Company: BLND
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001855747-25-000017
Chunk: 79

Company: Blend Labs, Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 79
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 if an IPO is completed within 15 months of the date of grant, the first tranche of 1,954,289 shares will vest. The remaining tranches of shares will vest dependent on performance goals tied to the Company’s stock price hurdles with specified expiration dates for each tranche. In July 2021, the first tranche of the Co-Founder and Head of Blend stock option award vested upon completion of the IPO. The remaining tranches were valued using a Monte Carlo simulation model. The weighted average estimated fair value of the remaining tranches was $3.80 per share based on the following assumptions:Fair value of common stock$18.00Remaining contractual term (years)14.75Expected volatility40.00%Risk-free interest rate1.71%Expected dividend yield—The total stock-based compensation expense recognized for this award for the years ended December 31, 2024, 2023 and 2022 was $5.8 million, $12.3 million and $19.6 million, respectively. 

112

Blend Labs, Inc.Notes to Consolidated Financial Statements

The total unrecognized compensation expense related to the award was $8.1 million as of December 31, 2024, which will be recognized over an estimated weighted average remaining period of 3 years. Stock-Based Compensation ExpenseThe Company’s stock-based compensation expense was as follows:Year Ended December 31,202420232022Cost of revenue$527 $1,132 $2,069 Research and development(1)9,870 19,046 47,280 Sales and marketing3,546 7,137 11,725 General and administrative14,134 18,706 48,628 Total$28,077 $46,021 $109,702 ____________(1) Net of $2.5 million of additions to capitalized internal-use software for the year ended December 31, 2024, and none for the years ended December 31, 2023 and 2022.

13. Restructuring

Workforce Reduction PlansIn 2022, the Company executed three workforce reduction initiatives as part of its broader efforts to improve cost efficiency and better align its operating structure with its business activities, with the focus on streamlining the Company’s title operations as well as its general and administrative functions. In April 2022, the Company committed to its first workforce reduction plan (the “April Plan”), which eliminated approximately