Company: BLND
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001855747-25-000092
Chunk: 467

Company: Blend Labs, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 467
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2024

Revenue and Cost of Revenue

Nine Months Ended September 30,20252024$ Change% Change(In thousands)Revenue:Mortgage Suite$50,334 $55,078 $(4,744)(9%)Consumer Banking Suite33,776 24,199 9,577 40%Professional Services7,043 6,363 680 11%Total revenue91,153 85,640 5,513 6%Cost of revenue:24,433 24,757 (324)(1%)Gross profit and gross margin:$66,720 73 %$60,883 71 %$5,837 10%

Total revenue increased by $5.5 million, or 6%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. 

•Mortgage Suite revenue decreased by $4.7 million, or 9%, 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 $9.6 million, or 40%, primarily due to deployments of several large customers, resulting in an increase in home equity and deposit account opening revenue and an increase in attach rates of our digital closing solution. 

•Professional Services revenue increased by $0.7 million, or 11%, primarily due to an increase in professional services associated with the support of our platform.

Cost of revenue decreased by $0.3 million, or 1%, for the nine months ended September 30, 2025 compared to the nine months ended September 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 $5.8 million, or 10%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 due to increased revenue. Gross margin was 73% for the nine months ended September 30, 2025 compared to 71% for the nine months ended September 30, 2024. The increase in gross profit was primarily due to expanding Consumer Banking Suite