v3.26.1
DERIVATIVES AND HEDGING
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING
The Company enters into forward contracts to hedge certain forecasted payroll costs denominated in NIS against exchange rate fluctuations of the U.S. dollar for a period of up to twelve months. The Company recorded the cash flows associated with these derivatives under operating activities. The Company does not use derivative instruments for trading or speculative purposes.
Notional Amount of Foreign Currency Contracts
The Company had outstanding contracts designated as hedging instruments in the aggregate notional amount of $6,030 and $15,864 as of March 31, 2026, and December 31, 2025, respectively. The fair value of the Company’s outstanding contracts amounted to an asset of $1,092 and $2,697, respectively. These assets were recorded under prepaid expenses and other current assets. Gains of $1,886 and $326 were reclassified from accumulated other comprehensive income during the three months ended March 31, 2026 and 2025, respectively. Such gains were reclassified from accumulated other comprehensive income when the related expenses were incurred.
Effect of Foreign Currency Contracts on the Condensed Consolidated Statements of Operations
The effect of foreign currency contracts on the condensed consolidated statements of operations during the three months ended March 31, 2026 and 2025 were as follows:
Condensed Statement of Operations Location:Three Months Ended March 31, 2026Three Months Ended March 31, 2025
Cost of revenue$(171)$(38)
Research and development(991)(172)
Sales and marketing(290)(47)
General and administrative(434)(69)
Total$(1,886)$(326)