0000950170-25-105867
SEC filingRevenue grew 23% YoY to $127.2M, driven by SaaS mix shift and Enterprise Plus adoption, while net loss widened to $21.7M.
For the three months ended June 30, 2025, JFrog reported total subscription revenue of $127.2 million, a 23% increase from $103.0 million in the same period of 2024. The growth was driven by $20.8 million from existing customers and the remainder from new customers. SaaS subscription revenue contributed 45% of total revenue, up from 38% in Q2 2024, reflecting a continued shift toward cloud-managed deployments. Enterprise Plus subscriptions represented 55% of total revenue, up from 50% in the prior year, signaling strong demand for the company's end-to-end software supply chain platform.
Gross profit rose to $97.0 million from $81.2 million, but gross margin declined to 76% from 79%, primarily due to the revenue mix shift toward SaaS subscriptions, which carry higher hosting costs, and increased amortization of intangible assets from the July 2024 acquisition. Operating loss widened to $26.0 million from $19.1 million, driven by higher operating expenses. Research and development expenses increased 28% to $47.4 million, sales and marketing rose 21% to $55.4 million, and general and administrative expenses grew 17% to $20.1 million. Share-based compensation expense totaled $38.0 million, up 33% year-over-year, including $2.7 million related to acquisition holdback shares and replacement RSUs. Net loss was $21.7 million compared to $14.3 million in Q2 2024.
JFrog reports two subscription revenue segments: Subscription—Self-Managed and SaaS, and License—Self-Managed. The Subscription—Self-Managed and SaaS segment generated $121.1 million in Q2 2025, up 23% year-over-year, driven by both existing customer expansion and new customer acquisition. The License—Self-Managed segment contributed $6.1 million, up 33%, reflecting upfront recognition of software license revenue. The company's net dollar retention rate remained stable at 118% as of June 30, 2025, indicating strong customer retention and expansion. The number of customers with ARR of $100,000 or more grew to 1,076 from 1,018 at year-end 2024, and customers with ARR of at least $1.0 million increased to 61 from 52 over the same period.
Management did not provide explicit forward guidance in the MD&A section. However, the company highlighted several strategic priorities: extending technology leadership through new product development and integrations, expanding usage among existing customers via migration to SaaS and upsell opportunities, and acquiring new customers through self-service and inbound sales channels. The company expects research and development, sales and marketing, and general and administrative expenses to continue increasing in absolute dollars to support growth. Free cash flow for the six months ended June 30, 2025 was $63.6 million, nearly double the $32.6 million in the prior year period, driven by improved operating cash flow. As of June 30, 2025, JFrog held $611.7 million in cash, cash equivalents, and short-term investments, which management believes is sufficient to meet needs for the next 12 months and beyond.
As of June 30, 2025, JFrog held $51.3 million in cash and cash equivalents and $560.4 million in short-term investments (including bank deposits and marketable securities), for a total liquidity of $611.7 million. The company has no debt. Shareholders' equity stood at $826.5 million, reflecting accumulated deficit of $399.8 million offset by additional paid-in capital of $1.22 billion. Goodwill and intangible assets totaled $420.9 million.
JFrog has non-cancelable purchase commitments of $80.1 million as of June 30, 2025, primarily for hosting services and software. The obligations are staggered: $12.3 million within the remainder of 2025, $61.2 million in 2026-2027, and $6.6 million in 2028. Operating lease liabilities amount to $13.8 million (undiscounted payments of $14.9 million). The company also has $6.1 million in gross unrecognized tax benefits and potential indemnification obligations from IIA grants up to $6.0 million.
The Notes do not disclose any share repurchase programs, dividends, or debt issuance during the period. Capital expenditures were $1.3 million in the first half of 2025 (from the cash flow statement). The company's primary capital allocation appears to be organic investment and share-based compensation ($74.9 million in the first half).
JFrog operates as a single segment. Revenue for the six months ended June 30, 2025 was $249.6 million, split 60% from the United States, 3% from Israel, and 37% from the rest of the world. The company's long-lived assets (property and equipment plus operating lease ROU) are concentrated in Israel ($9.0 million), the United States ($4.7 million), and India ($5.4 million).
For the six months ended June 30, 2025, JFrog generated $64.9M in cash from operations, a significant improvement from $34.2M in the same period of 2024. This increase occurred despite a larger net loss of $40.2M (vs. $23.1M in 2024), indicating strong cash flow quality driven by non-cash charges and working capital management. Key non-cash adjustments included $74.9M in share-based compensation and $13.3M in depreciation and amortization. Working capital provided a net positive contribution, notably from accounts receivable ($7.7M decrease), accrued expenses ($9.5M increase), and deferred revenue ($7.6M increase).
Capital expenditures remained low at $1.3M (vs. $1.6M in H1 2024), reflecting an asset-light model. Investing activities used $85.3M, primarily for net purchases of short-term investments. Financing activities provided $21.1M, mainly from employee equity transactions. The company did not repurchase shares or pay dividends. Overall, operating cash flow comfortably covered capex and financing needs, with cash and equivalents ending at $52.0M.