Company: BLND
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001855747-25-000041
Chunk: 23

Company: Blend Labs, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 23
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 months ended March 31, 2025, the second tranche of the Co-Founder and Head of Blend stock option award expired, resulting in a forfeiture of 5,862,866 shares. The total stock-based compensation expense recognized for this award for the three months ended March 31, 2025 and 2024 was $1.4 million and $1.5 million respectively. The total unrecognized compensation expense related to the award was $6.7 million as of March 31, 2025, which will be recognized over an estimated weighted average remaining period of 3.1 years. Stock-Based Compensation ExpenseThe Company’s stock-based compensation expense was as follows:Three Months Ended March 31,20252024Cost of revenue$170 $156 Research and development(1)1,636 3,352 Sales and marketing720 978 General and administrative3,522 3,559 Total$6,048 $8,045 ____________(1) Net of $1.2 million of additions to capitalized internal-use software for the three months ended March 31, 2025, and $0.6 million for the three months ended March 31, 2024.

21

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

12. Restructuring

Workforce Reduction PlansIn 2024, the Company executed two workforce reduction initiatives as part of its broader efforts to improve cost efficiency and better align its operating structure with its business activities. The execution of the January 2024 plan was completed in the second quarter of 2024 and the execution of the September 2024 plan was substantially completed in the fourth quarter of 2024.In 2025, the Company established a new workforce reduction initiative (the “2025 Plan”), and through March 31, 2025, eliminated approximately 20 positions, or 5% of the Company’s then-current workforce. The execution of the 2025 Plan is expected to be substantially completed in the fourth quarter of 2025.The restructuring charges attributable to the workforce reduction plans, amounted to approximately $0.7 million and $1.0 million for the three months ended March 31, 2025 and 2024. The restructuring charges for workforce reduction plans consisted primarily of cash expenditures for compensation, severance, and transition payments, employee benefits, payroll taxes and related facilitation costs. The component classified as discontinued operations incurred an additional $