We are exposed to a number of market risks arising from our normal business activities. These risks principally involve the possibility of foreign currency exchange risk and changes in interest rates that may adversely affect the value of our financial assets and liabilities or future cash flows and earnings. The following provides qualitative and quantitative information regarding these risks. Foreign Currency Exchange Risk The U.S. dollar is our functional currency and the functional currency of a majority of our subsidiaries. Our revenue is largely denominated in U.S. dollars, and a portion of our revenue is denominated in foreign currencies, in particular the Euro ("EUR"). Additionally, a significant portion of our operating costs in Israel, consisting principally of compensation and benefits related costs, and overhead costs, are denominated in New Israeli Shekel (“NIS”). This foreign currency exposure, which we expect to persist, gives rise to market risk associated with exchange rate movements of the U.S. dollar against the EUR and NIS, respectively. To reduce the impact of foreign exchange risks associated with forecasted future cash flows and the volatility in our consolidated statements of operations, we have established a hedging program. We utilize foreign currency contracts, primarily forward and option contracts, with financial institutions to protect against foreign currency exchange risks, mainly the exposure to changes in the exchange rate of the EUR and NIS against the U.S. dollar that are associated with future cash flows denominated in EUR and NIS. We do not enter into derivative instruments for trading or speculative purposes. We account for our derivative instruments as either assets or liabilities and carry them at fair value in the consolidated balance sheets. The accounting for changes in the fair value of the derivative depends on the intended use of the derivative and the resulting designation. Our hedging program reduces but does not eliminate the impact of currency exchange rate movements. We may in the future enter into other derivative financial instruments if it is determined that such hedging activities are appropriate to further reduce our foreign currency exchange risk. The effect of a hypothetical 10% change in foreign currency exchange rates would have impacted our foreign currency gains/(losses) that are included within Other income/(expense), net, by approximately $0.2 million and $0.1 million as of December 31, 2025 and 2024, respectively. From the beginning of 2025 through the beginning of 2026, the USD has depreciated by approximately 15% against the NIS and we anticipate that this depreciation will have a negative impact on our year-over-year NIS denominated operating expenses as reported in USD during 2026. While we expect total 2026 non-GAAP operating expenses to remain relatively flat year-over-year primarily due to ongoing efforts to adjust and optimize our expense base and implement operational changes designed to offset the impact of currency movements, at current exchange rates, the depreciation of the U.S. Dollar against the NIS will result in an operating expense headwind of approximately $14.0 million. 134 Interest Rate Risk We have cash, cash equivalents, and short-term deposits of $297.6 million as of December 31, 2025. Cash and cash equivalents consist of cash in banks, bank deposits, and money market funds. Short-term deposits consist of bank deposits with original maturities between 4 and 12 months and that mature within 12 months of the balance sheet date. Our cash, cash equivalents, and short-term deposits are held for working capital purposes. Such interest-earning instruments carry a degree of interest rate risk. The primary objectives of our investment activities are the preservation of capital, the fulfillment of liquidity needs and the fiduciary control of cash. We do not enter into investments for trading or speculative purposes. We did not have any debt outstanding as of December 31, 2025. The effect of a hypothetical 10% change in interest rates would have impacted our interest income by approximately $1.3 million and $2.0 million for the years ended December 31, 2025 and 2024, respectively.