#1blend Blend Labs, Inc. Q2 2022 Earnings Supplemental Slides August 15, 2022 1#2Forward-Looking Statements and Non-GAAP Financial Measures 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, macroeconomic and industry conditions, capital expenditures, plans for future operations, competitive positions, technological capabilities, strategic relationships, Blend's opportunity to increase market share and penetration in its existing customers, projections for a sharp decrease in mortgage loan origination volumes, Blend's ability to create long-term value for our customers, Blend's expectations for revenue growth, and Blend's expectations of migration of the Title365 legacy business to Blend's software-enabled platform. 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 Annual Report on Form 10-K for the year ended December 31, 2021, and its Quarterly Reports for the quarters ended March 31, 2022 and June 30, 2022 that will be filed following this presentation. 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, non-GAAP operating expenses, non-GAAP loss from operations, and non-GAAP net loss. These non-GAAP financial measures adjust the related GAAP financial measures to exclude non-cash stock-based compensation and warrant amortization expense, amortization of acquired intangible assets, non-recurring acquisition-related costs, and non-recurring income tax expenses or benefits related to acquisitions. 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. blend 2#3Second Quarter 2022 Highlights 5% year-over-year growth in Platform revenue, versus an estimated 37% mortgage market volume decline 12% year-over-year growth in Blend's customer base 53% year-over-year growth in Consumer Banking and Marketplace revenue 3#4We Grow with Our Customers Gross Revenue Retention* 98% 99% 100% 100% 99% 99% 98% 99% 11 Q3'20 Q4'20 Q1'21 Q2'21 * See Note 1 and Note 2 included in Appendix Q3'21 Q4'21 Q1'22 Q2'22 Market Adjusted Net Revenue Retention* 162% 168% 181% 159% 149% 147% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 159% Q4'21 Q1'22 164% Q2'22 4#5Growing our Consumer Banking platform We continue to add new and existing customers to our Consumer Banking platform, expanding our presence in non-mortgage linked bank activities such as personal lending, auto finance, deposit accounts, and home equity Consumer Banking Transactions* 200K 150K 100K 50K OK 76K Q2 2021 84K Q3 2021 118K Q4 2021 160K Q1 2022 215K Q2 2022 * See Note 3 included in Appendix. 2Q22 includes estimated transactions not yet reported by our customers. 1Q22 reflect actual transactions for funded loans reported by our customers and other transaction data available to us as of the date hereof. This number differs from the estimate previously published due to additional information being available to us. 5#6Strong Revenue Performance in Blend Platform Segment Consumer Banking & Marketplace 10M 5M 0 $5.6M Q2 2021 See Note 4 included in Appendix $6.6M Q3 2021 Consumer Banking and Marketplace revenue up 53% year-over-year, driven by increases in revenue from Blend Close, personal loans, income verification, and homeowners' insurance. $6.3M Q4 2021 53% YoY increase $8.5M $7.2M Q1 2022 Q2 2022 $30M $25M $20M $15M $10M $5M 0 Blend Mortgage 6% YoY decrease $25.4M Q2 2021 $27.3M Q3 2021 Mortgage Banking revenue down 6% year-over-year, reflecting an estimated second quarter 2022 industry-wide decline of approximately 37 % in mortgage loan origination volumes $29.1M Q4 2021 $24.5M Q1 2022 $23.9M Q2 2022 6#7Full Year 2022 Revenue Guidance Blend Platform $135-145 Blend 2022 revenue guidance reflects the following: Title365 $95-105 $ in millions (Consolidated) Blend Labs, Inc. $230-250 Continued Federal Reserve interest rate and open market policy actions in the context of current market expectations. U.S. mortgage market origination volumes declining approximately 41% from their 2021 level, as forecasted using information from the Mortgage Bankers Association. Mortgage Banking outlook incorporates low-double digit declines in full year revenue from full year 2021 levels, as expected market share growth mitigates industry volume declines. 2022 Blend Platform segment revenue reflects over 100% annual growth in Consumer Banking and Marketplace revenue. Improvement in the year-end outlook for Title365's default and home equity product lines blend 7#8Appendix B VJ blend 8#9Revenue Growth (in thousands) Blend Platform revenue: Mortgage Banking Consumer Banking and Marketplace Professional Services Total Blend Platform revenue Title365 revenue Total revenue Blend Platform revenue: Mortgage Banking Consumer Banking and Marketplace Professional Services Total Blend Platform revenue Title365 revenue Total revenue $ $ $ Three Months Ended June 30, 2022 2021 23,891 71% $ 8,512 25 % 4% 1,198 33,601 31,938 100 % 65,539 2022 $ 48,375 15,482 2,320 66,177 70,886 137,063 Six Months Ended June 30, 73 % $ 23% 4% 100 % 25,390 5,569 1,103 32,062 $ 32,062 2021 51,825 10,217 1,895 63,937 63,937 79 % 17% 4% 100 % 81% 16 % 3% 100 % YoY change (6)% 53 % 9% 5% 104 % YoY change (7)% 52 % 22 % 4% 114 % blend 9#10Q2 2022 GAAP Financial Results (in thousands) Revenue Cost of revenue Gross profit Operating expenses: Research and development Sales and marketing General and administrative Amortization of acquired intangible assets Impairment of intangible assets and goodwill Restructuring Total operating expenses Loss from operations Interest expense Other income (expense), net Loss before income taxes Income tax (expense) benefit Net (loss) income Less: Net loss attributable to noncontrolling interest Net (loss) income attributable to Blend Labs, Inc. Less: Accretion of redeemable noncontrolling interest to redemption value Less: Undistributed earnings attributable to participating securities Net loss attributable to Blend Labs, Inc. common stockholders Net loss per share attributable to Blend Labs, Inc. common stockholders: Basic Diluted Weighted average shares used in calculating net loss per share: Basic Diluted $ $ $ $ Three Months Ended June 30, 2022 2021 65,539 $ 40,274 25,265 35,500 22,438 36,472 4,068 391,823 6,380 496,681 (471,416) (5,726) 6 (477,136) (66) (477,202) 35,831 (441,371) (37,008) (478,379) S (2.06) S (2.06) S 232,501 232,501 32,062 $ 12,360 19,702 20,884 18,271 20,181 59,336 (39,634) 112 (39,522) 45,288 5,766 5,766 (5,766) $ 0.00 $ 0.00 S 51,956 77,864 Six Months Ended June 30, 2022 2021 137,063 $ 82,929 54,134 70,606 44,779 73,574 8,136 391,823 6,380 595,298 (541,164) (11,284) 97 (552,351) 2,731 (549,620) 36,145 (513,475) (38,450) (551,925) S (2.38) S (2.38) S 231,421 231,421 63,937 23,220 40,717 37,958 34,136 35,464 107,558 (66,841) 262 (66,579) 45,278 (21,301) (21,301) (21,301) (0.44) (0.44) 48,547 48,547 blend 10#11Reconciliation of GAAP to Non-GAAP Measures (in thousands) Gross Profit Reconciliation Blend Platform Title365 Total Gross Profit Reconciliation Blend Platform Title365 Total $ S S S Three Months Ended June 30, 2022 GAAP Gross Profit 20,373 4,892 25,265 $ $ GAAP Gross Profit S Non-GAAP adjustments (¹) Six Months Ended June 30, 2022 40,548 13,586 54,134 S $ 243 307 550 $ Non-GAAP gross profit Non-GAAP adjustments (1) 554 489 1,043 Non-GAAP gross profit $ 20,616 5,199 25,815 $ $ 41,102 $ 14,075 55,177 $ Three Months Ended June 30, 2021 GAAP Gross Profit 19,702 $ 19,702 $ GAAP Gross Profit 40,717 S 40,717 Non-GAAP adjustments (¹) 157 Six Months Ended June 30, 2021 $ Non-GAAP gross profit $ 157 S Non-GAAP adjustments (¹) 215 S 19,859 Non-GAAP gross profit 215 S 19,859 40,932 40,932 blend 11#12Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) GAAP operating expenses Non-GAAP adjustments: Stock-based compensation and amortization of warrant Amortization of acquired intangible assets (2) Impairment of intangible assets and goodwill(3) Restructuring (4) Acquisition-related expenses(5) Non-GAAP operating expenses GAAP loss from operations Non-GAAP adjustments: Stock-based compensation and amortization of warrant Amortization of acquired intangible assets(2) Impairment of intangible assets and goodwill(3) Restructuring (4) Acquisition-related expenses(5) Non-GAAP loss from operations GAAP net loss Non-GAAP adjustments: Stock-based compensation and amortization of warrant Amortization of acquired intangible assets (2) Impairment of intangible assets and goodwill(3) Restructuring (4) Acquisition-related expenses (5) Foreign currency gains and losses(6) Income tax benefit(7) Non-GAAP net loss $ S $ $ $ $ Three Months Ended June 30, 2022 2021 496,681 $ 28,698 4,068 391,823 6,380 411 65,301 (471,416) S 29,248 4,068 391,823 $ 6,380 411 (39,486) S (477,202) S 29,248 4,068 391,823 6,380 411 181 (45,091) 59,336 6,495 6,635 46.206 6,652 (39,634) $ $ $ 6,635 (26,347) S 6,652 5,766 $ 6,635 (45,302) (26,249) $ Six Months Ended June 30, 2022 2021 595,298 52,541 8,136 391,823 6,380 2,224 134,194 $ $ (541,164) $ 53,584 8,136 391,823 6,380 2,224 (79,017) $ (549,620) $ 53,584 8,136 391,823 6,380 2,224 227 (2,864) (90,110) $ 107,558 10,626 10,842 86,090 (66,841) 10,841 10,842 (45,158) (21,301) 10,841 10,842 (45,302) (44,920) blend 12#13Reconciliation of GAAP to Non-GAAP Measures (cont.) (in thousands) GAAP net loss per share Non-GAAP adjustments: Net loss attributable to noncontrolling interest(8) Accretion of redeemable noncontrolling interest to redemption value(8) Undistributed earnings attributable to participating securities(⁹) Stock-based compensation and amortization of warrant Amortization of acquired intangible assets (²) Impairment of intangible assets and goodwill (3) Restructuring (4) Acquisition-related expenses(5) Foreign currency gains and losses(6) Income tax benefit (7) Non-GAAP net loss per share (1) Stock-based compensation by function: Cost of revenue Research and development Sales and marketing General and administrative Total $ $ S Three Months Ended June 30, 2022 2021 (2.06) S (0.15) 0.16 0.12 0.02 1.69 0.03 (0.19) S 550 S 12,516 3,179 13,003 29,248 S 0.00 S (5) Acquisition-related expenses include non-recurring due diligence, transaction and integration costs recorded within general and administrative expense. (6) Foreign currency gains and losses include transaction gains and losses incurred in connections with our operations in India. 0.11 0.12 0.13 (0.87) (0.51) S 157 $ 2,832 1,924 1,696 6,609 $ Six Months Ended June 30, 2022 2021 (2.38) $ (0.16) 0.17 0.22 0.04 1.69 0.03 0.01 (0.01) (0.39) $ 1,043 S 22,382 5,702 24,433 53,560 $ (0.44) 0.22 0.22 (0.93) (0.93) 215 4,218 3,297 2,895 10,625 (2) Amortization of acquired intangible assets represents non-cash amortization of customer relationships acquired in connection with the Title365 acquisition. (3) Impairment of intangible assets and goodwill relates to charges recorded based on the results of the interim quantitative impairment analysis performed in the three months ended June 30, 2022 in response to certain triggering events, such as a continued decline in economic and market conditions, decline in our market capitalization, and current and projected declines in the operating results of the Title365 reporting unit. (4) The restructuring charges relate to the April Plan, under which we eliminated approximately 200 positions as part of our broader efforts to improve cost efficiency and better align our operating structure with our business activities. (7) Income tax benefit represents the non-recurring release of historical valuation allowance resulting from changes in U.S. tax law requiring capitalization and amortization of research and development costs for tax purposes.. (8) Net loss attributable to noncontrolling interest and accretion of redeemable noncontrolling interest to redemption value relate to the 9.9% non-controlling interest in our Title365 subsidiary. 1: (9) Undistributed earnings attributable to participating securities relate to the income allocated to the holders of convertible preferred stock as the holders of the convertible preferred shares were entitled to dividends in priority to any dividend declared and paid to the holders of common stock. blend 13#14Share count outlook (in thousands) Quarter ended June 30, 2022 Weighted average shares used in calculating net loss per share (basic and diluted) Dilutive securities (¹) 6,902 (1) Dilutive securities represent the number of potential common shares that would have been included in the computation of earnings per share if the Company had reported net income for the quarter ended June 30, 2022. Since the Company reported net loss for the quarter ended June 30,, 2022, all outstanding potential common shares are antidilutive. Estimated weighted average shares used in calculating net loss per share (basic and diluted) Estimated outstanding common shares as of period-end 232,501 Quarter ended September 30, 2022 235,633 237,485 Year ended December 31, 2022 234,474 241,513 blend 14#15Key Business Metrics - Volume Disaggregation (in thousands) Q1 2021 447 48 Total Blend Platform banking transactions 495 *Includes estimated transactions from funded loan reports not yet received in Q2 2022 **Consumer banking transaction counts exclude banking transactions from certain Enterprise License Agreements where those transaction counts are not available. Blend Platform banking transactions Mortgage banking transactions Consumer banking transactions** Title365 closed orders Q1 2021 N/A Q2 2021 461 76 537 Q2 2021 N/A Q3 2021 450 84 534 Q3 2021 45 Q4 2021 454 118 572 Q4 2021 35 FY 2021 1,812 326 2,138 FY 2021 80 Q1 2022 380 160 540 Q1 2022 27 Q2 2022* 348 215 563 Q2 2022 14 blend 15#16Blend Customer Logo Growth Customer Count 400 300 200 100 0 260 Q3'20 291 Q4'20 303 Q1'21 316 Q2'21 Quarter 333 Q3'21 343 Q4'21 351 Q1'22 354 Q2'22 16#17Footnotes Note 1: Gross Revenue Retention measures revenue lost from our customer base, not including any benefits from expansion revenue or price increases. Gross retention for a quarter is calculated from total revenue from the same quarter in the prior year (excluding expansion and price increases) less revenue from customers that have churned in the last 12 months divided by the revenue from the same quarter in the prior year. Note 2: Market Adjusted Net Revenue Retention is the percentage of management's estimated Economic Value retained from our customer base in the current quarter compared to the Economic Value from the same quarter one year ago, adjusted for fluctuations in mortgage market volumes based on third-party estimates. Current period Economic Value is aggregated for all customers who had Economic Value one year prior. This number is then divided by the market adjusted Economic Value of the previous year. Economic Value is based on management's estimates and is defined as: Mortgage, close, realty, and title per funded contractual rate multiplied by the number of funded loans or transactions in the period, adjusted by the year over year market growth or decline rate, plus Net present value of insurance premiums sold in the period, including estimated renewals, adjusted by the year over year market growth or decline rate based on third-party estimates, plus Consumer banking per funded contractual rate multiplied by the number of funded loans in the period (note: not adjusted for market volume changes), plus Professional services and other revenues in the period (note: not adjusted for market volume changes). To take into account fluctuations in mortgage market volumes, management adjusts our net revenue retention (i) downward in quarters where market volumes are increasing relative to prior period market volumes and (ii) upward in quarters where market volumes are decreasing relative to prior period market volumes. blend 17#18Footnotes Note 3: Consumer Banking Transactions is calculated based on the transactions for funded loans reported by our customers and other transaction data available to us as of a particular date. The number of Consumer Banking Transactions for the latest quarter shown in this presentation includes estimated transactions not yet reported by our customers for such quarter. The prior quarter estimate has been updated to reflect actual transactions for funded loans reported by our customers and other transaction data available to us as of the date hereof, and may differ from the previously published estimate. Any updates (or "true-ups") to previously published estimates of Consumer Banking Transactions have no impact on previously reported revenue for the prior quarters. Note 4: Consumer Banking and Marketplace Revenues consist of Consumer Banking revenue (Home Equity and Personal Loans and all other consumer banking products), Ancillary Product revenue (Blend Income Verification and Blend Close), and Marketplace revenue (Blend Title, Blend Insurance, and Blend Realty). blend 18