Company: BLND
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001855747-25-000041
Chunk: 8

Company: Blend Labs, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 8
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 within deferred contract costs, non-current, on the unaudited condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024, respectively. 

10

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

The amortization of deferred contract costs was $0.3 million for the three months ended March 31, 2025 and 2024, respectively, and is included in sales and marketing expense in the accompanying unaudited condensed consolidated statements of operations and comprehensive income (loss).Strategic Partnership and Sale of Insurance BusinessOn September 30, 2024, the Company entered into a multi-element transaction with Covered Insurance Solutions which included a strategic partnership agreement as well as the sale of the Company’s insurance business. As part of the strategic partnership agreement, the Company granted a five-year term license allowing Covered Insurance Solutions to integrate its insurance solutions into the Company’s platform for an annual fixed fee plus variable charges. The Company has determined the term license is a performance obligation under ASC 606, Revenue from Contracts with Customers. The deferred revenue liability related to the performance obligations recognized under the strategic partnership agreement was $0.9 million  as of March 31, 2025.

4. Investments and Fair Value Measurements

The carrying amount, unrealized gain and loss, and fair value of investments by major security type were as follows:March 31, 2025AmortizedCostGrossUnrealized GainFair ValueFair Value Hierarchy(In thousands)Cash equivalents:  Money market funds$15,140 $— $15,140 Level 1Commercial paper19,829 — 19,829 Level 2Total cash equivalents34,969 — 34,969 Marketable securities:U.S. treasury and agency securities28,823 96 28,919 Level 2Commercial paper7,514 — 7,514 Level 2Debt securities12,047 94 12,141 Level 2Total marketable securities48,384 190 48,574 Restricted cash, current:Money market funds5,023 — 5,023 Level 1Total$88,376 $190 $88,566 

11

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

December 31, 2024AmortizedCostGrossUnrealized GainFair ValueFair Value Hierarchy(In thousands