Company: BLND
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001855747-25-000092
Chunk: 329

Company: Blend Labs, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part II, Item 1A
Chunk 329
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 Business

We have entered into an agreement to sell our Title365 business, and we face a number of risks related to such proposed sale.

On June 6, 2025, we entered into a Stock Purchase Agreement (the “Agreement”) with Covius Services, LLC (“Purchaser”). On the terms and subject to the conditions set forth in the Agreement, among other things, (i) Purchaser will purchase from us all of the issued and outstanding shares of capital stock of Title365 Holding Co. (“Title365”) and (ii) we, Purchaser, and Title365 are entering into certain commercial agreements (collectively, the “Transactions”).

The Transactions may be delayed, and may ultimately not be completed, due to a number of factors, including the failure to obtain regulatory approvals from the requisite government entities or the failure to satisfy the other conditions to the completion of the Transactions. If the Transactions are terminated or otherwise not completed, we would not realize any of the expected benefits of the Transactions and may suffer other consequences that could adversely affect our business, results of operations and stock price, including, among others:

•we will have incurred and may continue to incur costs relating to the Transactions, many of which are payable by us whether or not the Transactions are completed;

•matters related to the Transactions require substantial commitments of time and resources by our management team and numerous others throughout our organization, which could otherwise have been devoted to other opportunities;

•we may be subject to legal proceedings related to the Transactions or the failure to complete the Transactions, which could be time consuming and expensive, could divert our management’s attention away from our regular business and, if any lawsuit is adversely resolved against us, could have a material and adverse effect on our financial condition;

•the failure to complete the Transactions may result in negative publicity and a negative perception of us in the investment community, which could negative impact on our stock price; and

•any disruptions to our business resulting from the announcement and pendency of the Transactions, including any adverse changes in our relationships with our customers, partners or employees, may continue to intensify in the event the Agreement is not consummated.

After the completion of the Transactions, we may be required to indemnify Purchaser for certain liabilities. Such liabilities may be greater than we expect and managing the claims may require significant management time and attention.

There is no guarantee that we will realize the expected benefits of the Transactions, including commercial agreements that we entered into with Purchaser and Title365 in connection with the Transactions.