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

Company: Blend Labs, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 11
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 primarily due to a $3.7 million increase in stock-based compensation expense attributable to executive PSUs, a $1.0 million increase in professional and outside services costs, offset by a $2.6 million decrease in personnel related expenses related to our restructuring actions.

Restructuring

Restructuring expenses decreased by $4.9 million, or 85%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to the 2024 workforce reduction plan being larger than the 2025 workforce reduction plan. The costs related to each workforce reduction plan included cash expenditures for compensation and severance payments, employee benefits, payroll taxes and related facilitation costs.

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Interest Expense

Nine Months Ended September 30,20252024$ Change % Change(In thousands)Interest expense$— $(6,747)$6,747 (100%)

Interest expense decreased $6.7 million, or 100%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to the repayment of all remaining amounts outstanding and payable under the Credit Agreement in an aggregate amount of $146.1 million on April 29, 2024. The borrowings under the Credit Agreement accrued interest at a floating rate which could be, at our option, either (i) an adjusted Term SOFR rate for a specified interest period plus an applicable margin of 7.50% or (ii) a base rate plus an applicable margin of 6.50%. The effective interest rate on our Term Loan was approximately 14.55% as of April 29, 2024, the date of its termination.

Other Income (Expense), net

Nine Months Ended September 30,20252024$ Change % Change(In thousands)Other income (expense), net$19,480 $11,874 $7,606 64%

Other income (expense), net increased by $7.6 million, or 64%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily due to a $16.6 million gain on investment on non-marketable equity securities due to an observable price change in nine months ended September 30, 2025, partially offset by a $9.2 million gain on sale of insurance business, a $4.4 million gain on investment