Company: BLND
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001855747-25-000092
Chunk: 9

Company: Blend Labs, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 9
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 change in three months ended September 30, 2025, partially offset by a $9.2 million gain on sale of insurance business during the three months ended September 30, 2024.

Income Tax Expense

Three Months Ended September 30,20252024$ Change % Change(In thousands)Income tax expense$(27)$(21)$(6)29%

The increase in income tax expense for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was immaterial.

36

Comparison of the Nine Months Ended September 30, 2025 and 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