Company: BLND
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001855747-25-000069
Chunk: 390

Company: Blend Labs, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 390
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181 shares of Class B common stock with an exercise price of $8.58 per share. The award has a 15-year term (subject to earlier termination when shares subject to the award are no longer eligible to vest) and vests upon the satisfaction of a service condition, liquidity event-related performance condition, and performance-based market conditions. The terms of the award stipulated that 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—In three months ended March, 31 2025, the second tranche of the Co-Founder and Head of Blend stock option award expired, resulting in a forfeiture of 5,862,866 shares. 

21

Blend Labs, Inc.Notes to Condensed Consolidated Financial Statements(Unaudited)

The total stock-based compensation expense recognized for this award for the three months ended June 30, 2025 and 2024 was $0.9 million and $1.5 million respectively. The total stock-based compensation expense recognized for this award for the six months ended June 30, 2025 and 2024 was $2.3 million and $2.9 million respectively. The total unrecognized compensation expense related to the award was $5.9 million as of June 30, 2025, 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:Three Months Ended June 30,Six Months Ended June 30,2025202420252024(In thousands)Cost of revenue$116 $106 $286 $262 Research and development(1)1,252 2,567 2,888 5,919 Sales and marketing618 875 1,338