JFrog Ltd.

What they do

JFrog sells subscriptions to its JFrog Platform, which it describes as a system of record for the software supply chain, used to unify development, security, governance, and distribution of software. It serves developers, security professionals, AI/ML engineers, and IT operators across self-managed deployments (public cloud, on-premises, private cloud, hybrid) and JFrog-managed SaaS. As of December 31, 2025, it reported approximately 6,600 customer organizations, including about 83% of Fortune 100 organizations.

Revenue drivers

• SaaS (JFrog-managed cloud) subscriptions — Cloud revenue was $87.5 million in Q2 2026, up 53% year-over-year, and represented 53% of total revenue versus 45% a year earlier; SaaS was 46% of total 2025 revenue versus 39% in 2024.
• Self-managed subscriptions — Annual and multi-year subscriptions where customers deploy and manage the platform in their own cloud, on-premises, private cloud, or hybrid environments; this is the remainder of subscription revenue after SaaS.
• Enterprise Plus tier — The end-to-end platform subscription tier represented approximately 56% of total 2025 revenue, up from about 51% in 2024, and 59% of total revenue in Q2 2026 versus 55% a year earlier.
• Large enterprise customers — Customers with more than $1 million ARR were 97 in Q2 2026, up from 61 a year earlier, and customers with more than $100K ARR were 1,291 versus 1,076; the 10 largest customers were about 9% of 2025 revenue.

Recent performance

Q2 2026 revenue was $163.8 million, up 29% year-over-year, with cloud revenue of $87.5 million up 53%. GAAP gross margin was 77.9% and GAAP operating loss was ($13.2) million; non-GAAP operating income was $32.6 million (19.9% margin) and non-GAAP diluted EPS was $0.27. GAAP net loss per share was ($0.03), operating cash flow was $57.1 million, and free cash flow was $53.7 million. Remaining performance obligations were $659.0 million, up 38% year-over-year, and trailing four-quarter net dollar retention was 121% versus 118%. For full-year 2025, revenue was $531.8 million (up 24%), net loss was $71.8 million, and operating cash flow was $145.7 million.

Strategy

Management positions the platform as a system of record for the software supply chain in the AI era, spanning DevOps, DevSecOps, DevGovOps, MLOps, and AI development workflows. The company invests in integrating its products with major package technologies and expanding platform functionality, and points to growing cloud adoption and security demand as the drivers of results. Recent product moves include a JFrog plugin with Anthropic for Claude Code and a security plugin delivered to more than 1 million AI developers with the Cursor coding agent. It also cites being positioned as a Leader in the first Gartner Magic Quadrant for Software Supply Chain Security.

Risks

• Continued GAAP losses — JFrog has reported annual net losses every year from 2021 through 2025 ($64.2 million, $90.2 million, $61.3 million, $69.2 million, and $71.8 million) and had a GAAP operating loss of ($13.2) million in Q2 2026.
• Customer concentration in top accounts — The 10 largest customers represented approximately 9% of total revenue in 2025, per the 10-K.
• Competitive and adoption risk — The 10-K states risks include customers' adoption of products and the company's ability to develop and bring new products or enhancements to market in a timely manner.
• Security and availability of products — The 10-K lists maintaining the security and availability of its products as a risk factor, alongside compliance with changing privacy, data protection, and data security laws.

Outlook

For Q3 2026, management guided revenue of $164 million to $166 million, non-GAAP operating income of $27 million to $29 million, and non-GAAP diluted EPS of $0.22 to $0.24 on approximately 130 million weighted average diluted shares. For fiscal year 2026, guidance is revenue of $648 million to $652 million, non-GAAP operating income of $116 million to $120 million, and non-GAAP diluted EPS of $0.96 to $1.00 on approximately 129 million weighted average diluted shares. Management attributes expected demand to AI-driven increases in software artifacts, cloud adoption, and security demand; the guidance is non-GAAP and excludes costs reflected in GAAP results.