Company: BLND
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001855747-25-000092
Chunk: 7

Company: Blend Labs, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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 $21,546 $(3,811)(18%)Consumer Banking Suite12,724 9,520 3,204 34%Professional Services2,401 2,038 363 18%Total revenue32,860 33,104 (244)(1%)Cost of revenue:8,404 8,604 (200)(2%)Gross profit and gross margin:$24,456 74 %$24,500 74 %$(44)—%

Total revenue decreased by $0.2 million, or 1%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. 

•Mortgage Suite revenue decreased by $3.8 million, or 18%, primarily due to a decrease in homeowner’s insurance revenue related to the Strategic Partnership and Sale of Insurance Business (Refer to Note 3, Revenue Recognition and Contract Costs), verification of income revenue in connection with transition to the partnership model, customer churn, and the impact of renewal pricing in one of our large contracts, partially offset by overall mortgage market growth.

•Consumer Banking Suite revenue increased by $3.2 million, or 34%, primarily due to deployments of several large customers, resulting in an increase in home equity and deposit account opening revenue. 

•Professional Services revenue increased by $0.4 million, or 18%, primarily due to an increase in consulting services and an increase in professional services associated with the support of our platform.

Cost of revenue decreased by $0.2 million, or 2%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to a decrease in personnel related expenses attributable to a decrease in headcount related to our restructuring actions. 

Gross profit and gross margin remained flat for the three months ended September 30, 2025 and 2024.

Operating Expenses

Three Months Ended September 30,20252024$ Change % Change(In thousands)Operating expenses:Research and development$8,522 $10,127 $(1,605)(16%)Sales and marketing7,873 9,473 (1,600)(17%)General and administrative12,879 11,482 1,397 12%Restructuring93 4,701 (4,608)(98%)Total operating expenses$29,367 $35,783 $(6,416)(18