{"url_path":"/sec/chkp/10-k/2026/item-19","section_key":"item-19","section_title":"Item 19 EXHIBITS","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-03-31","source_url":"https://www.sec.gov/Archives/edgar/data/1015922/0001178913-26-001932-index.html","accession_number":"0001178913-26-001932","cik":"0001015922","ticker":"CHKP","issuer_name":"CHECK POINT SOFTWARE TECHNOLOGIES LTD","edgar_url":"https://www.sec.gov/Archives/edgar/data/1015922/0001178913-26-001932-index.html","primary_entity_key":"0001015922","primary_entity_name":"CHECK POINT SOFTWARE TECHNOLOGIES LTD"},"word_count":20797,"has_tables":true,"body_markdown":"ITEM 19.\nEXHIBITS\n\n \n\n[1](https://www.sec.gov/Archives/edgar/data/1015922/000117891306000432/exhibit_1.htm)\n\n[Articles\nof Association of Check Point Software Technologies Ltd. (1)](https://www.sec.gov/Archives/edgar/data/1015922/000117891306000432/exhibit_1.htm)\n\n[2.1](exhibit_2-1.htm)\n\n[Description\nof the rights of each class of securities registered under Section 12 of the Securities Exchange Act of 1934](exhibit_2-1.htm)\n\n[4.1](https://www.sec.gov/Archives/edgar/data/1015922/000117891306000432/exhibit_4-1.htm)\n\n[Form\nof Director Insurance, Indemnification and Exculpation Agreement between Check Point Software Technologies Ltd. and its directors (2)](https://www.sec.gov/Archives/edgar/data/1015922/000117891306000432/exhibit_4-1.htm)\n\n[4.2](https://www.sec.gov/Archives/edgar/data/1015922/000117891324001196/exhibit_4-2.htm)\n\n[Check\nPoint Software Technologies Ltd. 2005 Israel Equity Incentive Plan, as amended (3)](https://www.sec.gov/Archives/edgar/data/1015922/000117891324001196/exhibit_4-2.htm)\n\n[4.3](https://www.sec.gov/Archives/edgar/data/1015922/000117891324001196/exhibit_4-3.htm)\n\n[Check\nPoint Software Technologies Ltd. 2005 United States Equity Incentive Plan, as amended (4)](https://www.sec.gov/Archives/edgar/data/1015922/000117891324001196/exhibit_4-3.htm)\n\n[4.4](https://www.sec.gov/Archives/edgar/data/1015922/000117891315003015/exhibit_4-1.htm)\n\n[Check\nPoint Software Technologies Ltd. Employee Stock Purchase Plan, as Amended and Restated (5)](https://www.sec.gov/Archives/edgar/data/1015922/000117891315003015/exhibit_4-1.htm)\n\n[4.5](https://www.sec.gov/Archives/edgar/data/1015922/000119312518138808/d528783dex45.htm)\n\n[Check\nPoint Software Technologies Ltd. Employee Stock Purchase Plan (Non-U.S. Employees) (6)](https://www.sec.gov/Archives/edgar/data/1015922/000119312518138808/d528783dex45.htm)\n\n[4.6](https://www.sec.gov/Archives/edgar/data/1015922/000117891307000527/exhibit_4-11.htm)\n\n[A\ntranslation of an agreement between Tzlil Ad Ltd. and Check Point Software Technologies Ltd., for the purchase of the leasing rights of\na building in Tel Aviv, Israel, dated as of March 19, 2006 (7)](https://www.sec.gov/Archives/edgar/data/1015922/000117891307000527/exhibit_4-11.htm)\n\n[4.7](https://www.sec.gov/Archives/edgar/data/1015922/000117891318002743/exhibit_4-2.htm)\n\n[Dome9\nSecurity Ltd. 2011 Share Option Plan and the 2016 Equity Incentive Subplan (8)](https://www.sec.gov/Archives/edgar/data/1015922/000117891318002743/exhibit_4-2.htm)\n\n[4.8](https://www.sec.gov/Archives/edgar/data/1015922/000117891325002510/zk2533493.htm)\n\n[Check\nPoint Software Technologies Ltd. Executive Compensation Plan (9)](https://www.sec.gov/Archives/edgar/data/1015922/000117891325002510/zk2533493.htm)\n\n[4.9](https://www.sec.gov/Archives/edgar/data/1015922/000117891325004030/exhibit_4-1.htm)\n\n[Indenture,\ndated as of December 8, 2025, by and between Check Point Software Technologies Ltd. and U.S. Bank Trust Company, National Association,\nas Trustee (10)](https://www.sec.gov/Archives/edgar/data/1015922/000117891325004030/exhibit_4-1.htm)\n\n[4.10](https://www.sec.gov/Archives/edgar/data/1015922/000117891325004030/exhibit_4-1.htm)\n\n[Form\nof 0.00% Convertible Senior Note due 2030 (11)](https://www.sec.gov/Archives/edgar/data/1015922/000117891325004030/exhibit_4-1.htm)\n\n[4.11](exhibit_4-11.htm)\n\n[Agreement,\ndated July 2, 2025, between Tel Aviv-Jaffa Municipality, Israel Electric Company Ltd., Check Point Software Technologies Ltd. and Israel\nCanada Shelf 3, Limited Partnership and Long-Term Lease Agreement, dated July 2, 2025, between Tel Aviv-Jaffa Municipality, Check Point\nSoftware Technologies Ltd. and Israel Canada Shelf 3, Limited Partnership (12)](exhibit_4-11.htm)\n\n[8](#a_008)\n\n[List of subsidiaries (13)](#a_008)\n\n[11](https://www.sec.gov/Archives/edgar/data/1015922/000117891324001196/exhibit_4-9.htm)\n\n[Check\nPoint Software Technologies Ltd. Insider Trading Policy (14)](https://www.sec.gov/Archives/edgar/data/1015922/000117891324001196/exhibit_4-9.htm)\n\n[12.1](exhibit_12-1.htm)\n\n[Certification\nof the Chief Executive Officer pursuant to §302 of the Sarbanes-Oxley Act of 2002](exhibit_12-1.htm)\n\n[12.2](exhibit_12-2.htm)\n\n[Certification\nof the Chief Financial Officer pursuant to §302 of the Sarbanes-Oxley Act of 2002](exhibit_12-2.htm)\n\n[13.1](exhibit_13-1.htm)\n\n[Certification\nof Chief Executive Officer pursuant to 18 U.S.C. Section 1350](exhibit_13-1.htm)\n\n[13.2](exhibit_13-2.htm)\n\n[Certification\nof Chief Financial Officer pursuant to 18 U.S.C. Section 1350](exhibit_13-2.htm)\n\n[15](exhibit_15.htm)\n\n[Consent\nof Kost, Forer, Gabbay & Kasierer, a Member of EY Global](exhibit_15.htm)\n\n[97.1](https://www.sec.gov/Archives/edgar/data/1015922/000117891324001196/exhibit_97-1.htm)\n\n[Check\nPoint Software Technologies Ltd. Clawback Policy (15)](https://www.sec.gov/Archives/edgar/data/1015922/000117891324001196/exhibit_97-1.htm)\n\n101\n\nInline XBRL\n(Extensible Business Reporting Language) The following materials from Check Point Software Technologies Ltd.’s Annual Report on\nForm 20-F for the fiscal year-ended December 31, 2020, formatted in Inline XBRL:\n\n(i)\n\nConsolidated\nStatements of Operations, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Shareholders’ Equity/(Deficit)\nand Comprehensive Income/(Loss) (iv) Consolidated Statements of Cash Flows, (v) Notes to the Consolidated Financial Statements,\n(vi) Schedule II — Valuation and Qualifying Accounts and Reserves, and (vii) Cover Page\n\n104\n\nCover Page\nInteractive Data File (formatted in Inline XBRL and contained in Exhibit 101)\n\n                                                          \n\n(1)\n\nIncorporated by reference to Exhibit 1 of Check\nPoint’s Annual Report on Form 20-F for the year ended December 31, 2005.\n\n(2)\n\nIncorporated by reference to Exhibit 4.1 of Check\nPoint’s Annual Report on Form 20-F for the year ended December 31, 2005.\n\n(3)\n\nIncorporated by reference to Exhibit 4.2 of Check\nPoint’s Annual Report on Form 20-F for the year ended December 31, 2023.\n\n(4)\n\nIncorporated by reference to Exhibit 4.3 of Check\nPoint’s Annual Report on Form 20-F for the year ended December 31, 2023.\n\n(5)\n\nIncorporated by reference to Exhibit 4.1 of Check\nPoint’s Registration Statement on Form S-8 (No. 333-207355) filed with the Securities and Exchange Commission on October 8,\n2015.\n\n(6)\n\nIncorporated by reference to Exhibit 4.5 of Check\nPoint’s Annual Report on Form 20-F for the year ended December 31, 2017.\n\n(7)\n\nIncorporated by reference to Exhibit 4.11 of Check\nPoint’s Annual Report on Form 20-F for the year ended December 31, 2006.\n\n(8)\n\nIncorporated by reference to Exhibit 4.2 of Check\nPoint’s Registration Statement on Form S-8 (No. 333-228075) filed with the Securities and Exchange Commission on October 31,\n2018.\n\n(9)\n\nIncorporated by reference to Annex A of Check\nPoint’s Report on Form 6-K filed with the Securities and Exchange Commission on July 28, 2025.\n\n(10)\n\nIncorporated by reference to Exhibit 4.1 of Check\nPoint’s Report on Form 6-K filed with the Securities and Exchange Commission on December 8, 2025.\n\n(11)\n\nIncorporated by reference to Exhibit 4.2 of Check\nPoint’s Report on Form 6-K filed with the Securities and Exchange Commission on December 8, 2025.\n\n(12)\n\nEnglish summary of Hebrew originals\n\n(13)\n\nIncorporated by reference to “Item 4 –\nInformation on Check Point – Organizational Structure” in this Annual Report on Form 20-F.\n\n(14)\n\nIncorporated by reference to Exhibit 4.9 of Check\nPoint’s Annual Report on Form 20-F for the year ended December 31, 2023.\n\n(15)   Incorporated\nby reference to Exhibit 97.1 of Check Point’s Annual Report on Form 20-F for the year ended December 31, 2023.\n\n \n\n73\n\n \n\n \n \n\nSIGNATURES\n\n \n\nThe\nregistrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the\nundersigned to sign this annual report on its behalf.\n\n \n\n \n\nCHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.\n\n \n \n\n \n\nBy:\n\n/s/\nNadav Zafrir\n\n \n\n \n\nNadav Zafrir\n\n \n\n \n\nChief Executive Officer\n\n \n\n \n\nBy:\n\n/s/\nRoei Golan\n\n \n\n \n\nRoei Golan\n\n \n\n \n\nChief Financial Officer\n\n \n\nDate: March\n31, 2026\n\n  \n\n74\n\n \n\n \n\nCHECK\nPOINT SOFTWARE TECHNOLOGIES LTD. AND SUBSIDIARIES\n\n \n\nCONSOLIDATED\nFINANCIAL STATEMENTS\n\n \n\nAS\nOF DECEMBER 31, 2025\n\n \n\nIN\nU.S. DOLLARS\n\n \n\nINDEX\n\n \n\n \n \n\n \n\nPage\n\n \n\n \n\n[Reports\nof Independent Registered Public Accounting Firm](#ReportofIndependentRegist) (PCAOB ID Number 1281)\n\nF-2 - F-6\n\n \n\n \n\n[Consolidated\nBalance Sheets](#BALANCESHEETS)\n\nF-7\n- F-8\n\n \n\n \n\n[Consolidated\nStatements of Income](#TATEMENTSOFINCOME)\n\nF-9\n\n \n\n \n\n[Consolidated\nStatements of Comprehensive Income](#FCOMPREHENSIVEINCOME)\n\nF-10\n\n \n\n \n\n[Statements\nof Changes in Shareholders’ Equity](#EQUITY)\n\nF-11\n\n \n\n \n\n[Consolidated\nStatements of Cash Flows](#SOFCASHFLOWS)\n\nF-12\n- F-13\n\n \n\n \n\n[Notes\nto Consolidated Financial Statements](#NOTEST)\n\nF-14\n- F-57\n\n \n\n \n\n \n\n \n\nReport\nof Independent Registered Public Accounting Firm\n\n \n\nTo\nthe Shareholders and the Board of Directors of Check Point Software Technologies Ltd.\n\n \n\nOpinion\non the Financial Statements\n\n \n\nWe\nhave audited the accompanying consolidated balance sheets of Check Point Software Technologies Ltd. and subsidiaries (the “Company”)\nas of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in shareholders’\nequity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred\nto as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all\nmaterial respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash\nflows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.\n\n \n\nWe\nalso have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s\ninternal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control-Integrated Framework\nissued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated March 31, 2026,\nexpressed an unqualified opinion thereon.\n\n \n\nBasis\nfor Opinion\n\n \n\nThese\nfinancial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s\nfinancial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent\nwith respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities\nand Exchange Commission and the PCAOB.\n\n \n\nWe\nconducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits\nincluded performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,\nand performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts\nand disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates\nmade by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable\nbasis for our opinion.\n\n \n\nCritical\nAudit Matters\n\n \n\nThe\ncritical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated\nor required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial\nstatements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters\ndoes not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the\ncritical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they\nrelate.\n\nF\n- 2\n\n \n\nRevenue\nfrom Contracts with Customers—Estimate of Standalone Selling Price \n\n \n\nDescription of the Matter\n\nAs\ndescribed in Note 2 to the consolidated financial statements, the Company primarily derives revenues from sales of products and licenses,\nsecurity subscriptions and software updates and maintenance. The Company’s contracts with customers often contain multiple goods\nand services which are accounted for as separate performance obligations when they are distinct. The Company allocates the transaction\nprice to the distinct performance obligations on a relative standalone selling price.\n\n \n\n \n\nAuditing\nthe management’s determination of the standalone selling price required challenging and subjective auditor judgment due to the subjective\nassumptions used to establish the standalone selling price for each performance obligation. Standalone selling price for goods and services\ncan evolve over time due to changes in the Company’s pricing practices that may be influenced by competition, changes in demand\nfor products and services, and economic factors, among others. This in turn led to significant auditor judgment, subjectivity and effort\nin performing procedures and evaluating audit evidence related to management’s determination of the standalone selling price.\n\n \n\nHow We Addressed the\nMatter in Our Audit\n\nWe\nobtained an understanding, evaluated the design and tested the operating effectiveness of internal controls over the Company’s revenue\nprocess, including controls over the development of assumptions used to determine the standalone selling prices.\n\n \n\n \n\nOur\nsubstantive audit procedures included testing management’s determination of standalone selling prices for each performance obligation,\nincluding assessing the appropriateness of the methodology applied, testing the mathematical accuracy of the underlying data and evaluating\nthe significant assumptions used by the Company. We also performed sensitivity analyses over key assumptions to assess the impact on revenue\nrecognition that could result from changes to the Company’s assumptions.\n\nF\n- 3\n\n \n\nUncertain\nTax Positions\n\n \n\nDescription of the Matter\n\nAs\ndiscussed in Note 12 to the consolidated financial statements, the Company operates its business in various jurisdictions, and accordingly\nattempts to utilize an efficient operating model to structure its tax payments based on the laws in each jurisdiction in which the Company\noperates. This can cause disputes between the Company and various tax authorities in different parts of the world. The Company uses significant\njudgment in (1) determining whether a tax position’s technical merits are more-likely-than-not to be sustained and (2) measuring\nthe amount of tax benefit that qualifies for recognition.\n\n \n\n \n\nAuditing\nmanagement’s evaluation of whether an uncertain tax position is more-likely-than-not to be sustained and the measurement of the\nbenefit of various tax positions can be complex and involves significant auditor judgment. Management’s evaluation of tax positions\nis based on interpretations of tax laws and legal rulings, and may be impacted by regulatory changes and judicial and examination activity.\n\n \n\nHow We Addressed the\nMatter in Our Audit\n\nWe\nobtained an understanding, evaluated the design, and tested the operating effectiveness of the controls over management’s process\nto assess the technical merits of the Company’s tax positions and management’s process to measure the benefit of its tax positions\nthat qualify for recognition.\n \n\n \n\nWe\nevaluated the Company’s assessment of which tax positions are more likely than not to be sustained and the related measurement of\nthe amount of tax benefit that qualifies for recognition. Our audit procedures included, evaluating management’s assumptions and\nanalysis, and, as applicable, the Company’s communications with tax authorities and tax opinions obtained by the Company, that detailed\nthe basis and technical merits of the uncertain tax positions. We involved our tax professionals in assessing the technical merits of\ncertain of the Company’s tax positions based on our knowledge of relevant tax laws and experience with related taxing authorities.\n\n \n\n/s/\nKost Forer Gabbay & Kasierer\n\nA\nMember of EY Global\n\n \n\nWe\nhave served as the Company’s auditor since 1994.\n\n \n\nTel-Aviv,\nIsrael\n\nMarch\n31, 2026\n\nF\n- 4\n\n \n\nReport\nof Independent Registered Public Accounting Firm\n\n \n\nTo the\nShareholders and the Board of Directors of Check Point Software Technologies Ltd.\n\n \n\nOpinion\non Internal Control Over Financial Reporting\n\n \n\nWe\nhave audited Check Point Software Technologies Ltd. and subsidiaries’ internal control over financial reporting as of December 31,\n2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations\nof the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Check Point Software Technologies Ltd. and subsidiaries\n(the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based\non the COSO criteria.\n\n \n\nWe\nalso have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated\nbalance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes\nin shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes,\nand our report dated March 31, 2026 expressed an unqualified opinion thereon.\n\n \n\nBasis\nfor Opinion\n\n \n\nThe\nCompany’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of\nthe effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control\nover Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting\nbased on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company\nin accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission\nand the PCAOB.\n\n \n\nWe\nconducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain\nreasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.\n\n \n\nOur\naudit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists,\ntesting and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other\nprocedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.\n\nF\n- 5\n\n \n\nDefinition\nand Limitations of Internal Control Over Financial Reporting\n\n \n\nA\ncompany’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability\nof financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting\nprinciples. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the\nmaintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the\ncompany; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in\naccordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance\nwith authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection\nof unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\n \n\nBecause\nof its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any\nevaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions,\nor that the degree of compliance with the policies or procedures may deteriorate.\n\n \n\n/s/ Kost Forer Gabbay\n& Kasierer\n\nA Member of EY Global\n\n \n\nTel-Aviv,\nIsrael\n\nMarch 31,\n2026\n\nF\n- 6\n\n \n\nCHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.\n\nAND\nSUBSIDIARIES\n\n \n\nCONSOLIDATED\nBALANCE SHEETS\n\nIn\nmillions\n\n \n\n \n\n \n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\n \n\n \n \n \n \n \n \n\nASSETS\n\n \n \n \n \n \n \n\n \n\n \n \n \n \n \n \n\nCURRENT\nASSETS:\n\n \n \n \n \n \n \n\nCash\nand cash equivalents\n\n \n\n$\n\n1,800.0\n\n \n \n\n$\n\n506.2\n\n \n\nShort-term\nbank deposits\n\n \n \n\n525.7\n\n \n \n \n\n134.0\n\n \n\nMarketable\nsecurities\n\n \n \n\n689.2\n\n \n \n \n\n731.7\n\n \n\nTrade\nreceivables, net\n\n \n \n\n769.1\n\n \n \n \n\n728.8\n\n \n\nPrepaid\nexpenses and other assets\n\n \n \n\n180.0\n\n \n \n \n\n92.7\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nTotal\ncurrent assets\n\n \n \n\n3,964.0\n\n \n \n \n\n2,193.4\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nLONG-TERM\nASSETS:\n\n \n \n \n \n \n \n \n \n\nMarketable\nsecurities\n\n \n \n\n1,326.8\n\n \n \n \n\n1,411.9\n\n \n\nProperty\nand equipment, net\n\n \n \n\n82.9\n\n \n \n \n\n80.8\n\n \n\nDeferred\ntax asset, net\n\n \n \n\n68.3\n\n \n \n \n\n74.7\n\n \n\nIntangible\nassets, net\n\n \n \n\n214.2\n\n \n \n \n\n201.4\n\n \n\nGoodwill\n\n \n \n\n1,904.3\n\n \n \n \n\n1,695.7\n\n \n\nLease\nprepayment\n\n \n \n\n159.9\n\n \n \n \n\n-\n\n \n\nOther\nassets\n\n \n \n\n86.0\n\n \n \n \n\n96.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nTotal\nlong-term assets\n\n \n \n\n3,842.4\n\n \n \n \n\n3,561.1\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nTotal\nassets\n\n \n\n$\n\n7,806.4\n\n \n \n\n$\n\n5,754.5\n\n \n\n \n\nThe\naccompanying notes are an integral part of the consolidated financial statements.\n\n \n\nF\n- 7\n\n \n\nCHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.\n\nAND\nSUBSIDIARIES\n\n \n\nCONSOLIDATED\nBALANCE SHEETS (CONT’D)\n\nIn\nmillions (except share and per share data)\n\n \n\n \n\n \n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\n \n\n \n \n \n \n \n \n\nLIABILITIES\nAND SHAREHOLDERS’ EQUITY\n\n \n \n \n \n \n \n\n \n \n \n \n \n \n \n\nCURRENT\nLIABILITIES:\n\n \n \n \n \n \n \n\nTrade\npayables\n\n \n\n$\n\n27.6\n\n \n \n\n$\n\n54.8\n\n \n\nEmployees\nand payroll accruals\n\n \n \n\n229.3\n\n \n \n \n\n241.5\n\n \n\nDeferred\nrevenues\n\n \n \n\n1,530.1\n\n \n \n \n\n1,471.3\n\n \n\nAccrued\nexpenses and other liabilities\n\n \n \n\n149.7\n\n \n \n \n\n176.6\n\n \n\n \n \n \n \n \n \n \n \n \n\nTotal\ncurrent liabilities\n\n \n \n\n1,936.7\n\n \n \n \n\n1,944.2\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nLONG-TERM\nLIABILITIES:\n\n \n \n \n \n \n \n \n \n\nConvertible\nsenior notes, net\n\n \n \n\n1,972.1\n\n \n \n \n\n-\n\n \n\nDeferred\nrevenues\n\n \n \n\n650.3\n\n \n \n \n\n529.0\n\n \n\nIncome\ntax accrual\n\n \n \n\n329.7\n\n \n \n \n\n459.6\n\n \n\nOther\nliabilities\n\n \n \n\n35.5\n\n \n \n \n\n32.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nTotal\nlong-term liabilities\n\n \n \n\n2,987.6\n\n \n \n \n\n1,020.9\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nTotal\nliabilities\n\n \n \n\n4,924.3\n\n \n \n \n\n2,965.1\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nSHAREHOLDERS’\nEQUITY:\n\n \n \n \n \n \n \n \n \n\nOrdinary\nshares, NIS 0.01\npar value, 500,000,000\nshares authorized at December 31, 2025 and 2024;\n\n261,223,970\nshares issued at December 31, 2025 and 2024; 105,596,035\nand 108,368,523\nshares\n\noutstanding\nat December 31, 2025 and 2024, respectively\n\n \n \n\n0.8\n\n \n \n \n\n0.8\n\n \n\nAdditional\npaid-in capital\n\n \n \n\n3,331.6\n\n \n \n \n\n3,049.5\n\n \n\nTreasury\nshares at cost, 155,627,935\nand 152,855,447\nordinary shares at\nDecember 31, 2025 and 2024, respectively\n\n \n \n\n(15,555.8\n\n)\n\n \n \n\n(14,264.4\n\n)\n\nAccumulated\nother comprehensive income (loss)\n\n \n \n\n34.8\n\n \n \n \n\n(10.3\n\n)\n\nRetained\nearnings\n\n \n \n\n15,070.7\n\n \n \n \n\n14,013.8\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nTotal\nshareholders’ equity\n\n \n \n\n2,882.1\n\n \n \n \n\n2,789.4\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nTotal\nliabilities and shareholders’ equity\n\n \n\n$\n\n7,806.4\n\n \n \n\n$\n\n5,754.5\n\n \n\n \n\nThe\naccompanying notes are an integral part of the consolidated financial statements.\n\n \n\nF\n- 8\n\n \n\n \n\nCHECK POINT SOFTWARE\nTECHNOLOGIES LTD.\n\nAND SUBSIDIARIES\n\n \n\nCONSOLIDATED STATEMENTS\nOF INCOME\n\nIn millions (except\nshare and per share data)\n\n \n\n \n\n \n\nYear\nended\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\nRevenues:\n\n \n \n \n \n \n \n \n \n \n\nProducts and licenses\n\n \n\n$\n\n548.2\n\n \n \n\n$\n\n507.9\n\n \n \n\n$\n\n497.4\n\n \n\nSecurity subscriptions\n\n \n \n\n1,219.0\n\n \n \n \n\n1,104.2\n\n \n \n \n\n981.2\n\n \n\nSoftware updates and maintenance\n\n \n \n\n958.2\n\n \n \n \n\n952.9\n\n \n \n \n\n936.1\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nTotal\nrevenues\n\n \n \n\n2,725.4\n\n \n \n \n\n2,565.0\n\n \n \n \n\n2,414.7\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nOperating expenses:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\nCost of products and licenses *)\n\n \n \n\n105.8\n\n \n \n \n\n97.8\n\n \n \n \n\n99.3\n\n \n\nCost of security subscriptions *)\n\n \n \n\n90.9\n\n \n \n \n\n72.6\n\n \n \n \n\n57.0\n\n \n\nCost of software updates and maintenance\n*)\n\n \n \n\n132.6\n\n \n \n \n\n123.9\n\n \n \n \n\n112.3\n\n \n\nAmortization of technology\n\n \n \n\n32.5\n\n \n \n \n\n25.0\n\n \n \n \n\n14.0\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nTotal\ncost of revenues\n\n \n \n\n361.8\n\n \n \n \n\n319.3\n\n \n \n \n\n282.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nResearch and development\n\n \n \n\n456.7\n\n \n \n \n\n394.9\n\n \n \n \n\n368.9\n\n \n\nSelling and marketing\n\n \n \n\n947.0\n\n \n \n \n\n862.9\n\n \n \n \n\n747.1\n\n \n\nGeneral and administrative\n\n \n \n\n128.8\n\n \n \n \n\n111.9\n\n \n \n \n\n117.0\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nTotal\noperating expenses\n\n \n \n\n1,894.3\n\n \n \n \n\n1,689.0\n\n \n \n \n\n1,515.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nOperating income\n\n \n \n\n831.1\n\n \n \n \n\n876.0\n\n \n \n \n\n899.1\n\n \n\nFinancial income, net\n\n \n \n\n114.0\n\n \n \n \n\n96.1\n\n \n \n \n\n76.5\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nIncome before taxes on income (tax benefit)\n\n \n \n\n945.1\n\n \n \n \n\n972.1\n\n \n \n \n\n975.6\n\n \n\nTaxes on income (tax benefit)\n\n \n \n\n(111.8\n\n)\n\n \n \n\n126.4\n\n \n \n \n\n135.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nNet income\n\n \n\n$\n\n1,056.9\n\n \n \n\n$\n\n845.7\n\n \n \n\n$\n\n840.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nBasic earnings per ordinary share\n\n \n\n$\n\n9.85\n\n \n \n\n$\n\n7.65\n\n \n \n\n$\n\n7.19\n\n \n\nNumber of shares used in computing basic earnings\nper share\n\n \n \n\n107,264,069\n\n \n \n \n\n110,617,625\n\n \n \n \n\n116,913,913\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nDiluted earnings per ordinary share\n\n \n\n$\n\n9.62\n\n \n \n\n$\n\n7.46\n\n \n \n\n$\n\n7.10\n\n \n\nNumber of shares used in computing diluted earnings\nper share\n\n \n \n\n109,913,789\n\n \n \n \n\n113,406,896\n\n \n \n \n\n118,347,749\n\n \n\n \n\n*)\n\nNot including amortization of technology shown separately.\n\n \n\nThe accompanying notes are an integral\npart of the consolidated financial statements.\n\n \n\nF\n- 9\n\n \n\n \n\nCHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.\n\nAND\nSUBSIDIARIES\n\n \n\nCONSOLIDATED\nSTATEMENTS OF COMPREHENSIVE INCOME\n\nIn\nmillions (except share and per share data)\n\n \n\n \n\n \n\nYear\nended\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n\nNet\nincome\n\n \n\n$\n\n1,056.9\n\n \n \n\n$\n\n845.7\n\n \n \n\n$\n\n840.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nOther\ncomprehensive income\n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nChange\nin unrealized gains on marketable securities:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\nUnrealized\ngains arising during the period, net of tax\n\n \n \n\n23.6\n\n \n \n \n\n27.1\n\n \n \n \n\n49.1\n\n \n\nGains\nreclassified into earnings, net of tax\n\n \n \n\n*\n\n)\n\n \n \n\n*\n\n)\n\n \n \n\n5.2\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n\n23.6\n\n \n \n \n\n27.1\n\n \n \n \n\n54.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nChange\nin unrealized gains (losses) on cash flow hedges:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\nUnrealized\ngains (losses) arising during the period, net of tax\n\n \n \n\n48.9\n\n \n \n \n\n(2.9\n\n)\n\n \n \n\n(12.0\n\n)\n\n(Gains)\nlosses reclassified into earnings, net of tax\n\n \n \n\n(27.4\n\n)\n\n \n \n\n4.7\n\n \n \n \n\n16.4\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n\n21.5\n\n \n \n \n\n1.8\n\n \n \n \n\n4.4\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nOther\ncomprehensive income, net of tax\n\n \n \n\n45.1\n\n \n \n \n\n28.9\n\n \n \n \n\n58.7\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nComprehensive\nincome\n\n \n\n$\n\n1,102.0\n\n \n \n\n$\n\n874.6\n\n \n \n\n$\n\n899.0\n\n \n\n \n\n*)\nRepresents an amount lower than $0.1\n \nThe accompanying notes are an integral part of the consolidated financial statements.\n\n \n\nF\n- 10\n\n \n\n \n\nCHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.\n\nAND\nSUBSIDIARIES\n\n \n\nSTATEMENTS\nOF CHANGES IN SHAREHOLDERS’ EQUITY\n\nIn\nmillions (except share and per share data)\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n\nAccumulated\n\n \n \n \n \n \n \n \n\n \n\n \n \n \n \n\nAdditional\n\n \n \n\nTreasury\n\n \n \n\nother\n\n \n \n \n \n \n\nTotal\n\n \n\n \n\n \n\nOrdinary\n\n \n \n\npaid-in\n\n \n \n\nshares\n\n \n \n\ncomprehensive\n\n \n \n\nRetained\n\n \n \n\nshareholders’\n\n \n\n \n\n \n\nshares\n\n \n \n\ncapital\n\n \n \n\nat\ncost\n\n \n \n\nincome\n(loss)\n\n \n \n\nearnings\n\n \n \n\nequity\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance as of January\n1, 2023\n\n \n\n$\n\n0.8\n\n \n \n\n$\n\n2,500.7\n\n \n \n\n$\n\n(11,802.1\n\n)\n\n \n\n$\n\n(97.9\n\n)\n\n \n\n$\n\n12,327.8\n\n \n \n\n$\n\n2,929.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nIssuance\nof treasury shares under stock purchase plans, upon\nexercise of options and vesting of restricted stock\nunits (2,001,548\nordinary shares)\n\n \n \n\n-\n\n \n \n \n\n85.2\n\n \n \n \n\n48.5\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n133.7\n\n \n\nTreasury shares\nat cost (9,857,092\nordinary shares)\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n(1,287.6\n\n)\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n(1,287.6\n\n)\n\nStock-based compensation\n\n \n \n\n-\n\n \n \n \n\n145.3\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n145.3\n\n \n\nOther comprehensive\nloss, net of tax\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n58.7\n\n \n \n \n\n-\n\n \n \n \n\n58.7\n\n \n\nFair value of awards\nattributable to pre-acquisition services\n\n \n \n\n-\n\n \n \n \n\n1.3\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n1.3\n\n \n\nNet income\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n840.3\n\n \n \n \n\n840.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance as of December 31,\n2023\n\n \n\n$\n\n0.8\n\n \n \n\n$\n\n2,732.5\n\n \n \n\n$\n\n(13,041.2\n\n)\n\n \n\n$\n\n(39.2\n\n)\n\n \n\n$\n\n13,168.1\n\n \n \n\n$\n\n2,821.0\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nIssuance\nof treasury shares under stock purchase plans, upon\nexercise of options and vesting of restricted stock\nunits (3,123,455\nordinary shares)\n\n \n \n\n-\n\n \n \n \n\n164.2\n\n \n \n \n\n76.7\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n240.9\n\n \n\nTreasury shares\nat cost (7,661,359\nordinary shares)\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n(1,299.9\n\n)\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n(1,299.9\n\n)\n\nStock-based compensation\n\n \n \n\n-\n\n \n \n \n\n149.7\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n149.7\n\n \n\nOther comprehensive\nincome, net of tax\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n28.9\n\n \n \n \n\n-\n\n \n \n \n\n28.9\n\n \n\nFair value of awards\nattributable to pre-acquisition services\n\n \n \n\n-\n\n \n \n \n\n3.1\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n3.1\n\n \n\nNet income\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n845.7\n\n \n \n \n\n845.7\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance as of December 31,\n2024\n\n \n\n$\n\n0.8\n\n \n \n\n$\n\n3,049.5\n\n \n \n\n$\n\n(14,264.4\n\n)\n\n \n\n$\n\n(10.3\n\n)\n\n \n\n$\n\n14,013.8\n\n \n \n\n$\n\n2,789.4\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nIssuance\nof treasury shares under stock purchase plans, upon\nexercise of options and vesting of restricted stock\nunits (4,076,091\nordinary shares)\n\n \n \n\n-\n\n \n \n \n\n263.7\n\n \n \n \n\n108.6\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n372.3\n\n \n\nTreasury shares\nat cost (6,848,579\nordinary shares)\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n(1,400.0\n\n)\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n(1,400.0\n\n)\n\nPurchase of capped\ncalls\n\n \n \n\n-\n\n \n \n \n\n(192.0\n\n)\n\n \n \n\n-\n\n \n \n \n \n \n \n \n \n \n \n \n\n(192.0\n\n)\n\nStock-based compensation\n\n \n \n\n-\n\n \n \n \n\n205.6\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n205.6\n\n \n\nOther comprehensive\nincome, net of tax\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n45.1\n\n \n \n \n\n-\n\n \n \n \n\n45.1\n\n \n\nFair value of awards\nattributable to pre-acquisition services\n\n \n \n\n-\n\n \n \n \n\n4.8\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n4.8\n\n \n\nNet income\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n1,056.9\n\n \n \n \n\n1,056.9\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance as of December 31,\n2025\n\n \n\n$\n\n0.8\n\n \n \n\n$\n\n3,331.6\n\n \n \n\n$\n\n(15,555.8\n\n)\n\n \n\n$\n\n34.8\n\n \n \n\n$\n\n15,070.7\n\n \n \n\n$\n\n2,882.1\n\n \n\n \n\nThe\naccompanying notes are an integral part of the consolidated financial statements.\n\n \n\nF\n- 11\n\n \n\n \n\nCHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.\n\nAND\nSUBSIDIARIES\n\n \n\nCONSOLIDATED\nSTATEMENTS OF CASH FLOWS\n\nIn\nmillions\n\n \n\n \n\n \n\nYear\nended\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\nCash\nflows from operating activities:\n\n \n \n \n \n \n \n \n \n \n\n \n\n \n \n \n \n \n \n \n \n \n\nNet income\n\n \n\n$\n\n1,056.9\n\n \n \n\n$\n\n845.7\n\n \n \n\n$\n\n840.3\n\n \n\nAdjustments\nrequired to reconcile net income to net cash provided by operating activities:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\nDepreciation\nof property and equipment\n\n \n \n\n24.8\n\n \n \n \n\n24.0\n\n \n \n \n\n23.1\n\n \n\nAmortization\nof premium and accretion of discount on marketable securities, net\n\n \n \n\n(12.0\n\n)\n\n \n \n\n(6.4\n\n)\n\n \n \n\n3.1\n\n \n\nRealized\nloss on sale of marketable securities, net\n\n \n \n\n*\n\n)\n\n \n \n\n*\n\n)\n\n \n \n\n6.7\n\n \n\nAmortization\nof intangible assets\n\n \n \n\n68.1\n\n \n \n \n\n59.6\n\n \n \n \n\n24.3\n\n \n\nStock-based\ncompensation\n\n \n \n\n205.6\n\n \n \n \n\n149.7\n\n \n \n \n\n145.3\n\n \n\nAmortization\nof debt discount\n\n \n \n\n0.4\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n\nNet\ngain from financing expenses\n\n \n \n\n(22.8\n\n)\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n\nDeferred\ntaxes\n\n \n \n\n(24.1\n\n)\n\n \n \n\n(12.1\n\n)\n\n \n \n\n(9.5\n\n)\n\nIncrease\nin trade receivables, net\n\n \n \n\n(38.0\n\n)\n\n \n \n\n(65.9\n\n)\n\n \n \n\n(9.9\n\n)\n\nIncrease\nin prepaid expenses and other assets\n\n \n \n\n(45.3\n\n)\n\n \n \n\n(13.0\n\n)\n\n \n \n\n(51.1\n\n)\n\nIncrease\n(decrease) in trade payables\n\n \n \n\n(27.1\n\n)\n\n \n \n\n5.4\n\n \n \n \n\n17.9\n\n \n\nIncrease\n(decrease) in employees and payroll accruals\n\n \n \n\n(14.7\n\n)\n\n \n \n\n(2.4\n\n)\n\n \n \n\n26.7\n\n \n\nDecrease\nin income tax accrual and accrued expenses and other liabilities\n\n \n \n\n(149.2\n\n)\n\n \n \n\n(12.0\n\n)\n\n \n \n\n(0.9\n\n)\n\nIncrease\nin deferred revenues\n\n \n \n\n176.2\n\n \n \n \n\n79.5\n\n \n \n \n\n21.8\n\n \n\nOther\n\n \n \n\n0.6\n\n \n \n \n\n0.3\n\n \n \n \n\n0.1\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nNet cash\nprovided by operating activities\n\n \n \n\n1,199.4\n\n \n \n \n\n1,052.4\n\n \n \n \n\n1,037.9\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nCash\nflows from investing activities:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nProceeds\nfrom short-term bank deposits\n\n \n \n\n285.5\n\n \n \n \n\n157.0\n\n \n \n \n\n510.6\n\n \n\nProceeds\nfrom maturity of marketable securities\n\n \n \n\n931.9\n\n \n \n \n\n1,084.4\n\n \n \n \n\n1,022.9\n\n \n\nProceeds\nfrom sale of marketable securities\n\n \n \n\n6.9\n\n \n \n \n\n22.3\n\n \n \n \n\n491.9\n\n \n\nInvestment\nin marketable securities\n\n \n \n\n(767.9\n\n)\n\n \n \n\n(839.2\n\n)\n\n \n \n\n(947.3\n\n)\n\nInvestment\nin short-term bank deposits\n\n \n \n\n(677.2\n\n)\n\n \n \n\n(238.5\n\n)\n\n \n \n\n(132.0\n\n)\n\nCash paid\nin conjunction with acquisitions, net of acquired cash\n\n \n \n\n(273.1\n\n)\n\n \n \n\n(185.8\n\n)\n\n \n \n\n(458.8\n\n)\n\nLease prepayment\n\n \n \n\n(159.9\n\n)\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n\nPurchase\nof property and equipment\n\n \n \n\n(26.6\n\n)\n\n \n \n\n(24.2\n\n)\n\n \n \n\n(18.6\n\n)\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nNet cash\nprovided by (used in) investing activities\n\n \n\n$\n\n(680.4\n\n)\n\n \n\n$\n\n(24.0\n\n)\n\n \n\n$\n\n468.7\n\n \n\n \n\n*)\nRepresents an amount lower than $0.1\n\n \n\nThe\naccompanying notes are an integral part of the consolidated financial statements.\n\n \n\nF\n- 12\n\n \n\nCHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.\n\nAND\nSUBSIDIARIES\n\n \n\nCONSOLIDATED\nSTATEMENTS OF CASH FLOWS (CONT’D)\n\nIn\nmillions\n\n \n\n \n \n\nYear\nended\nDecember 31,\n\n \n\n \n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\nCash\nflows from financing activities:\n\n \n \n \n \n \n \n \n \n \n\n \n\n \n \n \n \n \n \n \n \n \n\nProceeds\nfrom issuance of treasury shares upon exercise of options\n\n \n\n$\n\n393.2\n\n \n \n\n$\n\n258.6\n\n \n \n\n$\n\n133.7\n\n \n\nProceeds\nfrom issuance of convertible senior notes, net\n\n \n \n\n1,971.7\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n\nPurchase\nof capped calls\n\n \n \n\n(192.0\n\n)\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n\nPurchase\nof treasury shares at cost\n\n \n \n\n(1,400.0\n\n)\n\n \n \n\n(1,299.9\n\n)\n\n \n \n\n(1,287.6\n\n)\n\nPayments\nrelated to shares withheld for taxes\n\n \n \n\n(20.9\n\n)\n\n \n \n\n(18.6\n\n)\n\n \n \n\n(11.0\n\n)\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nNet cash\nprovided by (used in) financing activities\n\n \n \n\n752.0\n\n \n \n \n\n(1,059.9\n\n)\n\n \n \n\n(1,164.9\n\n)\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nEffect of\nexchange rate changes on cash and cash equivalents\n\n \n \n\n22.8\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n\nIncrease\n(decrease) in cash and cash equivalents\n\n \n \n\n1,293.8\n\n \n \n \n\n(31.5\n\n)\n\n \n \n\n341.7\n\n \n\nCash and\ncash equivalents at the beginning of the year\n\n \n \n\n506.2\n\n \n \n \n\n537.7\n\n \n \n \n\n196.0\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nCash and\ncash equivalents at the end of the year\n\n \n\n$\n\n1,800.0\n\n \n \n\n$\n\n506.2\n\n \n \n\n$\n\n537.7\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nSupplemental\ndisclosure of cash flow information:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nCash paid\nduring the year for taxes on income\n\n \n\n$\n\n156.7\n\n \n \n\n$\n\n122.5\n\n \n \n\n$\n\n118.7\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nNon-cash\ninvesting activity\n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nFair value\nof awards attributable to pre-acquisition services\n\n \n \n\n4.8\n\n \n \n \n\n3.1\n\n \n \n \n\n1.3\n\n \n\nOperating\nlease liabilities arising from obtaining right of use assets\n\n \n\n$\n\n10.7\n\n \n \n\n$\n\n12.3\n\n \n \n\n$\n\n2.3\n\n \n\n \n\nThe\naccompanying notes are an integral part of the consolidated financial statements.\n\n \n\nF\n- 13\n\n \n\nCHECK POINT SOFTWARE\nTECHNOLOGIES LTD.\n\nAND SUBSIDIARIES\n\n \n\nNOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS\n\nIn\nmillions (except share and per share data)\n\n \n\nNOTE 1:-      \n     GENERAL\n\n \n\n \na.\n\nCheck Point Software Technologies Ltd., an Israeli\ncorporation (“Check Point Ltd.”), and subsidiaries (collectively, the “Company” or “Check Point”),\ndevelop, market and support wide range of products and services for IT security, by offering a multilevel security architecture that defends\nenterprises’ cloud, network and mobile device held information.\n\n \n\n \n  \n\nThe Company operates in one\noperating and reportable segment and its revenues are mainly derived from the sales of its network and data security products, including\nlicenses, related software updates, maintenance and security subscriptions. The Company sells its products worldwide primarily through\nmultiple distribution channels (“channel partners”), including distributors, resellers, system integrators, Original Equipment\nManufacturers (“OEMs”) and Managed Security Service Providers (“MSSPs”).\n\n \n\n \nb.\n\nIn each 2025, 2024 and 2023, approximately 39%,\n39%\nand 40%\nrespectively, of the Company’s revenues were derived from three channel partners. Revenues derived from one channel partner in 2025,\n2024 and 2023 were 15%,\n14%\nand 14%,\nrespectively, and revenues derived from the second channel partner in 2025, 2024 and 2023 were 13%,\n13%,\nand 14%,\nrespectively, and revenues derived from the other channel partner in 2025, 2024 and 2023 were 11%,12%\nand 12%\nrespectively of the Company’s revenues in such years. Trade receivable balances from these three channel partners aggregated $335.0\nand $331.5\nas of December 31, 2025 and 2024 respectively.\n\n \n\nNOTE 2:-        \n   SIGNIFICANT ACCOUNTING POLICIES\n\n \n\nThe\nconsolidated financial statements are prepared in conformity with United States generally accepted accounting principles (“U.S.\nGAAP”).\n\n \n\n \na.\n\nUse of estimates:\n\n \n\n \n  \n\nThe preparation of the consolidated\nfinancial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions. The Company’s\nmanagement believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they\nare made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent\nassets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting\nperiod. Actual results could differ from those estimates.\n\n \n\n \nb.\n\nFinancial statements in United States\ndollars:\n\n \n\n \n  \n\nMost of the Company’s revenues\nand costs are denominated in United States dollar (“dollar”). The Company’s management believes that the dollar is the\nprimary currency of the economic environment in which the Company and each of its subsidiaries operate. Thus, the dollar is the Company’s\nfunctional and reporting currency.\n\n \n\n \n  \n\nAccordingly, non-dollar denominated\ntransactions and balances have been re-measured into the functional currency in accordance with Accounting Standard Code (“ASC”)\nNo. 830, “Foreign Currency Matters”.\n\n \n\nF\n- 14\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\n \n \n\nAll transaction gains\nand losses from the re-measured monetary balance sheet items are reflected in the consolidated statements of income as financial income\nor expenses, as appropriate.\n\n \n\n \nc.\n\nPrinciples of consolidation:\n\n \n\n \n \n\nThe consolidated financial\nstatements include the accounts of Check Point Ltd. and subsidiaries. Intercompany transactions and balances have been eliminated upon\nconsolidation.\n\n \n\n \nd.\n\nCash equivalents:\n\n \n\n \n \n\nCash equivalents are short-term\nunrestricted highly liquid investments that are readily convertible to cash and with original maturities of three months or less as of\nthe investment date.\n\n \n\n \ne.\n\nShort-term bank deposits:\n\n \n\n \n \n\nBank deposits with maturities\nof more than three months at investment but less than one year are included in short-term bank deposits. Such deposits are stated at cost\nwhich approximates fair values.\n\n \n\n \nf.\n\nTrade Receivables:\n\n \n\n \n \n\nThe Company records trade\nreceivables when it has unconditional right to consideration. Trade receivables are recorded net of credit losses allowance for any potential\nuncollectible amounts.\n\n \n\n \n \n\nThe Company makes estimates\nof expected credit and collectability trends for the allowance for credit losses based upon its assessment of various factors, including\nhistorical collectability experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions,\nreasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers.\n\n \n\n \n \n\nAs of December 31,\n2025 and 2024, the allowances for credit losses of trade receivable were insignificant.\n\n \n\n \n \n\nThe Company writes off\nreceivables when they are deemed uncollectible, having exhausted all collection efforts. Actual collection experience may not meet expectations\nand may result in increased bad debt expense. Allowances for credit losses and total write offs expenses during 2025, 2024 and 2023 were\ninsignificant.\n\n \n\nF\n- 15\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\n \ng.\n\nInvestments in marketable\nsecurities:\n\n \n\n \n \n\nThe Company accounts for\ninvestments in marketable securities in accordance with ASC No. 320, “Investments - Debt Securities”.\n\n \n\n \n \n\nManagement determines\nthe appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date.\nThe Company classifies all of its marketable debt securities as available-for-sale (“AFS”). Available-for-sale debt securities\nare carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss)\nin shareholders’ equity. Realized gains and losses on sale of investments are included in financial income, net and are derived\nusing the specific identification method for determining the cost of securities sold.\n\n \n\n \n \n\nThe amortized cost of\ndebt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest\non securities is included in financial income, net.\n\n \n\n \n \n\nAt each reporting period,\nthe Company evaluates whether declines in fair value below amortized cost are due to expected credit losses, as well as the company’s\nability and intent to hold the investment until a forecasted recovery occurs in accordance with ASC 326, Financial Instrument- Credit\nlosses.  Allowance for credit losses on AFS debt securities are recognized in the Company’s consolidated statements of income,\nand any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders’\nequity.\n\n \n\n \n \n\nThe credit losses recorded\nfor the years ended December 31, 2025, 2024 and 2023 were insignificant.\n\n \n\nThe\nCompany classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual\nmaturity date. Marketable debt securities with maturities of 12 months or less are classified as short-term, and marketable debt securities\nwith maturities greater than 12 months are classified as long-term\n\n  \n\n \nh.\n\nProperty and\nequipment, net:\n\n \n\n \n \n\nProperty and\nequipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated\nuseful lives of the assets at the following annual rates:\n\n \n\n \n\n%\n\nComputers\nand peripheral equipment\n\n33\n– 50\n\nOffice\nfurniture and equipment\n\n10\n– 20\n\nBuilding\n\n4\n\nLeasehold\nimprovements\n\nThe\nshorter of term of the lease or the useful life of the asset\n\n \n\nF\n- 16\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\n \ni.\n\nLeases:\n\n \n\nThe company’s\noperating leases are comprised of office leases.\n\n \n\nThe Company\ndetermines if an arrangement is a lease and the classification of that lease at inception based on: (1) whether the contract involves\nthe use of an identified asset, (2) whether the Company obtains the right to substantially all the economic benefits from the use\nof the asset throughout the lease term, and (3) whether the Company has a right to direct the use of the asset. The Company elected\nto not recognize a lease liability or right-of-use (“ROU”) asset for leases with a term of twelve months or less. The Company\nalso elected the practical expedient to not separate non-lease components for its leases.\n\n \n\nROU assets\nrepresent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make minimum lease\npayments arising from the lease. ROU assets are initially measured at amounts, which represents the discounted present value of the lease\npayments over the lease, plus any initial direct costs incurred. The lease liability is initially measured at lease commencement date\nbased on the discounted present value of lease payments over the lease term. The implicit rate within the operating leases is generally\nnot determinable, therefore the Company uses its Incremental Borrowing Rate (“IBR”) based on the information available at\ncommencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest\nrate on similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend\nor terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when\nit is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain\nthat the Company will not exercise the option. The ROU assets are included in long-term other assets in the consolidated balance sheet,\nwhile the short-term portion of lease liabilities are included in Accrued expenses and other liabilities, and the long-term portion of\nlease liabilities are included in long-term other liabilities.\n\n \n\nBelow is\na summary of the Company's ROU assets and operating lease liabilities:\n\n \n\n \n\n \n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\nOperating\nlease ROU assets\n\n \n\n$\n\n31.4\n\n \n \n\n$\n\n27.1\n\n \n\n \n \n \n \n \n \n \n \n \n\nOperating\nlease liabilities, current\n\n \n \n\n11.9\n\n \n \n \n\n8.8\n\n \n\nOperating\nlease liabilities, long-term\n\n \n \n\n22.7\n\n \n \n \n\n21.0\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nTotal operating\nlease liabilities\n\n \n\n$\n\n34.6\n\n \n \n\n$\n\n29.8\n\n \n\n \n\nThe\nweighted-average remaining lease term and discount rate were as follows:\n\n \n\n \n\n \n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\nWeighted-average\nremaining lease term\n\n \n \n\n3.7\n\n \n \n \n\n4.2\n\n \n\nWeighted-average\ndiscount rate\n\n \n \n\n4.1\n\n%\n\n \n \n\n3.8\n\n%\n\n \n\nF\n- 17\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\nRent\nexpenses for the years ended December 31, 2025, 2024 and 2023, were $11.7,\n$9.6\nand $7.7\nrespectively.\n\n \n\nThe\nCompany has a lease that has not yet commenced, for its new campus site in Israel. The lease is expected to commence during fiscal 2026\nwith a lease term of approximately 83 years. As of December 31, 2025 the Company has prepaid lease payments in connection with\nthe land of Checkpoint Campus in the amount of $159.9.\n\n \n\n \nj.\n\nBusiness combination:\n\n \n\nThe\nCompany applies the provisions of ASC 805, “Business Combination” and allocates the fair value of purchase consideration to\nthe tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the\nfair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill.\n\n \n\nWhen\ndetermining the fair values of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially\nwith respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to future expected\ncash flows from acquired technology and acquired trademarks and tradenames from a market participant perspective, useful lives and discount\nrates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain\nand unpredictable and, as a result, actual results may differ from estimates. Acquisition-related expenses are recognized separately from\nthe business combination and are expensed as incurred (see also Note 3).\n\n \n\nDuring\nthe measurement period, which may extend for up to one year from the acquisition date, the Company may record adjustments to the provisional\nfair values of the assets acquired and liabilities assumed, with a corresponding adjustment to goodwill. Upon the earlier of the end of\nthe measurement period or the final determination of the fair values of the assets acquired and liabilities assumed, any subsequent adjustments\nare recorded in earnings.\n\n \n\n \nk.\n\nGoodwill:\n\n \n\nGoodwill\nhas been recorded as a result of acquisitions. Goodwill represents the excess of the purchase price in a business combination over the\nfair value of identifiable net tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment\ntest.\n\n \n\nASC\nNo. 350, “Intangibles - Goodwill and other” (“ASC No. 350”) requires goodwill to be tested for impairment\nat the reporting unit level at least annually or between annual tests in certain circumstances, and written down when impaired.\n\n \n\nF\n- 18\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\nASC\nNo. 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the quantitative goodwill\nimpairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment\ntesting is required. If it does result in a more likely than not indication of impairment, the quantitative goodwill impairment test is\nperformed. Alternatively, ASC No. 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly\nto performing the quantitative goodwill impairment test. If the carrying\nvalue of a reporting unit exceeds its fair value, the Company recognizes an impairment of goodwill for the amount of this excess.\n\n \n\nThe\nCompany operates in\none operating segment, and this segment is the only reporting unit. The Company performs the quantitative goodwill impairment\ntest during the fourth quarter of each fiscal year, or more frequently if impairment indicators are present and compares the fair value\nof the reporting unit with its carrying value.\n\n \n\nDuring\nthe years 2025, 2024 and 2023, no\ngoodwill impairment losses have been identified.\n\n \n\n \nl.\n\nIntangible assets, net:\n\n \n\nIntangible\nassets that are not considered to have an indefinite useful life are amortized over their estimated useful lives, which range from 1\nto 20\nyears. These intangible assets consist of core technology, customer relationship, trademarks and trade names which are amortized over\ntheir estimated useful lives.\n\n \n\n \nm.\n\nImpairment of long-lived assets including\nintangible assets subject to amortization and ROU assets:\n\n \n\nThe\nCompany’s long-lived assets are reviewed for impairment in accordance with ASC No. 360, “Property, Plant and Equipment”,\nwhenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets\nto be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted cash flows expected to\nbe generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by\nwhich the carrying amount of the assets exceeds the fair value of the assets. During the years 2025, 2024 and 2023, no impairment losses\nhave been identified.\n\n \n\n \nn.\n\nManufacturing partner and supplier\nliabilities:\n\n \n\nThe\nCompany purchases manufactured products from its original design manufacture (“ODM”). The Company generally does not\nown the manufactured products. ODM’s provide services of design, manufacture, orders fulfillment and support with a full turn-key\nsolution to meet the Company’s detailed requirements. If the actual demand is significantly lower than forecast, the Company records\na liability for its commitment in excess of the actual demand. As of December 31, 2025 and 2024, the Company has not accrued any\nsignificant liability in respect with this exposure.\n\n \n\nF\n- 19\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\n \no.\n\nResearch and development costs:\n\n \n\nResearch\nand development costs are charged to the consolidated statements of income as incurred. ASC No. 985-20, “Software - Costs of\nSoftware to Be Sold, Leased, or Marketed”, requires capitalization of certain software development costs subsequent to the establishment\nof technological feasibility.\n\n \n\nBased\non the Company’s product development process, technological feasibility is established upon completion of a working model. Costs\nincurred by the Company between completion of the working models and the point at which the products are ready for general release, have\nbeen insignificant. Therefore, research and development costs are expensed as incurred. As of December 31, 2025 the Company has not capitalized\nany significant costs.\n\n \n\n \np.\n\nRevenue recognition:\n\n \n\nThe\nCompany derives its revenues mainly from sales of products and licenses, security subscriptions and software updates and maintenance.\nThe Company’s products are generally integrated with software that is essential to the functionality of the product. The Company\nsells its products primarily through channel partners including distributors, resellers, OEMs (Original Equipment Manufacturers), system\nintegrators and MSSPs (Managed Security Service Providers), all of whom are generally considered end-users. The Company’s standard\npayments terms are net 30 days, however there are cases where the Company extend the payment terms for longer periods. Shipping fees charged\nto customers are reported as part of revenues.\n\n \n\nThe\nCompany’s security subscriptions provide customers with access to its suite of security solutions and is sold as a service. Security\nsubscription revenue also includes software licenses that are not distinct from the related software updates. Revenue related to the combined\nperformance obligation is recognized over the period the updates are delivered as the nature of the performance obligation is to provide\nsecurity over the contract term.\n\n \n\nThe\nCompany’s software updates and maintenance provide customers with rights to unspecified software product upgrades released during\nthe term of the agreement and include maintenance services to end-user customers, through primarily telephone access to technical support\npersonnel as well as hardware support services. The Company may also provide professional services to its customers.\n\n \n\nThe\nCompany recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company\nidentifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates\nthe transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance\nobligation.\n\n \n\nThe\nCompany’s arrangements typically contain various combinations of its products and licenses, security subscriptions, software updates\nand maintenance, and professional services, which are distinct and are accounted for as separate performance obligations. The Company\nallocates the transaction price to each performance obligation based on its relative standalone selling price. Standalone selling prices\nare typically estimated based on observable transaction when the underlying goods or services are sold on a standalone basis.\n\n \n\nF\n- 20\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\nRevenues\nfrom sales of products and licenses are recognized when control of the promised goods is transferred to the customer, or upon electronic\ntransfer of the Certificate Key to the Customer. Revenues from security subscriptions and from software updates and maintenance are recognized\nratably over the term of the agreement since these services generally have a consistent continuous pattern of transfer to a customer during\nthe contract period. Revenues from professional services are recognized over time, based on customer usage, which the Company believes\nbest depicts the transfer of services to the customers. In instances where performance obligations do not have observable standalone sales,\nthe Company utilizes available information that may include market conditions, pricing strategies, and other observable inputs.\n\n \n\nDeferred\nrevenues represent mainly the unrecognized revenue billed to customers for security subscriptions and for software updates and maintenance.\nSuch revenues are recognized ratably over the term of the related agreement. The amount of revenues recognized in the period that was\nincluded in the opening deferred revenues balance was $1,471.3 and\n$1,413.8 for\nthe years ended December 31, 2025 and December 31, 2024, respectively.\n\n \n\nRevenues\nexpected to be recognized from remaining performance obligations were $2,728.3\nand $2,516.1\nas of December 31, 2025 and December 31, 2024, respectively. Of the balance as of December 31, 2025 the Company expects\nto recognize approximately $1,670.1\nover the next 12 months and the remainder will be recognized over a period of two to five years thereafter.\n\n \n\nThe\nCompany records a provision for estimated sales returns, rebates, stock rotations and other rights provided to customers on product and\nservices based on historical sales returns, analysis of credit memo data, rebate plans, stock rotation arrangements and other known factors.\nThis provision is accounted for as variable consideration that is deducted from revenue in the period in which the revenue is recognized.\nSuch provision amounted to $10.8\nand $13.6\nas of December 31, 2025 and 2024, respectively, and is included in accrued expenses and other liabilities in the consolidated balance\nsheets.\n\n \n\nSales\ncommissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a\ncustomer. These costs are deferred and then amortized over a period of benefit which is typically over the term of the customer contracts\nas initial commission rates are commensurate with the renewal commission rates. Amortization expense is included in sales and marketing\nexpenses in the consolidated statements of income. If the amortization period of those costs is one year or less, the costs are expensed\nas incurred. As of December 31, 2025 and 2024, the amount of deferred commission was $28.9\nand $41.5,\nrespectively, and is included in other short term and other long term assets on the balance sheets. During the years ended on December 31,\n2025, 2024 and 2023 the Company recorded amortization expenses in connection with deferred commissions in the amount of $17.7,\n$15.3\nand $10.6,\nrespectively.\n\n \n\nF\n- 21\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\nIn\ninstances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally\ndo not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with\nsimplified and predictable ways of purchasing its products and services, not to receive financing from its customers or to provide customers\nwith financing. The Company has elected to apply the practical expedient such that it does not evaluate payment terms of one year or less\nfor the existence of a significant financing component. Revenue is recognized net of any taxes collected from customers which are subsequently\nremitted to governmental entities.\n\n \n\nFor\ninformation regarding disaggregated revenues, please refer to Note 16 below.\n\n \n\n \nq.\n\nCost of revenues:\n\n \n\nCost\nof products and licenses is comprised of cost of software and hardware production, manuals, packaging and shipping.\n\n \n\nCost\nof security subscriptions is comprised of costs paid to third parties, hosting and infrastructure costs and costs of customer support\nrelated to these services.\n\n \n\nCost\nof software updates and maintenance is mainly comprised of cost of post-sale customer support and professional services.\n\n \n\nAmortization\nof technology is comprised of amortization of core technology assets which are used in the Company’s operations, and is presented\nseparately as part of cost of revenues.\n\n \n\n \n r.\n\nSeverance pay:\n\n \n\nEffective\nJanuary 1, 2007, the Company’s agreements with employees in Israel, are under Section 14 of the Severance Pay Law, 1963.\nThe Company’s contributions for severance pay have extinguished its severance obligation. Upon contribution of the full amount based\non the employee’s monthly salary for each year of service, no additional obligation exists regarding the matter of severance pay\nand no additional payments is made by the Company to the employee. Further, the related obligation and amounts deposited on behalf of\nthe employee for such obligation are not stated on the balance sheets, as the Company is legally released from the obligation to employees\nonce the required deposit amounts have been paid.\n\n \n\n \ns.\n\nEmployee benefit plan:\n\n \n\nThe\nCompany has a 401(K) defined contribution plan covering certain employees in the U.S. The Company matches 50%\nof employee contributions to the plan up to a limit of 6%\nof their eligible compensation. The Company’s matching contribution to the plan were insignificant for the years ended December 31,\n2025, 2024 and 2023.\n\n \n\nF\n- 22\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\n \nt.\n\nIncome taxes:\n\n \n\nThe\nCompany accounts for income taxes in accordance with ASC No. 740, “Income Taxes” (“ASC No. 740”). ASC\nNo. 740 prescribes the use of the liability method whereby deferred tax asset and liability account balances are determined for temporary\ndifferences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws\nthat will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce\ndeferred tax assets to amounts more likely than not to be realized. The Company accrues interest and indexation related to unrecognized\ntax benefits on its taxes on income.\n\n \n\nASC\nNo. 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate\nthe tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is\nmore likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution\nof any related appeals or litigation processes.\n\n \n\nThe\nsecond step is to measure the tax benefit as the largest amount that is more than 50%\n(cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest related to unrecognized tax benefits\nin taxes on income.\n\n \n\n \n u.\n\nAdvertising costs:\n\n \n\nAdvertising\ncosts are expensed as incurred. Advertising expenses for the years ended December 31, 2025, 2024 and 2023, were $11.9,\n$12.5\nand $7.6\nrespectively.\n\n \n\n \nv.\n\nConcentrations of credit\nrisk:\n\n \n\nFinancial\ninstruments that could potentially expose the Company to concentrations of credit risk, consist primarily of cash and cash equivalents,\nshort-term bank deposits, marketable securities, trade receivables and foreign currency derivative contracts.\n\n \n\nThe\nmajority of the Company’s cash and cash equivalents and short-term bank deposits are deposited in major banks in the U.S., Israel\nand Europe. Deposits in the U.S. may be in excess of federal insured limits and are not insured in other jurisdictions. Generally, these\ninvestments may be redeemed upon demand or at maturity, and the Company believes that the financial institutions that hold the Company’s\ncash deposits are financially sound and, accordingly, bear minimal risk. Marketable securities are held mainly by Check Point Ltd., the\nCompany’s Canadian subsidiary and the U.S. subsidiary, and are invested in securities denominated mainly in US dollar.\n\n \n\nThe\nCompany’s marketable securities consist mainly of investments in government, corporate and government sponsored enterprises debentures.\nThe Company’s investment policy, approved by the Board of Directors, limits the amount that the Company may invest in any one type\nof investment, or issuer, thereby reducing credit risk concentrations.\n\n \n\nThe\nCompany’s trade receivables are geographically dispersed and the majority is derived from sales to channel partners mainly in the\nUnited States, Europe and Asia. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit\nevaluation and account monitoring procedures.\n\n \n\nF\n- 23\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\nThe\nCompany’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement.\nThe Company seeks to mitigate such risk by entering into such derivatives with financial institutions with Investment Grade credit rating.\n\n \n\n \nw.\n\nDerivatives and hedging:\n\n \n\nThe\nCompany accounts for derivatives and hedging based on ASC No. 815, “Derivatives and Hedging” (“ASC No. 815”).\nASC No. 815 requires the Company to recognize all derivatives on the balance sheets at fair value. The accounting for changes in\nthe fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a\nhedging relationship, as well as the type of hedging relationship. For those derivative instruments that are designated and qualify as\nhedging instruments, the Company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash\nflow hedge, or a hedge of a net investment in a foreign operation. If the derivatives meet the definition of a hedge and are designated\nas such, depending on the nature of the hedge, changes in the fair value of such derivatives will either be offset against the change\nin fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in accumulated other comprehensive\nincome until the hedged item is recognized in earnings.\n\n \n\nThe\nCompany entered into forward contracts to hedge the fair value of assets and liabilities denominated in several foreign currencies. As\nof December 31, 2025 and 2024, the Company had outstanding forward contracts that did not meet the requirement for hedge accounting,\nin the notional amount of $196.0\nand $253.6,\nrespectively. The Company measured the fair value of the contracts in accordance with ASC No. 820, “Fair Value Measurement”\n(“ASC No. 820”) (classified as level 2 of the fair value hierarchy). The net gain (losses) resulting from these forward\ncontracts recognized in financial income, net during 2025, 2024 and 2023 were $30.3,\n$(5.6)\nand $(6.2),\nrespectively. The change in fair value of the Company’s outstanding forward contracts vs. the notional amounts at December 31, 2025\nand 2024 was insignificant.\n\n \n\nThe\nCompany entered into forward contracts to hedge against the risk of overall changes in future cash flow from payments of payroll and related\nexpenses denominated in New Israeli Shekel, in Euro, and in British Pound. As of December 31, 2025 and 2024, the Company had outstanding\nforward contracts for payroll and related expenses in the notional amount of $328.7\nand $359.4,\nrespectively. These contracts were for a period of up to twelve months.\n\n \n\nThe\nCompany measured the fair value of the contracts in accordance with ASC No. 820 (classified as level 2 of the fair value hierarchy).\nThese contracts met the requirement for cash flow hedge accounting and, as such, gains (losses) on the contracts are recognized initially\nas component of Accumulated Other Comprehensive Income in the balance sheets and reclassified to the consolidated  statements of\nincome in the period the related hedged items affect earnings.\n\n \n\nF\n- 24\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\nDuring\n2025, 2024 and 2023 gains (losses) were reclassified when the related expenses were incurred and recognized in the operating expenses\nas follow:\n\n \n\n \n\n \n\n**Year\nended**\n\n**December\n31,**\n\n \n\n \n\n \n\n**2025**\n\n \n \n\n**2024**\n\n \n \n\n**2023**\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n\nCost\nof revenues\n\n \n\n$\n\n1.6\n\n \n \n\n$\n\n(0.3\n\n)\n\n \n\n$\n\n(1.2\n\n)\n\nResearch\nand development\n\n \n \n\n15.8\n\n \n \n \n\n(2.9\n\n)\n\n \n \n\n(13.9\n\n)\n\nSelling\nand marketing\n\n \n \n\n7.9\n\n \n \n \n\n(1.4\n\n)\n\n \n \n\n(0.5\n\n)\n\nGeneral\nand administrative\n\n \n \n\n3.8\n\n \n \n \n\n(0.7\n\n)\n\n \n \n\n(3.0\n\n)\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n\n$\n\n29.1\n\n \n \n\n$\n\n(5.3\n\n)\n\n \n\n$\n\n(18.6\n\n)\n\n \n\n \nx.\n\nBasic and diluted earnings\nper share:\n\n \n\nBasic\nearnings per share are computed based on the weighted average number of ordinary shares outstanding during each year. Diluted earnings\nper share are computed based on the weighted average number of ordinary shares outstanding during each year, plus dilutive potential ordinary\nshares outstanding during the year, in accordance with ASC No. 260, “Earnings Per Share”.\n\n \n\nThe\ntotal weighted average number of shares related to the outstanding options, RSUs, PSUs and the Note to purchase the Company’s Ordinary\nshares, excluded from the calculations of diluted earnings per share, since it would have an anti-dilutive effect, was 1,057,165,\n90,092\nand 1,319,235\nfor 2025, 2024 and 2023, respectively.\n\n \n\nThe\nnumber above for 2025 represents shares underlying the Convertible Notes that were excluded from the computation of diluted earnings per\nshare, as their effect was anti-dilutive for the period. As the principal amount of the Convertible Notes are required to be cash settled,\nonly the amount by which the conversion value exceeds the aggregate principal amount of the Convertible Notes is considered in the diluted\nearnings per share computation.\n\n \n\n \ny.\n\nAccounting\nfor stock-based compensation:\n\n \n\nThe\nCompany accounts for stock-based compensation in accordance with ASC No. 718, “Compensation-Stock Compensation” (“ASC\nNo. 718”). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the grant date\nusing an option-pricing model.\n\n \n\nThe\nCompany recognizes compensation expenses for the value of awards granted, based on the straight line method for service based graded vesting\nawards and based on the accelerated method for performance-based graded vesting awards. Compensation expense is recognized over the\nrequisite service period of the awards. The Company recognizes forfeitures of awards as they occur.\n\n \n\nThe\nCompany selected the Black-Scholes-Merton option pricing model as the most appropriate model for determining the fair value for its stock\noptions awards and Employee Stock Purchase Plan, whereas the fair value of restricted stock units is based on the closing market value\nof the underlying shares at the date of grant. The option-pricing model requires a number of assumptions, the most significant of which\nare the expected stock price volatility and the expected option term. Expected volatility was calculated based upon actual historical\nstock price movements over the most recent periods ending on the grant date, equal to the expected term of the options.\n\n \n\nF\n- 25\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\nThe\nCompany determines the grant‑date fair value of its RSUs and PSUs based on the closing market price of its ordinary shares on the\ndate of grant.\n\n \n\nThe\nexpected term of options granted is based upon historical experience and represents the period of time between when the options are granted\nand when they are expected to be exercised. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent\nterm to the expected term of the options. The Company has historically not paid dividends and has no plans to pay dividends in the foreseeable\nfuture.\n\n \n\nThe\nfair value of options granted and Employee Stock Purchase Plan in 2025, 2024 and 2023 is estimated at the date of grant using the following\nweighted average assumptions:\n\n \n\n \n\n \n\nYear\nended December 31,\n\n \n\n \n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\nEmployee\nStock Options\n\n \n \n \n \n \n \n \n \n \n\nExpected\nvolatility\n\n \n \n\n25.61\n\n%\n\n \n \n\n25.16\n\n%\n\n \n \n\n25.71\n\n%\n\nRisk-free\ninterest rate\n\n \n \n\n3.74\n\n%\n\n \n \n\n4.13\n\n%\n\n \n \n\n4.24\n\n%\n\nDividend\nyield\n\n \n \n\n0.0\n\n%\n\n \n \n\n0.0\n\n%\n\n \n \n\n0.0\n\n%\n\nExpected\nterm (years)\n\n \n \n\n4.42\n\n \n \n \n\n4.68\n\n \n \n \n\n5.45\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nEmployee\nStock Purchase Plan\n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nExpected\nvolatility\n\n \n \n\n30.06\n\n%\n\n \n \n\n19.90\n\n%\n\n \n \n\n19.66\n\n%\n\nRisk-free\ninterest rate\n\n \n \n\n3.87\n\n%\n\n \n \n\n5.09\n\n%\n\n \n \n\n5.35\n\n%\n\nDividend\nyield\n\n \n \n\n0.0\n\n%\n\n \n \n\n0.0\n\n%\n\n \n \n\n0.0\n\n%\n\nExpected\nterm (years)\n\n \n \n\n0.5\n\n \n \n \n\n0.5\n\n \n \n \n\n0.5\n\n \n\n \n\nF\n- 26\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\n \nz.\n\nFair value of financial instruments:\n\n \n\nThe\nCompany measures its investments in money market funds (classified as cash equivalents), short-term bank deposits, marketable securities\nand its foreign currency derivative contracts at fair value. Fair value is an exit price, representing the amount that would be received\nto sell an asset or paid to transfer a liability in an orderly transaction between market participants. A three-tier fair value hierarchy\nis established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value:\n\n \n\n \nLevel 1 -\n\nValuations based on quoted prices\nin active markets for identical assets that the Company has the ability to access. Since valuations are based on quoted prices that are\nreadily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.\n\n \n\n \nLevel 2 -\n\nValuations based on one or more quoted\nprices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.\n\n \n\n \nLevel 3 -\n\nValuations based on inputs that are\nunobservable and significant to the overall fair value measurement.\n\n \n\nThe\nfair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when\nmeasuring fair value.\n\n \n\nThe\ncarrying value of trade receivables, prepaid expenses and other assets, trade payables, employees and payroll accruals, and accrued expenses\nand other liabilities approximate fair value due to the short-term maturities of these instruments.\n\n \n\n \naa.\n\nComprehensive income:\n\n \n\nThe\nCompany accounts for comprehensive income in accordance with ASC No. 220, “Comprehensive Income”. Comprehensive income\ngenerally represents all changes in shareholders’ equity during the period except those resulting from investments by, or distributions\nto, shareholders. The Company determined that its items of other comprehensive income relate to gains and losses on hedging derivative\ninstruments and unrealized gains and losses on available-for-sale debt securities.\n\n \n\n \nab.\n\nTreasury shares:\n\n \n\nThe\nCompany repurchases its ordinary shares from time to time on the open market and holds such shares as treasury shares. The Company presents\nthe cost to repurchase treasury stock as a separate component of shareholders’ equity.\n\n \n\nThe\nCompany reissues treasury shares under the stock purchase plan, upon exercise of options and upon vesting of restricted stock units. Reissuance\nof treasury shares is accounted for in accordance with ASC No. 505-30 whereby gains are credited to additional paid-in capital and\nlosses are charged to additional paid-in capital to the extent that previous net gains are included therein; otherwise to retained earnings.\n\n \n\nF\n- 27\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\n \nac.\n\nLegal contingencies:\n\n \n\nThe\nCompany is currently involved in various claims and legal proceedings. The Company reviews the status of each matter and assesses its\npotential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably\nestimated, the Company accrues a liability for the estimated loss.\n\n \n\n \nad.\n\nConvertible Senior Notes\nand Capped Call Transactions:\n\n \n\nThe\nConvertible Senior Notes (also referred to as “Notes” or “Convertible Notes”) are accounted for in accordance\nwith ASC Subtopic 470, \"Debt\" and ASC 815 \"Derivatives and Hedging\". The Company records the Notes at amortized cost as a single unit\nof account on the consolidated balance sheet, since they were not issued at a substantial premium and do not contain bifurcated embedded\nderivatives. The carrying value of the liability is represented by the face amount of the Notes, less debt issuance costs, adjusted for\nany amortization of issuance costs. Issuance costs are being amortized as interest expense over the term of the Convertible Notes, using\nthe effective interest rate method.\n\n \n\nCapped\ncall transactions (“Capped Call Transactions” or “Capped Calls”) entered into in connection with the offering\nof the Notes are separate transactions and are not part of the terms of the Notes. The Capped Calls are considered indexed to the Company’s\nown stock and are equity-classified. Accordingly, they are recorded within equity. The cost incurred in connection with the Capped Calls\nwas recorded as a reduction to additional paid-in capital.\n\n \n\n \nae.\n\nRecently adopted Accounting\nPronouncements:\n\n \n\nIn\nDecember 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public\nentities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income\ntaxes paid disaggregated by jurisdiction. The Company adopted ASU 2023-09 for the year ended December 31, 2025, and applied the new disclosure\nrequirements prospectively to the current annual period. Prior period disclosures have not been adjusted to reflect the new disclosure\nrequirements. See Note 12 in the accompanying notes to the consolidated financial statements for further detail.\n\n \n\n \naf.\n\nRecently Issued\nAccounting Pronouncements, not yet adopted:\n\n \n\nIn\nNovember 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic\n220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense\ncategories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning\nafter December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently\nevaluating the impact of adopting ASU 2024-03.\n\n \n\nF\n- 28\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 2:-       \n    SIGNIFICANT ACCOUNTING POLICIES (Cont.)\n\n \n\nIn\nJuly 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses for Accounts Receivable\nand Contract Assets, which provides a practical expedient when estimating expected credit losses for current accounts receivable and current\ncontract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers. The practical expedient\nassumes that current conditions as of the balance sheet date do not change for the remaining life of the assets. The guidance is effective\nfor the Company for the first quarter beginning January 1, 2026, with early adoption permitted. The Company is currently evaluating the\nimpact of adopting ASU 2025-05.\n\n \n\nIn\nSeptember 2025, the FASB issued ASU 2025-06, Intangible - Goodwill and Other Internal-Use Software (Subtopic 350-40), Targeted Improvements\nto the Accounting for Internal-Use Software, which modernizes the accounting guidance for costs to develop software for internal use.\nIt removes the previous development stage model and introduces a more judgment-based approach. The guidance is effective for the Company\nfor the first quarter beginning January 1, 2028, with early adoption permitted. The Company is currently evaluating the impact of adopting\nASU 2025-06.\n\n \n\nIn\nNovember 2025, the FASB issued ASU 2025-09 to amend the guidance in Derivatives and Hedging (Topic 815). The update provides targeted\nimprovements intended to enhance the application of hedge accounting, including expanded eligibility of forecasted transactions, additional\nflexibility in measuring hedge effectiveness, and clarifications related to hedging non-financial items. The guidance is effective for\nfiscal years beginning after December 15, 2026, including interim periods within those fiscal years. The Company is currently evaluating\nthe impact on its financial statement disclosures.\n\n \n\nNOTE 3:-       \n    ACQUISITIONS\n\n \n\nThe\nCompany accounted for the following transaction as a business combination and allocated the purchase consideration to assets acquired\nand liabilities assumed based on their estimated fair values.\n\n \n\nIn\naddition, the transactions included additional consideration related to compensation for post combination services which were recorded\nas prepaid expenses and other long term assets and will be recognized over the requisite service period.\n\n \n\n \na.\n\nOn September\n11, 2023, the Company completed the acquisition of all outstanding shares of Atmosec Ltd. (“Atmosec”), a privately-held\nIsraeli-based company, An early-stage start-up, Atmosec specializes in the rapid discovery and disconnection of malicious SaaS applications,\npreventing risky third party SaaS communications, and rectifying SaaS misconfigurations.\n\n \n\nF\n- 29\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 3:-      \n     ACQUISITIONS (Cont.)\n\n \n\n \nb.\n\nOn September\n13, 2023, the Company completed the acquisition of all outstanding shares of Perimeter 81 Ltd. (“Perimeter 81”),\na privately-held Israeli-based company, recognized as a leader in the Forrester Zero Trust Wave, brings an innovative approach to security\nservice edge (SSE) that combines cloud and on-device protection. Perimeter 81 is offering a unique suite of capabilities, including Zero\nTrust Access, full mesh connectivity between users, branches and applications. The Company acquired Perimeter 81 for total consideration\nof approximately $503.1.\n\n \n\nThe\nCompany allocated the purchase price to tangible and identified intangible assets acquired and liabilities assumed based on the estimates\nof their fair values, which were determined using generally accepted valuation techniques based on estimates and assumptions made by management.\n\n \n\nGoodwill\narising from the Perimeter 81 acquisition was primarily assigned to the synergies between Perimeter 81 solution with Check Point Infinity´s\narchitecture which allows Check Point to deliver a complete Secure Access Service Edge (SASE) offering across internet access, Zero-Trust\nprivate access, SaaS security and SD-WAN. This enables Check Point to enter new fields or markets. Goodwill is not expected to be deductible\nfor income tax purposes.\n\n \n\n \n \n\nWeighted\nAverage Useful Life\n\n \n \n\nAmount\n\n \n\n \n \n \n \n \n \n \n\nGoodwill\n\n \n \n \n \n\n$\n\n322.8\n\n \n\nCore technology\n\n \n \n\n8\nYears\n\n \n \n \n\n99.6\n\n \n\nCustomer relationship\n\n \n \n\n2\nYears\n\n \n \n \n\n57.0\n\n \n\nNet assets acquired\n\n \n \n \n \n \n \n\n23.7\n\n \n\nTotal\n\n \n \n \n \n \n\n$\n\n503.1\n\n \n\n \n\nThe\nfair value of Core technology was determined using the income approach, specifically the multi-period excess earnings method.\n\n \n\nCustomer\nrelationships represent the fair value of existing contractual relationships and customer loyalty determined based on existing relationships\nusing the income approach, specifically the with and without method.\n\n \n\nThe\nfair value of the identified intangible assets subject to amortization are amortized over the assets’ estimated useful lives based\non the pattern in which the economic benefits are expected to be received to cost of revenues and operating expenses.\n\n \n\nIn\n2023, Perimeter 81 acquisition-related costs were immaterial and recorded on the Company’s consolidated statements of income. Acquisition-related\ncosts are primarily comprised of direct transaction costs.\n\n \n\nUnaudited\nPro forma results of operations related to this acquisition have not been presented because they are not material to the Company’s\nconsolidated statements of income.\n\n \n\nF\n- 30\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 3:-   \n        ACQUISITIONS (Cont.)\n\n \n\n \nc.\n\nOn October\n17, 2023, the Company completed the acquisition of all outstanding shares of R&M computer consultants, Inc. (“rmsource”),\na privately-held US-based company, rmsource is a provider of managed cyber security services, cloud security and cloud migration and IT\nmanagement.\n\n   \n\n \nd.\n\nOn September\n30, 2024, the Company completed the acquisition of all outstanding shares of Cyberint Ltd. (“Cyberint”), a\nprivately-held Israeli-based company, specializes in threat intelligence, digital risk protection, and attack surface management. The\nCompany acquired Cyberint for total consideration of approximately $188.6.\nCyberint cloud security technology platform, especially in the areas of security from external risks, Security operations center (SecOps)\nand users protection, will enable the Company to expand the threat prevention capabilities of its Infinity platform and enter new markets.\n\n \n\nThe\nCompany allocated the purchase price to tangible and identified intangible assets acquired and liabilities assumed based on the estimates\nof their fair values, which were determined using generally accepted valuation techniques based on estimates and assumptions made by management.\n\n \n\nGoodwill\narising from the Cyberint acquisition is primarily attributed to synergies. Goodwill is not expected to be deductible for income tax purposes.\n\n \n\n \n \n\nWeighted\nAverage Useful Life\n\n \n \n\nAmount\n\n \n\n \n \n \n \n \n \n \n\nGoodwill\n\n \n \n \n \n\n$\n\n133.4\n\n \n\nCore technology\n\n \n \n\n7\nYears\n\n \n \n \n\n51.2\n\n \n\nCustomer relationship\n\n \n \n\n1\nYears\n\n \n \n \n\n15.7\n\n \n\nNet assumed liabilities\n\n \n \n \n \n \n \n\n(11.7\n\n)\n\nTotal\n\n \n \n \n \n \n\n$\n\n188.6\n\n \n\n \n\n The\nfair value of Core technology was determined using the income approach, specifically the multi-period excess earnings method.\n\n \n\nCustomer\nrelationships represent the fair value of existing contractual relationships and customer loyalty determined based on existing relationships\nusing the income approach, specifically the with and without method.\n\n \n\nThe\nfair value of the identified intangible assets subject to amortization are amortized over the assets’ estimated useful lives based\non the pattern in which the economic benefits are expected to be received to cost of revenues and operating expenses.\n\n \n\nIn\n2024, Cyberint acquisition-related costs were immaterial and recorded on the Company’s consolidated statements of income. Acquisition-related\ncosts are primarily comprised of direct transaction costs.\n\n \n\nUnaudited\nPro forma results of operations related to this acquisition have not been presented because they are not material to the Company’s\nconsolidated statements of income.\n\n \n\nF\n- 31\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 3:-        \n   ACQUISITIONS (Cont.)\n\n \n\n \ne.\n\nOn June\n9, 2025, the Company completed the acquisition of all outstanding shares of Veriti Security Ltd. (“Veriti”),\na privately-held Israeli-based company, which develops and markets a cyber software platform that combines AI and machine learning and\nprovides a holistic understanding of security and risk posture. The Company acquired Veriti for total consideration of approximately $92.5.\nVeriti introduces preemptive exposure management, delivering automated remediation of threat exposure risks and collaborative threat prevention\nacross complex multi-vendor environments, which would enable the Company to expand its product portfolio.\n\n \n\nThe\nCompany allocated the purchase price to tangible and identified intangible assets acquired and liabilities assumed based on the preliminary\nestimates of their fair values, which were determined using generally accepted valuation techniques based on estimates and assumptions\nmade by management. The fair values are subject to adjustment for up to one year after the close of the transaction as additional information\nis obtained. Any adjustments to the preliminary purchase price allocation identified during the measurement period are recognized in the\nperiod in which the adjustments are determined.\n\n \n\nGoodwill\narising from the Veriti acquisition is primarily attributed to synergies. Goodwill is not expected to be deductible for income tax purposes.\n\n \n\n \n \n\nWeighted\nAverage Useful Life\n\n \n \n\nAmount\n\n \n\n \n \n \n \n \n \n \n\nGoodwill\n\n \n \n \n \n\n$\n\n58.5\n\n \n\nCore technology\n\n \n \n\n7\nYears\n\n \n \n \n\n19.8\n\n \n\nCustomer relationship\n\n \n \n\n5\nYears\n\n \n \n \n\n12.4\n\n \n\nNet assumed assets\n\n \n \n \n \n \n \n\n1.8\n\n \n\nTotal\n\n \n \n \n \n \n\n$\n\n92.5\n\n \n\n \n\nThe\nfair value of Core technology was determined using the income approach, specifically the multi-period excess earnings method.\n\n \n\nCustomer\nrelationships represent the fair value of existing contractual relationships and customer loyalty determined based on existing relationships\nusing the income approach, specifically the with and without method.\n\n \n\nThe\nfair value of the identified intangible assets subject to amortization are amortized over the assets’ estimated useful lives based\non the pattern in which the economic benefits are expected to be received to cost of revenues and operating expenses.\n\n \n\nF\n- 32\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 3:-           \nACQUISITIONS (Cont.)\n\n \n\nFrom\nthe Veriti Acquisition Date to December 31, 2025, the consolidated statements of income include immaterial revenue and operating results\nattributable to Veriti.\n\n \n\nIn\n2025, Veriti acquisition-related costs were immaterial and recorded on the Company’s consolidated statements of income. Acquisition-related\ncosts are primarily comprised of direct transaction costs.\n\n \n\nUnaudited\nPro forma results of operations related to this acquisition have not been presented because they are not material to the Company’s\nconsolidated statements of income.\n\n \n\n \nf.\n\nOn October\n22, 2025, the Company completed the acquisition of all outstanding shares of Lakera AI AG (“Lakera”), a privately-held\nSwiss company. Lakera is a specialized AI-security company focused on protecting generative AI applications - like large language models,\nchatbots, autonomous AI agents, and multimodal systems - from advanced cyber threats unique to AI environments. Lakera’s core mission\nis to secure the AI-powered future by providing AI-native security solutions that protect enterprises as they adopt generative AI at scale.\nRather than bolting AI onto traditional cybersecurity tools, Lakera builds its technology from the ground up specifically for AI threats,\nsuch as prompt injections, data leakage, model manipulation, and autonomous agent risks. This would enable the Company to expand its product\nportfolio. The Company acquired Lakera for total consideration of approximately $201.8.\n\n \n\nThe\nCompany allocated the purchase price to tangible and identified intangible assets acquired and liabilities assumed based on the preliminary\nestimates of their fair values, which were determined using generally accepted valuation techniques based on estimates and assumptions\nmade by management. The fair values are subject to adjustment for up to one year after the close of the transaction as additional information\nis obtained. Any adjustments to the preliminary purchase price allocation identified during the measurement period are recognized in the\nperiod in which the adjustments are determined.\n\n \n\nGoodwill\narising from the Lakera acquisition is primarily attributed to synergies. Goodwill is not expected to be deductible for income tax purposes.\n\n \n\n \n \n\nWeighted\nAverage Useful Life\n\n \n \n\nAmount\n\n \n\n \n \n \n \n \n \n \n\nGoodwill\n\n \n \n \n \n\n$\n\n150.1\n\n \n\nCore technology\n\n \n \n\n7\nYears\n\n \n \n \n\n44.0\n\n \n\nCustomer relationship\n\n \n \n\n1\nYears\n\n \n \n \n\n4.4\n\n \n\nTrademark\n\n \n \n\n1Years\n\n \n \n \n\n0.3\n\n \n\nNet assumed assets\n\n \n \n \n \n \n \n\n3.0\n\n \n\nTotal\n\n \n \n \n \n \n\n$\n\n201.8\n\n \n\n \n\nF\n- 33\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 3:-     \n      ACQUISITIONS (Cont.)\n\n \n\nThe\nfair value of Core technology was determined using the income approach, specifically the multi-period excess earnings method.\n\n \n\nCustomer\nrelationships represent the fair value of existing contractual relationships and customer loyalty determined based on existing relationships\nusing the income approach, specifically the with and without method.\n\n \n\nTrademarks\nrepresent the fair value of royalties that would have been charged by a market participant to license such trademark using the income\napproach, specifically the relief-from-royalty method.\n\n \n\nThe\nfair value of the identified intangible assets subject to amortization are amortized over the assets’ estimated useful lives based\non the pattern in which the economic benefits are expected to be received to cost of revenues and operating expenses.\n\n \n\nFrom\nthe Lakera Acquisition Date to December 31, 2025, the consolidated statements of income include immaterial revenue and operating results\nattributable to Lakera.\n\n \n\nIn\n2025, Lakera acquisition-related costs were immaterial and recorded on the Company’s consolidated statements of income. Acquisition-related\ncosts are primarily comprised of direct transaction costs.\n\n \n\nUnaudited\nPro forma results of operations related to this acquisition have not been presented because they are not material to the Company’s\nconsolidated statements of income.\n\n \n\nNOTE 4:\n             CASH AND CASH EQUIVALENTS, SHORT-TERM BANK DEPOSITS AND MARKETABLE SECURITIES\n\n \n\n \n\n \n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\nCash and cash equivalents:\n\n \n \n \n \n \n \n\nCash\n\n \n\n$\n\n109.8\n\n \n \n\n$\n\n54.5\n\n \n\nMoney\nmarket funds\n\n \n \n\n1,464.5\n\n \n \n \n\n158.1\n\n \n\nShort\nterm deposits\n\n \n \n\n225.7\n\n \n \n \n\n293.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nTotal Cash and cash equivalents\n\n \n \n\n1,800.0\n\n \n \n \n\n506.2\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nShort-term bank deposits:\n\n \n \n\n525.7\n\n \n \n \n\n134.0\n\n \n\nMarketable securities:\n\n \n \n \n \n \n \n \n \n\nDebt\nsecurities issued by the U.S. Treasury and other U.S. government agencies\n\n \n \n\n474.3\n\n \n \n \n\n518.4\n\n \n\nDebt\nsecurities issued by other governments\n\n \n \n\n39.3\n\n \n \n \n\n55.4\n\n \n\nCorporate\ndebt securities\n\n \n \n\n1,502.4\n\n \n \n \n\n1,569.8\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nTotal Marketable securities\n\n \n \n\n2,016.0\n\n \n \n \n\n2,143.6\n\n \n\nTotal\nCash and cash equivalents, short-term bank deposits and marketable securities\n\n \n\n$\n\n4,341.7\n\n \n \n\n$\n\n2,783.8\n\n \n\n \n\nF\n- 34\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 4:\n             CASH AND CASH EQUIVALENTS, SHORT-TERM BANK DEPOSITS AND MARKETABLE SECURITIES (Cont.)\n\n \n\nThe\nfollowing table classifies the Company’s marketable securities by contractual maturities:\n\n \n\n \n\n \n\nDecember\n31, 2025\n\n \n\n \n \n\nAmortized\nCost\n\n \n \n\nGross\nunrealized\n\ngain\n\n \n \n\nGross\nunrealized loss\n\n \n \n\nFair\nValue\n\n \n\nContractual maturity\nyear:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\nWithin one year          \n\n \n\n$\n\n689.6\n\n \n \n\n$\n\n1.2\n\n \n \n\n$\n\n(1.6\n\n)\n\n \n\n$\n\n689.2\n\n \n\nAfter one year through\nfive years\n\n \n \n\n1,312.3\n\n \n \n \n\n15.0\n\n \n \n \n\n(0.5\n\n)\n\n \n \n\n1,326.8\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nTotal\n\n \n\n$\n\n2,001.9\n\n \n \n\n$\n\n16.2\n\n \n \n\n$\n\n(2.1\n\n)\n\n \n\n$\n\n2,016.0\n\n \n\n \n\nFrom\nthe total of $2.1\nand $20.3\nunrealized losses as of December 31, 2025 and 2024, $1.1\nand $9.7\nwere in continuous unrealized loss for more than 12 months, respectively.  The unrealized loss balance declined as the short term\nyield curve shifted lower in 2025, which positively impacted the fair value of securities in the Company’s portfolio.\n\n \n\nAs\nof December 31, 2025 and 2024, interest receivable amounted to $19.6\nand $17.7,\nrespectively, and is included within prepaid expenses and other assets in the balance sheets.\n\n \n\n \n\n \n\nDecember\n31, 2024\n\n \n\n \n \n\nAmortized\nCost\n\n \n \n\nGross\nunrealized\n\ngain\n\n \n \n\nGross\nunrealized loss\n\n \n \n\nFair\nValue\n\n \n\nContractual maturity\nyear:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\nWithin one year          \n\n \n\n$\n\n736.3\n\n \n \n\n$\n\n0.3\n\n \n \n\n$\n\n(4.9\n\n)\n\n \n\n$\n\n731.7\n\n \n\nAfter one year through\nfive years\n\n \n \n\n1,424.5\n\n \n \n \n\n2.8\n\n \n \n \n\n(15.4\n\n)\n\n \n \n\n1,411.9\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nTotal\n\n \n\n$\n\n2,160.8\n\n \n \n\n$\n\n3.1\n\n \n \n\n$\n\n(20.3\n\n)\n\n \n\n$\n\n2,143.6\n\n \n\n \n\n \n\nF\n- 35\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 5:-       \n    FAIR VALUE MEASUREMENTS\n\n \n\nIn\naccordance with ASC No. 820, the Company measures its money market funds, short-term bank deposits, marketable securities and foreign\ncurrency derivative contracts at fair value. Money market funds and short term bank deposits are classified within Level 1. Marketable\nsecurities are classified within Level 2 or Level 3. This is because these assets are mostly valued using quoted market prices or\nalternative pricing sources and models utilizing market observable inputs, or based on unobservable inputs. Foreign currency derivative\ncontracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar\ninstruments.\n\n \n\nThe\nLevel 3 Corporate debt security was structured and issued by a global financial institution and valued based on issuer risk, sovereign\ncredit risk and interest rates. The Financial income related to the instrument during 2025 and 2024 was insignificant.\n\n \n\nThe\nCompany’s financial assets measured at fair value on a recurring basis, excluding accrued interest components, consisted of the\nfollowing types of instruments as of the following dates:\n\n \n\n \n \n\n**December\n31,**\n\n \n\n \n\n2025\n\n \n \n\n**2024**\n\n \n\n \n\n \n\nFair\nvalue measurements using input type\n\n \n \n\nFair\nvalue measurements using input type\n\n \n\n \n\n \n\nLevel\n1\n\n \n \n\nLevel\n2\n\n \n \n\nLevel\n3\n\n \n \n\nTotal\n\n \n \n\nLevel\n1\n\n \n \n\nLevel\n2\n\n \n \n\nLevel\n3\n\n \n \n\nTotal\n\n \n\nCash\n\n \n\n$\n\n109.8\n\n \n \n\n$\n\n-\n\n \n \n\n$\n\n-\n\n \n \n\n$\n\n109.8\n\n \n \n\n$\n\n54.5\n\n \n \n\n$\n\n-\n\n \n \n\n$\n\n-\n\n \n \n\n$\n\n54.5\n\n \n\nCash\nequivalents\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nMoney\nmarket funds\n\n \n \n\n1,464.5\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n1,464.5\n\n \n \n \n\n158.1\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n158.1\n\n \n\nShort\nterm deposits\n\n \n \n\n225.7\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n225.7\n\n \n \n \n\n293.6\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n293.6\n\n \n\nShort-term\nbank deposits\n\n \n \n\n525.7\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n525.7\n\n \n \n \n\n134.0\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n134.0\n\n \n\nMarketable\nsecurities:\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nDebt\nsecurities issued by   the  U.S. Treasury and other U.S. government agencies\n\n \n \n\n-\n\n \n \n \n\n474.3\n\n \n \n \n\n-\n\n \n \n \n\n474.3\n\n \n \n \n\n-\n\n \n \n \n\n518.4\n\n \n \n \n\n-\n\n \n \n \n\n518.4\n\n \n\nDebt\nsecurities issued by other governments\n\n \n \n\n-\n\n \n \n \n\n39.3\n\n \n \n \n\n-\n\n \n \n \n\n39.3\n\n \n \n \n\n-\n\n \n \n \n\n55.4\n\n \n \n \n\n-\n\n \n \n \n\n55.4\n\n \n\nCorporate\ndebt securities\n\n \n \n\n-\n\n \n \n \n\n1,482.2\n\n \n \n \n\n20.2\n\n \n \n \n\n1,502.4\n\n \n \n \n\n-\n\n \n \n \n\n1,549.6\n\n \n \n \n\n20.2\n\n \n \n \n\n1,569.8\n\n \n\nForeign\ncurrency derivative\n\ncontracts\n\n \n \n\n-\n\n \n \n \n\n29.8\n\n \n \n \n\n-\n\n \n \n \n\n29.8\n\n \n \n \n\n-\n\n \n \n \n\n3.3\n\n \n \n \n\n-\n\n \n \n \n\n3.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nTotal financial assets\n\n \n\n$\n\n2,325.7\n\n \n \n\n$\n\n2,025.6\n\n \n \n\n$\n\n20.2\n\n \n \n\n$\n\n4,371.5\n\n \n \n\n$\n\n640.2\n\n \n \n\n$\n\n2,126.7\n\n \n \n\n$\n\n20.2\n\n \n \n\n$\n\n2,787.1\n\n \n\n \n\nF\n- 36\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 5:-          \nFAIR VALUE MEASUREMENTS (Cont.)\n\n \n\nAs\nof December 31, 2025, the estimated fair value of the Convertible Notes was $2,007.4.\nThe fair value of the Convertible Notes is considered to be Level 2 within the fair value hierarchy and was determined based on quoted\nprices of the Convertible Notes in an over-the-counter market.\n\n \n\nNOTE 6:-       \n   PROPERTY AND EQUIPMENT, NET\n\n \n\n \n\n \n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\nCost:\n\n \n \n \n \n \n \n\nComputers and peripheral\nequipment\n\n \n\n$\n\n125.4\n\n \n \n\n$\n\n108.1\n\n \n\nOffice furniture and\nequipment\n\n \n \n\n12.4\n\n \n \n \n\n11.8\n\n \n\nBuilding\n\n \n \n\n79.3\n\n \n \n \n\n78.7\n\n \n\nLeasehold improvements\n\n \n \n\n31.0\n\n \n \n \n\n33.4\n\n \n\n \n\n \n \n \n \n \n \n \n \n\n \n\n \n \n\n248.1\n\n \n \n \n\n232.0\n\n \n\nAccumulated depreciation\n\n \n \n\n165.2\n\n \n \n \n\n151.2\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nProperty and equipment,\nnet\n\n \n\n$\n\n82.9\n\n \n \n\n$\n\n80.8\n\n \n\n \n\nNOTE 7:-\n\nGOODWILL AND INTANGIBLE\nASSETS, NET\n\n \n\n \na.\n\nGoodwill:\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\nBalance as of January 1\n\n \n\n$\n\n1,695.7\n\n \n \n\n$\n\n1,554.4\n\n \n\nAcquisitions\n\n \n \n\n208.6\n\n \n \n \n\n141.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nBalance as of December 31\n\n \n\n$\n\n1,904.3\n\n \n \n\n$\n\n1,695.7\n\n \n\n \n\nF\n- 37\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 7:-\n\nGOODWILL AND INTANGIBLE\nASSETS, NET (Cont.)\n\n \n\n \nb.\n\nIntangible assets, net:\n\n \n\n \n\n \n\nUseful\n\n \n \n\nDecember\n31,\n\n \n\n \n\n \n\nLife\n\n \n \n\n2025\n\n \n \n\n2024\n\n \n\nOriginal amount:\n\n \n \n \n \n \n \n \n \n \n\nCore\ntechnology\n\n \n \n\n 7–8\n\n \n \n\n$\n\n294.3\n\n \n \n\n$\n\n230.5\n\n \n\nTrademarks\nand trade names\n\n \n \n\n 1–20\n\n \n \n \n\n7.8\n\n \n \n \n\n7.5\n\n \n\nCustomer\nrelationship\n\n \n \n\n 1–5\n\n \n \n \n\n96.4\n\n \n \n \n\n79.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n \n \n \n \n\n398.5\n\n \n \n \n\n317.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nAccumulated amortization:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\nCore\ntechnology\n\n \n \n \n \n \n \n\n95.6\n\n \n \n \n\n63.1\n\n \n\nTrademarks\nand trade names\n\n \n \n \n \n \n \n\n7.5\n\n \n \n \n\n7.1\n\n \n\nCustomer\nrelationship\n\n \n \n \n \n \n \n\n81.2\n\n \n \n \n\n46.0\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n \n \n \n \n\n184.3\n\n \n \n \n\n116.2\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nIntangible assets, net:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\nCore\ntechnology\n\n \n \n \n \n \n \n\n198.7\n\n \n \n \n\n167.4\n\n \n\nTrademarks\nand trade names\n\n \n \n \n \n \n \n\n0.3\n\n \n \n \n\n0.4\n\n \n\nCustomer\nrelationship\n\n \n \n \n \n \n \n\n15.2\n\n \n \n \n\n33.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n \n \n \n\n$\n\n214.2\n\n \n \n\n$\n\n201.4\n\n \n\n \n\nIntangible\nassets which were fully amortized as of the prior year, are disposed from the original amount and the accumulated amortization balances.\n\n \n\nThe\nestimated future amortization expense of Intangible assets as of December 31, 2025 is as follows:\n\n \n\n2026\n\n \n\n$\n\n44.8\n\n \n\n2027\n\n \n \n\n37.6\n\n \n\n2028\n\n \n \n\n36.4\n\n \n\n2029\n\n \n \n\n35.0\n\n \n\n2030\n\n \n \n\n30.1\n\n \n\nThereafter\n\n \n \n\n30.3\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n$\n\n214.2\n\n \n\n \n\nF\n- 38\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 8:-\n\nDEFERRED REVENUES\n\n \n\nDeferred\nrevenues consisted of the following:\n\n \n\n \n\n \n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\n \n\n \n \n \n \n \n \n\nSecurity subscriptions\n\n \n\n$\n\n1,226.8\n\n \n \n\n$\n\n1,064.0\n\n \n\nSoftware updates and\nmaintenance\n\n \n \n\n923.0\n\n \n \n \n\n896.7\n\n \n\nOther\n\n \n \n\n30.6\n\n \n \n \n\n39.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n\n \n\n \n\n$\n\n2,180.4\n\n \n \n\n$\n\n2,000.3\n\n \n\n \n\nThe\nmajority of the deferred revenues are recognized within one year or less and presented as current deferred revenues in the balance sheets.\nAll of the remaining deferred revenues are presented as long term deferred revenues and are recognized for a period greater than one year\nand up to five years.\n\n \n\nNOTE 9:-\n\nACCRUED EXPENSES AND\nOTHER LIABILITIES\n\n \n\nThe\ncomponents of accrued expenses and other liabilities are as follows:\n\n \n\n \n\n \n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\n \n\n \n \n \n \n \n \n\nAccrued products and\nlicenses costs\n\n \n\n$\n\n63.9\n\n \n \n\n$\n\n66.0\n\n \n\nMarketing expenses payable\n\n \n \n\n4.7\n\n \n \n \n\n2.3\n\n \n\nIncome tax payable\n\n \n \n\n10.2\n\n \n \n \n\n28.6\n\n \n\nLegal accrual\n\n \n \n\n15.4\n\n \n \n \n\n22.5\n\n \n\nOther accrued expenses\n\n \n \n\n55.5\n\n \n \n \n\n57.2\n\n \n\n \n\n \n \n \n \n \n \n \n \n\n \n\n \n\n$\n\n149.7\n\n \n \n\n$\n\n176.6\n\n \n\n \n\nF\n- 39\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 10:-\n\nCONVERTIBLE SENIOR NOTES,\nNET\n\n \n\nConvertible\nnote\n\n \n\nIn\nDecember 2025, the Company issued $2,000\naggregate principal amount, 0%\ncoupon rate, of Convertible Senior\nNotes due 2030 (the “Convertible Notes”). The Convertible Notes mature on December\n15, 2030 unless earlier repurchased, redeemed or converted. Upon conversion, the Company will settle the principal amount\nof converted notes using cash and the conversion premium will be settled using cash, ordinary shares or a combination of each, at the\nCompany's election.\n\n \n\nThe\nConvertible Notes are convertible at an initial conversion rate of 4.1042\nOrdinary Shares per $1,000\nprincipal amount of Convertible Notes (equivalent to an initial conversion price of approximately $243.65\nper Ordinary Share). The conversion rate is subject to adjustment under certain circumstances in accordance with the terms\nof the Indenture.  In addition, following certain corporate events that occur prior to the maturity date, or following Company’s\ndelivery of a notice of tax redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects\nto convert his notes in connection with such a corporate event or notice of tax redemption, as the case may be.\n\n \n\nIf\nthe last reported sale price of our ordinary shares on the trading day immediately preceding the business day immediately preceding December\n15, 2028 is less than 110%\nof the conversion price, holders of the notes have the right to require us to repurchase for cash all or any portion of their notes on\nDecember 15, 2028 at a repurchase price equal to 100%\nof the principal amount of the notes to be repurchased, plus accrued and unpaid special interest to, but excluding, the repurchase date.\nIn addition, if we undergo a fundamental change, holders may require us to repurchase for cash all or any portion of their notes at a\nfundamental change repurchase price equal to 100%\nof the principal amount of the notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental\nchange repurchase date.\n\n \n\nConversion\nterms:\n\n \n\nPrior\nto the close of business on the business day immediately preceding September 16, 2030, a holder may convert its Convertible Notes only\nunder the following circumstances:\n\n \n\na.\nDuring any calendar quarter commencing after the calendar quarter ending on March 31, 2026 (and only during such calendar quarter), if\nthe last reported sale price of the Company’s ordinary shares for at least 20 trading days (whether or not consecutive) during a\nperiod of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is\ngreater than or equal to 130%\nof the conversion price on each applicable trading day.\n\n \n\nb.\nDuring the five business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading\nprice per $1,000\nprincipal amount of Convertible Notes for each trading day of the measurement period was less than 98%\nof the product of the last reported sale price of the ordinary shares and the conversion rate on each such trading day.\n\n \n\nF\n- 40\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 10:-\n\nCONVERTIBLE\nSENIOR NOTES, NET (Cont.)\n\n \n\nc.\nIf the Company calls the Convertible Notes for redemption in certain circumstances, at any time prior to the close of business on the\nsecond scheduled trading day immediately preceding the redemption date; or\n\n \n\nd.\nUpon the occurrence of specified corporate events.\n\n \n\nOn\nor after September 16, 2030, until the close of business on the second scheduled trading day immediately preceding the maturity date,\na holder may convert its Convertible Notes at any time, regardless of the foregoing circumstances. During the year ended December 31,\n2025, the conditions allowing holders of the  Convertible Notes to convert were not met. The Convertible Notes were included within\nlong-term liabilities in the consolidated balance sheet as of December 31, 2025.\n\n \n\nThe\nCompany may redeem for cash (1) all of the Convertible Notes at any time on or prior to the 30th scheduled trading day immediately preceding\nthe maturity date if certain tax-related events occur and (2) all or any portion (subject to certain limitations) of the Convertible Notes,\nat any time, and from time to time, on or after December 20, 2028, and on or before the 30th scheduled trading day immediately before\nthe maturity date, at its option at any time and from time to time, if the last reported sale price per share of Check Point’s ordinary\nshares has been at least 130%\nof the conversion price for a specified period of time and certain other conditions are satisfied. The redemption price will be equal\nto the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding,\nthe redemption date. Upon the occurrence of a fundamental change (as defined in the Indenture), holders may require the Company to repurchase\nfor cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100%\nof the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding,\nthe fundamental change repurchase date.\n\n \n\nThe\ncarrying amount of the liability is represented by the face amount of the notes, less total issuance costs, plus any amortization of issuance\ncosts. The total issuance costs upon issuance of the notes were $28.25\nand are amortized to interest expense using the effective interest rate method over the contractual term of the notes. Interest expense\nis recognized at an annual effective interest rate of 0.28%\nover the contractual term of the notes.\n\n \n\nThe\nnet carrying amount of the Convertible Notes were as follows:\n\n \n\n \n\n \n\n2025\n\n \n\nPrincipal original amount\n\n \n\n$\n\n2,000.0\n\n \n\nUnamortized debt issuance\ncosts\n\n \n \n\n(27.9\n\n)\n\n \n\n \n \n \n \n\nNet carrying amount\n\n \n\n$\n\n1,972.1\n\n \n\n \n\nThe\nCompany recognized interest expense on the Convertible Notes as follows:\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n \n \n \n\nAmortization of debt\nissuance costs\n\n \n\n$\n\n0.4\n\n \n\n \n\nF\n- 41\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 10:-\n\nCONVERTIBLE\nSENIOR NOTES, NET (Cont.)\n\n \n\nCapped\nCall Transactions\n\n \n\nIn\nconnection with the pricing of the Convertible Notes, the Company entered into capped call transactions (“Capped Call Transactions”)\nwith certain of the purchasers of the Convertible Notes. The Capped Call Transactions are purchased call options that give the Company\nthe option to purchase the Company's ordinary shares, subject to anti-dilution adjustments substantially identical to those in the \nConvertible Notes. The Capped Call Transactions will expire in 2030, if not exercised earlier. The Capped Call Transactions are intended\nto offset potential dilution to the Company’s ordinary shares and/or offset the potential cash payments that the Company could be\nrequired to make in excess of the principal amount upon any conversion of the Convertible Notes under certain circumstances described\nin the Capped Call Transactions. The Capped Call Transactions are separate transactions and are not part of the terms of the Convertible\nNotes. As the Capped Call Transactions are considered indexed to the Company's shares and are considered equity classified, they are recorded\nin shareholders’ equity on the consolidated balance sheets. The Capped Call Transactions each have an initial strike price of $243.65\nand an initial cap price of approximately $334.43\nper share, which represents a premium of 75%\nover the last reported sale price of the Company’s ordinary shares of $191.10\nper share on December 3, 2025, and is subject to certain adjustments under the terms of the Capped Call Transactions. The Company paid\nan aggregate amount of $192\nfor Capped Call Transactions. The amount paid for the Capped Call Transactions was recorded as a reduction to additional paid-in capital\nin the consolidated balance sheets.\n\n \n\nNOTE 11:-\n\nCOMMITMENTS AND CONTINGENT\nLIABILITIES\n\n \n\nLitigations:\n\n \n\n \na.\n\nThe Company is the defendant in various lawsuits,\nincluding employment-related litigation claims, construction claims and other legal proceedings in the normal course of its business.\nLitigation and governmental proceedings can be expensive, lengthy and disruptive to normal business operations, and can require extensive\nmanagement attention and resources, regardless of their merit. While the Company intends to defend the aforementioned matters vigorously,\nit believes that a loss in excess of its accrued liability with respect to these claims is not probable.\n\n \n\n \nb.\n\nOn July 15, 2025, the Company and the Israeli\nTax Authorities entered into a settlement agreement under which the Company agreed to pay total additional taxes of NIS 223.2\nmillion (approximately $66\nmillion) in respect of the 2016–2020 tax years, which was ratified by the District Court on July 16, 2025.  The Company\nsettled the tax demand payment to the ITA on July 31, 2025. The settlement fully and finally resolves all tax matters between the Company\nand the ITA relating to the 2016-2020 tax years. See also Note 12a.\n\n \n\nF\n- 42\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 12:-    \nTAXES ON INCOME\n\n \n\n \na.\n\nIsraeli taxation:\n\n \n\n1.\nCorporate tax:\n\n \n\nPursuant\nto Amendment 73 to the Investment Law adopted in 2017, a Company located in the Center of Israel that meets the conditions for “Preferred\nTechnological Enterprises”, is subject to tax rate of 12%.\nThe Company believes it meets those conditions.\n\n \n\n“Special\nPreferred Technological Enterprise” (with consolidated annual revenue of its group is at least NIS 10\nbillion), as defined by the Investment Law, is entitled to a reduced tax rate of 6%\non its preferred technological income, regardless of the place the company’s technology preferred enterprise is located.  \n\n \n\nIncome\nnot eligible for Preferred Enterprise benefits is taxed at a regular rate of 23%.\n\n \n\nReduced\nincome under the Investment Law including the Preferred Enterprise Regime, Preferred Technological Enterprise Regime and Special Preferred\nTechnological Enterprise will be freely distributable as dividends, subject to a 15%\nor 20%\nwithholding tax (or lower rate for non-Israeli resident shareholder, under an applicable tax treaty). However, upon the distribution of\na dividend from Preferred Income, Technological Preferred Enterprise and Special Preferred Technological Enterprise to an Israeli company,\nno withholding tax will be remitted.\n\n \n\nThe\nCompany may also receive benefits pursuant to the Law for the Encouragement of Knowledge Intensive Industry (Temporary Provision), 2023\n(the “Law”), which was enacted on July 31, 2023. The Law provides certain benefits to entities that qualify as Preferred Technological\nEnterprise, special deductions in connection with acquisitions where certain criteria are met.\n\n \n\nPursuant\nto a temporary tax relief initiated by the Israeli government, a company that elected by November 11, 2013, to pay a reduced corporate\ntax rate as set forth in the temporary tax relief with respect to undistributed exempt income generated under the Investment Law accumulated\nby the Company until December 31, 2011 (“Trapped Earnings”) is entitled to distribute a dividend from such income without\nbeing required to pay additional corporate tax with respect to such dividend. A company that has so elected must make certain qualified\ninvestments in Israel over five-year period. A company that has elected to apply the temporary tax relief cannot withdraw from its election.\nThe Company has elected to apply the temporary tax relief by the respective date and believes it meets those conditions.\n\n \n\nIn\nDecember 2022, the Council of the European Union (“EU”) unanimously adopted the Directive on BEPS’s Pillar Two ensuring\na global minimum tax rate of 15%\nfor certain companies with an annual global turnover of at least €750\nmillion, in the Union (the Directive). The OECD has also issued the Safe Harbours and Penalty Relief : Global Ani-Base\nErosion Rules (“Pillar Two Rules”) and related guidance. EU Member States and other non-EU countries\nenacted legislation to integrate the provisions of the Directive and Pillar Two rules into their national\nlaws by December 31, 2023 and the majority of those countries generally apply these provisions for fiscal years starting\non or after December 31, 2023. \n\n \n\nOn\nDecember 2025, the Israeli Knesset approved the Minimum Corporate Tax Law (Multinational Group), 2025 (the “Law”) which adopts\nBEPS’s Pillar Two Rules. The Law introduces a qualified domestic minimum top-up tax, pursuant to which multinational\nenterprise groups with annual global turnover of at least  €750\nmillion are subject to a minimum corporate tax rate of 15%\non the Israeli Constituent Entity as defined under the OECD’s Pillar Two Rules. The Law enters into force as\nof January into its national law with effective date of January 1, 2026. \n\n \n\nF\n- 43\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 12:- \n   TAXES ON INCOME (Cont.)\n\n \n\nIn\nparallel, as part of the Israeli Economic Program Law for the 2026 budget year, legislation to incentivize research and development activities\n(the “R&D Incentive Legislation”) was enacted on March 30, 2026 and entered into force as of January 1, 2026.\n\n \n\nThe\nR&D Incentive Legislation introduces a tax credit, at varying rates based on specified thresholds, for qualifying research and development\nexpenditures incurred in Israel by eligible Israeli companies that are part of multinational enterprise groups, subject to meeting defined\neligibility criteria. The tax credit may be utilized to offset Israeli corporate income tax or the Israeli domestic minimum top-up tax.\n\n \n\nIn\naddition, the R&D Incentive Legislation, subject to conditions as  prescribed therein, provides that  all or a portion of\nthe unutilized R&D tax credit will be provided to eligible companies in the form of a cash grant upon the lapse of a period stipulated\nby the R&D Incentive Legislation, rather than being utilized solely as a tax credit. This mechanism is intended, among other things,\nto support the qualification of the incentive under the OECD Pillar Two framework.\n\n \n\nThe\nimplementation of the Israeli Pillar Two Law is expected to increase the Company’s reported tax expenses beginning in 2026. Based\non the current Proposed R&D Incentive Legislation and its associated tax credit, and assuming enactment effective January 1, 2026,\nincome tax expense is expected to increase, while the net cash impact is not expected to be material. However, the ultimate impact will\ndepend on the final form of the proposed R&D Incentive Legislation, if and when enacted and the amount of tax credits approved thereunder.\n\n \n\nOn\nJuly 4, 2025, the One, Big, Beautiful Bill Act was enacted, which, among other changes to U.S. federal income tax law, permanently suspends\nthe requirement to capitalize and amortize domestic research and development expenditures and permits such deductions on a current basis,\nand reinstates 100% bonus depreciation for certain qualified property. The Bill also allows to some extent an accelerated amortization\nof domestic research and development expenditures that had previously been amortized during the years 2022-2024.\n\n \n\nIn\nJanuary 2023, the Israeli Tax Authority (the “ITA”) issued orders for the years 2016 through 2019 challenging our positions\non several issues and demanded the payment of additional taxes in the aggregate amount of NIS 536\nmillion (approximately $158\nmillion), not including an amount of NIS 476\nmillion (approximately $140\nmillion) related to expenses that will be deductible in future years, with respect of these four tax years (these amounts include interest\nand indexation up to the tax settlement’s payment date, i.e. 31 July 2025). On November 29, 2023, the Company filed an appeal to\nthe District Court of Tel Aviv against these orders.\n\n \n\nIn\naddition, the ITA has issued tax assessment for the 2020 tax year in which it demanded the payment of additional taxes in the aggregate\namount of NIS 94\nmillion (approximately $28\nmillion), not including an amount of NIS 106\nmillion (approximately $31\nmillion) related to expenses that will be deductible in future years, with respect to the 2020 tax year (these amounts include interest\nand indexation up to the tax settlement’s payment date, i.e. 31 July 2025). On December 31, 2023 we submitted a\ntax appeal against the 2020 tax assessment to the ITA.\n\nF\n- 44\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 12:- \n   TAXES\nON INCOME (Cont.)\n\n \n\nOn\nJuly 15, 2025, the Company and the Israeli Tax Authorities entered into a settlement agreement under which the Company agreed to pay total additional taxes\nof NIS 223.2\nmillion (approximately $66\nmillion) in respect of the 2016–2020 tax years, which was ratified by the District Court on July 16, 2025.  The Company\nsettled the tax demand payment to the ITA on July 31, 2025. The settlement fully and finally resolves all tax matters between the Company\nand the ITA relating to the 2016-2020 tax years.\n\n \n\nOur\ntax assessments through the 2020 tax year are considered final.\n\n \n\n \n2.\n\nForeign Exchange Regulations:\n\n \n\nUnder the Foreign Exchange\nRegulations, Check Point Ltd. and its Israeli subsidiaries calculate their tax liability in dollar according to certain orders.\n\nThe\ntax liability, as calculated in dollar is translated into New Israeli Shekels according to the exchange rate as of December 31, of each\nyear. \n\n \n\n \nb.\n\nIncome taxes of non-Israeli subsidiaries:\n\n \n\nNon-Israeli\nsubsidiaries are taxed according to the tax laws in their respective countries of residence.\n\n \n\nThe\nCompany does not provide deferred tax liabilities when it intends to reinvest earnings of foreign subsidiaries indefinitely or if distributed,\nno tax liability will be imposed. Undistributed earnings of foreign subsidiaries that are not distributed amounted to $639.5\nand unrecognized deferred tax liability related to such earning amounted to $102.0\nas of December 31, 2025.\n\n \n\nF\n- 45\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 12:- \n    TAXES\nON INCOME (Cont.)\n\n \n\n \nc.\n\nDeferred tax assets and liabilities:\n\n \n\nDeferred\ntaxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting\npurposes and the amounts used for income tax purposes. As of December 31, 2025 and 2024, the Company’s deferred taxes were\nin respect of the following:\n\n \n\n \n\n \n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\n \n\n \n \n \n \n \n \n\nCarry forward tax losses\n\n \n\n$\n\n30.9\n\n \n \n\n$\n\n38.2\n\n \n\nEmployee stock based\ncompensation\n\n \n \n\n33.0\n\n \n \n \n\n29.7\n\n \n\nDeferred revenues\n\n \n \n\n3.0\n\n \n \n \n\n3.1\n\n \n\nTax credits\n\n \n \n\n40.6\n\n \n \n \n\n37.9\n\n \n\nUnrealized loss on marketable\nsecurities\n\n \n \n\n-\n\n \n \n \n\n3.5\n\n \n\nAccrued employee costs\n\n \n \n\n13.3\n\n \n \n \n\n15.7\n\n \n\nOther\n\n \n \n\n16.2\n\n \n \n \n\n19.2\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nDeferred tax assets before\nvaluation allowance\n\n \n \n\n137.0\n\n \n \n \n\n147.3\n\n \n\nValuation allowance –\nmainly in respect to carryforward losses\n\n \n \n\n(1.0\n\n)\n\n \n \n\n(5.5\n\n)\n\n \n\n \n \n \n \n \n \n \n \n\nDeferred tax asset\n\n \n \n\n136.0\n\n \n \n \n\n141.8\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nIntangible assets\n\n \n \n\n(24.3\n\n)\n\n \n \n\n(29.6\n\n)\n\nDeferred commission\n\n \n \n\n(7.2\n\n)\n\n \n \n\n(10.4\n\n)\n\nUnrealized gain on marketable\nsecurities\n\n \n \n\n(2.9\n\n)\n\n \n \n\n-\n\n \n\nOther\n\n \n \n\n(13.1\n\n)\n\n \n \n\n(8.8\n\n)\n\n \n\n \n \n \n \n \n \n \n \n\nDeferred tax liability\n\n \n \n\n(47.5\n\n)\n\n \n \n\n(48.8\n\n)\n\n \n\n \n \n \n \n \n \n \n \n\nDeferred tax asset, net\n*)\n\n \n\n$\n\n88.5\n\n \n \n\n$\n\n93.0\n\n \n\n  \n\n*)\nAs of December 31, 2025 and 2024 unrecognized tax benefit in the amounts of $20.2\nand $18.3\nwas presented net from deferred tax asset.\n\n \n\nThrough\nDecember 31, 2025, the U.S. subsidiaries had a U.S. federal loss carry-forward of approximately $18.3\nthat can be carried forward and offset against taxable income and subject to limitation on their utilization. Through December 31, 2025,\nthe U.S. subsidiaries had a U.S. state net loss carry forward of approximately $27.7,\nexpiring gradually beginning 2035\nand subject to limitation on their utilization.\n\n \n\nThrough\nDecember 31, 2025, the U.S. subsidiaries had federal and states research and development tax credits of approximately $30.3,\nwhich expire between fiscal years 2025\nand fiscal 2042\nand are subject to limitations on their utilization.\n\nF\n- 46\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 12:- \n    TAXES ON INCOME (Cont.)\n\n \n\n \nd.\n\nIncome before taxes on income (tax benefit) is\ncomprised as follows:\n\n \n\n \n\n \n\n**Year\nended**\n\n**December\n31,**\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n\nDomestic\n\n \n\n$\n\n906.5\n\n \n \n\n$\n\n854.9\n\n \n \n\n$\n\n901.6\n\n \n\nForeign\n\n \n \n\n38.6\n\n \n \n \n\n117.2\n\n \n \n \n\n74.0\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n\n$\n\n945.1\n\n \n \n\n$\n\n972.1\n\n \n \n\n$\n\n975.6\n\n \n\n \n\n \ne.\n\nTaxes on income (tax benefit) are comprised of\nthe following:\n\n \n\n \n\n \n\n**Year\nended**\n\n**December\n31,**\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n\nDomestic taxes:\n\n \n \n \n \n \n \n \n \n \n\nCurrent\n\n \n\n$\n\n(112.6\n\n)\n\n \n\n$\n\n120.5\n\n \n \n\n$\n\n140.6\n\n \n\nDeferred\n\n \n \n\n(3.6\n\n)\n\n \n \n\n(5.9\n\n)\n\n \n \n\n(23.0\n\n)\n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n\n(116.2\n\n)\n\n \n \n\n114.6\n\n \n \n \n\n117.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nForeign taxes:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\nCurrent\n\n \n \n\n11.8\n\n \n \n \n\n16.4\n\n \n \n \n\n13.1\n\n \n\nDeferred\n\n \n \n\n(7.4\n\n)\n\n \n \n\n(4.6\n\n)\n\n \n \n\n4.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n\n4.4\n\n \n \n \n\n11.8\n\n \n \n \n\n17.7\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nTaxes on income (tax\nbenefit)\n\n \n\n$\n\n(111.8\n\n)\n \n\n$\n\n126.4\n\n \n \n\n$\n\n135.3\n\n \n\n \n\n \nf.\n\nThe Company operates its business in various countries\nand accordingly attempts to utilize an efficient operating model to structure its tax payments based on the laws in the countries in which\nthe Company operates. This can cause disputes between the Company and various tax authorities in different parts of the world.\n\n \n\nF\n- 47\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 12:-  \n   TAXES\nON INCOME (Cont.)\n\n \n\nA\nreconciliation of the beginning and ending amount of unrecognized tax benefits related to uncertain tax positions is as follows:\n\n \n\n \n\n \n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\n \n\n \n \n \n \n \n \n\nBeginning balance\n\n \n\n$\n\n402.8\n\n \n \n\n$\n\n380.4\n\n \n\nSettlement and decrease\nrelated to tax positions taken during prior years\n\n \n \n\n(162.9\n\n)\n\n \n \n\n(67.9\n\n)\n\nIncrease related to tax\npositions taken during prior years\n\n \n \n\n17.0\n\n \n \n \n\n36.4\n\n \n\nIncrease related to tax\npositions taken during the current year\n\n \n \n\n59.3\n\n \n \n \n\n53.9\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nEnding balance\n\n \n\n$\n\n*)316.2\n\n \n\n \n\n$\n\n*)402.8\n\n \n\n \n\n*)\nAs of December 31, 2025 and 2024 unrecognized tax benefit in the amounts of $20.2\nand $18.3\nwas presented net from deferred tax asset.\n\n \n\nSubstantially\nall the balance of unrecognized tax benefits, if recognized, would reduce the Company’s annual effective tax rate.\n\n \n\nThe\nCompany adjusts the unrecognized tax benefit liability and income tax expense in the period in which the uncertain tax position is effectively\nsettled, the statute of limitations expires or when new information is available. There is a reasonable possibility that $50.9\nout of the unrecognized tax benefit liability will be adjusted within 12 months due to statute of limitations.\n\n \n\nDuring\nthe years ended December 31, 2025, 2024 and 2023, the Company recorded $(41.3),\n$2.4\nand $12.6,\nrespectively for interest expense (income) related to uncertain tax positions. As of December 31, 2025 and 2024, the Company had\naccrued interest liability related to uncertain tax positions in the amounts of $33.7\nand $75.0,\nrespectively, which is included within income tax accrual on the balance sheets. The Company did not accrue penalties during the years\nended December 31, 2025, 2024 and 2023.\n\n \n\nThe\nCompany files federal and state income tax returns in the U.S. All of the U.S subsidiaries’ tax years are subject to examination\nby the U.S. federal and most U.S. state tax authorities due to their carry-forward tax losses and overall credit carry-forward position,\nexcept for Check Point Software Technologies Inc. that the assessment statue period for tax years throughout 2017 have expired.\n\n \n\nThe\nCompany believes that it has adequately provided for any reasonably foreseeable outcomes related to tax audits and settlement. The final\ntax outcome of its tax audits could be different from that which is reflected in the Company’s income tax provisions and accruals.\nSuch differences could have a material effect on the Company’s income tax provision and net income in the period in which such determination\nis made. The Company believes it had adequately provided for all of its uncertain tax positions, including those items currently under\ndispute.\n\n \n\nF\n- 48\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 12:- \n   TAXES\nON INCOME (Cont.)\n\n \n\n \ng.\n\nReconciliation\nof the theoretical tax expenses:\n\n \n\nThe\nfollowing table presents the reconciliation between the Company’s theoretical income tax and effective income tax for the year ended\nDecember 31, 2025 after the adoption of ASU 2023-09:\n\n \n\n \n\n \n\nYear\nended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n \n \n \n \n \n \n\nIsraeli\nStatutory Corporate Tax Rate\n\n \n\n$\n\n217.4\n\n \n \n \n\n23.0\n\n%\n\nForeign\ntax effects\n\n \n \n \n \n \n \n \n \n\nOther\njurisdictions\n\n \n \n\n13.8\n\n \n \n \n\n1.5\n\n%\n\nForeign\ntax credits\n\n \n \n\n(17.9\n\n)\n\n \n \n\n(1.9\n\n)%\n\nNontaxable\nor nondeductible items\n\n \n \n\n0.4\n\n \n \n \n\n0.1\n\n%\n\nSpecial\nPreferred Technological Enterprise\n\n \n \n\n(170.9\n\n)\n\n \n \n\n(18.1\n\n)%\n\nChange\nin unrecognized tax benefits\n\n \n \n\n(127.9\n\n)\n\n \n \n\n(13.5\n\n)%\n\nSpecial\ndeduction\n\n \n \n\n(31.1\n\n)\n\n \n \n\n(3.3\n\n)%\n\nOther\nadjustments\n\n \n \n\n4.4\n\n \n \n \n\n0.4\n\n%\n\n \n\n \n \n \n \n \n \n \n \n\nTotal\nEffective Tax Rate\n\n \n\n$\n\n(111.8\n\n)\n\n \n \n\n(11.8\n\n)%\n\n \n\nThe\nfollowing table presents the reconciliation between the Company’s theoretical income taxes and effective income taxes for the years\nended December 31, 2024 and 2023 prior the adoption of ASU 2023-09: \n\n \n\n \n\n \n\nYear\nended December 31,\n\n \n\n \n\n \n\n2024\n\n \n \n\n2023\n\n \n\n \n\n \n \n \n \n \n \n\nIncome before\ntaxes as reported in the consolidated statements of income\n\n \n\n$\n\n972.1\n\n \n \n\n$\n\n975.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n\nStatutory\ntax rate in Israel\n\n \n \n\n23\n\n%\n\n \n \n\n23\n\n%\n\n \n\n \n \n \n \n \n \n \n \n\nDecrease\nin taxes resulting from:\n\n \n \n \n \n \n \n \n \n\nEffect of\n“Technological preferred or Preferred Enterprise” status *)\n\n \n \n\n(11\n\n)%\n\n \n \n\n(8\n\n)%\n\nOthers, net\n\n \n \n\n1\n\n%\n\n \n \n\n(1\n\n)%\n\n \n\n \n \n \n \n \n \n \n \n\nEffective\ntax rate\n\n \n \n\n13\n\n%\n\n \n \n\n14\n\n%\n\n \n\n \n \n \n \n \n \n \n \n\n*) \n      Basic earnings\nper share amounts of the benefit resulting from the “Technological preferred or Preferred Enterprise” status\n\n \n\n$\n\n0.58\n\n \n \n\n$\n\n0.66\n\n \n\n \n\n \n \n \n \n \n \n \n \n\n*) \n      Diluted earnings per share amounts of the benefit resulting from the “Technological preferred or Preferred\nEnterprise” status\n\n \n\n$\n\n0.56\n\n \n \n\n$\n\n0.65\n\n \n\n \n\nF\n- 49\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 12:- \n    TAXES\nON INCOME (Cont.)\n\n \n\n \nh.\n\nIncome taxes paid:\n\n \n\nThe\nfollowing table presents cash paid for income taxes, net of refunds received, for the year ended December 31, 2025, pursuant to the\ndisclosure requirements of ASU 2023-09:\n\n \n\n \n\n \n\nYear\nended\n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n \n \n \n\nIsrael\n\n \n\n$\n\n143.5\n\n \n\nOther jurisdictions\n\n \n \n\n13.2\n\n \n\n \n\n \n \n \n \n\n \n\n \n\n$\n\n156.7\n\n \n\n \n\nNOTE 13:- \n    SHAREHOLDERS’ EQUITY\n\n \n\n \na.\n\nGeneral:\n\n \n\nOrdinary\nshares confer upon their holders the right to receive notice to participate and vote in general meetings of the Company, and the right\nto receive dividends if declared.\n\n \n\n \nb.\n\nShare repurchase:\n\n \n\nOn\nJuly 11, 2024 the Company announced the expansion of the Company’s on-going share repurchase program by an additional $2,000.\nUnder the share repurchase program, as extended, the Company is authorized to continue to repurchase up to $325\neach quarter. In connection with our convertible notes offering in December 2025, the Board of Directors authorized to repurchase an additional\n$100 million\nin December 2025. Under the repurchase programs, share purchases may be made from time to time depending on market conditions, share price,\ntrading volume and other factors and will be funded from available working capital.\n\n \n\nAs\nof December 31, 2025, the Company repurchased ordinary shares for an aggregate amount of $17,072.6.\nDuring 2025, 2024 and 2023 the Company repurchased 6,848,579,\n7,661,359,\nand 9,857,092\nshares for an aggregate amount of $1,400.0,\n$1,299.9\nand $1,287.6,\nrespectively.\n\n \n\n \nc.\n\nStock Options, RSUs and PSUs:\n\n \n\nIn\n2005, the Company adopted two new equity incentive plans, which were subsequently amended in January 2014 and in July 2018: the 2005 United\nStates Equity Incentive Plan and the 2005 Israel Equity Incentive Plan together are referred to as the Equity Incentive Plans.\n\n \n\nF\n- 50\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 13:- \n     SHAREHOLDERS’ EQUITY (Cont.)\n\n \n\nUnder\nthe Equity Incentive Plans, the Company may grant options to employees, officers and directors at an exercise price equal to at least\nthe fair market value of the ordinary shares at the date of grant and are granted for periods not to exceed seven years. The Company grants\nunder the Equity Incentive Plans options, Restricted Stock Units (“RSUs”) and Performance stock units (“PSUs”)\nand can also grant a variety of other equity incentives. Options granted under the Equity Incentive Plans generally vest over a period\nof four\nyears of employment. Options, RSUs and PSUs that are cancelled or forfeited before expiration become available for future\ngrants. RSUs generally vest over a four years period of employment from the grant date while PSUs generally vest over a two to four years\nperiod of employment from the grant date. PSUs are subject to certain performance criteria; accordingly, compensation expense is recognized\nfor such awards when it becomes probable that the related performance condition will be satisfied.\n\n \n\nUnder\nthe Equity Incentive Plans, the Company’s non-employee directors receive on an annual basis options and RSUs grant. Following the\namendments to the Equity Incentive Plans in July 2018, commencing December 31, 2018, on December 31 of each year, the number of Reserved\nand Authorized Shares (as defined below) under both Equity Incentive Plans together shall be annually reset on such date to equal 10%\nof the sum of (i) the number of ordinary shares issued and outstanding on such date and (ii) the number of ordinary shares reserved\nand authorized under the Equity Incentive Plans for outstanding awards granted under the Equity Incentive Plans as of such date (provided,\nhowever, that in no event shall the number of Reserved and Authorized Shares be less than the number of ordinary shares reserved and authorized\nunder the Equity Incentive Plans for outstanding awards granted under the Equity Incentive Plans as of such date).\n\n \n\nThe\nnumber of “Reserved and Authorized Shares” under the Equity Plans shall equal the sum of (i) the number of ordinary shares\nreserved and authorized under the Equity Incentive Plans for outstanding options, RSUs, PSUs and other awards granted under the Equity\nIncentive Plans as of such date, and (ii) the number of ordinary shares reserved, authorized and available for issuance under the\nEquity Incentive Plans on such date.\n\n \n\nAs\nof December 31, 2025, the number of Reserved and Authorized Shares under the Equity Incentive Plans is as detailed below:  \n\n \n\nStock Options outstanding\n\n \n \n\n3,128,875\n\n \n\nRSU outstanding\n\n \n \n\n2,454,088\n\n \n\nPSU outstanding\n\n \n \n\n600,594\n\n \n\nOrdinary shares available\nfor issuance under the Equity Incentive Plans\n\n \n \n\n4,995,008\n\n \n\n \n\n \n \n \n \n\nTotal Reserved and Authorized\nShares as of December 31, 2025\n\n \n \n\n11,178,565\n\n \n\n \n\nAs\nof December 31, 2025 the aggregate number of shares, stock options, RSU and PSU outstanding is 111,785,649.\n\n \n\nF\n- 51\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 13:- \n     SHAREHOLDERS’ EQUITY (Cont.)\n\n \n\nA\nsummary of the Company’s stock option activity and related information is as follows:\n\n \n\n \n\n \n\n**Number\nof options**\n\n \n \n\n**Weighted**\n\n**average**\n\n**exercise**\n\n**price**\n\n \n \n\n**Aggregate**\n\n**intrinsic**\n\n**value**\n\n \n \n\n**Weighted\nAverage Remaining Contractual Life (Years)**\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nOutstanding at beginning\nof year\n\n \n \n\n5,712,254\n\n \n \n\n$\n\n122.42\n\n \n \n\n$\n\n367.18\n\n \n \n \n\n2.72\n\n \n\nGranted\n\n \n \n\n418,246\n\n \n \n\n$\n\n194.71\n\n \n \n \n \n \n \n \n \n \n\nExercised\n\n \n \n\n(2,933,709\n\n)\n\n \n\n$\n\n114.44\n\n \n \n \n \n \n \n \n \n \n\nForfeited\n\n \n \n\n(67,916\n\n)\n\n \n\n$\n\n132.72\n\n \n \n \n \n \n \n \n \n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nOutstanding at December 31,\n2025\n\n \n \n\n3,128,875\n\n \n \n\n$\n\n139.35\n\n \n \n\n$\n\n148.42\n\n \n \n \n\n3.74\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nExercisable at December 31,\n2025\n\n \n \n\n2,080,991\n\n \n \n\n$\n\n125.90\n\n \n \n\n$\n\n124.15\n\n \n \n \n\n2.82\n\n \n\n \n\nThe\nweighted average fair values at grant date of options granted for the years ended December 31, 2025, 2024 and 2023 with an exercise\nprice equal to the market value at the date of grant were $54.1,\n$51.7\nand $43.0\nper share, respectively.\n\n \n\nThe\ntotal intrinsic value of options exercised during the years 2025, 2024 and 2023 was $284.2,\n$81.0\nand $20.0,\nrespectively.\n\n \n\nThe\naggregate grant-date fair value of stock options that vested during 2025 2024 and 2023 was $16.5,\n$18.1\nand $31.0,\nrespectively.\n\n \n\nThe\naggregate intrinsic value of the outstanding stock options as of December 31, 2025, 2024 and 2023, represents the intrinsic value of 2,710,629\n,5,712,254\nand 7,233,044\noutstanding options that are in-the-money as of such dates.  The remaining 418,246\noutstanding options are out-of-the-money as of December 31, 2025.\n\n \n\nA\nsummary of the Company’s RSUs and PSUs activity is as follows:\n\n \n\n \n \n\n**Year\nended**\n\n**December\n31, 2025**\n\n \n \n\nWeighted-Average\nGrant\n\nDate\nFair Value Per Share\n\n \n\n \n\n \n\nRSUs\n\n \n \n\nPSUs\n\n \n \n\nTotal\n\n \n \n\nRSUs\n\n \n \n\nPSUs\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nUnvested at beginning\nof year\n\n \n \n\n2,120,275\n\n \n \n \n\n384,498\n\n \n \n \n\n2,504,773\n\n \n \n\n$\n\n138.1\n\n \n \n\n$\n\n144.3\n\n \n\nGranted\n\n \n \n\n1,462,333\n\n \n \n \n\n410,490\n\n \n \n \n\n1,872,823\n\n \n \n\n$\n\n208.8\n\n \n \n\n$\n\n204.5\n\n \n\nVested\n\n \n \n\n(832,855\n\n)\n\n \n \n\n(46,955\n\n)\n\n \n \n\n(879,810\n\n)\n\n \n\n$\n\n210.4\n\n \n \n\n$\n\n214.9\n\n \n\nForfeited\n\n \n \n\n(295,665\n\n)\n\n \n \n\n(147,439\n\n)\n\n \n \n\n(443,104\n\n)\n\n \n\n$\n\n160.9\n\n \n \n\n$\n\n143.8\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n\n2,454,088\n\n \n \n \n\n600,594\n\n \n \n \n\n3,054,682\n\n \n \n\n$\n\n179.4\n\n \n \n\n$\n\n186.8\n\n \n\n \n\nF\n- 52\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE 13:- \n     SHAREHOLDERS’ EQUITY (Cont.)\n\n \n\nThe\nweighted average fair values at grant date of RSUs and PSUs granted for the years ended December 31, 2025, 2024 and 2023 were $207.8,\n$161.0\nand $125.6\nper share, respectively.\n\n \n\nThe\ntotal fair value of shares vested during the years 2025, 2024 and 2023 was $185.3,\n$158.4\nand $96.1,\nrespectively.\n\n \n\nAs\nof December 31, 2025, the Company had approximately $446.35\nof unrecognized compensation expense related to non-vested stock options and non-vested RSU’s and PSU’s, expected to be recognized\nover a weighted average period of 1.88\nyears.\n\n \n\n \nd.\n\nEmployee Stock Purchase Plan (“ESPP”):\n\n \n\nIn\n1996, the Company adopted an ESPP, which was subsequently amended in 2015. Following these amendments, starting with the purchase period\non February 1, 2017, a total of 568,478\nordinary shares were designated for issuance under the US ESPP. On June 19, 2019, the allocation for the US ESPP was increased to 750,000\nshares. As well, following amendments of 2015 year, for employees outside the United States, 1,096,795\nordinary shares were authorized for issuance under the Non-US ESPP. On January 16, 2024, the Non-US ESPP was increased by 700,000\nordinary shares, bringing the total allocation for the Non-US ESPP to 1,796,795\nordinary shares. On September 3, 2025, the Non-US ESPP was increased by 1,000,000\nordinary shares, bringing the total allocation for the Non-US ESPP to 2,796,795\nordinary shares and the US ESPP was increased by 500,000\nordinary shares, bringing the total allocation for the US ESPP to 1,250,000\nordinary shares.\n\n \n\nAs\nof December 31, 2025, 3,400,717\nordinary shares had been issued under the amended ESPP plan.\n\n \n\nEligible\nemployees may use up to 15%\nof their salaries to purchase ordinary shares but no more than 1,250\nsingle shares per participant on any purchase date. The ESPP is implemented through an offering every six months. The price of an ordinary\nshare purchased under the ESPP is equal to 85%\nof the lower of the fair market value of the ordinary share on the subscription date of each offering period or on the purchase date.\n \n\n \n\nDuring\n2025, 2024 and 2023, employees purchased 362,533,\n381,859\nand 405,458\nordinary shares at average prices of $156.5,\n$124.8\nand $105.8\nper share, respectively.\n\n \n\nIn\naccordance with ASC No. 718, the ESPP is compensatory and as such results in recognition of compensation cost. For the years ended\nDecember 31, 2025, 2024 and 2023, the Company recognized $19.6,\n$13.7\nand $11.4,\nrespectively, of compensation expense in connection with the ESPP.\n\n \n\nF\n- 53\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\n**NOTE 13:- \n    SHAREHOLDERS’ EQUITY (Cont.)**\n \n\n \ne.\n\nStock-Based Compensation:\n\n \n\nStock-based\ncompensation expense related to stock options, RSUs, PSUs and ESPP is included in the consolidated statements of income as follows:\n\n \n\n \n\n \n\nYear\nended\n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n\nCost of revenues\n\n \n\n$\n\n14.1\n\n \n \n\n$\n\n8.6\n\n \n \n\n$\n\n7.7\n\n \n\nResearch and development\n\n \n \n\n76.3\n\n \n \n \n\n53.1\n\n \n \n \n\n48.7\n\n \n\nSelling and marketing\n\n \n \n\n79.8\n\n \n \n \n\n58.2\n\n \n \n \n\n56.3\n\n \n\nGeneral and administrative\n\n \n \n\n35.4\n\n \n \n \n\n29.8\n\n \n \n \n\n32.6\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n\n$\n\n205.6\n\n \n \n\n$\n\n149.7\n\n \n \n\n$\n\n145.3\n\n \n\n \n\nNOTE 14:-\n\nEARNINGS\nPER SHARE\n\n \n\nThe\nfollowing table sets forth the computation of basic and diluted earnings per share:\n\n \n\n \n\n \n\nYear\nended\n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n\nNet income\n\n \n\n$\n\n1,056.9\n\n \n \n\n$\n\n845.7\n\n \n \n\n$\n\n840.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nWeighted\naverage ordinary shares outstanding\n\n \n \n\n107,264,069\n\n \n \n \n\n110,617,625\n\n \n \n \n\n116,913,913\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nDilutive\neffect:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\nEmployee\nstock options, RSUs and PSUs\n\n \n \n\n2,649,720\n\n \n \n \n\n2,789,271\n\n \n \n \n\n1,433,836\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nDiluted weighted\naverage ordinary shares outstanding\n\n \n \n\n109,913,789\n\n \n \n \n\n113,406,896\n\n \n \n \n\n118,347,749\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nBasic earnings\nper ordinary share\n\n \n\n$\n\n9.85\n\n \n \n\n$\n\n7.65\n\n \n \n\n$\n\n7.19\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nDiluted earnings\nper ordinary share\n\n \n\n$\n\n9.62\n\n \n \n\n$\n\n7.46\n\n \n \n\n$\n\n7.10\n\n \n\n \n\nF\n- 54\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE\n15:-\n\nACCUMULATED\nOTHER COMPREHENSIVE INCOME\n\n \n\n \n\n \n\nUnrealized\n\nGains\n(losses) on marketable securities\n\n \n \n\nUnrealized\n\nGains\n(losses) on cash flow hedges\n\n \n \n\nTotal\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n\nBeginning\nbalance\n\n \n\n$\n\n(13.2\n\n)\n\n \n\n$\n\n2.9\n\n \n \n\n$\n\n(10.3\n\n)\n\nOther comprehensive\nincome before reclassifications\n\n \n \n\n23.6\n\n \n \n \n\n48.3\n\n \n \n \n\n71.9\n\n \n\nAmounts reclassified\nfrom accumulated other comprehensive income\n\n \n \n\n-\n\n \n \n \n\n(26.8\n\n)\n\n \n \n\n(26.8\n\n)\n\nNet current\nperiod other comprehensive income\n\n \n \n\n23.6\n\n \n \n \n\n21.5\n\n \n \n \n\n45.1\n\n \n\nEnding balance\n\n \n\n$\n\n10.4\n\n \n \n\n$\n\n24.4\n\n \n \n\n$\n\n34.8\n\n \n\n \n\nNOTE \n16:-\n\nGEOGRAPHIC\nINFORMATION AND SELECTED STATEMENTS OF INCOME DATA\n\n \n\n \na.\n\nSummary information about geographical\nareas:\n\n \n\nThe\nCompany operates in one\nreportable segment (see Note 1 for a brief description of the Company’s business). The total revenues are attributed to geographic\nareas based on the location of the Company’s channel partners which are considered as end customers, as well as direct customers\nof the Company.\n\n \n\nThe\nfollowing tables presents total revenues and property and equipment, net, by geographic area:\n\n \n\n1.\nRevenues based on the channel partners’ location:\n\n \n\n \n\n \n\n**Year\nended**\n\n**December\n31,**\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n\nAmericas,\nprincipally the U.S.\n\n \n\n$\n\n1,142.7\n\n \n \n\n$\n\n1,070.4\n\n \n \n\n$\n\n1,025.7\n\n \n\nEMEA *)\n\n \n \n\n1,174.2\n\n \n \n \n\n1,120.5\n\n \n \n \n\n1,050.4\n\n \n\nIsrael\n\n \n \n\n74.0\n\n \n \n \n\n72.9\n\n \n \n \n\n66.3\n\n \n\nAsia Pacific\n\n \n \n\n334.5\n\n \n \n \n\n301.2\n\n \n \n \n\n272.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n\n$\n\n2,725.4\n\n \n \n\n$\n\n2,565.0\n\n \n \n\n$\n\n2,414.7\n\n \n\n \n\n*)\nIncludes Europe, the Middle East (excluding Israel) and Africa.\n\n \n\nIncludes\nUnited Kingdom with 14%,15%\nand 16%\nfrom the total revenues in 2025, 2024 and 2023 respectively.\n\n \n\nF\n- 55\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE \n16:-\n\nGEOGRAPHIC\nINFORMATION AND SELECTED STATEMENTS OF INCOME DATA (Cont.)\n\n \n\n2.\nProperty and equipment, net and ROU assets:\n\n \n\n \n\n \n\nDecember\n31,\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n\n \n\n \n \n \n \n \n \n\nIsrael\n\n \n\n$\n\n78.0\n\n \n \n\n$\n\n78.4\n\n \n\nU.S.\n\n \n \n\n11.9\n\n \n \n \n\n9.3\n\n \n\nRest of the\nworld\n\n \n \n\n24.4\n\n \n \n \n\n20.2\n\n \n\n \n\n \n \n \n \n \n \n \n \n\n \n\n \n\n$\n\n114.3\n\n \n \n\n$\n\n107.9\n\n \n\n \n\n \nb.\n\nSummary information about product\nlines:\n\n \n\nThe\nCompany’s products can be classified by three\nmain product lines. The following table presents total revenues for the years ended December 31, 2025, 2024 and 2023 by product lines:\n\n \n\n \n\n \n\n**Year\nended**\n\n**December\n31,**\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n\nProduct and\nlicenses:\n\n \n \n \n \n \n \n \n \n \n\nNetwork security\nGateways\n\n \n\n$\n\n506.2\n\n \n \n\n$\n\n470.1\n\n \n \n\n$\n\n452.0\n\n \n\nOther *)\n\n \n \n\n42.0\n\n \n \n \n\n37.8\n\n \n \n \n\n45.4\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n\n548.2\n\n \n \n \n\n507.9\n\n \n \n \n\n497.4\n\n \n\nSecurity\nsubscriptions\n\n \n \n\n1,219.0\n\n \n \n \n\n1,104.2\n\n \n \n \n\n981.2\n\n \n\nSoftware\nupdates and maintenance\n\n \n \n\n958.2\n\n \n \n \n\n952.9\n\n \n \n \n\n936.1\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\nTotal revenues\n\n \n\n$\n\n2,725.4\n\n \n \n\n$\n\n2,565.0\n\n \n \n\n$\n\n2,414.7\n\n \n\n \n\n \n*)\n\nComprised of Endpoint security, Mobile\nsecurity and Security management products, each comprising of less than 10%\nof products and licenses revenues.\n\n \n\nF\n- 56\n\n**CHECK\nPOINT SOFTWARE TECHNOLOGIES LTD.**\n\n**AND\nSUBSIDIARIES**\n\n \n\n**NOTES\nTO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**In\nmillions (except share and per share data)**\n\nNOTE \n16:-\n\nGEOGRAPHIC\nINFORMATION AND SELECTED STATEMENTS OF INCOME DATA (Cont.)\n\n \n\n \nc.\n\nFinancial income, net:\n\n \n\n \n\n \n\n**Year\nended**\n\n**December\n31,**\n\n \n\n \n\n \n\n2025\n\n \n \n\n2024\n\n \n \n\n2023\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n\nFinancial\nincome:\n\n \n \n \n \n \n \n \n \n \n\nInterest\nincome\n\n \n\n$\n\n105.0\n\n \n \n\n$\n\n93.6\n\n \n \n\n$\n\n92.4\n\n \n\nAmortization\nof marketable securities premium and accretion of discount, net\n\n \n \n\n12.0\n\n \n \n \n\n6.4\n\n \n \n \n\n-\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \n \n\n117.0\n\n \n \n \n\n100.0\n\n \n \n \n\n92.4\n\n \n\nFinancial\nexpense:\n\n \n \n \n \n \n \n \n \n \n \n \n \n\nAmortization\nof marketable securities premium and accretion of discount, net\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n3.1\n\n \n\nRealized\nloss on sale of marketable securities, net\n\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n6.7\n\n \n\nForeign currency\nre-measurement loss\n\n \n \n\n1.0\n\n \n \n \n\n2.1\n\n \n \n \n\n3.8\n\n \n\nOthers\n\n \n \n\n2.0\n\n \n \n \n\n1.8\n\n \n \n \n\n2.3\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n \n\n3.0\n\n \n \n \n\n3.9\n\n \n \n \n\n15.9\n\n \n\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n\n \n\n \n\n$\n\n114.0\n\n \n \n\n$\n\n96.1\n\n \n \n\n$\n\n76.5\n\n \n\n \n\nNOTE \n17:-    SEGEMENT\n\n \n\nThe\nCompany’s chief operating decision maker (“CODM”), the Chief Executive Officer, manages the Company’s business\nactivities as a single operating and reportable segment at the consolidated level. Accordingly, the CODM uses consolidated net income\nand operating income as shown in the consolidated financial statements to allocate resources and to assess the performance of the segment.\nThere is no expense or asset information, that are supplemental to those disclosed in these consolidated financial statements, that are\nregularly provided to the CODM. Since the Company operates as one operating segment, financial segment information, including profit or\nloss and asset information, can be found in the consolidated financial statements.\n\n \n\nNOTE \n18:-    SUBSEQUENT EVENTS\n\n \n\nIn\nFebruary 2026, the Company acquired:\n\n \n\n \n1.\n\n100%\nof the share capital of Cyclops Security Ltd. (“Cyclops”) a privately held Israeli company for total consideration of approximately\n$53.7. \nCyclops is a provider of Cyber Asset Attack Surface Management (CAASM). CAASM provides discovery and continuous monitoring of every asset\nacross cloud, on-premises, OT, and SaaS environments. With this acquisition, the Company expects to expand its Exposure Management Offering\nto deliver a more comprehensive CTEM Solution to the Market.\n\n \n\n \n2.\n\n100%\nof the share capital of Cyata Security Ltd. (“Cyata”) a privately held Israeli company for total consideration of approximately\n$44.0.\nCyata specializes in discovering, understanding, and governing autonomous AI agents. With this acquisition, the Company expects to accelerate\nits ability to deliver End‑to‑End AI Security platform for the Agentic World. Delivering agent discovery across endpoint and\nSaaS while providing context, configuration and risk.\n\n \n\n \n3.\n\nThe Company\nacquired the talent of Rotate Ltd., a privately held Israeli company, in order to drive continued growth and momentum for Workspace solutions\nwithin the managed service providers (MSP) sector.\n\nF\n- 57"}