Company: BLND
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001855747-25-000041
Chunk: 307

Company: Blend Labs, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 307
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 a $0.2 million decrease in insurance expenses, offset by a $0.9 million increase in professional and outside services costs and a $0.1 million increase in travel and entertainment costs.

Restructuring

Restructuring expenses decreased $0.3 million, or 26%, for the three months ended March 31, 2025 compared to the three months ended March 31, 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.

33

Interest Expense

Three Months Ended March 31,20252024$ Change % Change(In thousands)Interest expense$— $(5,099)$5,099 (100 %)

Interest expense decreased $5.1 million, or 100%, for the three months ended March 31, 2025 compared to the three months ended March 31, 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

Three Months Ended March 31,20252024$ Change % Change(In thousands)Other income (expense), net$1,114 $5,653 $(4,539)(80 %)

Other income (expense), net decreased $4.5 million, or 80%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease was primarily due to a $4.4 million gain on investment on non-marketable equity securities recognized in the three months ended March 31, 2024 due to an observable price change.

Income Tax Expense

Three Months Ended March 31,20252024$ Change % Change(In thousands)Income tax expense$(30)$(42)$12 (29 %)