0001193125-26-214647
SEC filingRevenue grew 26% YoY to $154.0M, driven by enterprise adoption and SaaS mix, while operating loss narrowed on improved gross margin.
JFrog reported total subscription revenue of $154.0 million for the three months ended March 31, 2026, up 26% from $122.4 million in the same period last year. The growth was driven by approximately $26.2 million from existing customers and the remainder from new customers. SaaS subscription revenue contributed 51% of total revenue, up from 43% in the prior year period, reflecting continued cloud adoption.
Gross margin improved to 78% from 75% year-over-year, primarily due to revenue growth and improved operating leverage. Cost of subscription revenue increased 12% to $33.6 million, driven by higher third-party hosting costs and personnel-related expenses from increased headcount.
Operating loss narrowed significantly to $12.9 million (8.4% of revenue) from $23.0 million (18.8% of revenue) in the prior year, reflecting operating leverage. Net loss improved to $8.3 million from $18.5 million, with interest and other income of $7.2 million partially offsetting operating losses.
Free cash flow was $37.3 million in Q1 2026, up from $28.1 million in Q1 2025, driven by higher operating cash flow of $38.4 million versus $28.8 million in the prior year.
Subscription—Self-Managed and SaaS revenue rose 26% to $146.3 million, representing 95% of total subscription revenue. License—Self-Managed revenue increased 29% to $7.7 million, maintaining its 5% share. The Enterprise Plus subscription tier represented approximately 58% of total revenue, up from 55% in Q1 2025, indicating increasing demand for the comprehensive platform.
Net dollar retention rate improved to 120% from 116% a year earlier, driven by customer expansion. The number of customers with ARR of $100,000 or more grew to 1,225 from 1,168 at December 31, 2025, and customers with ARR of at least $1.0 million increased to 80 from 74 over the same period.
Management expects continued investment in research and development, sales and marketing, and general and administrative functions to support growth. The company highlighted opportunities to expand usage among existing customers through migration to SaaS and cross-selling additional products. International expansion remains a strategic priority.
The Board of Directors approved a $300.0 million share repurchase program in February 2026, effective March 2026, with no expiration date. As of March 31, 2026, the full amount remained available for repurchases.
Management noted no significant changes to critical accounting policies and estimates during Q1 2026. The company believes existing cash, cash equivalents, and short-term investments of $741.2 million, together with cash from operations, will be sufficient for at least the next 12 months.
Operating cash flow (CFO) of $38.4M significantly exceeded the net loss of ($8.3M), indicating strong cash generation from operations despite a GAAP loss. The primary driver was $39.6M in share-based compensation, a non-cash expense that boosted CFO. Depreciation and amortization added $5.6M, while working capital changes contributed a net positive $0.4M, led by a $6.3M decrease in accounts receivable partially offset by a $2.1M reduction in operating lease liabilities and a $1.8M decline in accrued expenses.
Capital expenditures (capex) were $1.1M, up from $0.6M in the prior year, but remain modest relative to CFO. Free cash flow (not explicitly stated) would be approximately $37.3M, providing ample coverage for the minimal financing outflows. No share repurchases or dividends were reported.
Investing activities were dominated by net purchases of short-term investments ($52.0M net outflow), reflecting a conservative cash management strategy. Financing activities were negligible, with a net outflow of $0.2M due to employee equity transactions. Overall, cash flow quality is high, with CFO comfortably covering capex and no reliance on external financing.