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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 3 Months Ended
Mar. 31, 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 March 31, 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 255 million and NIS 108 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 March 31, 2026, the Company entered into forward contracts to sell Euro (“EUR”) in the amounts of USD 43 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
  
March 31,
2026
    
December 31,
2025
  
Derivative assets of options and forward contracts:
                
Designated cash flow hedges
  
Prepaid expenses and other current assets
  
$
-
    
$
705
  
Non-designated hedges
  
Prepaid expenses and other current assets
    
1,312
      
-
  
Total derivative assets
      
$
1,312
    
$
705
  
Derivative liabilities of options and forward contracts:
                    
Designated cash flow hedges
  
Accrued expenses and other current liabilities
  
$
(22
)
  
$
-
  
 
Gains (losses) on derivative instruments are summarized below:
 
       
Three Months Ended
March 31,
  
   
Affected line item
  
2026
    
2025
  
Foreign exchange contracts
                
Non-designated hedging instruments
  
Condensed consolidated statements of loss - Financial income (expense), net
  
$
121
    
$
-
  
Designated hedging instruments
  
Condensed consolidated statements of comprehensive loss - Cash flow hedges
  
$
237
    
$
(488
)
 
See Note 15, Accumulated Other Comprehensive Income (Loss), for information regarding gains (losses) from designated hedging instruments reclassified from accumulated other comprehensive income (loss).