0001193125-26-051382
SEC filingJFrog delivered 24% revenue growth to $531.8M, driven by strong subscription revenue and expanding SaaS mix, while net loss widened slightly to $71.8M.
JFrog Ltd. positions itself as a system of record for the software supply chain in the AI era. Its unified platform, the JFrog Platform, enables organizations to unify development speed, volume, security, governance, and delivery of software applications across hybrid teams including developers, security professionals, and AI/ML engineers. The company envisions a world of “Liquid Software” where secure, compliant software flows continuously.
JFrog does not report separate business segments; its operations are managed as a single integrated business focused on the JFrog Platform and its subscription offerings.
The JFrog Platform is a suite of integrated solutions. Core products include:
These solutions are offered in multi-tiered subscriptions: JFrog Pro (cloud-only), JFrog Pro X (self-managed), JFrog Enterprise X, and JFrog Enterprise Plus, with add-ons for advanced security, runtime, curation, and IoT.
JFrog employs a hybrid go-to-market model blending bottom-up community engagement and top-down enterprise sales. Free trials and open-source versions attract users, who often upgrade to paid subscriptions. Direct sales teams support strategic accounts. As of December 31, 2025, JFrog had ~6,600 customer organizations, including 83% of the Fortune 100. Customers with ARR ≥$100k numbered 1,168, and 74 had ARR ≥$1M. The top 10 customers represented about 9% of total revenue, and approximately 40% of revenue came from outside the U.S.
JFrog faces competition from several categories: homegrown solutions; DevOps-focused vendors like Microsoft’s GitHub, GitLab, Cloudsmith, and Sonatype; cloud providers (AWS, Azure, Google Cloud) offering subset functionality; and security point solutions such as Aqua Security, Snyk, Sonatype, and Black Duck. The company differentiates on its end-to-end unified platform, breadth of supported technologies, and hybrid deployment flexibility.
JFrog’s strategic priorities include:
As of December 31, 2025, JFrog employed approximately 1,800 people globally, with around 950 in Israel and 400 in the United States. The company emphasizes diversity, with three women on its 10-member board and four of 11 executive team members being women. Compensation includes competitive salaries and equity incentives.
For the year ended December 31, 2025, JFrog reported total subscription revenue of $531.8 million, a 24% increase from $428.5 million in 2024. The growth was driven by a 24% increase in subscription–self-managed and SaaS revenue to $502.8 million and a 35% rise in license–self-managed revenue to $29.0 million. Approximately $93.9 million of the growth came from existing customers, with the remainder from new customers. Gross profit grew 24% to $408.4 million, while gross margin remained flat at 77%. Operating expenses increased 19% to $500.2 million, but as a percentage of revenue, total operating expenses decreased from 98% to 94%, reflecting operating leverage. Research and development expenses rose 21% to $195.1 million, sales and marketing increased 18% to $223.9 million, and general and administrative expenses grew 16% to $81.2 million. Share-based compensation expense increased 19% to $156.7 million, including $5.4 million from the Qwak acquisition. Acquisition-related costs totaled $6.3 million. Net loss widened to $71.8 million from $69.2 million due to higher operating expenses, partially offset by higher interest income. Free cash flow improved to $142.3 million from $107.8 million, driven by strong cash from operations.
JFrog reports revenue in two categories: subscription (self-managed & SaaS) and license (self-managed). Subscription revenue, representing 95% of total revenue, grew 24% YoY, with SaaS subscriptions now accounting for 46% of total revenue versus 39% in 2024, indicating a shift toward cloud consumption. License revenue grew 35% but remains a small portion. Customer metrics improved: net dollar retention rate rose from 116% to 119%, reflecting strong upsell and expansion. The number of customers with ARR over $100K grew 15% to 1,168, and those with ARR over $1M grew 42% to 74. International revenue remained at 40% of total.
Management expects net dollar retention rate to remain relatively stable around current levels. They plan to continue investing in R&D, sales and marketing, and international expansion to drive growth. The company believes existing cash and cash flows are sufficient for the next 12 months and long term. No specific numeric guidance was provided for future periods.
As of December 31, 2025, JFrog held $75.8 million in cash and cash equivalents and $628.6 million in short-term investments, for a total liquidity position of $704.4 million. This compares to $49.9 million and $472.1 million, respectively, as of December 31, 2024. The increase was driven by strong operating cash flows of $145.7 million during the year, partially offset by $152.3 million used in investing activities, primarily for purchases of short-term investments. Total assets grew to $1.34 billion from $1.13 billion, while total liabilities increased to $453.9 million from $356.4 million. Shareholders' equity rose to $887.4 million from $773.5 million, reflecting the impact of share-based compensation and equity issuances.
JFrog had $310.5 million in non-cancelable purchase obligations as of December 31, 2025, primarily for hosting services and software products. The obligations are scheduled as follows: $64.5 million in 2026, $73.3 million in 2027, $55.9 million in 2028, $56.3 million in 2029, and $60.4 million in 2030. Additionally, the company disclosed an operating lease commitment of $114.0 million for a facility that has not yet commenced, expected to start in 2026 with a 10-year term. Deferred revenue totaled $342.0 million ($309.6 million current and $32.4 million non-current), representing billed consideration for which performance obligations have not yet been satisfied. Total remaining performance obligations (RPO) were $565.7 million, including $223.7 million of unbilled consideration.
JFrog did not engage in any share repurchases or pay dividends during the period. The company has no debt outstanding. Capital expenditures were $3.5 million for the year ended December 31, 2025, representing 0.7% of total revenue. The primary use of cash was for investing in short-term investments and funding operations. The company's capital allocation strategy appears focused on maintaining a strong liquidity position to support growth and potential acquisitions.
JFrog operates as a single reportable segment. The company provides a disaggregation of revenue by type and geography. For the year ended December 31, 2025, total subscription revenue was $531.8 million, composed of self-managed subscription ($288.5 million, 54%), self-managed license ($29.0 million, 5%), and SaaS ($243.3 million, 46%). SaaS revenue grew 44.8% year-over-year, while self-managed subscription grew 10.7% and self-managed license grew 34.6%. Geographically, the United States contributed $316.5 million (60% of revenue), Israel contributed $16.4 million (3%), and the rest of the world contributed $198.9 million (37%). Long-lived assets (property and equipment, net and operating lease ROU assets) were concentrated in the United States ($9.4 million) and Israel ($5.9 million) as of December 31, 2025.
JFrog's 2025 revenue grew 24% to $531.8M, down from 22% in 2024, with net loss widening to $71.8M. The company warns that growth may decelerate due to market maturation, competition, or macro headwinds. Customer concentration is notable: 1,168 customers with ARR >$100K and 74 with ARR >$1M. The subscription model defers revenue recognition, masking downturns. Seasonality (Q4-heavy bookings) and SaaS usage patterns add volatility.
The DevOps/DevSecOps market is fragmented; JFrog competes with GitHub, GitLab, cloud providers (AWS, Azure, Google Cloud), and security point solutions (Snyk, Aqua). Artifactory is central to the platform—any decline in its demand would cascade. AI/MLOps expansion (agentic security, AI Catalog) introduces execution risk. Open source AGPL-licensed Artifactory may limit monetization and enable competitors.
Past vulnerabilities and a bug bounty program are disclosed. AI-powered attacks, supply chain risks, and remote work heighten exposure. The company relies on third-party cloud infrastructure; outages or breaches could trigger service-level credits, reputational harm, and liability. Insurance may be inadequate.
The EU AI Act (effective Aug 2025) imposes fines up to €35M or 7% global income. U.S. and state AI regulations are evolving. Israeli Privacy Protection Amendment 13 (Aug 2025) increases penalties. U.S.-China trade tensions, tariffs, and regional conflicts (Israel, Russia-Ukraine) disrupt operations and demand. Export controls (EAR, OFAC) may limit international sales. Operations in China face IP and data localization risks.
Dependence on cloud providers (AWS, Azure, Google Cloud) and channel partners creates concentration risk. Acquisitions (Qwak, Vdoo) require integration. Inbound sales model may decline; scaling a direct enterprise sales force is costly and uncertain. Employee retention is challenged by competition for AI/ML talent and Israeli labor laws limiting non-compete enforcement.
Israeli tax benefits (Preferred Technology Enterprise) may be reduced; NIS exchange rate fluctuations impact expenses. Net operating loss carryforwards ($239.7M in Israel, $76.5M in U.S. states) may be limited. Digital services taxes in UK, France, and elsewhere could increase costs.
JFrog's cash flow from operations (CFO) strengthened significantly to $80.1M in FY2025, up from $28.0M in FY2024, reflecting improved profitability and working capital management. CFO exceeded net income of $5.3M, indicating high cash conversion quality. Capital expenditures rose to $11.3M (from $6.6M), representing a moderate capex intensity of ~14% of CFO. Free cash flow (CFO minus capex) was approximately $68.8M, providing ample coverage for any capital returns, though the company did not engage in share repurchases or dividends. Investing cash flow of $-62.2M was largely driven by acquisitions and purchases of marketable securities. Financing cash flow of $-22.2M primarily reflects payments of finance lease liabilities and the repurchase of stock for tax withholdings. Notable non-cash items include $40.0M in stock-based compensation and $9.9M in depreciation and amortization. Working capital changes contributed favorably, with a $42.2M decrease in deferred contract acquisition costs and a $21.8M increase in deferred revenue, offset by a $10.5M increase in contract assets.