Company: BLND
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001855747-25-000092
Chunk: 448

Company: Blend Labs, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 448
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 PSUs and 800,000 PSUs, respectively. The New PSUs are scheduled to vest in four tranches upon continued service and satisfaction 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. As of the modification date, the total incremental cost associated with the modified PSUs was $2.8 million, which included $0.2 million of unrecognized compensation costs. Subsequent to September 30, 2025, a total of 975,000 of the New PSUs were canceled and the remaining 325,000 were modified due to the departure of one of the legacy senior executives.The estimated weighted-average grant date fair value of the awards issued during the first quarter of 2025 was $2.07 per share, which 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—

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

The total stock-based compensation expense recognized for PSUs for the three months ended September 30, 2025 and 2024 was $3.1 million and $0.5 million, respectively. The total stock-based compensation expense recognized for PSUs for the nine months ended September 30, 2025 and 2024 was $7.2 million and $1.5 million, respectively. The total unrecognized compensation expense related to all PSUs was $9.3 million as of September 30, 2025, which will be recognized over an estimated weighted average remaining period of 1.2 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 26,057,181