JFrog Announces Fourth Quarter and Fiscal 2025 Results
SUNNYVALE, Calif.--( BUSINESS WIRE)-- JFrog Ltd. (“JFrog”) (Nasdaq: FROG), the Liquid Software company and creators of the JFrog Software Supply Chain Platform, today announced financial results for its fourth quarter and fiscal year 2025 ended December 31, 2025.
“Developers and AI coding agents are now building and releasing software together at unprecedented speed. Automation, security, and governance must be embedded from the get-go,” said Shlomi Ben Haim, CEO and Co-founder of JFrog.
“Developers and AI coding agents are now building and releasing software together at unprecedented speed. Automation, security, and governance must be embedded from the get-go,” said Shlomi Ben Haim, CEO and Co-founder of JFrog. “Our 2025 performance reflects strong execution of our strategy to serve as the System of Record for all software artifacts, and it demonstrates how deeply companies are embracing the JFrog Platform as they adopt AI to manage and secure their software supply chains. We enter 2026 with strong momentum, positioned to power the next era of software delivery, jointly driven by AI agents and human developers.”
Fourth Quarter 2025 Financial Highlights
Fiscal 2025 Financial Highlights
Recent Business & Product Highlights
First Quarter and Fiscal Year 2026 Outlook
The section titled "Non-GAAP Financial Information" below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.
Conference Call Details
A live webcast of the conference call will be accessible from the investor relations website at https://investors.jfrog.com/events-and-presentations.
About JFrog
JFrog Ltd. (Nasdaq: FROG), the creators of the unified DevOps, DevSecOps, DevGovOps and MLOps platform, is on a mission to create a world of software delivered without friction from development to production. Driven by a “Liquid Software” vision, the JFrog Platform is a software supply chain system of record that is designed to power organizations as they build, manage, and distribute secure software with speed and scale. Holistic security features help identify, protect, and remediate against threats and vulnerabilities. The universal, hybrid, multi-cloud JFrog Platform is available as both SaaS services across major cloud service providers and self-hosted. Millions of users and approximately 6,600 organizations worldwide, including a majority of the Fortune 100, depend on JFrog solutions to securely embrace digital transformation in the AI era. Learn more at www.jfrog.com or follow us on X @JFrog.
Forward-Looking Statements:
This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the U.S. federal securities laws, including but not limited to statements regarding JFrog’s future financial performance, including our outlook for the first quarter and for the full year of 2026, expectations regarding the market and revenue potential for the JFrog Platform, including JFrog Artifactory, JFrog Xray, JFrog Curation, JFrog Advanced Security, JFrog ML, JFrog AppTrust, JFrog AI Catalog and JFrog Runtime Security, and including the efficacy and benefit of integrating of any of the foregoing with other products and platform, our expectations regarding the mission-critical nature of the “JFrog Platform” to our customers’ infrastructure and its growth potential, the growth potential of our cloud business, including hybrid and multi-cloud, our expectations regarding potential for growth in and market opportunities within DevOps, DevSecOps, DevGovOps, Security, AI, and MLOps, our ability to provide effective tools and solutions to detect and remediate security vulnerabilities, our expectations regarding our strategic integrations and collaborations, the ability of our strategic sales team to grow the business across top-tier accounts, our ability to expand usage of our platform in the government and commercial sectors, our ability to contribute data to global security standards bodies, our ability to innovate and meet market demands and the software supply chain needs of our customers and our expectations regarding the integration and adoption of MLOps technologies into our business, including our ability to successfully integrate into our business operations, and expectations regarding customer expansions.
These forward-looking statements are based on JFrog’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause JFrog’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.
There are a significant number of factors that could cause actual results to differ materially from statements made in this press release and our earnings call, including but not limited to: risks associated with managing our rapid growth; our history of losses; our limited operating history; our ability to retain and upgrade existing customers our ability to attract new customers; our ability to effectively develop and expand our sales and marketing capabilities; our ability to integrate and realize anticipated synergies from acquisitions of complementary businesses and our strategic collaborations; risk of a security breach incident or product vulnerability; risk of interruptions or performance problems associated with our products and platform capabilities; our ability to adapt and respond to rapidly changing technology or customer needs; our ability to compete in the markets in which we participate; our ability to successfully integrate technology from acquisitions into our offerings; our ability to provide continuity to our respective customers and realize innovation following our acquisitions; and general market, political, economic, and business conditions, including uncertainty in the current macroeconomic environment. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our filings with the Securities and Exchange Commission, including in our annual report on Form 10-K for the year ended December 31, 2025 to be filed on February 13, 2026, our quarterly reports on Form 10-Q, and other filings and reports that we may file from time to time with the Securities and Exchange Commission. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.
About Non-GAAP Financial Measures:
JFrog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing, general and administrative), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, non-GAAP net income (loss) per basic share, and free cash flow. JFrog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate JFrog’s financial performance. JFrog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. JFrog’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on JFrog’s reported financial results.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future such as share-based compensation, the effect of which may be significant.
JFrog defines non-GAAP gross profit, non-GAAP operating expenses (research and development, sales and marketing, general and administrative), non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss) and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) share-based compensation expense; (2) the amortization of acquired intangibles; (3) acquisition-related costs; and (4) income tax effects. JFrog defines free cash flow as Net cash provided by (used in) operating activities, minus capital expenditures. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.
Management believes these non-GAAP financial measures are useful to investors and others in assessing JFrog’s operating performance due to the following factors:
Share-based compensation. JFrog utilizes share-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its shareholders and at long-term retention, rather than to address operational performance for any particular period. As a result, share-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.
Amortization of acquired intangibles. JFrog views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of acquired intangibles is an expense that is not typically affected by operations during any particular period.
Acquisition-related costs. Acquisition-related costs include expenses related to acquisitions of other companies. JFrog views acquisition-related costs as expenses that are not necessarily reflective of operational performance during a period.
Income tax effects. JFrog’s non-GAAP financial results are adjusted for income tax effects related to these non-GAAP adjustments and changes in our assessment regarding the realizability of our deferred tax assets, if any. Excluding income tax effects of non-GAAP adjustments provides a more accurate view of JFrog’s operating results.
Non-GAAP weighted average share count. Diluted GAAP and non-GAAP weighted-average shares are the same, except in periods that there is a GAAP loss and a non-GAAP income. The non-GAAP weighted-average shares used to compute the non-GAAP net income per share - diluted are adjusted to reflect dilution equal to the dilutive impact had there been GAAP income.
Additionally, JFrog’s management believes that the non-GAAP financial measure, free cash flow, is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures due to the fact that these expenditures are considered to be a necessary component of ongoing operations.
Operating Metrics
JFrog’s number of customers with annual recurring revenue (“ARR”) of $100,000 or more is based on the ARR of each customer, as of the last month of the quarter. JFrog’s number of customers with ARR of $1 million or more is based on the ARR of each customer, as of the last month of the quarter. JFrog defines ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last month of the quarter. The ARR includes monthly subscription customers, so long as JFrog generates revenue from these customers. JFrog annualizes its monthly subscriptions by taking the revenue it would contractually expect to receive from such customers in a given month and multiplying it by 12.
JFrog’s net dollar retention rate compares its ARR from the same set of customers across comparable periods. JFrog calculates net dollar retention rate by first identifying customers (the “Base Customers”), which were customers in the last month of a particular quarter (the “Base Quarter”). JFrog then calculates the contracted ARR from these Base Customers in the last month of the same quarter of the subsequent year (the “Comparison Quarter”). This calculation captures upsells, contraction, and attrition since the Base Quarter. JFrog then divides total Comparison Quarter ARR by total Base Quarter ARR for Base Customers. JFrog’s net dollar retention rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters.
JFROG LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data; unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2025
2024
2025
2024
Revenue:
Subscription—self-managed and SaaS
$
136,408
$
109,606
$
502,796
$
406,903
License—self-managed
8,898
6,472
29,044
21,585
Total subscription revenue
145,306
116,078
531,840
428,488
Cost of revenue:
Subscription—self-managed and SaaS (1)(2)(3)
32,170
28,395
123,337
97,758
License—self-managed (3)
—
117
116
542
Total cost of revenue—subscription
32,170
28,512
123,453
98,300
Gross profit
113,136
87,566
408,387
330,188
Operating expenses:
Research and development (1)(2)
53,163
44,919
195,089
160,864
Sales and marketing (1)(2)(3)
59,720
49,978
223,932
190,401
General and administrative (1)(2)
21,575
18,084
81,219
70,021
Total operating expenses
134,458
112,981
500,240
421,286
Operating loss
(21,322
)
(25,415
)
(91,853
)
(91,098
)
Interest and other income, net
6,869
5,588
25,816
25,278
Loss before income taxes
(14,453
)
(19,827
)
(66,037
)
(65,820
)
Income tax expense
757
3,371
5,782
3,416
Net loss
$
(15,210
)
$
(23,198
)
$
(71,819
)
$
(69,236
)
Net loss per share, basic and diluted
$
(0.13
)
$
(0.21
)
$
(0.62
)
$
(0.63
)
Weighted-average shares used in computing net loss per share, basic and diluted
118,773
111,985
116,201
109,691
(1) Includes share-based compensation expense as follows:
Cost of revenue: subscription—self-managed and SaaS
$
3,938
$
4,352
$
16,768
$
14,555
Research and development
14,786
14,739
58,203
48,192
Sales and marketing
15,216
13,844
55,749
47,603
General and administrative
7,003
5,834
25,937
20,756
Total share-based compensation expense
$
40,943
$
38,769
$
156,657
$
131,106
(2) Includes acquisition-related costs as follows:
Cost of revenue: subscription–self-managed and SaaS
$
—
$
—
$
—
$
9
Research and development
961
1,177
4,413
3,782
Sales and marketing
471
477
1,857
1,087
General and administrative
19
24
68
880
Total acquisition-related costs
$
1,451
$
1,678
$
6,338
$
5,758
(3) Includes amortization of acquired intangibles as follows:
Cost of revenue: subscription–self-managed and SaaS
$
4,498
$
4,497
$
17,995
$
13,762
Cost of revenue: license—self-managed
—
117
116
542
Sales and marketing
175
1,299
2,807
3,274
Total amortization expense of acquired intangible assets
$
4,673
$
5,913
$
20,918
$
17,578
JFROG LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands; unaudited)
December 31, 2025
December 31, 2024
Assets
Current assets:
Cash and cash equivalents
$
75,840
$
49,869
Short-term investments
628,574
472,138
Accounts receivable, net
119,948
90,712
Deferred contract acquisition costs
22,259
16,465
Prepaid expenses and other current assets
26,390
20,043
Total current assets
873,011
649,227
Property and equipment, net
5,536
5,668
Deferred contract acquisition costs, noncurrent
34,304
25,029
Operating lease right-of-use assets
12,063
14,202
Intangible assets, net
39,908
60,826
Goodwill
371,512
371,512
Other assets, noncurrent
5,043
3,442
Total assets
$
1,341,377
$
1,129,906
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable
$
14,168
$
10,649
Accrued expenses and other current liabilities
77,970
51,885
Operating lease liabilities
5,780
7,794
Deferred revenue
309,604
247,187
Total current liabilities
407,522
317,515
Deferred revenue, noncurrent
32,400
27,060
Operating lease liabilities, noncurrent
6,676
6,182
Other liabilities, noncurrent
7,332
5,623
Total liabilities
453,930
356,380
Shareholders’ equity:
Share capital
335
315
Additional paid-in capital
1,312,833
1,132,224
Accumulated other comprehensive income
5,766
655
Accumulated deficit
(431,487
)
(359,668
)
Total shareholders’ equity
887,447
773,526
Total liabilities and shareholders’ equity
$
1,341,377
$
1,129,906
JFROG LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2025
2024
2025
2024
Cash flows from operating activities:
Net loss
$
(15,210
)
$
(23,198
)
$
(71,819
)
$
(69,236
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
5,572
6,855
24,503
21,460
Share-based compensation expense
40,943
38,769
156,657
131,106
Non-cash operating lease expense
2,542
2,066
8,974
8,389
Net amortization of premium or discount on investments
(1,043
)
(1,432
)
(5,240
)
(6,566
)
Losses (gains) on foreign exchange
(142
)
282
(819
)
642
Changes in operating assets and liabilities, net of effects of acquisition:
Accounts receivable
(15,406
)
2,270
(29,328
)
(13,512
)
Prepaid expenses and other assets
(2,518
)
(898
)
(5,491
)
(7,821
)
Deferred contract acquisition costs
(8,408
)
(3,934
)
(15,069
)
(12,084
)
Accounts payable
(3,094
)
(5,648
)
3,618
(7,317
)
Accrued expenses and other liabilities
16,474
5,881
20,775
13,839
Operating lease liabilities
(2,239
)
(1,900
)
(8,789
)
(8,107
)
Deferred revenue
33,224
30,005
67,757
60,131
Net cash provided by operating activities
50,695
49,118
145,729
110,924
Cash flows from investing activities:
Purchases of short-term investments
(182,650
)
(134,045
)
(625,867
)
(513,591
)
Maturities of short-term investments
127,979
69,025
477,059
409,914
Sales of short-term investments
—
—
—
98,178
Purchases of property and equipment
(840
)
(634
)
(3,460
)
(3,143
)
Acquisition of business, net of cash acquired
—
—
—
(156,714
)
Net cash used in investing activities
(55,511
)
(65,654
)
(152,268
)
(165,356
)
Cash flows from financing activities:
Proceeds from exercise of share options
2,084
1,548
12,055
10,352
Proceeds from employee share purchase plan
—
—
11,917
8,744
Proceeds from employee equity transactions, net of payments to tax authorities and employees
(62
)
2,859
7,238
2,135
Net cash provided by financing activities
2,022
4,407
31,210
21,231
Effect of exchange rate changes on cash, cash equivalents and restricted cash
232
(249
)
1,253
(949
)
Net increase (decrease) in cash, cash equivalents, and restricted cash
(2,562
)
(12,378
)
25,924
(34,150
)
Cash, cash equivalents, and restricted cash—beginning of period
79,113
63,005
50,627
84,777
Cash, cash equivalents, and restricted cash—end of period
$
76,551
$
50,627
$
76,551
$
50,627
Reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets to the amounts shown in the Condensed Consolidated Statements of Cash Flows above:
Cash and cash equivalents
$
75,840
$
49,869
$
75,840
$
49,869
Restricted cash included in prepaid expenses and other current assets
711
758
711
758
Total cash, cash equivalents, and restricted cash
$
76,551
$
50,627
$
76,551
$
50,627
JFROG LTD.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(in thousands except per share data; unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2025
2024
2025
2024
Reconciliation of gross profit and gross margin
GAAP gross profit
$
113,136
$
87,566
$
408,387
$
330,188
Plus: Share-based compensation expense
3,938
4,352
16,768
14,555
Plus: Acquisition-related costs
—
—
—
9
Plus: Amortization of acquired intangibles
4,498
4,614
18,111
14,304
Non-GAAP gross profit
$
121,572
$
96,532
$
443,266
$
359,056
GAAP gross margin
77.9
%
75.4
%
76.8
%
77.1
%
Non-GAAP gross margin
83.7
%
83.2
%
83.3
%
83.8
%
Reconciliation of operating expenses
GAAP research and development
$
53,163
$
44,919
$
195,089
$
160,864
Less: Share-based compensation expense
(14,786
)
(14,739
)
(58,203
)
(48,192
)
Less: Acquisition-related costs
(961
)
(1,177
)
(4,413
)
(3,782
)
Non-GAAP research and development
$
37,416
$
29,003
$
132,473
$
108,890
GAAP sales and marketing
$
59,720
$
49,978
$
223,932
$
190,401
Less: Share-based compensation expense
(15,216
)
(13,844
)
(55,749
)
(47,603
)
Less: Acquisition-related costs
(471
)
(477
)
(1,857
)
(1,087
)
Less: Amortization of acquired intangibles
(175
)
(1,299
)
(2,807
)
(3,274
)
Non-GAAP sales and marketing
$
43,858
$
34,358
$
163,519
$
138,437
GAAP general and administrative
$
21,575
$
18,084
$
81,219
$
70,021
Less: Share-based compensation expense
(7,003
)
(5,834
)
(25,937
)
(20,756
)
Less: Acquisition-related costs
(19
)
(24
)
(68
)
(880
)
Non-GAAP general and administrative
$
14,553
$
12,226
$
55,214
$
48,385
Reconciliation of operating income (loss) and operating margin
GAAP operating loss
$
(21,322
)
$
(25,415
)
$
(91,853
)
$
(91,098
)
Plus: Share-based compensation expense
40,943
38,769
156,657
131,106
Plus: Acquisition-related costs
1,451
1,678
6,338
5,758
Plus: Amortization of acquired intangibles
4,673
5,913
20,918
17,578
Non-GAAP operating income
$
25,745
$
20,945
$
92,060
$
63,344
GAAP operating margin
(14.7
)%
(21.9
)%
(17.3
)%
(21.3
)%
Non-GAAP operating margin
17.7
%
18.0
%
17.3
%
14.8
%
Reconciliation of net income (loss)
GAAP net loss
$
(15,210
)
$
(23,198
)
$
(71,819
)
$
(69,236
)
Plus: Share-based compensation expense
40,943
38,769
156,657
131,106
Plus: Acquisition-related costs
1,451
1,678
6,338
5,758
Plus: Amortization of acquired intangibles
4,673
5,913
20,918
17,578
Less: Income tax effects
(4,675
)
(1,339
)
(12,114
)
(10,534
)
Non-GAAP net income
$
27,182
$
21,823
$
99,980
$
74,672
Net income per share - basic
$
0.23
$
0.19
$
0.86
$
0.68
Net income per share - diluted
$
0.22
$
0.19
$
0.82
$
0.65
Shares used in non-GAAP net income per share calculations:
GAAP weighted-average shares used to compute net loss per share - basic and diluted
118,773
111,985
116,201
109,691
Add: Dilutive ordinary share equivalents
6,644
4,017
5,648
5,576
Non-GAAP weighted-average shares used to compute net income per share - diluted
125,417
116,002
121,849
115,267
JFROG LTD.
RECONCILIATION OF GAAP CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW AND SUPPPLEMENTAL DISCLOSURE
(in thousands; unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2025
2024
2025
2024
Net cash provided by operating activities
$
50,695
$
49,118
$
145,729
$
110,924
Less: purchases of property and equipment
(840
)
(634
)
(3,460
)
(3,143
)
Free cash flow
$
49,855
$
48,484
$
142,269
$
107,781
Supplemental disclosure:
Key employee holdback payments related to acquisition (1)
$
—
$
—
$
(5,654
)
$
—
(1) Payments were made pursuant to a holdback arrangement with key employees of Qwak AI Ltd., which was acquired in July 2024.