JFrog (FROG) AI Stock Analysis

• Market Cap: $5.03B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: 21.66%
• EPS Growth: -50.24%
• Country: US
• Employees: 1,600
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 0.20
• Shares Outstanding: 114,570,946
• 10 Day Avg. Volume: 892,883
• 30 Day Avg. Volume: 1,010,932
• PEG Ratio: -0.69
• Price to Book (P/B): 3.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 126.03
• Enterprise Value/Market Cap: 0.42
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 6.12
• Enterprise Value/Ebitda: -7.53
• 1Y Price Target: $43.85
• Price Target Upside: -0.11% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 68 Neutral
• Price Target: $47.00 ▲(7.06%Upside)

JFrog's overall score reflects strong financial execution with significant revenue growth and cash flow improvements, supported by positive earnings call sentiments. However, profitability challenges and technical overbought conditions weigh on the score, highlighting areas for caution. The corporate event of CEO's dual role approval boosts leadership confidence but has a lesser impact on the overall score.

Positive Factors

AI and Machine Learning

JFrog is proving to be the next tangible AI beneficiary, with strong growth in AI-related packages contributing to cloud revenue and overage.

Revenue Growth

Total revenue accelerated to 22% year-over-year, surpassing consensus expectations by about 4%.

Strategic Partnerships

A strategic partnership with Microsoft GitHub has advanced to a joint go-to-market effort, creating a substantial pipeline.

Negative Factors

Cloud Revenue Trends

Cloud revenue strength was partially driven by over-commitment consumption, and management cautioned that this may not signal a sustainable trend amid macro uncertainty.

Conservative Guidance

Management's conservative guidance framework excludes potential upside from large customer migrations and usage overages beyond committed consumption levels, leaving meaningful room for outperformance.

JFrog Business Overview & Revenue Model

Company Description

JFrog Ltd. (NASDAQ: FROG) is a leading software company that specializes in DevOps solutions, focusing on continuous integration and continuous delivery (CI/CD) technologies. Headquartered in Sunnyvale, California, JFrog provides an array of tools and services that enable organizations to automate and streamline their software development processes. Its core products include JFrog Artifactory, JFrog Xray, JFrog Pipelines, and other related solutions that help manage and secure the software release lifecycle across different environments.

How the Company Makes Money

JFrog makes money primarily through the sale of subscription-based licenses for its software solutions. The company's revenue model is centered around annual or multi-year subscriptions that give customers access to its suite of DevOps tools. JFrog offers various subscription tiers, which cater to different organizational sizes and needs, from small startups to large enterprises. Additional revenue is generated from professional services such as training, support, and consulting, which help clients optimize their use of JFrog products. The company also benefits from strategic partnerships and integrations with major cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform, which enhance its product offerings and extend its market reach.

JFrog Financial Statement Overview

Summary

JFrog demonstrates strong revenue growth and cash flow generation, which are key strengths in the software application industry. The company maintains a solid balance sheet with low leverage. However, persistent net losses and negative profit margins indicate ongoing profitability challenges that need addressing to enhance shareholder value.

Income Statement

JFrog has shown consistent revenue growth, with a TTM increase from $428.5M to $450.6M, indicating a healthy upward trajectory. However, profitability remains a challenge as reflected in negative EBIT and EBITDA margins. The gross profit margin is strong, but net profit margin is negative due to ongoing net losses, pointing to areas needing cost control improvements.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio, suggesting prudent financial management and low leverage risk. Stockholders' equity has grown steadily, reflecting strong asset management. However, the consistent net losses impact the return on equity, which remains negative, indicating challenges in generating returns for shareholders.

Cash Flow

Cash flow from operations has improved significantly, indicating strong cash generation capability. Free cash flow growth is positive, with a healthy free cash flow to net income ratio, showing efficient conversion of income into cash. Despite high investing cash outflows, the overall cash flow position is robust, offering flexibility for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	450.58M	428.49M	349.89M	280.04M	206.68M	150.83M
Gross Profit	342.36M	330.19M	272.84M	217.75M	164.86M	122.38M
EBITDA	-85.41M	-69.64M	-60.24M	-75.19M	-59.62M	-10.53M
Net Income	-78.95M	-69.24M	-61.26M	-90.18M	-64.20M	-9.40M
Balance Sheet
Total Assets	1.16B	1.13B	972.56M	871.22M	852.53M	689.23M
Cash, Cash Equivalents and Short-Term Investments	563.51M	522.01M	545.01M	443.20M	421.13M	598.06M
Total Debt	12.17M	13.98M	22.23M	23.96M	27.31M	0.00
Total Liabilities	356.19M	356.38M	293.43M	246.45M	213.95M	135.34M
Stockholders Equity	800.04M	773.53M	679.12M	624.77M	638.58M	553.89M
Cash Flow
Free Cash Flow	119.30M	107.78M	72.17M	16.80M	23.07M	25.94M
Operating Cash Flow	122.25M	110.92M	74.16M	21.43M	27.90M	29.46M
Investing Cash Flow	-164.22M	-165.36M	-53.48M	-53.34M	-125.55M	-311.80M
Financing Cash Flow	16.14M	21.23M	18.37M	11.03M	1.44M	406.13M

JFrog Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 43.9 is above the 20-day moving average (MA) of 42.48, above the 50-day MA of 39.47, and above the 200-day MA of 33.84, indicating a bullish trend. The MACD of 0.78 indicates Positive momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 91.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FROG.

JFrog Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALRM	75 Outperform	$2.80B	23.83	17.27%	―	6.72%	43.44%
FRSH	72 Outperform	$4.37B	―	-6.85%	―	20.46%	39.37%
FROG	68 Neutral	$5.03B	―	-10.47%	―	21.66%	-50.24%
BRZE	63 Neutral	$2.97B	―	-22.82%	―	22.66%	21.20%
GBTG	60 Neutral	$3.09B	―	-3.84%	―	4.82%	73.90%
ASAN	58 Neutral	$3.13B	―	-83.36%	―	9.84%	13.74%
Sector *	56 Neutral	$3.16B	4.94	-5.68%	5.81%	7.96%	-51.05%

JFrog Corporate Events

JFrog Approves CEO’s Dual Role in AGM

On May 20, 2025, JFrog Ltd. held its annual general meeting where several key proposals were voted on and passed. These included the re-election of directors, the re-appointment of independent auditors, and various changes to executive and board compensation policies. Additionally, the meeting approved Shlomi Ben Haim’s dual role as CEO and Chairman for three years, reflecting shareholder support for the company’s leadership and strategic direction.

The most recent analyst rating on (FROG) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on JFrog stock, see the FROG Stock Forecast page.