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JFrog
(NASDAQ:FROG)
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Rating:74Outperform
Price Target:
$98.00
▲(122.12% Upside)
Action:Reiterated
Date:06/27/26
The score is supported primarily by strong financial quality (low leverage, high gross margins, and solid positive free cash flow) and a constructive technical uptrend. The latest earnings call reinforces momentum with accelerating cloud growth and margin expansion, while the main offset is weak earnings-based valuation support (negative P/E due to GAAP losses) and uncertainty around converting cloud over-usage into committed contracts.
Positive Factors
Strong free cash flow generation
JFrog converts subscription revenue into meaningful free cash flow, with TTM FCF ~ $151M and Q1 FCF margin of 24.2%. Durable cash generation supports reinvestment, buybacks and margin improvement, reducing financing risk and giving management flexibility over the next 2–6 months.
Negative Factors
GAAP profitability still negative
Despite improving margins and cash flow, GAAP profitability remains negative (TTM net margin ~-10.9%), which restrains reported returns and could limit investor and stakeholder confidence until sustained GAAP profits are achieved over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
JFrog converts subscription revenue into meaningful free cash flow, with TTM FCF ~ $151M and Q1 FCF margin of 24.2%. Durable cash generation supports reinvestment, buybacks and margin improvement, reducing financing risk and giving management flexibility over the next 2–6 months.
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
$11.48B
Dividend YieldN/A
Average Volume (3M)2.84M
Price to Earnings (P/E)―
Beta (1Y)0.86
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. Volume2,426,821
30 Day Avg. Volume2,838,192
Financial Highlights & Ratios
PEG Ratio63.47
Price to Book (P/B)8.18
Price to Sales (P/S)13.65
P/FCF Ratio51.02
Enterprise Value/Market Cap0.85
Enterprise Value/Revenue17.41
Enterprise Value/Gross Profit22.47
Enterprise Value/Ebitda-311.75
Forecast
1Y Price Target
$85.55Price Target Upside93.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
EPS Forecast (FY)0.95
Revenue Forecast (FY)$632.57M
JFrog Business Overview & Revenue Model
Company Description
JFrog Ltd. delivers a comprehensive DevOps platform to businesses throughout the United States, providing a suite of tools designed to streamline software development and delivery. At the heart of their offerings is JFrog Artifactory, a flexible p...
How the Company Makes Money
JFrog primarily makes money through recurring subscription revenue for access to its software platform, sold to organizations that need to store, manage, secure, and distribute build artifacts (e.g., containers, packages, binaries) as part of soft...
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 | -31.46M | -41.53M | -44.36M | -39.21M | -70.09M | -58.88M |
| 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
71.39
Positive
57.92
Positive
56.95
Positive
Market Momentum
4.96
Negative
70.84
Negative
88.88
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 83.22, below the 50-day MA of 71.39, and below the 200-day MA of 56.95, indicating a bullish trend. The MACD of 4.96 indicates Negative momentum. The RSI at 70.84 is Negative, neither overbought nor oversold. The STOCH value of 88.88 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 | $11.48B | -179.29 | -7.04% | ― | 25.04% | 25.92% | |
73 Outperform | $5.16B | -207.94 | -3.04% | ― | 33.60% | 63.13% | |
69 Neutral | $5.42B | -212.52 | -2.66% | ― | 24.90% | -233.01% | |
62 Neutral | $4.03B | -12,266.67 | <0.01% | ― | 12.47% | -98.50% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $7.33B | -143.54 | -2.40% | ― | 73.49% | -109.13% | |
52 Neutral | $9.56B | 725.29 | 1.11% | ― | 40.10% | ― |
* Technology Sector Average
FROG
JFrog
94.81
52.81
125.74%
BILL
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40.48
-7.73
-16.03%
COMP
Compass
12.62
6.20
96.57%
ZETA
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20.70
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33.98%
CWAN
Clearwater Analytics Holdings
24.56
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10.93%
GTLB
Gitlab
32.07
-14.30
-30.84%
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, ...
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.