QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are exposed to market risks that result primarily from weak economic conditions in the markets in which we sell our products, and from changes in exchange rates or in interest rates. Interest Rate Risk Our exposure to market risk for changes in interest rates relates primarily to our investment in fixed maturity marketable securities, and short-term bank deposits. Our marketable securities portfolio includes mainly government and government agencies debt instruments (U.S., European and other) and corporate debt instruments, which are exposed to changes in short-term interest rates. By policy, we limit the amount of credit exposure to any single debt issuer. Investments in both fixed rate and floating rate interest bearing securities carry a degree of interest rate risk. Fixed rate securities may have their fair market value impacted due to a rise or fall in interest rates, while floating rate securities may produce less income than predicted if interest rates fall. Due in part to these factors, our income from investments may change in the future in the event that interest rates fluctuate. The yield on new investments in our investment portfolio and our interest income was positively impacted by several years of rising interest rates. From the second half of 2024 interest rates started to fall as the Federal Reserve bank cut the Federal Funds Rate, and so did other central banks, which negatively affected the yield on new investments in our investment portfolio. As of December 31, 2025 securities representing 5% of our investments portfolios are rated as AAA; securities representing 42% of the portfolio are rated between AA- and AA+; securities representing 53% of the portfolio are rated between A- and A+; securities representing 1% of the portfolio are rated as BBB+ or below. The table below provides information regarding our investments in cash, cash equivalents, short-term bank deposits and marketable securities, as of December 31, 2025: Maturity Total Par Value Fair Value at Dec. 31, 2025 2026 2027 2028 2029 2030 (in millions) Marketable securities: Debt securities issued by the U.S. Treasury and other U.S. government agencies $ 177.6 $ 74.0 $ 98.2 $ 81.1 $ 44.4 $ 475.3 $ 474.3 Debt securities issued by other governments 9.4 11.7 10.8 7.0 - 38.9 39.3 Corporate debt securities 504.8 394.2 265.2 211.6 130.0 1,505.8 1,502.4 Cash 109.8 109.8 109.8 Short-term bank deposits 525.7 525.7 525.7 Cash equivalents: Money market funds 1,464.5 - - - - 1,464.5 1,464.5 Short term deposits 225.7 - - - - 225.7 225.7 Total $ 3,017.5 $ 479.9 $ 374.2 $ 299.7 $ 174.4 $ 4,345.7 $ 4,341.7 66 Foreign Currency Risk Most of our sales are denominated in U.S. dollars, and we incur majority of our expenses in U.S. dollar, Israeli Shekel and Euro currencies. According to the factors indicated in ASC 830, “Foreign Currency Matters”, our cash flow, sale price, sales market, expense, financing and inter-company transactions, and arrangement indicators, are predominantly denominated in U.S. dollars. In addition, the U.S. dollar is the primary currency of the economic environment in which we operate, and thus, the U.S. dollar is our functional and reporting currency. On our balance sheet, we convert into U.S. dollars all monetary accounts (principally liabilities) that are held in other currencies. For this conversion, we use the relevant foreign currency exchange rate at the balance sheet date. Any gain or loss that results from this conversion is reflected in the statement of income as financial income or financial expense, as appropriate. We measure and record non-monetary accounts in our balance sheet in U.S. dollars. For this measurement, we use the U.S. dollar value in effect at the date that the asset or liability was initially recorded in our balance sheet (the date of the transaction). We entered into forward contracts to hedge the foreign currency exchange impacts on assets and liabilities denominated in various foreign currencies. As of December 31, 2025, the total amount of outstanding forward contracts that did not qualify for hedge accounting was $196.0 million. These contracts were for a period of up to twelve months. The net amount of gains and losses recognized in “financial income, net” during 2025 was a gain of $30.3 million. During 2025, we entered into forward contracts to hedge against the risk of overall changes in foreign currency exchange rates on future cash flow from payments of payroll and related expenses denominated in Israeli Shekel and Euro. These contracts qualified for cash flow hedge accounting and as such the net amount of gains and losses of $29.1 million in gain was recognized when the related expenses were incurred, and classified in operating expenses during 2025. As of December 31 2025, the notional amount of outstanding forward contracts that qualified for cash flow hedge accounting was $328.8 million and their fair value gain amount was $29.8 million. Our operating expenses may be affected by fluctuations in the value of the U.S dollar as it relates to foreign currencies; with Israeli Shekel and Euro having the greatest potential impact. In managing our foreign exchange risk, we periodically enter into foreign exchange hedging contracts. Our goal is to mitigate the potential exposure with these contracts. By way of example, a 10% weakening in the value of the dollar relative to the currencies in which our operating expenses are denominated in 2025 would result in an increase in operating expenses of $79.5 million for the year ended December 31, 2025. This calculation assumes that each exchange rate would change in the same direction relative to the U.S. dollar.