JFrog (FROG) AI Stock Analysis

• Market Cap: $6.67B
• Dividend Yield: N/A
• Average Volume (3M): 1.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• 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: 118,312,836
• 10 Day Avg. Volume: 1,699,635
• 30 Day Avg. Volume: 1,857,066
• PEG Ratio: -6.87
• Price to Book (P/B): 4.17
• Price to Sales (P/S): 7.53
• P/FCF Ratio: 29.93
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 9.77
• Enterprise Value/Gross Profit: 12.91
• Enterprise Value/Ebitda: -95.44
• 1Y Price Target: $72.39
• Price Target Upside: 28.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 0.88
• Revenue Forecast (FY): $611.82M

• Rating: 73 Outperform
• Price Target: $63.00 ▲(11.78% Upside)

JFrog's overall stock score is driven by strong technical momentum and positive earnings call highlights, including robust revenue growth and strategic investments in AI. However, the negative P/E ratio and lack of profitability weigh down the valuation score, presenting a risk. The company's financial performance shows potential for future stability, but current profitability challenges remain a concern.

Positive Factors

Revenue & Cloud Growth

Sustained double-digit overall revenue growth and rapid cloud expansion indicate durable subscription ARR momentum. Growing cloud mix improves recurring revenue predictability and positions JFrog to capture larger enterprise spends, supporting multi-year revenue visibility and platform-led growth.

High Gross Margin

A ~75% gross margin reflects scalable software economics and efficient delivery of artifact management. High margins provide structural capacity to fund R&D and go-to-market investments, helping JFrog sustain product development and compete on features rather than price over the medium term.

Improving Cash Generation

Positive free cash flow growth and near-1 conversion of net income to FCF show the business is generating real cash despite accounting losses. Reliable cash generation supports reinvestment, reduces reliance on external financing, and enhances financial flexibility for strategic initiatives.

Negative Factors

Ongoing Negative Profitability

Persistent operating and net losses indicate JFrog has yet to convert strong top-line growth into sustainable profitability. Continued negative margins pressure retained earnings and require sustained cash generation or capital to fund operations until operating leverage or margin expansion is achieved.

Hesitancy on Cloud AI Adoption

Structural customer caution around cloud AI slows migration and upsell cycles for cloud-native tooling. If enterprises delay AI workload moves, JFrog's cloud growth and higher-margin subscription expansion could be restrained, lengthening the path to durable cloud-driven revenue share.

Lengthening Security Sales Cycles

Longer sales cycles for security offerings reduce revenue visibility and increase customer acquisition costs. Slower deal closures delay ARR growth and compress near-term margins, requiring sustained investment in sales engineering and potentially slowing the realization of cross-sell benefits from the platform.

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

JFrog demonstrates strong revenue growth and efficient cost management, as seen in its high gross profit margin. The balance sheet is robust with low leverage, though profitability remains a concern with negative net income and return on equity. Cash flow metrics are improving, indicating potential for future financial stability.

Income Statement

JFrog's revenue growth has been consistent, with a TTM growth rate of 5.87%. However, the company is still operating at a loss, with a negative net profit margin of -15.88% and a negative EBIT margin of -11.24%. The gross profit margin remains strong at 75.42%, indicating efficient cost management in production.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.013, reflecting minimal leverage and a strong equity position. However, the return on equity is negative at -9.79%, indicating challenges in generating profits from shareholders' investments. The equity ratio is healthy, showing a solid asset base supported by equity.

Cash Flow

JFrog shows a positive trend in cash flow, with a free cash flow growth rate of 1.52% and a strong free cash flow to net income ratio of 0.98. The operating cash flow to net income ratio is 0.39, suggesting that the company is generating cash effectively despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	502.61M	428.49M	349.89M	280.04M	206.68M	150.83M
Gross Profit	380.29M	330.19M	272.84M	216.95M	164.86M	122.38M
EBITDA	-51.44M	-69.64M	-60.24M	-62.73M	-59.62M	-10.53M
Net Income	-79.81M	-69.24M	-61.26M	-90.18M	-64.20M	-9.40M
Balance Sheet
Total Assets	1.27B	1.13B	972.56M	871.22M	852.53M	689.23M
Cash, Cash Equivalents and Short-Term Investments	651.06M	522.01M	545.01M	443.20M	421.13M	598.06M
Total Debt	11.15M	13.98M	22.23M	23.96M	27.31M	0.00
Total Liabilities	406.11M	356.38M	293.43M	246.45M	213.95M	135.34M
Stockholders Equity	859.42M	773.53M	679.12M	624.77M	638.58M	553.89M
Cash Flow
Free Cash Flow	140.90M	107.78M	72.17M	16.80M	23.67M	25.94M
Operating Cash Flow	144.15M	110.92M	74.16M	21.43M	27.90M	29.46M
Investing Cash Flow	-162.41M	-165.36M	-53.48M	-53.34M	-125.55M	-311.80M
Financing Cash Flow	33.59M	21.23M	18.37M	11.03M	1.44M	406.13M

JFrog Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 56.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FROG, the sentiment is Neutral. The current price of 56.36 is below the 20-day moving average (MA) of 62.86, below the 50-day MA of 61.42, and above the 200-day MA of 47.26, indicating a neutral trend. The MACD of -1.26 indicates Positive momentum. The RSI at 37.00 is Neutral, neither overbought nor oversold. The STOCH value of 17.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FROG.

JFrog Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWAN	74 Outperform	$7.06B	15.78	32.91%	―	50.91%	54812.50%
BILL	74 Outperform	$5.04B	-184.62	0.30%	―	11.63%	50.72%
FROG	73 Outperform	$6.67B	―	-9.88%	―	22.69%	-32.47%
ZETA	70 Outperform	$5.48B	-191.99	-3.92%	―	35.87%	85.20%
GTLB	64 Neutral	$6.09B	-139.29	-5.17%	―	27.35%	18.18%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMP	60 Neutral	$8.91B	-108.95	-9.39%	―	24.27%	73.11%