops, per Note 16), and forward growth is only +6.8% — thin for a name at P/S 3.7. The company still loses money at the operating line (-17.6% margin), equity is negative (-$17.2M) against a -$1.39B accumulated deficit, and R&D was cut 28.7%, which flatters near-term cash but questions the growth engine. The MD&A confirms a success-based, self-reported revenue model that is hard to forecast and, per the Risk Factors, 'substantially dependent' on mortgage volumes and 'adversely affected' by higher rates — so the improving trend is levered to a cycle management doesn't control.