JFrog (FROG) AI Stock Analysis

• Market Cap: $4.97B
• Dividend Yield: N/A
• Average Volume (3M): 3.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 22.69%
• EPS Growth: -32.47%
• Country: US
• Employees: 1,600
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.22
• Shares Outstanding: 119,628,930
• 10 Day Avg. Volume: 5,627,785
• 30 Day Avg. Volume: 3,822,516
• PEG Ratio: 63.67
• Price to Book (P/B): 8.18
• Price to Sales (P/S): 13.65
• P/FCF Ratio: 51.02
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 9.42
• Enterprise Value/Gross Profit: 12.28
• Enterprise Value/Ebitda: -81.07
• 1Y Price Target: $71.13
• Price Target Upside: 71.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 0.9
• Revenue Forecast (FY): $626.84M

• Rating: 62 Neutral
• Price Target: $44.00 ▲(5.82% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is primarily supported by strong cash generation and a low-leverage, liquid balance sheet, reinforced by generally positive earnings-call fundamentals (cloud momentum, RPO/retention strength, and non-GAAP profitability). These are tempered by a clearly bearish technical setup and a less supportive valuation signal due to the negative P/E, alongside guidance pointing to slower growth in 2026.

Positive Factors

Strong free cash flow

Consistent and sizable free cash flow provides durable funding for R&D, go-to-market investments, buybacks, or M&A without relying on external financing. This cash generation cushions the business during growth slowdowns and supports strategic optionality over the next 2–6 months.

Very low leverage and liquidity

A very low debt load plus large cash reserves underpin financial flexibility, lowering refinancing risk and enabling capital returns or opportunistic spend. This balance-sheet strength materially reduces insolvency risk and supports longer-term execution of strategic initiatives.

Cloud momentum and retention

Rapid cloud revenue growth, high RPO and 119% net dollar retention signal resilient recurring revenue and expansion within customers. These trends indicate durable subscription economics, stronger lifetime values, and upside from enterprise up‑sells over the medium term.

Negative Factors

Decelerating revenue growth

A material slowdown in top‑line growth reduces operating leverage and could lengthen the path to sustainable GAAP profitability. Slower revenue expansion makes it harder to absorb fixed costs and can constrain reinvestment plans or margin improvements over the coming 2–6 months.

Persistent GAAP losses / negative ROE

Despite cash profits on a non‑GAAP basis, continued GAAP losses and negative ROE mean the firm hasn't converted scale into accounting profitability. This limits long‑term return generation for shareholders and could constrain capital allocation choices if losses persist.

Cloud usage volatility & margin pressure

Higher cloud mix, usage variability and FX-driven expense pressure create revenue and margin volatility. Normalizing gross margins and potential overage swings reduce predictability of profitability and complicate capacity planning and pricing strategies over the medium term.

JFrog Business Overview & Revenue Model

Company Description

JFrog Ltd. provides DevOps platform in the United States. The company's products include JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages at any scale; JFrog Pipelines, an integration/continuous delivery tool for automating and orchestrating the movement of software packages; JFrog Xray, which scan JFrog Artifactory; and JFrog Distribution that provides software package distribution with enterprise-grade performance. Its products include JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization's software supply chain workflow; JFrog Insight, a DevOps intelligence tool; and JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance across IoT device fleets from anywhere in the world. The company's products also comprise JFrog Pro, JFrog Pro Team, JFrog Pro X, JFrog Enterprise, JFrog Enterprise X, and JFrog Enterprise Plus products that offer ongoing updates, upgrades, and bug fixes, as well as cluster configuration, multi-site replication, and SLA support. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California.

How the Company Makes Money

JFrog generates revenue primarily through a subscription-based model for its software products, which are offered in various tiers to accommodate different organizational needs. Their key revenue streams include licenses for JFrog Artifactory, JFrog Pipelines, and JFrog Xray, as well as premium support services. The company also benefits from strategic partnerships with major cloud service providers, which enhance its visibility and integration capabilities, thereby attracting more customers. Additionally, JFrog may earn revenue through professional services and training for clients seeking to optimize their DevOps practices.

JFrog Financial Statement Overview

Summary

Financial quality is supported by strong and improving operating/free cash flow (FY2025 operating cash flow ~$146M; free cash flow ~$142M) and a very low-leverage balance sheet (debt-to-equity ~0.02) with substantial liquidity. The key drag is profitability and growth durability: operating losses persist on the income statement and growth decelerated meaningfully in 2025.

Income Statement

Revenue has scaled meaningfully over 2020–2025 (from ~$151M to ~$532M), but growth has decelerated sharply in 2025 (5.8% vs ~22–35% in prior years). Profitability is still the key drag: gross margins remain strong (~76–81%), yet operating losses persist, with 2025 still showing a sizable net loss (~-13.5% margin). The positive trend is improving efficiency versus 2022–2024 (loss margins narrowing), but the model has not reached sustained profitability.

Balance Sheet

The balance sheet is a clear strength: leverage is very low (debt-to-equity ~0.02 in 2025) and equity has steadily increased alongside asset growth (assets ~$1.34B in 2025). This provides flexibility to fund operations. The main weakness is returns: losses keep return on equity negative (still around -8% in 2025), indicating the capital base is not yet generating profits.

Cash Flow

Cash generation is strong despite accounting losses. Operating cash flow and free cash flow are solid and improving (2025 operating cash flow ~$146M; free cash flow ~$142M) with continued positive free cash flow growth. Free cash flow closely tracks the net loss magnitude (free cash flow to net income near 1.0 across recent years), signaling good cash conversion. The key risk is sustainability if growth remains muted while the company continues to operate at a net loss.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	531.84M	428.49M	349.89M	280.04M	206.68M
Gross Profit	404.98M	330.19M	272.84M	217.75M	164.86M
EBITDA	-59.13M	-69.64M	-60.24M	-75.19M	-59.62M
Net Income	-71.82M	-69.24M	-61.26M	-90.18M	-64.20M
Balance Sheet
Total Assets	1.34B	1.13B	972.56M	871.22M	852.53M
Cash, Cash Equivalents and Short-Term Investments	705.13M	522.01M	545.01M	443.20M	421.13M
Total Debt	19.13M	20.16M	36.18M	40.79M	47.32M
Total Liabilities	453.93M	356.38M	293.43M	246.45M	213.95M
Stockholders Equity	887.45M	773.53M	679.12M	624.77M	638.58M
Cash Flow
Free Cash Flow	142.27M	107.78M	72.17M	16.80M	23.67M
Operating Cash Flow	145.73M	110.92M	74.16M	21.43M	27.90M
Investing Cash Flow	-152.27M	-165.36M	-53.48M	-53.34M	-125.55M
Financing Cash Flow	31.21M	21.23M	18.37M	11.03M	1.44M

JFrog Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FROG, the sentiment is Negative. The current price of 41.58 is below the 20-day moving average (MA) of 46.68, below the 50-day MA of 55.10, and below the 200-day MA of 49.96, indicating a bearish trend. The MACD of -4.56 indicates Positive momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 36.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FROG.

JFrog Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZETA	69 Neutral	$4.27B	-115.33	-4.25%	―	35.87%	85.20%
BILL	68 Neutral	$4.37B	-186.69	-0.64%	―	11.63%	50.72%
CWAN	68 Neutral	$6.95B	-171.63	-2.58%	―	50.91%	54812.50%
GTLB	65 Neutral	$4.41B	-100.89	-5.17%	―	27.35%	18.18%
FROG	62 Neutral	$4.97B	-67.13	-8.65%	―	22.69%	-32.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMP	57 Neutral	$7.29B	-92.98	-9.82%	―	24.27%	73.11%

JFrog Corporate Events

JFrog Announces $300 Million Share Repurchase Program

On February 26, 2026, JFrog announced that its board had authorized a share repurchase program of up to $300 million of its ordinary shares, signaling confidence in its strategy and long-term growth prospects. The company plans to fund the buybacks with cash on hand and future operating cash flows, and may execute repurchases in the open market or through privately negotiated transactions, subject to market conditions, regulatory requirements and a 30-day creditor objection period under Israeli corporate regulations.

The program is discretionary, imposes no obligation to repurchase a specific amount of stock and can be suspended, modified or discontinued at any time, allowing JFrog to balance returning capital to shareholders with maintaining flexibility for strategic investments. This move underscores the company’s strong balance sheet and consistent free cash flow generation, reinforcing its positioning in the competitive DevOps and software supply chain space while offering a potential boost to shareholder value.

The most recent analyst rating on (FROG) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on JFrog stock, see the FROG Stock Forecast page.