Slides
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Q3 2025 Earnings Supplemental Slides November 6, 2025 Blend Labs, Inc.
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Forward-Looking Statements and Non-GAAP Financial Measures This This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Blend's future financial or operating performance. In some cases, you can identify forward looking statements because they contain words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "could," "would," "intend," "target," "project," "contemplate," "believe," "estimate," "predict," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Blend's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this presentation include, but are not limited to, statements regarding Blend’s financial condition and operating performance, including its outlook, market size and growth opportunities, capital expenditures, and plans for future operations projections and assumptions regarding our share count, and Blend’s expectations for revenue growth and economic value per funded loan. If any of the risks or uncertainties related to the forward-looking statements develop or if any of the assumptions related to the forward-looking statements prove incorrect, actual results could differ materially from those projected, expressed, or implied by our forward-looking statements. The forward-looking statements contained in this presentation are also subject to other risks and uncertainties, including those more fully described in Blend’s filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, that was recently filed, and its Annual Report on Form 10-K for the year ended December 31, 2024. All forward-looking statements in this presentation are based on information available to Blend and assumptions and beliefs as of the date hereof, and Blend disclaims any obligation to update any forward- looking statements, except as required by law. In addition to financial information presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes certain non-GAAP financial measures, including non-GAAP gross profit and non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss) from continuing operations, and non-GAAP diluted net income (loss) per share from continuing operations attributable to common stockholders. These non-GAAP financial measures adjust the related GAAP financial measures to exclude non-cash stock- based compensation, compensation realignment costs, restructuring costs, foreign currency gains and losses, and non-recurring transaction-related costs. In addition, our non-GAAP financial measures include measures related to our liquidity, such as free cash flow, unlevered free cash flow and free cash flow margin. Free cash flow is defined as net cash flow from operating activities less cash spent on additions to property, equipment, internal-use software and intangible assets. Unlevered free cash flow is defined as free cash flow plus cash paid for interest on our outstanding debt. Free cash flow margin is defined as free cash flow divided by total revenue. These non-GAAP measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. Blend’s management uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to the corresponding GAAP financial measures, in evaluating Blend’s ongoing operational performance and trends, in allowing for greater transparency with respect to measures used by Blend’s management in their financial and operational decision making, and in comparing Blend’s results of operations with other companies in the same industry, many of which present similar non-GAAP financial measures to help investors understand the operational performance of their businesses. However, it is important to note that the particular items excluded from, or included in, these non-GAAP financial measures may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. In addition, other companies may utilize metrics that are not similar to Blend’s. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. There are material limitations associated with the use of non-GAAP financial measures since they exclude significant expenses and income that are required by GAAP to be recorded in Blend’s financial statements. Please see the reconciliation tables at the end of this presentation for the reconciliation of GAAP and non-GAAP results. Management encourages investors and others to review Blend’s financial information in its entirety and not rely on a single financial measure. This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on Blend’s internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to such information. Blend has not independently verified the accuracy or completeness of the information contained in the industry publications and other publicly available information. Accordingly, Blend makes no representations as to the accuracy or completeness of that information nor does Blend undertake to update such information after the date of this presentation. 2
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Growing Customer Base Added or expanded 14 customer relationships this quarter — with pipeline up approximately 60% year- over-year Third Quarter 2025 Highlights 01 02 03 Results Ahead of Guidance Both total revenue and non- GAAP operating income for the third quarter were ahead of the mid-point of guidance Continued Profitability Momentum Significant increase in non- GAAP operating income year- over-year 3
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Mortgage Suite* Revenue $21.5 $18.2 $14.6 $18.0 $17.7 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Consumer Banking Suite* Revenue $9.5 $9.5 $9.6 $11.4 $12.7 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Consumer Banking Suite revenue up 34% year-over-year *See Note 2 included in Appendix *See Note 3 included in Appendix In millions In millions 4
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$74 $76 $81 $85 $86 $86 $91 $92 $97 $99 $96 $93 $88 $86 $67 $68 $70 $73 $74 $74 $75 $76 $80 $82 $82 $77 $76 $76 $2 $2 $2 $2 $2 $2 $3 $3 $3 $3 $9 $11 $10 $10 $5 $6 $9 $10 $10 $10 $13 $13 $14 $14 $5 $5 $2 $1 Core software Partnerships Add-on products** Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025*** Mortgage Suite economic value per funded loan* *See Note 4 included in Appendix. **Represents add-on products that are currently transitioning to a partnership model. ***Includes estimated transactions from funded loan reports not yet received. Focusing on the efficiency of the business with high margin software products and ecosystem partnerships 5
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Software Platform 80% 79% 77% 80% 82% Non-GAAP Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Total Blend 75% 75% 73% 76% 78% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Non-GAAP Gross margins improved compared to the prior year 6
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Research & Development $8.0 $6.9 $5.6 $5.9 $6.7 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 General & Administrative $7.9 $7.1 $6.7 $7.3 $7.2 Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025 Sales & Marketing $8.6 $5.1 $6.3 $6.2 $7.0 Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025 Non-GAAP operating expenses reflect cost discipline Note: Amounts are presented on “continuing operations” (Blend Platform segment-only) basis *Q3’24 to Q4’24 sequential Sales and Marketing expense reduction from Homeowners Insurance business sale and partnership with Covered insurance Solutions was ~$1.3m * In millions 7
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Note: These scenarios assume Blend uses the option and warrant exercise proceeds to purchase shares at the prevailing market price. These scenarios do not contemplate the add back of unrecognized stock-based compensation cost as additional assumed proceeds as would be required for the purposes of calculating dilutive shares under US GAAP. Additional information regarding Blend’s Common Stock, Preferred Stock, Stock-based compensation awards and Warrants can be found on B l e n d ’ s I n v e s t o r R e l a t i o n s w e b s i t e a t i n v e s t o r . b l e n d . c o m a n d i n B l e n d ’ s S E C f i l i n g s . 1. Assumes all Preferred Stock is dilutive on an “as-converted” basis when the prevailing market price is in excess $3.25. The scenarios do contemplate potential anti-dilution due to the application of the two class method as would be required for the purposes of calculating dilutive shares under US GAAP. 2. Assumes all options outstanding with a strike price less than the prevailing market price are “in the money” and counted towards dilution. 3. Restricted stock units and performance stock awards are presented on a gross basis. Under net share settlement, the dilution from restricted stock units will equate to approximately 60% of the total gross shares. Illustrative Hypothetical Share Count Under Various Stock Price Scenarios (in thousands) Illustrative Shares at various BLND stock prices $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00 Common Stock Outstanding As of 9/30/2025 Class A common stock outstanding 256,473 256,473 256,473 256,473 256,473 256,473 256,473 256,473 256,473 256,473 256,473 256,473 Class B common stock outstanding 3,627 3,627 3,627 3,627 3,627 3,627 3,627 3,627 3,627 3,627 3,627 3,627 Total Common Stock 260,100 260,100 260,100 260,100 260,100 260,100 260,100 260,100 260,100 260,100 260,100 260,100 Preferred Stock Series A redeemable convertible preferred stock1 46,154 – 46,154 46,154 46,154 46,154 46,154 46,154 46,154 46,154 46,154 46,154 Stock-based compensation awards Outstanding stock options2 15,403 6,367 6,970 7,453 7,848 8,178 8,457 8,697 8,911 9,108 – – Non-plan Co-Founder and Head of Blend options 20,194 – – – – – – – – – – – Unvested restricted stock units3 11,543 11,543 11,543 11,543 11,543 11,543 11,543 11,543 11,543 11,543 11,543 11,543 Unvested performance stock awards3 8,235 – – – – – – – – 1,969 1,969 1,969 Total stock-based compensation awards 55,375 17,910 18,513 18,996 19,391 19,721 20,000 20,240 20,454 22,620 13,512 13,512 Warrants Series G Warrant 598 – – – – – – – – – – – Common stock warrants 11,111 – – – – 1,111 2,020 2,778 3,419 3,968 4,444 4,861 TOTAL 373,338 278,011 324,767 325,250 325,645 327,086 328,275 329,272 330,127 332,842 324,210 324,627 8
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Blend Funded Loans as a percent of HMDA Mortgage Originations * See Note 1 included in Appendix for the definition of HMDA Mortgage Originations. 13.9% 20.5% 21.7% 18.6% 2021 2022 2023 2024 2025 Estimate 0.0% 10.0% 20.0% 30.0% % of HMDA Originations • Market share has decreased since 2023 due to churn notices received primarily in 2023 and 2024 • HMDA Mortgage Originations by Year: ◦ 2021: 13.0 million ◦ 2022: 6.0 million ◦ 2023: 3.7 million ◦ 2024: 4.0 million ◦ 2025: 4.24 to 4.64 million (estimate) • Blend funded mortgage loans by Year: ◦ 2021: 1,816k ◦ 2022: 1,234k ◦ 2023: 808k ◦ 2024: 750k ◦ 2025: 710-780k (estimate) 16-18% 9
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Total Revenue Q4 2025 1 See Notes 4 and 5 included in Appendix. Guidance is for Q4 2025 unless otherwise noted. Non-GAAP Net Operating Income Guidance1 $31.0M - $32.5M $2.5M - $3.5M Commentary: • We expect total revenue between $31.0 million and $32.5 million, with the midpoint representing a year- over-year increase of 5%. • Within total revenue we expect mortgage suite revenue to decline slightly compared to the same period in the prior year and consumer banking suite revenue growth to decelerate sequentially. • We expect evPFL for the mortgage suite to be approximately $83-84. • Total Non-GAAP operating income is expected to be between $2.5 million and $3.5 million. • Our Q4 2025 market size expectation is 1.13 million to 1.23 million units. For Q1 2026 we expect a sequential volume decline, in line with normal seasonal patterns. Our current expectation for Q1 2026 is 1.07 to 1.17 million units. 10
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©Blend 2025 Appendix
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Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Blend Platform: YoY change YoY change Mortgage Suite $ 17,735 54% $ 21,546 65 % (18) % $ 50,334 55 % $ 55,078 65 % (9) % Consumer Banking Suite 12,724 39% 9,520 29 % 34 % 33,776 37 % 24,199 28 % 40 % Total Software Platform 30,459 93% 31,066 94 % (2) % 84,110 92 % 79,277 93 % 6 % Professional Services 2,401 7% 2,038 6 % 18 % 7,043 8 % 6,363 7 % 11 % Total revenue $ 32,860 100% $ 33,104 100 % (1) % $ 91,153 100 % $ 85,640 100 % 6 % Revenue Disaggregation (dollars in thousands) *Amounts are presented on “continuing operations” (Blend Platform segment-only) basis 12
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Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue Software platform $ 30,459 $ 31,066 $ 84,110 $ 79,277 Professional services 2,401 2,038 7,043 6,363 Total revenue 32,860 33,104 91,153 85,640 Cost of revenue Software platform 6,624 6,294 18,993 17,143 Professional services 1,780 2,310 5,440 7,614 Total cost of revenue 8,404 8,604 24,433 24,757 Gross profit 24,456 24,500 66,720 60,883 Operating expenses: Research and development 8,522 10,127 23,375 37,226 Sales and marketing 7,873 9,473 22,010 28,232 General and administrative 12,879 11,482 37,723 35,211 Restructuring 93 4,701 840 5,787 Total operating expenses 29,367 35,783 83,948 106,456 Loss from operations (4,911) (11,283) (17,228) (45,573) Interest expense — — — (6,747) Other income (expense), net 17,348 10,673 19,480 11,874 Income (loss) before income taxes 12,437 (610) 2,252 (40,446) Income tax expense (27) (21) (98) (93) Income (loss) from continuing operations 12,410 (631) 2,154 (40,539) Net loss from discontinued operations, net of tax 122 (1,996) (5,679) (2,172) Net income (loss) 12,532 (2,627) (3,525) (42,711) Less: Net loss attributable to noncontrolling interest included in discontinued operations — 182 182 191 Net income (loss) attributable to Blend Labs, Inc. 12,532 (2,445) (3,343) (42,520) Less: Accretion of redeemable noncontrolling interest to redemption value from discontinued operations — (1,760) (1,254) (4,748) Less: Accretion of Series A redeemable convertible preferred stock to redemption value (4,558) (4,048) (13,136) (6,709) Net income (loss) attributable to Blend Labs, Inc. common stockholders $ 7,974 $ (8,253) $ (17,733) $ (53,977) GAAP Financial Results (in thousands) 13
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Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income (loss) per share attributable to Blend Labs, Inc. common stockholders: Basic: Continuing operations $ 0.03 $ (0.02) $ (0.04) $ (0.19) Discontinued operations $ 0.00 $ (0.01) $ (0.03) $ (0.02) Net income (loss) per share attributable to Blend Labs, Inc. common stockholders $ 0.03 $ (0.03) $ (0.07) $ (0.21) Diluted: Continuing operations $ 0.02 $ (0.02) $ (0.04) $ (0.19) Discontinued operations $ 0.00 $ (0.01) $ (0.03) $ (0.02) Net income (loss) per share attributable to Blend Labs, Inc. common stockholders $ 0.02 $ (0.03) $ (0.07) $ (0.21) Weighted average shares used in calculating net income (loss) per share: Basic 259,631 254,910 259,228 252,977 Diluted 268,719 254,910 259,228 252,977 GAAP Financial Results (cont.) (in thousands except per share amounts) 14
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Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Gross Profit Reconciliation Gross Profit Gross Margin Gross Profit Gross Margin Gross Profit Gross Margin Gross Profit Gross Margin Gross Profit Gross Margin Gross Profit Gross Margin Blend Platform GAAP Software platform $ 23,835 78 % $ 22,886 78 % $ 18,395 76 % $ 21,673 78 % $ 24,772 80 % $ 20,801 79 % Stock-based compensation(1) — 1 1 3 3 2 Amortization of capitalized internal-use software(8) 1,000 602 388 249 219 24 Non-GAAP Software platform 24,835 82 % 23,489 80 % 18,784 77 % 21,925 79 % 24,994 80 % 20,827 79 % GAAP Professional services 621 26 % 419 20 % 563 22 % 665 27 % (272) (13) % (460) (21) % Stock-based compensation(1) 123 115 169 142 102 104 Amortization of capitalized internal-use software(8) — — — — — — Non-GAAP Professional services 744 31 % 534 25 % 732 29 % 807 32 % (170) (8) % (356) (16) % GAAP Gross Profit 24,456 74 % 23,305 74 % 18,958 71 % 22,338 74 % 24,500 74 % 20,341 71 % Stock-based compensation(1) 123 116 170 145 105 106 Amortization of capitalized internal-use software(8) 1,000 602 388 249 219 24 Non-GAAP Gross Profit $ 25,579 78 % $ 24,023 76 % $ 19,516 73 % $ 22,732 75 % $ 24,824 75 % $ 20,471 71 % Reconciliation of GAAP to Non-GAAP Measures (dollars in thousands) 15
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Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 GAAP operating expenses $ 29,367 $ 35,783 $ 83,948 $ 106,456 Non-GAAP adjustments: Stock-based compensation(1) 7,642 6,529 20,966 21,524 Workforce reduction costs(2) 93 4,701 840 5,787 Abandoned and terminated facilities costs(3) 372 — 1,771 — Compensation realignment costs(4) — — — 1,155 Executive transition costs(9) 271 — 271 — Litigation contingencies and related professional services costs(5) — 53 859 53 Transaction-related costs(6) — — 289 — Impairment of capitalized internal-use software(7) 23 — 135 — Non-GAAP operating expenses $ 20,966 $ 24,500 $ 58,817 $ 77,937 Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) *Amounts are presented on “continuing operations” (Blend Platform segment-only) basis 16
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Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 GAAP loss from operations $ (4,911) $ (11,283) $ (17,228) $ (45,573) Non-GAAP adjustments: Stock-based compensation(1) 7,766 6,634 21,376 21,891 Workforce reduction costs(2) 93 4,701 840 5,787 Abandoned and terminated facilities costs(3) 372 — 1,771 — Compensation realignment costs(4) — — — 1,155 Executive transition costs(9) 271 — 271 — Litigation contingencies and related professional services costs(5) — 53 859 53 Transaction-related costs(6) — — 289 — Impairment of capitalized internal-use software(7) 23 — 135 — Amortization of capitalized internal-use software(8) 1,001 219 1,990 242 Non-GAAP income (loss) from operations $ 4,615 $ 324 $ 10,303 $ (16,445) GAAP operating margin (15) % (34) % (19) % (53) % Non-GAAP operating margin 14 % 1 % 11 % (19) % Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) *Amounts are presented on “continuing operations” (Blend Platform segment-only) basis 17
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Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 GAAP net loss from continuing operations $ 12,410 $ (631) $ 2,154 $ (40,539) Non-GAAP adjustments: Stock-based compensation(1) 7,766 6,634 21,376 21,891 Loss on extinguishment of debt(13) — — — 5,531 Workforce reduction costs(2) 93 4,701 840 5,787 Abandoned and terminated facilities costs(3) 372 — 1,771 — Compensation realignment costs(4) — — — 1,155 Executive transition costs(9) 271 — 271 — Litigation contingencies and related professional services costs(5) — 53 859 53 Transaction-related costs(6) — — 289 — Impairment of capitalized internal-use software(7) 23 — 135 — Amortization of capitalized internal-use software(8) 1,001 219 1,990 242 Gain on investment in equity securities(10) (16,580) — (16,580) (4,417) Foreign currency gains and losses(11) 204 30 202 19 Loss on transfer of subsidiary(12) — — — 601 Gain on sale of insurance business(14) — (9,239) — (9,239) Non-GAAP net income (loss) from continuing operations $ 5,560 $ 1,767 $ 13,307 $ (18,916) Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) *Amounts are presented on “continuing operations” (Blend Platform segment-only) basis 18
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Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 GAAP diluted net income (loss) per share from continuing operations attributable to common stockholders $ 0.02 $ (0.02) $ (0.04) $ (0.19) Per share impact of non-GAAP expenses(15) (0.02) 0.01 0.04 0.09 Non-GAAP diluted income (loss) per share from continuing operations attributable to common stockholders $ 0.00 $ (0.01) $ 0.00 $ (0.10) GAAP diluted weighted average shares used in calculating net loss per share 268,719 254,910 259,228 252,977 Non-GAAP diluted weighted average shares used in calculating net income (loss) per share 268,719 254,910 267,787 252,977 Three Months Ended September 30, Nine Months Ended September 30, Stock-based compensation by function: 2025 2024 2025 2024 Cost of revenue $ 123 $ 104 $ 409 $ 366 Research and development(16) 1,630 2,169 4,518 8,088 Sales and marketing 699 862 2,037 2,715 General and administrative 5,314 3,499 14,412 10,722 Total $ 7,766 $ 6,634 $ 21,376 $ 21,891 Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands, except per share amounts) *Amounts are presented on “continuing operations” (Blend Platform segment-only) basis 19
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Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 GAAP research and development expense $ 8,522 $ 7,332 $ 7,520 $ 8,861 $ 10,127 $ 12,916 Non-GAAP adjustments: Stock-based compensation(1) 1,629 1,253 1,636 1,782 2,169 2,567 Abandoned and terminated facilities costs(3) 144 156 193 213 — — Compensation realignment costs(4) — — — — — 167 Impairment of capitalized internal-use software(7) 23 31 81 — — — Non-GAAP research and development expense $ 6,726 $ 5,892 $ 5,610 $ 6,866 $ 7,958 $ 10,181 GAAP sales and marketing expense $ 7,873 $ 6,950 $ 7,188 $ 6,180 $ 9,473 $ 9,004 Non-GAAP adjustments: Stock-based compensation(1) 699 618 720 831 862 874 Abandoned and terminated facilities costs(3) 170 164 203 202 — — Compensation realignment costs(4) — — — — — 50 Non-GAAP sales and marketing expense $ 7,004 $ 6,167 $ 6,265 $ 5,147 $ 8,611 $ 8,079 GAAP general and administrative expense $ 12,879 $ 13,620 $ 11,224 $ 10,476 $ 11,482 $ 11,376 Non-GAAP adjustments: Stock-based compensation(1) 5,314 5,575 3,523 3,294 3,498 3,665 Abandoned and terminated facilities costs(3) 58 572 111 122 — — Compensation realignment costs(4) — — — — — 37 Litigation contingencies and related professional services costs(5) — 72 787 — 53 — Transaction-related costs(6) — 148 140 — — — Executive transition costs(9) 271 — — — — — Non-GAAP general and administrative expense $ 7,236 $ 7,252 $ 6,664 $ 7,060 $ 7,931 $ 7,675 Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) *Amounts are presented on “continuing operations” (Blend Platform segment-only) basis. 20
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Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net cash provided by (used in) operating activities $ (2,733) $ 1,373 $ 12,060 $ (5,023) Additions to property, equipment and internal-use software development costs (2,272) (3,427) (10,592) (7,243) Free cash flow (5,005) (2,054) 1,468 (12,266) Cash paid for interest — — — 6,150 Unlevered free cash flow $ (5,005) $ (2,054) $ 1,468 $ (6,116) Revenue $ 32,860 $ 33,104 $ 91,153 $ 85,640 Free cash flow margin (15) % (6) % 2 % (14) % Reconciliation of GAAP to Non-GAAP Measures (cont.) (dollars in thousands) *Amounts are presented on “continuing operations” (Blend Platform segment-only) basis 21
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Reconciliation of GAAP to Non-GAAP Measures (cont.) Notes: (1) Stock-based compensation represents the non-cash grant date fair value of stock-based instruments utilized to incentivize our employees, for which the expense is recognized over the applicable vesting or performance period. (2) Workforce reduction costs represent expenses incurred in connection with the workforce restructuring actions executed as part of our broader efforts to improve cost efficiency. (3) Abandoned and terminated facilities costs represent charges related to the early termination of a leased facility and abandonment of another leased facility as part of our broader efforts to better align our operating structure with our business activities. (4) Compensation realignment costs relate to amortization of one-time cash bonus payment (paid in two installments in March and May 2023) to certain employees in lieu of previously committed equity- based awards, driven by an organizational initiative to standardize our equity compensation program. (5) Litigation contingencies and related professional services costs represent reserves for legal settlements and related professional service fees that are unusual or infrequent costs associated with our operating activities. (6) Transaction-related costs include non-recurring financial advisory, legal, and other transactional costs incurred in connection with investing or divesting activities recorded within general and administrative expense. (7) Impairment of capitalized internal-use software represents the non-cash expense related to the write-off of certain internal-use software projects. (8) Amortization of capitalized internal-use software represents the non-cash amortization expense related to our developed technology that is amortized over the estimated useful life. (9) Executive transition costs relate to the departure of one of our executives. (10) Gain on investment in equity securities represents an adjustment to the carrying value of the non-marketable security without a readily determinable fair value to reflect observable price changes. (11) Foreign currency gains and losses include transaction gains and losses incurred in connection with our operations in India. (12) Loss on transfer of subsidiary represents a loss recognized in connection with the transfer of our subsidiary in India to a third-party and includes impairment charges related to certain assets transferred as part of the agreement, costs incurred to settle certain liabilities arising from the agreement, and one-time legal costs incurred to facilitate the transaction. (13) Loss on extinguishment of debt represents a write off of unamortized debt issuance costs and debt discounts related to the extinguishment of our term loan. (14) Gain on sale of insurance business represents the gain recognized in connection with the sale of certain assets of our insurance agency, partially offset by transaction costs. (15) Per share impact of non-GAAP expenses represents the per share impact of aggregated non-GAAP items included in (1) through (14). (16) Stock-based compensation expense is 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. 22
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Footnotes 23 Note 1: HMDA Mortgage Originations The Home Mortgage Disclosure Act (HMDA) requires financial institutions to maintain, report, and publicly disclose loan-level information about mortgages. All transactions are reportable if they are secured by a lien on a dwelling and the financial institution meets the applicable loan-volume thresholds. Each year, HMDA data from the prior year is made available to the public, including reported mortgage originations. HMDA updates the initial snapshot dataset at a one-year and three-year mark to incorporate late submissions and resubmissions. Management filters the HMDA data for closed-end, first lien loans whose purpose was a purchase, refinance or cash-out refinance transaction. Transactions such as business and commercial originations or loans secured by liens on multifamily dwellings are excluded from management’s estimate of industry originations. We refer to this subset of data as HMDA Mortgage Originations. Note 2: Consumer Banking Suite Revenues consist of home equity, personal lending, credit cards, deposit accounts, auto finance, and other banking products. Note 3: Mortgage Suite Revenues consist of Mortgage revenue, Mortgage add-on revenue from Blend Income Verification and Blend Close, and Marketplace revenue from our partners that use our integrated marketplaces for their services, such as property and casualty insurance. Note 4: Economic Value per Funded Loan in our Mortgage Suite represents the contractual rates for mortgage and mortgage-related products multiplied by the number of loans funded or transactions completed, as applicable, by a customer in the specified period (economic value), divided by the total number of loans funded by all Mortgage Suite customers in that same period. Economic value per funded loan is segregated into three categories: 1) core software, 2) add-on products and 3) partnerships. Core software consists of economic value generated through Mortgage and Blend Close. Add-on products consists of economic value generated through Blend Income Verification and Blend Insurance Agency, prior to their transition to partnership models. Partnerships consists of economic value generated from partners through our integrated marketplace. The value derived from products associated with the mortgage application stage is aligned with the timing of funding the related loan (typically a 1-3 month delay from the time of application). Additionally, the value that is associated with fixed platform fees is recognized as revenue ratably over the contractual period, which naturally creates peaks and troughs that align with quarters of low and high mortgage loans funded. We use Economic Value per Funded Loan to measure our success at broadening the client relationships from the underlying mortgage transactions and selling additional products through our software platform. Note 5: This presentation does not contain the forward-looking GAAP equivalent to the non-GAAP Net Operating Income outlook, or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, stock-based compensation, which is affected by Blend’s hiring and retention needs and future prices of its stock, and non- recurring, infrequent or unusual items. Note 6: Certain figures in this presentation may not sum due to rounding.