Blend Labs, Inc. — Earnings Quality Grade F
BLND · Technology
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 26 days, change -20 days YoY
AR growth -40.1% vs revenue growth 6.8%
Revenue 6.8%, CFFO 188.3%. Cash follows revenue
Expense Quality
No material inventory
CapEx growth 19.0% vs revenue 6.8%. Normal
SG&A/Gross Profit = 86.9%, exceeds 70%
Gross margin 73.8%, change +1.9pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -11.5%. Low accruals
Cash $0.1B covers debt $0.0B
Balance Sheet Health
No goodwill. Clean balance sheet
Debt/EBITDA = 0.5x. Healthy
Other assets -44.0% vs revenue 6.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change -100% YoY. Normal
Manipulation Score
M-Score = -3.06 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25