Company: BLND
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001855747-25-000069
Chunk: 442

Company: Blend Labs, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 442
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 which included $0.2 million of unrecognized compensation costs. The estimated weighted-average grant date fair value of the awards issued during the first quarter of 2025 was $2.07 per share The estimated weighted-average grant date fair value of all awards was determined using a Monte Carlo simulation model. The significant assumptions in the Monte Carlo simulation model include the risk-free interest rate, expected volatility of the Company’s stock price, and expected life of the award.Fair value of common stock$3.49 - $3.89Remaining contractual term (years)4.81 - 4.92Expected volatility90%Risk-free interest rate4.01% - 4.35%Expected dividend yield—The total stock-based compensation expense recognized for PSUs for the three months ended June 30, 2025 and 2024 was $3.1 million and $0.5 million, respectively. The total stock-based compensation expense recognized for PSUs for the six months ended June 30, 2025 and 2024 was $4.1 million and $1.1 million, respectively. The total unrecognized compensation expense related to all PSUs was $12.4 million as of June 30, 2025, which will be recognized over an estimated weighted average remaining period of 1.4 years.Non-Plan Co-Founder and Head of Blend Options In March 2021, the Company’s board of directors granted to its Co-Founder and Head of Blend a stand-alone stock option issued outside of the 2012 Plan covering a maximum of 26,057,181 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 tr