General Market risks relating to our operations result primarily from weak economic conditions in the markets in which we sell our products and changes in interest and exchange rates. To manage the volatility related to the latter exposure, we may enter into various derivative transactions. Our objective is to reduce, where it is deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in currency exchange rates. It is our policy and practice to use derivative financial instruments only to manage such exposures. We do not use financial instruments for trading purposes and we are not a party to any leveraged derivative. 96 Foreign Currency Exchange Risk We conduct our business primarily in U.S. dollars but also in the currencies of Israel, the U.K., the E.U., India and Philippines, as well as other currencies. Thus, we are exposed to foreign exchange fluctuations, primarily in NIS, GBP, EUR, INR and PHP. We monitor foreign currency exposure and from time to time we may use various instruments to preserve the value of sale transactions and commitments, however, this cannot assure us protection against risks of currency fluctuations. For more information regarding foreign currency related risks, please refer to Item 3, “Key Information - Risk Factors -General Risks Factors” of this annual report. We use currency forward contracts and option contracts in order to protect against the increase in value of forecasted non-dollar currency cash flows and to hedge future anticipated payments. As of December 31, 2025, we had outstanding currency forward contracts to hedge payroll, facilities expenses and lease obligations, denominated in NIS, INR, PHP and ,COP in the total amount of approximately $218.50 million. The fair value adjustment of those contracts was approximately $6.8 million. These transactions were for a period of up to one year. The following table details the balance sheet exposure (i.e., the difference between assets and liabilities) in our main foreign currencies, as of December 31, 2025, against the relevant functional currency. Functional currencies (In U.S. dollars in millions) USD GBP CAD MXN AUD SGD Foreign currencies USD $ 40 $ 51 $ 4 $ (4) $ 11 GBP $ 25 $ — $ — $ — $ — EUR $ (12) $ 6 $ — $ — $ (1) $ — CAD $ 49 $ (1) $ — $ — $ — AUD $ 11 $ (1) $ — $ — $ 16 $ — MXN $ 7 $ — $ — $ — $ — CHF $ — $ — $ — $ — $ — $ — JPY $ 2 $ — $ — $ — $ — $ — INR $ 8 $ — $ — $ — $ — $ — SGD $ 2 $ — $ — $ — $ — HKD $ (4) $ — $ — $ — $ — $ — NIS $ (12) $ — $ — $ — $ — $ — PHP $ — $ — $ — $ — $ — $ — BRL $ — $ — $ — $ — $ — $ — Other currencies $ (20) $ 2 $ — $ — $ — $ 4 97 The table below presents the fair value of firmly committed transactions for lease obligations denominated in currencies other than the U.S. dollar, which is our reporting currency: (In U.S. dollars in millions) New Israeli Shekel Other currencies * Total Less than 1 year $ (5) $ (5) $ (10) 1-3 years $ (9) $ (9) $ (18) 3-5 years $ (8) $ (6) $ (14) Over 5 years $ (7) $ (2) $ (9) Total $ (29) $ (22) $ (51) * Other currencies include the following currencies: AUD, EUR, GBP, INR, JPY, PHP, COP and SGD. Interest Rate Risk We are subject to interest rate risk on our investments and on our borrowings. On August 24, 2020, we issued $460 million aggregate principal amount of 0% exchangeable senior notes due 2025. The 2020 Notes fully matured on Sep 15, 2025 and were settled in cash in the amount of $460 million. There was no conversion value over the principal amount. Our investments are exposed to market risk due to fluctuations in interest rates, which may affect our interest income and the fair market value of our marketable securities portfolio. Our short term investment portfolio consists of investment-grade corporate debentures, U.S. Government agencies and U.S. treasuries. As of December 31, 2025, 10.3% of our portfolio was in such securities and the remainder was in dollar deposits. We invest in dollar deposits with U.S. banks, European banks, Israeli banks and money market funds. As of December 31, 2025, 5% of our portfolio was in such deposits. Since these investments are for short periods, interest income is sensitive to changes in interest rates. The weighted average duration of the securities portfolio, as of December 31, 2025, is 0.88 years. The securities in our marketable securities portfolio are rated generally as A+ according to Standard and Poor’s rating or A1, according to Moody’s rating. Securities representing 8% of the marketable securities portfolio are rated as AAA; securities representing 39% of the marketable securities portfolio are rated as AA; securities representing 50% of the marketable securities portfolio are rated as A; securities representing 3% of the marketable securities portfolio are rated as BBB+ The table below presents the fair value of marketable securities which are subject to risk of changes in interest rate, segregated by maturity dates (in U.S. dollars, in millions): Amortized Cost Estimated fair value Up to 1 year 1-3 years 4-7 years Total Up to 1 year 1-3 years 4-7 years Total Corporate debentures 19.0 15.9 — 34.9 19.1 16.0 — 35.0 U.S. treasuries 1.5 1.5 — 3.0 1.5 1.5 — 3.0 U.S. government agencies — — — — — — — — Total 20.5 17.4 — 37.9 20.6 17.5 — 38.0 Other risks and uncertainties that could affect actual results and outcomes are described in Item 3, “Key Information – Risk Factors” in this annual report. 98