Company: BLND
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001855747-25-000069
Chunk: 389

Company: Blend Labs, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 389
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 were cancelled and on the same date, the Company’s compensation committee granted new PSUs (the “New PSUs”) to each of the legacy senior executives, covering a total of 1,300,000 PSUs and 800,000 PSUs, respectively. The New PSUs are scheduled to vest in four tranches upon continued service and satisfaction 

20

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

of certain market-based performance targets related to the Company’s stock price hurdles. The cancellation and concurrent replacement of these awards was accounted for as a modification. As the modification relates to unvested awards, the Company will recognize, on a prospective basis over the remaining requisite service period, the incremental cost associated with the modified PSUs, inclusive of any previously unrecognized compensation cost for the original awards. The total incremental cost associated with the modified PSUs was $2.8 million, 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,