Company: BLND
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001855747-25-000069
Chunk: 444

Company: Blend Labs, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 444
---
 fourth quarter of 2024.In 2025, the Company established a new workforce reduction initiative (the “2025 Plan”), and through June 30, 2025, eliminated approximately 20 positions, or 5% of the Company’s then-current workforce. The execution of the 2025 Plan is expected to be substantially completed in the fourth quarter of 2025.The restructuring charges attributable to the workforce reduction plans were not material for the three months ended June 30, 2025 and 2024, and $0.7 million and $1.1 million for the six months ended June 30, 2025 and 2024, respectively. The restructuring charges for workforce reduction plans consisted primarily of cash expenditures for compensation, severance, and transition payments, employee benefits, payroll taxes and related facilitation costs. The component classified as discontinued operations incurred an additional $0.5 million and $1.2 million in charges related to the 2025 plan for the three and six months ended June 30, 2025, respectively. Refer to Note 16, Assets Held for Sale and Discontinued Operations.The reconciliation of the restructuring liability balances is as follows:(In thousands)Restructuring liability as of December 31, 2023$31 January 2024 Plan charge1,086 September 2024 Plan charge1,442 Settlements(2,484)Restructuring liability as of December 31, 2024$75 2025 Plan charge747 Settlements(811)Restructuring liability as of June 30, 2025$11 

22

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

13. Income Taxes

The provision for income taxes was not material for the three and six months ended June 30, 2025 and 2024. The effective tax rate for the three months ended June 30, 2025 and 2024 was (1.1)% and (0.2)%, respectively, and for the six months ended June 30, 2025 and 2024 was  (0.7)% and (0.2)% respectively. The effective tax rates differ from the federal statutory rate primarily due to a valuation allowance on the Company’s deferred tax assets.The Company reassessed the ability to realize deferred tax assets by considering the available positive and negative evidence. As of June 30, 2025, the Company concluded that its net deferred tax assets