Blend Labs, Inc.

Previous wording

The development of our business reflects continued product innovation as we continue to attract financial services firms to our software platform and grow with them as they serve consumers. Financial services firms have been shifting for years to a digital-first approach to acquiring consumers, delivering products, and deepening existing consumer relationships. This imperative to compete through digital-first consumer experiences creates a compelling opportunity for Blend. We believe there is a large, untapped opportunity to provide additional product offerings and drive increased transaction volume for financial institutions and consumers using our software platform.

Current wording

The development of our business reflects ongoing product innovation as we continue to attract financial services firms to our software platform and grow with them as they serve consumers. Financial services firms have been shifting for years to a digital-first approach to acquiring consumers, delivering products, and deepening existing consumer relationships. This imperative to compete through digital-first consumer experiences creates a compelling opportunity for Blend. We believe there is a large, untapped opportunity to provide additional product offerings and drive increased transaction volume for financial institutions and consumers using our software platform.

Previous wording

The mortgage market is heavily influenced by government policies and overall economic conditions. The real estate environment, including interest rates and the general economic environment, typically impacts the demand for mortgage and mortgage related products.

Current wording

The mortgage market is heavily influenced by government policies and overall economic conditions. The real estate environment, including interest rates and the general economic environment, typically impacts the demand for mortgage and mortgage related products. In the first quarter of 2026, we saw a decrease in mortgage transactions on our software platform compared to the last quarter of 2025, which can be attributed primarily to seasonal trends within the purchase market.

Previous wording

As part of our efforts to simplify our business, in the first quarter of 2025, we made a decision to exit our title operations, and on June 9, 2025, we entered into a definitive agreement to sell our title insurance business to a third party. The transaction is subject to certain required third-party consents and regulatory approvals, and is expected to close later in the fiscal year.

Current wording

As part of our efforts to simplify our business, in the first quarter of 2025, we made a decision to exit our title operations, and on March 1, 2026, we completed the sale of substantially all the assets and liabilities of our title insurance business to a third party.

Previous wording

The divestiture is part of our strategic shift to transform into a platform-first company along with the further expansion of our partner ecosystem. We intend to structure the transaction in a way that would allow us to strategically exit the capital-intensive title agency business while maintaining unit economics that we believe will be beneficial in a macro recovery. In connection with this initiative, the results of our previously reported Title segment are currently presented as discontinued operations. Refer to Note 16, Assets Held for Sale and Discontinued Operations, of the Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for additional information.

Current wording

The divestiture is part of our strategic shift to transform into a platform-first company along with the further expansion of our partner ecosystem. We structured the transaction in a way that would allow us to strategically exit the capital-intensive title agency business while maintaining unit economics that we believe will be beneficial in a macro recovery. In connection with this initiative, the results of our previously reported Title segment are currently presented as discontinued operations. Refer to Note 15, Assets Held for Sale and Discontinued Operations, of the Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for additional information.

Previous wording

We have taken actions to manage our operating expenses and focus our investments on initiatives critical to achieving our broader strategy. As part of our broader efforts to improve cost efficiency and better align our operating structure with our business activities and the current market, since 2022, we implemented several workforce reduction actions and in 2024, we entered into an agreement to fully terminate one of our leases and abandoned another leased facility. Refer to Note 12, Restructuring, of the Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for additional information regarding our workforce reduction actions and leases optimization.

Current wording

We have taken actions to manage our operating expenses and focus our investments on initiatives critical to achieving our broader strategy. As part of our broader efforts to improve cost efficiency and better align our operating structure with our business activities and the current market, since 2022, we implemented several workforce reduction actions. Refer to Note 11, Restructuring, of the Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for additional information regarding our workforce reduction actions.

Previous wording

Our customers have the ability to access our platform under subscription arrangements, in which customers commit to a minimum number of completed transactions at specified prices over the contract term, or under usage-based arrangements, in which customers prepay a fixed amount in advance, typically annually or semi-annually, based on their anticipated consumption of specified products at specified prices or pay monthly in arrears a variable amount for completed transactions at specified prices. Our subscription and prepaid usage-based arrangements are generally noncancelable, and we may also earn additional overage fees if the number of completed transactions exceeds the contractual amounts. Our usage-based arrangements paid in arrears can generally be terminated at any time by the customer. We recognize revenue ratably for our subscription arrangements because the customer receives and consumes the benefits of our platform throughout the contract period. We recognize fees for usage-based arrangements as the completed transactions are processed using our platform. Over the last year, we have seen a shift away from subscription arrangements towards prepaid multi-year usage-based arrangements in our customer contracts. Revenue from third-party providers for access to our platform is recognized ratably over the term of the contract.

Current wording

Our customers have the ability to access our platform under subscription arrangements, in which customers commit to a minimum number of completed transactions at specified prices over the contract term, or under usage-based arrangements, in which customers prepay a fixed amount in advance, typically annually or semi-annually, based on their anticipated consumption of specified products at specified prices or pay monthly in arrears a variable amount for completed transactions at specified prices. Our subscription and prepaid usage-based arrangements are generally noncancelable, and we may also earn additional overage fees if the number of completed transactions exceeds the contractual amounts. Our usage-based arrangements paid in arrears can generally be terminated at any time by the customer. We recognize revenue ratably for our subscription arrangements because the customer receives and consumes the benefits of our platform throughout the contract period. We recognize fees for usage-based arrangements as the completed transactions are processed using our platform. Since 2023, we have seen a shift away from subscription arrangements towards prepaid multi-year usage-based arrangements in our customer contracts. Revenue from third-party providers for access to our platform is recognized ratably over the term of the contract.

Previous wording

Restructuring charges relate to our workforce reduction plans and facilities restructuring actions. Charges related to workforce reduction plans are comprised of cash expenditures for compensation and severance payments, employee benefits, payroll taxes and related facilitation costs. Refer to Note 12, Restructuring, of the Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for additional information.

Current wording

Restructuring charges related to workforce reduction plans are comprised of cash expenditures for compensation and severance payments, employee benefits, payroll taxes and related facilitation costs. Refer to Note 11, Restructuring, of the Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for additional information.

Previous wording

Other income (expense), net consists primarily of interest income earned from our investment portfolio, as well as adjustments to the carrying value of investment in non-marketable equity securities.

Current wording

Other income (expense), net consists primarily of unrealized gains and losses on and interest income earned from our investment portfolio.

Previous wording

Starting with the first quarter of 2025, we classified the results of our previously reported Title segment as discontinued operations. Refer to Note 15, Segment Information, and Note 16, Assets Held for Sale and Discontinued Operations, of the Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for additional information. Prior period information has been reclassified to conform to the current period presentation.

Current wording

Starting with the first quarter of 2025, we classified the results of our previously reported Title segment as discontinued operations. Refer to Note 14, Segment Information, and Note 15, Assets Held for Sale and Discontinued Operations, of the Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for additional information.

Previous wording

(2) Net of $0.6 million and $2.9 million of additions to capitalized internal-use software for the three and nine months ended September 30, 2025, and $0.8 million and $1.9 million for the three and nine months ended September 30, 2024.

Current wording

(2) Net of $0.1 million, $1.2 million of additions to capitalized internal-use software for the three months ended March 31, 2026 and 2025, respectively.

Previous wording

•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.

Current wording

•Professional Services revenue increased by $0.3 million, or 12%, primarily due to an increase in services associated with the support of our platform.

Previous wording

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 revenue while decreasing cost of revenue as we continue to focus on operational efficiency.

Current wording

Gross profit increased by $4.4 million, or 23%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 due to increased revenue, margin expansion from partnership model transitions, and a favorable non-recurring benefit recognized in cost of revenue during the three months ended March 31, 2026. Gross margin was 76% for the three months ended March 31, 2026 compared to 71% for the three months ended March 31, 2025.

Previous wording

Research and development expenses decreased by $1.6 million, or 16%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was primarily due to a $2.3 million decrease in personnel related expenses and a $0.8 million decrease in stock-based compensation expense attributable to a decrease in headcount, in each case, related to our restructuring actions, offset by a $1.4 million increase in the capitalization of internal-use software development costs.

Current wording

Research and development expenses increased by $1.6 million, or 20%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily due to a $4.1 million decrease in the capitalization of internal-use software development costs, offset by a $1.8 million decrease in personnel related expenses and a $1.1 million decrease in stock-based compensation expense, both attributable to a decrease in headcount related to our restructuring actions.

Previous wording

General and administrative expenses increased by $1.4 million, or 12%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was primarily due to a $1.8 million increase in stock-based compensation expense attributable to executive PSUs, partially offset by a $0.2 million decrease in personnel related expenses attributable to a decrease in headcount as well as a $0.3 million decrease in facilities costs, each related to our restructuring actions.

Current wording

Sales and marketing expenses decreased by $1.0 million, or 14%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily due to a $0.4 million decrease in stock-based compensation expense attributable to a decrease in headcount related to our restructuring actions, a $0.3 million decrease in professional and outside services, and a $0.2 million decrease in facilities related expenses.

Previous wording

General and administrative expenses increased by $2.5 million, or 7%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily due to a $3.7 million increase in stock-based compensation expense attributable to executive PSUs, a $1.0 million increase in professional and outside services costs, offset by a $2.6 million decrease in personnel related expenses related to our restructuring actions.

Current wording

General and administrative expenses increased by $0.9 million, or 8%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily due to a $1.2 million increase in stock-based compensation expense attributable to recently granted executive awards, a $0.4 million increase in professional and outside services costs, offset by a $0.4 million decrease in business taxes and a $0.2 million decrease in personnel and related expenses.

Previous wording

Restructuring expenses decreased by $4.6 million, or 98%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to the 2024 workforce reduction plan being larger than the 2025 workforce reduction plan. The costs related to each workforce reduction plan included cash expenditures for compensation and severance payments, employee benefits, payroll taxes and related facilitation costs.

Current wording

Restructuring expenses were materially consistent across the three months ended March 31, 2026 and the three months ended March 31, 2025, as the smaller headcount impact of the 2026 workforce reduction plan was offset by higher severance costs driven by differences in the composition of the impacted workforce. The costs related to each workforce reduction plan included cash expenditures for compensation and severance payments, employee benefits, payroll taxes and related facilitation costs.

Previous wording

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.

Current wording

The increase in income tax expense for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 is attributable to increase in business operations in India.

Previous wording

Since our inception, we have financed our operations primarily through proceeds from the issuance of our stock and warrants and cash generated from the sale of our product offerings, as well as debt financing. As of September 30, 2025, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $77.3 million. Cash and cash equivalents are comprised of bank deposits and money market funds. Marketable securities are comprised of U.S. treasury and agency securities, commercial paper, and corporate debt securities. Most of our cash and cash equivalents are held in the United States.

Current wording

Since our inception, we have financed our operations primarily through proceeds from the issuance of our stock and warrants and cash generated from the sale of our product offerings, as well as debt financing. As of March 31, 2026, our principal sources of liquidity were cash, cash equivalents, and marketable securities of $59.0 million. Cash and cash equivalents are comprised of bank deposits and money market funds. Marketable securities are comprised of U.S. treasury and agency securities. Most of our cash and cash equivalents are held in the United States.

Previous wording

We have generated significant losses from operations and negative cash flows from operating activities in the past as reflected in our accumulated deficit of $1,388.3 million as of September 30, 2025. We may incur operating losses in the future due to the investments that we intend to make in our business and pressures on revenue growth due to the recent macroeconomic environment, and as a result, we may require additional capital resources to grow our business.

Current wording

Although we generated positive cash flow from operations for the three months ended March 31, 2026, we have generated significant losses from operations and negative cash flows from operating activities in the past as reflected in our accumulated deficit of $1,399.8 million as of March 31, 2026. We may incur operating losses in the future due to the investments that we intend to make in our business and pressures on revenue growth due to the recent macroeconomic environment, and as a result, we may require additional capital resources to grow our business.

Previous wording

In August 2024, we announced the authorization of a share repurchase program for the repurchase of shares of our Class A common stock, in an aggregate amount up to $25 million. Repurchases may be made at out discretion from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements, and other relevant factors. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Exchange Act. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of our Class A common stock under this authorization. The share repurchase program does not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares of our Class A common stock. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities. During the three and nine months ended September 30, 2025, we repurchased and retired 1,589,809 and 2,857,471 shares of our Class A common stock for $5.1 million and $9.2 million, respectively. As of September 30, 2025, approximately $15.8 million remained authorized and available under our share repurchase program for future share repurchases. Refer to Note 10, Stockholder’s Equity, of the Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for additional information.

Current wording

On March 10, 2026, we announced the authorization of a new share repurchase program for the repurchase of shares of our Class A common stock, in an aggregate amount up to $50.0 million. Our prior share repurchase program was fully completed during the year ended December 31, 2025. Repurchases may be made at our discretion from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements, and other relevant factors. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18 of the Exchange Act. We may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of our Class A common stock under this authorization. The share repurchase program does not obligate us to repurchase any specific dollar amount or to acquire any specific number of shares of our Class A common stock. The timing and actual number of shares repurchased may depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities. During the three months ended March 31, 2026 and 2025, we repurchased and retired 10,041,359 and 922,996 shares of our Class A common stock for $16.6 million and $3.1 million, respectively. We repurchased additional 1,192,600 shares for $2.0 million on March 31, 2026, which settled the following business day. Including shares in-transit, we had $31.4 million available to repurchase shares of Class A common stock under our share repurchase program as of March 31, 2026. Refer to Note 9, Stockholders’ Equity, of the Notes to Unaudited Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for additional information.

Previous wording

On April 29, 2024, we entered into an Investment Agreement (the “Investment Agreement”) with Haveli Brooks Aggregator L.P. (“Haveli”) and issued 150,000 shares of our Series A Preferred Stock (the “Series A Preferred Stock”) for an aggregate purchase price of $150.0 million. In connection with the issuance of the Series A Preferred Stock, we issued the Haveli Warrant to purchase up to 11,111,112 shares of Class A common stock, at a purchase price of $4.50 per share of Class A common stock. The Haveli Warrant is exercisable for a period of 24 months from issuance.

Current wording

On April 29, 2024, we entered into an Investment Agreement (the “Investment Agreement”) with Haveli Brooks Aggregator L.P. (“Haveli”) and issued 150,000 shares of our Series A Preferred Stock (the “Series A Preferred Stock”) for an aggregate purchase price of $150.0 million. In connection with the issuance of the Series A Preferred Stock, we issued the Haveli Warrant to purchase up to 11,111,112 shares of Class A common stock, at a purchase price of $4.50 per share of Class A common stock. The Haveli Warrant was exercisable for a period of 24 months from issuance and expired on April 29, 2026.

Previous wording

Net cash provided by operating activities for the nine months ended September 30, 2025 was $12.1 million and net cash used in operating activities for the nine months ended September 30, 2024 was $5.0 million. The change in cash from operations reflects our net loss adjusted for noncash items, such as charges associated with stock-based compensation, depreciation and amortization, gain on investment in equity securities, amortization of deferred contract costs, amortization of operating lease right-of-use assets, and amortization of debt discount and issuance costs on our long-term debt, and changes in operating assets and liabilities. Fluctuations in operating assets and liabilities are affected primarily by changes in trade and other receivables, prepaid expenses and other current assets, deferred contract costs, accrued compensation, deferred revenue, accounts payable and other liabilities.

Current wording

Net cash provided by operating activities for the three months ended March 31, 2026 and 2025 was $8.5 million and $19.8 million, respectively. The change in cash from operations reflects our net loss adjusted for noncash items, such as stock-based compensation, depreciation and amortization, amortization of deferred contract costs, amortization of operating lease right-of-use assets, equity in losses of equity method investees, as well as changes in operating assets and liabilities. Fluctuations in operating assets and liabilities are affected primarily by changes in trade and other receivables, prepaid expenses and other current assets, deferred contract costs, accrued compensation, deferred revenue, accounts payable and other liabilities.

Previous wording

Net cash used in investing activities during the nine months ended September 30, 2025 was $20.0 million, which was primarily due to the sale of available-for-sale securities of $20.8 million and maturities of marketable securities of $44.2 million, offset by $30.5 million used in the purchase of marketable securities and $10.6 million in additions to property and equipment, primarily related to capitalized internal-use software development costs, and a $4.0 million investment in non-marketable equity securities.

Current wording

Net cash provided by investing activities during the three months ended March 31, 2026 was $1.9 million, which was primarily due to the maturities of marketable securities of $8.0 million, offset by $5.0 million used in the purchase of marketable securities and $1.1 million in additions to property and equipment, primarily related to capitalized internal-use software development costs.

Previous wording

Net cash provided by investing activities during the nine months ended September 30, 2024 was $47.3 million, which was primarily due to sales of marketable securities of $100.3 million, maturities of marketable securities of $41.9 million, proceeds from sale of insurance business of $9.1 million, offset by $96.4 million used in the purchase of marketable securities and $7.2 million in additions to property and equipment related to capitalized internal-use software development costs.

Current wording

Net cash provided by investing activities during the three months ended March 31, 2025 was $3.6 million, which was primarily due to maturities of marketable securities of $18.9 million and sales of marketable securities of $0.8 million, offset by $11.9 million used in the purchase of marketable securities and $4.3 million in additions to property and equipment related to capitalized internal-use software development costs.

Previous wording

Net cash used in financing activities for the nine months ended September 30, 2025 was $15.0 million, primarily consisting of payment of taxes related to net share settlement of equity awards of $7.4 million and $9.1 million related to share repurchases, offset by $1.5 million proceeds from the exercises of stock options.

Current wording

Net cash used in financing activities for the three months ended March 31, 2026 was $17.9 million, primarily consisting of $16.8 million related to share repurchases and $1.1 million of taxes paid related to net share settlement of equity awards, offset by $0.1 million proceeds from the exercises of stock options.