Jfrog Ltd. (FROG)
NASDAQ:FROG
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JFrog
(NASDAQ:FROG)
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Rating:73Outperform
Price Target:
$82.00
▲(85.86% Upside)
Action:Reiterated
Date:05/23/26
The score is driven by strong financial quality (robust free cash flow and low leverage) and favorable earnings-call momentum (cloud acceleration, expanding margins, and solid guidance), supported by a strong technical uptrend. These positives are tempered by weak valuation optics due to GAAP losses (negative P/E) and overbought technical readings that raise near-term pullback risk.
Positive Factors
Strong free cash flow
Sustained FCF near $150M and positive FCF growth provide durable internal funding for R&D, cloud expansion and the $300M buyback program. Consistent cash conversion reduces reliance on external financing and supports long-term strategic flexibility and shareholder returns.
Negative Factors
Ongoing GAAP losses
Despite margin improvements, negative GAAP net margins and negative ROE mean the company has not yet delivered sustainable accounting profits. Persistent GAAP losses could limit capital allocation choices and require continued discipline to translate operating momentum into lasting profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Sustained FCF near $150M and positive FCF growth provide durable internal funding for R&D, cloud expansion and the $300M buyback program. Consistent cash conversion reduces reliance on external financing and supports long-term strategic flexibility and shareholder returns.
Read all positive factors
JFrog Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows profitability across various business segments, highlighting strengths and potential areas for cost management or improvement.
Shows profitability across various business segments, highlighting strengths and potential areas for cost management or improvement.
Data provided by:
The Fly
The FlyJFrog (FROG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.65B
Dividend YieldN/A
Average Volume (3M)2.72M
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth25.04%
EPS Growth25.92%
CountryUS
Employees1,600
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.53
Shares Outstanding121,119,720
10 Day Avg. Volume3,344,298
30 Day Avg. Volume2,720,058
Financial Highlights & Ratios
PEG Ratio63.67
Price to Book (P/B)8.18
Price to Sales (P/S)13.65
P/FCF Ratio51.02
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue15.83
Enterprise Value/Gross Profit20.43
Enterprise Value/Ebitda-159.09
Forecast
1Y Price Target
$79.32Price Target Upside79.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)0.95
Revenue Forecast (FY)$632.70M
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...
How the Company Makes Money
JFrog primarily makes money by selling subscriptions to its software platform, delivered both as a cloud service (SaaS) and as self-managed software deployed by customers. Revenue is largely recurring and tied to customers paying for access to JFr...
JFrog Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and financial picture driven by accelerated cloud adoption (50% cloud growth), strong retention (120% NDR) and margin expansion. Innovations for AI artifacts (MCP and Skills registries) and strategic partnerships (NVIDIA) reinforce product leadership. Key risks highlighted were the dependence on converting cloud over-usage into committed ARR, conservative full-year guidance despite outperformance in Q1, slower on-prem growth, and competitive/technical uncertainties from evolving LLM/tooling capabilities. Overall, the positives (robust cloud momentum, high retention, improved profitability, strong cash flow and product innovation) outweigh the risks tied to timing of contract conversions and market competition.Positive Updates
Total Revenue Growth
Q1 total revenue of $154.0M, up 26% year-over-year and exceeded the top end of guidance on every metric.
Negative Updates
Usage Over Commitments Creates Guidance Uncertainty
Management noted significant cloud usage above contractual minimums drove Q1 outperformance, but guidance excludes these overages until converted into annual commitments — timing risk for revenue realization.
Read all updates
Q1-2026 Updates
Positive
Negative
Total Revenue Growth
Q1 total revenue of $154.0M, up 26% year-over-year and exceeded the top end of guidance on every metric.
Read all positive updates
Company Guidance
JFrog guided Q2 revenue of $154–$156M with non‑GAAP operating profit of $28–$30M and non‑GAAP diluted EPS of $0.23–$0.25 (assumes ~126M shares), and for full‑year 2026 expects revenue of $628–$632M (≈18.5% YoY at the midpoint), non‑GAAP operating income of $112–$116M and non‑GAAP diluted EPS of $0.93–$0.97 (assumes ~128M shares); management raised its baseline cloud growth outlook to 33%–35% for 2026, set a net dollar retention floor of 118%, and reiterated an annual gross margin target of 82%–83%. These targets are supported by Q1 results of $154M total revenue (+26% YoY), cloud revenue $78.9M (+50% YoY; 51% of total), self‑managed $75.1M (+8% YoY), Enterprise Plus at 58% of revenue (+33% YoY contribution growth), RPO of $574.9M (+36% YoY), Q1 gross margin 83.8%, operating margin 21.4%, operating cash flow $38.4M and free cash flow $37.3M (24.2% margin).JFrog Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
82
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 563.41M | 531.84M | 428.49M | 349.89M | 280.04M | 206.68M |
| Gross Profit | 436.54M | 408.39M | 330.19M | 272.84M | 217.75M | 164.86M |
| EBITDA | -56.05M | -65.42M | -67.67M | -59.96M | -75.19M | -59.62M |
| Net Income | -61.58M | -71.82M | -69.24M | -61.26M | -90.18M | -64.20M |
Balance Sheet | ||||||
| Total Assets | 1.37B | 1.34B | 1.13B | 972.56M | 871.22M | 852.53M |
| Cash, Cash Equivalents and Short-Term Investments | 741.96M | 705.13M | 522.01M | 545.01M | 443.20M | 421.13M |
| Total Debt | 16.45M | 19.13M | 20.16M | 36.18M | 40.79M | 47.32M |
| Total Liabilities | 449.21M | 453.93M | 356.38M | 293.43M | 246.45M | 213.95M |
| Stockholders Equity | 924.00M | 887.45M | 773.53M | 679.12M | 624.77M | 638.58M |
Cash Flow | ||||||
| Free Cash Flow | 151.41M | 142.27M | 107.78M | 72.17M | 16.80M | 23.67M |
| Operating Cash Flow | 155.29M | 145.73M | 110.92M | 74.16M | 21.43M | 27.90M |
| Investing Cash Flow | -159.56M | -152.27M | -165.36M | -53.48M | -53.34M | -125.55M |
| Financing Cash Flow | 19.55M | 31.21M | 21.23M | 18.37M | 11.03M | 1.44M |
JFrog Technical Analysis
Positive
44.12
Price Trends
51.24
Positive
51.16
Positive
52.14
Positive
Market Momentum
6.68
Negative
73.97
Negative
92.22
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FROG, the sentiment is Positive. The current price of 44.12 is below the 20-day moving average (MA) of 60.60, below the 50-day MA of 51.24, and below the 200-day MA of 52.14, indicating a bullish trend. The MACD of 6.68 indicates Negative momentum. The RSI at 73.97 is Negative, neither overbought nor oversold. The STOCH value of 92.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FROG.
JFrog Risk Analysis
JFrog disclosed 71 risk factors in its most recent earnings report. JFrog reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
JFrog Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.50B | -66.83 | -3.04% | ― | 33.60% | 63.13% | |
73 Outperform | $8.65B | -170.53 | -7.04% | ― | 25.04% | 25.92% | |
68 Neutral | $3.63B | 75.33 | <0.01% | ― | 12.47% | -98.50% | |
67 Neutral | $4.33B | -103.65 | -6.24% | ― | 25.81% | -2156.00% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $7.27B | -628.29 | -2.40% | ― | 73.49% | -109.13% | |
49 Neutral | $6.41B | 61.00 | 1.11% | ― | 40.10% | ― |
* Technology Sector Average
FROG
JFrog
73.99
31.50
74.14%
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CWAN
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GTLB
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JFrog Corporate Events
Executive/Board ChangesShareholder Meetings
JFrog Shareholders Approve Leadership, Compensation at Annual Meeting
Positive
May 22, 2026
On May 20, 2026, JFrog Ltd. held its annual general meeting of shareholders in Sunnyvale, California, with 110,646,098 ordinary shares represented, meeting quorum requirements. Shareholders re-elected Class III directors Yoav Landman, Yossi Sela, ...
Business Operations and StrategyStock Buyback
JFrog Announces $300 Million Share Repurchase Program
Positive
Feb 26, 2026
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 buyback...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.