Blend Labs, Inc 10-Q for FY2026 Q1

Blend Labs, Inc. (BLND)

10-Q 2026-05-07 For: 2026-03-31

Added on May 07, 2026

About this 10-Q

Blend Labs, Inc filed this 10-Q on May 7, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $30.84M; up 14.9% from $26.85M a year earlier
Net loss: $8.05M; compared with a net loss of $9.52M a year earlier
Diluted EPS: -$0.05; compared with -$0.06 a year earlier

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Delaware						45-5211045
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☒


		Page
	PART I - Financial Information	1
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statement of Operations and Comprehensive Loss	2
	Condensed Consolidated Statements of Redeemable Noncon trolling Int e rest, Ser ies A Redeemable Convertible Preferred St ock, and Stockholders' Equity	3
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	38

	PART II - Other Information	40
Item 1.	Legal Proceedings	40
Item 1A.	Risk Factors	40
Item 2.	Un reg istered Sales of Equity Securities and Use of Proceeds	80
Item 3.	Defaults Under Senior Securities	80
Item 4.	Mine Safety Disclosures	80
Item 5.	Other Information	81
Item 6.	Exhibits and Financial Statement Schedules	81
Signatures


	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	37,430	$	45,061
Marketable securities and other investments	21,607		24,739
Trade and other receivables, net of allowance for credit losses of $79 and $112, respectively	17,880		8,786
Prepaid expenses and other current assets	16,183		17,257
Current assets held for sale from discontinued operations	—		3,958
Total current assets	93,100		99,801
Property and equipment, net	22,624		22,997
Operating lease right-of-use assets	1,271		1,394

Deferred contract costs	3,382		3,425
Other non-current assets	40,882		41,425
Non-current assets held for sale from discontinued operations	—		1,003
Total assets	$	161,259	$	170,045
Liabilities, redeemable equity and stockholders’ equity
Current liabilities:
Accounts payable	$	259	$	1,858
Deferred revenue	34,022		19,385
Accrued compensation	3,988		4,560
Other current liabilities	13,181		11,523
Current liabilities held for sale from discontinued operations	—		2,128
Total current liabilities	51,450		39,454

Other non-current liabilities	1,496		1,569


Total liabilities	52,946		41,023
Commitments and contingencies (Note 7)

Series A redeemable convertible preferred stock, par value $0.00001 per share: 200,000 shares authorized as of March 31, 2026 and December 31, 2025, 150 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively (Note 8)	164,226		159,495
Stockholders’ equity:
Class A, Class B and Class C Common Stock, par value $0.00001 per share: 3,000,000 (Class A 1,800,000, Class B 600,000, Class C 600,000) shares authorized as of March 31, 2026 and December 31, 2025; 247,336 (Class A 244,080, Class B 3,256, Class C 0) and 256,043 (Class A 252,787, Class B 3,256, Class C 0) shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively	2		2
Additional paid-in capital	1,343,247		1,360,704
Accumulated other comprehensive income	663		597
Accumulated deficit	(1,399,825)		(1,391,776)
Total stockholders’ equity	(55,913)		(30,473)
Total liabilities, redeemable equity and stockholders’ equity	$	161,259	$	170,045


	Three Months Ended March 31,
	2026		2025
Revenue
Software platform	$	27,993	$	24,302
Professional services	2,850		2,543

Total revenue	30,843		26,845
Cost of revenue
Software platform	5,768		5,898
Professional services	1,710		1,947

Total cost of revenue	7,478		7,845
Gross profit	23,365		19,000
Operating expenses:
Research and development	9,413		7,842
Sales and marketing	6,198		7,188
General and administrative	12,153		11,231


Restructuring	662		719
Total operating expenses	28,426		26,980
Loss from operations	(5,061)		(7,980)

Other income (expense), net	40		1,114
Loss before income taxes	(5,021)		(6,866)
Income tax expense	(63)		(30)
Loss before equity in losses of equity method investees	(5,084)		(6,896)
Equity in losses of equity method investees, net of tax	(381)		—
Loss from continuing operations	(5,465)		(6,896)
Loss from discontinued operations (Note 15)	(2,584)		(2,803)
Net loss	(8,049)		(9,699)
Less: Net loss attributable to noncontrolling interest included in discontinued operations	—		182
Net loss attributable to Blend Labs, Inc.	(8,049)		(9,517)
Less: Accretion of redeemable noncontrolling interest to redemption value from discontinued operations	—		(1,254)
Less: Accretion of Series A redeemable convertible preferred stock to redemption value	(4,731)		(4,202)
Net loss attributable to Blend Labs, Inc. common stockholders	$	(12,780)	$	(14,973)

Net loss per share attributable to Blend Labs, Inc. common stockholders - basic and diluted:
Continuing operations	$	(0.04)	$	(0.04)
Discontinued operations	$	(0.01)	$	(0.02)

Net loss per share attributable to Blend Labs, Inc. common stockholders	$	(0.05)	$	(0.06)
Weighted average shares used in calculating net loss per share:
Basic and diluted	255,630		258,832
Comprehensive loss:
Net loss	$	(8,049)	$	(9,699)
Unrealized (loss) gain on marketable securities	(106)		6
Foreign currency translation gain (loss)	172		(43)
Comprehensive loss	(7,983)		(9,736)
Less: Comprehensive loss attributable to noncontrolling interest included in discontinued operations	—		182
Comprehensive loss attributable to Blend Labs, Inc.	$	(7,983)	$	(9,554)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


		Three Months Ended March 31, 2026
		Series A Redeemable Convertible Preferred Stock					Common Stock				Additional Paid-In Capital		Accumulated Other Comprehensive Income		Accumulated Deficit		Total Stockholders’ Equity

	Shares		Amount			Shares		Amount
Balances as of December 31, 2025		150		$	159,495		256,043		$	2	$	1,360,704	$	597	$	(1,391,776)	$	(30,473)
Issuance of common stock upon exercise of stock options, net of repurchases		—		—			110		—		96		—		—		96
Vesting of restricted stock units		—		—			1,888		—		—		—		—		—
Shares withheld related to net share settlement of equity awards		—		—			(664)		—		(1,127)		—		—		(1,127)
Stock-based compensation		—		—			—		—		6,928		—		—		6,928
Unrealized loss on investments in marketable securities		—		—			—		—		—		(106)		—		(106)
Foreign currency translation gain		—		—			—		—		—		172		—		172

Accretion of Series A redeemable convertible preferred stock to redemption value		—		4,731			—		—		(4,731)		—		—		(4,731)
Share repurchases		—		—			(10,041)		—		(18,623)		—		—		(18,623)

Net loss		—		—			—		—		—		—		(8,049)		(8,049)
Balances as of March 31, 2026		150		$	164,226		247,336		$	2	$	1,343,247	$	663	$	(1,399,825)	$	(55,913)


	Three Months Ended March 31, 2025
	Redeemable noncontrolling interest - held for sale from discontinued operations		Series A Redeemable Convertible Preferred Stock			Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity

			Shares	Amount		Shares	Amount
Balances as of December 31, 2024	$	52,375	150	$	141,663	258,173	$	2	$	1,328,015	$	602	$	(1,384,975)	$	(56,356)
Issuance of common stock upon exercise of stock options	—		—	—		256	—		363		—		—		363
Vesting of restricted stock units	—		—	—		2,064	—		—		—		—		—
Shares withheld related to net share settlement of equity awards	—		—	—		(745)	—		(2,971)		—		—		(2,971)
Stock-based compensation	—		—	—		—	—		7,202		—		—		7,202
Unrealized gain on investments in marketable securities	—		—	—		—	—		—		6		—		6
Foreign currency translation loss	—		—	—		—	—		—		(43)		—		(43)
Accretion of redeemable noncontrolling interest to redemption value	1,254		—	—		—	—		(1,254)		—		—		(1,254)
Accretion of Series A redeemable convertible preferred stock to redemption value	—		—	4,202		—	—		(4,202)		—		—		(4,202)
Share repurchases	—		—	—		(923)	—		(3,076)		—		—		(3,076)
Reclassification of noncontrolling interest to equity, net of noncash consideration received	(53,447)		—	—		—	—		52,675		—		—		52,675
Net loss	(182)		—	—		—	—		—		—		(9,517)		(9,517)
Balances as of March 31, 2025	$	—	150	$	145,865	258,825	$	2	$	1,376,752	$	565	$	(1,394,492)	$	(17,173)


Contract Accounts	Balance Sheet Line Reference	March 31, 2026		December 31, 2025
		(In thousands)
Contract assets—current	Prepaid expenses and other current assets	$	3,366	$	5,266
Contract liabilities—current	Deferred revenue, current	$	(34,022)	$	(19,385)


	March 31, 2026
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value		Fair Value Hierarchy
	(In thousands)
Cash equivalents:
Money market funds	$	13,242	$	—	$	—	$	13,242	Level 1


Marketable securities:
U.S. treasury and agency securities	21,628		25		(46)		21,607		Level 2



Restricted cash, current:
Money market funds	1,935		$	—	$	—	$	1,935	Level 1
Total	$	36,805	$	25	$	(46)	$	36,784


	(In thousands)
2026	$	292
2027	396
2028	416
2029	436




2030	135
Thereafter	—
Total lease payments	1,675
Less: imputed interest	(318)
Total operating lease liabilities	$	1,357


	Number of options	Weighted average exercise price		Weighted average remaining contractual life	Aggregate intrinsic value




	(In thousands)			(In years)	(In thousands)
Balance as of December 31, 2025	15,170	$	4.02	3.99	$	14,414

Exercised	(110)	$	0.87		$	—
Canceled	(292)	$	11.74
Balance as of March 31, 2026	14,768	$	3.89	3.73	$	2,999


Vested and exercisable as of March 31, 2026	14,196	$	3.95	3.73	$	2,999


	Number of RSUs	Weighted average grant date fair value per share
	(In thousands)
Balance as of December 31, 2025	12,739	$	2.84
Granted	3,632	$	1.75
Vested	(1,888)	$	2.36
Forfeited	(429)	$	3.02
Balance as of March 31, 2026	14,054	$	2.62


	Number of PSUs	Weighted average grant date fair value per share
	(In thousands)
Balance as of December 31, 2025	7,260	$	2.06
Granted	992	$	0.57

Canceled and forfeited	(625)	$	0.64
Balance as of March 31, 2026	7,627	$	1.97


Application			3 years
Integration			4 years
Platform			5 years


Fair value of common stock			$1.75
Remaining contractual term (years)			3.87
Expected volatility			90%
Risk-free interest rate			3.57%
Expected dividend yield			—


Fair value of common stock			$18.00
Remaining contractual term (years)			14.75
Expected volatility			40.00%
Risk-free interest rate			1.71%
Expected dividend yield			—


	(In thousands)
Restructuring liability as of December 31, 2024	$	75
2025 Plan charge	871
Settlements	(934)
Restructuring liability as of December 31, 2025	$	12
2026 Plan charge	662
Settlements	(528)
Restructuring liability as of March 31, 2026	$	146


	As of March 31,
	2026	2025
	(In thousands)
Outstanding stock options	14,768	16,608

Non-plan Co-Founder and Head of Blend options	20,194	20,194
Unvested restricted stock units	14,054	14,364
Unvested performance stock awards(1)	7,627	8,975
Series G Warrant	598	598
Haveli Warrant	11,111	11,111
Series A redeemable convertible preferred stock	46,154	46,154
Total anti-dilutive securities	114,506	118,004


	Three months ended March 31, 2025
	As Reported		Adjustments		As Revised
Revenue
Software platform	$	24,260	$	42	$	24,302
Professional services	2,510		33		2,543

Total revenue	26,770		75		26,845
Cost of revenue
Software platform	5,865		33		5,898
Professional services	1,947		—		1,947

Total cost of revenue	7,812		33		7,845
Gross profit	18,958		42		19,000
Operating expenses:
Research and development	7,520		322		7,842
Sales and marketing	7,188		—		7,188
General and administrative	11,224		7		11,231


Restructuring	719		—		719
Total operating expenses	26,651		329		26,980
Loss from operations	(7,693)		(287)		(7,980)

Other income (expense), net	1,114		—		1,114
Loss before income taxes	(6,579)		(287)		(6,866)
Income tax expense	(30)		—		(30)
Loss from continuing operations	(6,609)		(287)		(6,896)
Loss from discontinued operations (Note 16)	(2,803)		—		(2,803)
Net loss	(9,412)		(287)		(9,699)
Less: Net loss attributable to noncontrolling interest included in discontinued operations	182		—		182
Net loss attributable to Blend Labs, Inc.	(9,230)		(287)		(9,517)
Less: Accretion of redeemable noncontrolling interest to redemption value from discontinued operations	(1,254)		—		(1,254)
Less: Accretion of Series A redeemable convertible preferred stock to redemption value	(4,202)		—		(4,202)
Net loss attributable to Blend Labs, Inc. common stockholders	$	(14,686)	$	(287)	$	(14,973)

Net loss per share attributable to Blend Labs, Inc. common stockholders - basic and diluted:
Continuing operations	$	(0.04)	$	—	$	(0.04)
Discontinued operations	$	(0.02)	$	—	$	(0.02)
Net loss per share attributable to Blend Labs, Inc. common stockholders	$	(0.06)	$	—	$	(0.06)
Weighted average shares used in calculating net loss per share:
Basic and diluted	258,832		—		258,832

Comprehensive loss:
Net loss	$	(9,412)	$	(287)	$	(9,699)
Unrealized gain on marketable securities	6		—		6
Foreign currency translation loss	(43)		—		(43)
Comprehensive loss	(9,449)		(287)		(9,736)
Less: Comprehensive loss attributable to noncontrolling interest	182		—		182
Comprehensive loss attributable to Blend Labs, Inc.	$	(9,267)	$	(287)	$	(9,554)


(1)Includes stock-based compensation as follows:		Three Months Ended March 31,
		2026		2025
	(In thousands)
Cost of revenue		$	122	$	170
Research and development(2)		1,661		1,684
Sales and marketing		282		720
General and administrative		4,715		3,522
Total stock-based compensation		$	6,780	$	6,096


Period	Total Number of Shares Purchased (in thousands)(1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Programs (in thousands)(1)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in millions)(1)
January 1-31	—	$	—	—	$	—
February 1-28	—	$	—	—	$	—
March 1-31	10,041	$	1.68	10,041	$	33.4
Total	10,041	—		10,041	$	33.4


Date:	May 7, 2026	By:	/s/ Jason Ream
		Name:	Jason Ream
		Title:	Head of Finance and Administration
			(Principal Financial Officer)