FROG · JFrog Ltd.

JFrog's first quarter 2026 results demonstrated robust execution across revenue, profitability, and customer metrics. Total revenue of $154.0 million grew 26% year-over-year, driven by a 50% surge in cloud revenue to $78.9 million, which now represents 51% of total revenue versus 43% a year ago. The cloud acceleration was fueled by increasing demand from development organizations leveraging AI-powered coding agents, as highlighted by CEO Shlomi Ben Haim. Non-GAAP gross margin expanded to 83.8%, and non-GAAP operating margin reached 21.4%, reflecting operating leverage. GAAP operating loss improved to ($12.9) million from ($17.3) million in the prior year. Non-GAAP diluted EPS of $0.27 exceeded the consensus estimate of $0.22, marking another beat. Customer growth was strong: customers with over $1 million ARR increased 48% to 80, and those with over $100K ARR grew 17% to 1,225. The trailing four-quarter net dollar retention rate improved to 120% from 116% a year ago, indicating strong upsell and retention. The company also announced a $300 million share repurchase authorization, reflecting confidence in its cash flow generation. For the second quarter, JFrog guided revenue of $154-156 million and non-GAAP EPS of $0.23-0.25, while full-year 2026 revenue is expected between $628-632 million with non-GAAP EPS of $0.93-0.97. The guidance implies continued mid-20% revenue growth and margin expansion. Management's commentary emphasized momentum in the security business as customers standardize on the JFrog platform, and the launch of new products like JFrog MCP Registry and JFrog Skills Registry (with NVIDIA) positions the company for future growth in AI and software supply chain security.