Company: BLND
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001855747-25-000069
Chunk: 461

Company: Blend Labs, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 461
---
 Partnership and Sale of Insurance Business (Refer to Note 3, Revenue Recognition and Contract Costs) and verification of income revenue in connection with transition to the partnership model, offset by overall mortgage market growth.

•Consumer Banking Suite revenue increased by $6.4 million, or 43%, primarily due to an increase in home equity and deposit account opening transaction volumes and an increase in attach rates of our digital closing solution. 

•Professional Services revenue increased by $0.3 million, or 7%, primarily due to an increase in professional services associated with the support of our platform.

Cost of revenue decreased by $0.1 million, or 1%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily driven by a decrease in personnel related expenses attributable to a decrease in headcount related to our restructuring actions. 

Gross profit increased by $5.9 million, or 16%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to increased revenue. Gross margin was 73% for the six months ended June 30, 2025 compared to 69% for the six 

36

months ended June 30, 2024. The increase in gross profit was primarily due to expanding Consumer Banking Suite revenue while keeping consistent cost of revenue as the Company continues to focus on operational efficiency. 

Operating Expenses

Six Months Ended June 30,20252024$ Change % Change(In thousands)Operating expenses:Research and development$14,853 $27,099 $(12,246)(45%)Sales and marketing14,137 18,759 (4,622)(25%)General and administrative24,844 23,729 1,115 5%Restructuring747 1,086 (339)(31%)Total operating expenses$54,581 $70,673 $(16,092)(23%)

Research and Development 

Research and development expenses decreased by $12.2 million, or 45%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The decrease was primarily due to a $5.4 million increase in the capitalization of internal-use software development costs, as well as a $4.4 million decrease in personnel related expenses and a $1.8 million decrease in stock-based compensation expense attributable to a decrease in headcount,