Effective May 1, 2012, the Company adopted the 2012 Stock Plan (the “2012 Plan”). Options granted under the 2012 Plan may be either incentive stock options or nonqualified stock options. Incentive stock options (“ISOs”), within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) may be granted only to employees (including officers and directors). Non-qualified stock options (“NSOs”) may be granted to employees and consultants. The exercise price of ISOs and NSOs shall not be less than 100% of the estimated fair value of the common shares on the date of grant, respectively, as determined by the Company’s board of directors. The exercise price of an ISO granted to a 10% or greater stockholder shall not be less than 110% of the estimated fair value of the common shares on the date of grant. Options generally vest over a period of four years. No further grants may be made under the 2012 Plan.

In July 2021, the Company’s board of directors adopted, and the Company’s stockholders approved, the 2021 Equity Incentive Plan (the “2021 Plan”), which became effective on July 14, 2021. The Company’s prior plan, 2012 Plan, was terminated immediately prior to the effectiveness of the 2021 Plan with respect to the grant of future awards.

The 2021 Plan provides for the grant of ISOs, to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of NSOs, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), and performance awards, including performance stock units (“PSUs”) to the Company’s employees, directors, and consultants and the Company’s parent and subsidiary corporations’ employees and consultants.

Subject to the adjustment provisions of and the automatic increase described in the 2021 Plan, a total of 23,000,000 shares of the Company’s Class A common stock were reserved for issuance pursuant to the 2021 Plan, plus 36,101,718 shares of the Company’s Class A common stock reserved for future issuance under the 2012 Plan. Subject to the adjustment provisions of the 2021 Plan, the number of shares available for issuance under the 2021 Plan also includes an annual increase on the first day of each fiscal year beginning on January 1, 2022, equal to the least of (a) 34,500,000 shares of Class A common stock, (b) 5% of the total number of shares of all classes of the Company’s common stock outstanding on the last day of the immediately preceding fiscal year, or (c) such other amount as the Company’s board of directors (or its committee) may determine. Options granted under the 2021 Plan generally vest over periods ranging from one to four years.


	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		$	147
Canceled	(566)	$	12.88
Balance as of June 30, 2026	14,494	$	3.70	3.55	$	3,050


Vested and exercisable as of June 30, 2026	14,093	$	3.74	3.55	$	3,050

The total fair value of options vested during the three months ended June 30, 2026 and 2025 was $0.2 million and $0.4 million, respectively. The total fair value of options vested during the six months ended June 30, 2026 and 2025 was $0.4 million and $1.1 million, respectively.

There were no options exercised for the three months ended June 30, 2026. The aggregate intrinsic value of options exercised was $0.3 million for the three months ended June 30, 2025 and the aggregate intrinsic value of options exercised was immaterial and $0.9 million for the six months ended June 30, 2026 and 2025.

As of June 30, 2026, the total unrecognized stock-based compensation expense for stock options was approximately $0.4 million, which is expected to be recognized over a weighted average period of 0.5 years.


	Number of RSUs	Weighted average grant date fair value per share
	(In thousands)
Balance as of December 31, 2025	12,739	$	2.84
Granted	6,334	$	1.74
Vested	(3,879)	$	2.34
Forfeited	(826)	$	2.58
Balance as of June 30, 2026	14,368	$	2.51

As of June 30, 2026, there was $31.7 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted average period of 2.3 years. RSUs granted under the 2021 Plan generally vest quarterly over a period of two to four years from the grant date.

The total fair value of RSUs vested during the three months ended June 30, 2026 and 2025 was $4.6 million each. The total fair value of RSUs vested during the six months ended June 30, 2026 and 2025 was $9.1 million and $8.3 million, respectively.


	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	$	0.45

Canceled and forfeited	(625)	$	0.64
Balance as of June 30, 2026	7,627	$	1.97

On February 18, 2026, the Company’s board of directors granted a total of 913,836 PSUs to the Co-Founder and Head of Blend and 78,328 PSUs to a senior executive. The PSUs will vest in four tranches upon continued service and satisfaction of certain market-based performance targets related to the Company’s stock price hurdles.

The estimated weighted-average grant date fair value of the awards issued during the first quarter of 2026 was $0.45 per share, which was determined using a Monte Carlo simulation model. The significant assumptions in the Monte Carlo simulation model include the risk-free interest rate, expected volatility of the Company’s stock price, and expected life of the award.

The total stock-based compensation expense recognized for PSUs for the three months ended June 30, 2026 and 2025 was $1.5 million and $3.1 million, respectively. The total stock-based compensation expense recognized for PSUs for the six months ended June 30, 2026 and 2025 was $2.9 million and $4.1 million, respectively.

The total unrecognized compensation expense related to outstanding PSUs was $3.1 million as of June 30, 2026, which will be recognized over an estimated weighted average remaining period of 1.4 years.

In March 2021, the Company’s board of directors granted to its Co-Founder and Head of Blend a stand-alone stock option issued outside of the 2012 Plan covering a maximum of 26,057,181 shares of Class B common stock with an exercise price of $8.58 per share. The award has a 15-year term (subject to earlier termination when shares subject to the award are no longer eligible to vest) and vests upon the satisfaction of a service condition, liquidity event-related performance condition, and performance-based market conditions.

The terms of the award stipulated that if an IPO is completed within 15 months of the date of grant, the first tranche of 1,954,289 shares will vest. The remaining tranches of shares will vest dependent on performance goals tied to the Company’s stock price hurdles with specified expiration dates for each tranche. In July 2021, the first tranche of the Co-Founder and Head of Blend stock option award vested upon completion of the IPO.

The remaining tranches were valued using a Monte Carlo simulation model. The weighted average estimated fair value of the remaining tranches was $3.80 per share based on the following assumptions:

The total stock-based compensation expense recognized for this award for the three months ended June 30, 2026 and 2025 was $0.6 million and $0.9 million, respectively. The total stock-based compensation expense recognized for this award for the six months ended June 30, 2026 and 2025 was $1.1 million and $2.3 million, respectively.

The total unrecognized compensation expense related to the award was $3.7 million as of June 30, 2026, which will be recognized over an estimated weighted average remaining period of 2.2 years.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(In thousands)				(In thousands)
Cost of revenue	$	146	$	116	$	268	$	286
Research and development(1)	1,496		1,272		3,157		2,956
Sales and marketing	794		618		1,076		1,338
General and administrative	4,542		5,576		9,257		9,098
Total	$	6,978	$	7,582	$	13,758	$	13,678

____________

(1) Net of $0.1 million and $0.2 million of additions to capitalized internal-use software for the three and six months ended June 30, 2026 and $1.1 million and $2.3 million for the three and six months ended June 30, 2025.