v3.26.1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
NOTE 6:       DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 
The Company maintains a foreign currency cash flow hedging policy designed to mitigate exposure to fluctuations in exchange rates. Under this policy, the Company hedges portions of its anticipated payroll expenses denominated in New Israeli Shekels (“NIS”) for periods of one to nine months. These hedging contracts are designated as cash flow hedges in accordance with Accounting Standards Codification (“ASC”) 815, “Derivatives and Hedging” and are considered effective.
 
As of June 30, 2026, the Company entered into forward contracts as well as put and call options to sell U.S. dollars (“USD”) in the amounts of NIS 264 million and NIS 33 million, respectively.
 
In addition to the above-mentioned cash flow hedge transactions, the Company occasionally enters into derivative instrument arrangements to hedge the Company’s exposure to currencies other than USD. These derivative instruments are not designated as cash flow hedges, as defined by ASC 815, and therefore all gains and losses resulting from fair value remeasurement were recorded immediately in the condensed consolidated statement of loss under Financial income (expense), net.
 
As of June 30, 2026, the Company entered into forward contracts to sell Euro (“EUR”) in the amounts of USD 35 million.
 
The Company classifies cash flows related to its hedging as operating activities in its condensed consolidated statement of cash flows.
 
The fair values of outstanding derivative instruments were as follows:
 
   
Balance sheet location
    
June 30,
2026
    
December 31,
2025
  
Derivative assets of options and forward contracts:
                  
Designated cash flow hedges
     Prepaid expenses and other current assets    
$
3,872
    
$
705
  
Non-designated hedges
    
Prepaid expenses and other current assets
      
1,108
      
-
  
Total derivative assets
          
$
4,980
    
$
705
  
 
Gains (losses) on derivative instruments are summarized below:
 
      
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
 
Affected line item
  
2026
    
2025
    
2026
    
2025
  
Foreign exchange contracts
                          
Non-designated
hedging instruments
Condensed consolidated statements of loss - Financial income (expense), net
  
$
381
    
$
(4,185
)
  
$
502
    
$
(4,185
)
Designated
hedging instruments
Condensed consolidated statements of comprehensive loss - Cash flow hedges
  
$
6,981
    
$
6,786
    
$
7,218
    
$
6,298
  
 
See Note 15, Accumulated Other Comprehensive Income (Loss), for information regarding gains (losses) from designated hedging instruments reclassified from accumulated other comprehensive income (loss).