Start here if you're new
what it is
JFrog sells software that helps companies package, scan, and ship code without breaking release day.
how it gets paid
Last year Jfrog made $532M in revenue.
why it's growing
Revenue grew 24.1% last year. Revenue rose 182% vs. prior year. Gross margin held at 76.4%.
what just happened
JFrog posted $387M in revenue, but EPS was -$0.49.
At a glance
B+ balance sheet — decent shape, but not bulletproof
45/100 earnings predictability — expect surprises
2.5% return on capital — nothing to write home about
xvary composite: 47/100 — below average
-$0.40 fy2026 eps est
What they do
JFrog sells software that helps companies package, scan, and ship code without breaking release day.
76.4% gross margin (money left after direct costs) means JFrog keeps most of each sale before overhead. That gives it room to spend 38% of 2024 revenue on R&D while your teams stay tied to the same release workflow. Leaving is painful because the package controls and security checks already live inside the process.
How they make money
$532M
annual revenue · their business grew +24.1% last year
total revenue
$532M
+24.1%
The products that matter
core developer tools platform
Software supply chain platform
$532M disclosed revenue base
This is the center of the business. The company does not break out segment revenue here, so you have to judge execution at the total-company level — $532M in revenue, up 24.1% from last year.
entire business
software economics
Gross margin profile
76.4% gross margin
Gross margin of 76.4% says the product mix looks like software, not a low-margin service shop. The catch is that only 2.6% of revenue made it through to net profit.
high margin
long-term scale target
Revenue path
$1B fy2028 rev est
The long-range revenue estimate points to $1B by fy2028 from $532M today. That is the bet you own: keep the growth rate healthy long enough for the margin structure to matter.
scale bet
Key numbers
$532M
annual revenue
revenue → money coming in from customers → so what: the business is already a $532M machine, not a science project.
76.4%
gross margin
gross margin → revenue left after direct costs → so what: JFrog keeps 76.4 cents of every sales dollar before overhead.
17.3%
operating margin
operating margin → profit after running the business → so what: the company still spends more than it makes on core operations.
$4M
long-term debt
long-term debt → money owed over time → so what: leverage is tiny, so creditors are not the problem.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- long-term debt $4M (0% of capital)
- net profit margin 2.6% — keeps 3 cents of every dollar in revenue
- return on equity 2% — $0.02 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in FROG 3 years ago → it's now worth $25,570.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
JFrog posted $387M in revenue, but EPS was -$0.49.
Revenue rose 182% vs. prior year. Gross margin held at 76.4%, but the quarter still lost money on the bottom line.
$387M
revenue
-$0.49
eps
76.4%
gross margin
the number that mattered
76.4% gross margin is the tell. It says the product works, but the company still spends too much below the line.
-
jfrog ltd. is making its debut in the institutional data this week.the israel-based company (headquartered in california) provides a software supply chain platform, allowing organizations to store, update, and manage their software packages (bundles of computer programs or files).
-
jfrog also offers security features for external software development implementation.its customer base spans a variety of industries, including technology, financial services, retail, healthcare, and telecommunications providers. our introductory estimates suggest that revenues probably improved strongly for the full-year 2025, while the bottom line remained firmly in the red.
-
jfrog posted revenues of $137 million for the third quarter, representing a 26% vs. prior year advance.for the same period, a share deficit of $0.14 was narrower than the previous-year figure, but dragged down by elevated operating expenses.
-
based on our model, we look for revenues of $530 million and share losses of $0.65 in 2025.
-
product innovations on the cloud and security fronts ought to underpin long-term revenue growth.as enterprises continue to aggressively push to digitally transform their operations with cloud and ai solutions, enhanced security capabilities at the software level are apt to become increasing important. specifically, the company recently rolled out a shadow ai detection feature within its platform, aimed at closing security gaps that enterprises are currently encountering. in the same breath, customer adoption rates for the enterprise+ subscription (all-in package) are encouraging, which also includes the company’s latest apptrust solution for governance. on balance, by the end of this decade we think the top line can reach $1.2 billion and the company can become profitable.
source: company earnings report, 2026
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What could go wrong
The risk picture here is specific: JFrog has to prove a 76.4% gross-margin software model can produce durable earnings while legal headline risk and competitive pressure stay in the background.
med
shareholder investigations stay unresolved
Two law-firm notices from Sep. 12, 2024 and Oct. 25, 2024 focused on whether JFrog and certain officers or directors engaged in securities fraud or other unlawful business practices.
The direct cost is hard to size from this page. The more immediate issue is headline risk on a stock already carrying a 15 / 100 price stability score.
med
hyperscalers and open-source tools keep the pricing pressure on
The company-specific risk commentary here points to cloud hyperscalers and open-source alternatives as credible threats. That matters because this is still a $532M business, not a platform so dominant it can ignore the market around it.
If that pressure intensifies, the 76.4% gross margin starts mattering less than the company's ability to hold growth and operating margin at the same time.
med
the margin story stalls before earnings really show up
This is the quiet part: JFrog already has software-style gross margin, but net profit margin is only 2.6%, return on capital is 2.5%, and FY2026 EPS is still estimated at -$0.40.
When the top line is $532M and the bottom line is that thin, even a modest growth wobble can hit the multiple harder than you expect.
The company has the gross margin profile investors want. It does not yet have the earnings profile that makes that gross margin feel safe.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
the next print matters more than usual
The page does not show the exact date, but a 45 / 100 predictability score tells you the next report can move the stock fast.
metric
76.4% gross margin versus 2.6% net margin
That gap is the whole puzzle. Software economics are visible. Durable earnings are not.
trend
the path from $532M to the $1B fy2028 estimate
That long-range target implies a lot of growth still ahead. You want scale and improving profitability to show up together.
risk
whether legal noise stays noise
The Sep. and Oct. 2024 investigation notices may end up as headline clutter. Until they clear, they still belong on the screen.
Analyst rankings
earnings predictability
45 / 100
In human-speak: analysts do not view this as a smooth, low-drama earnings story.
risk rank
3
That lands around the middle. Not a bunker stock. Not the wildest name in software either.
price stability
15 / 100
Translation: you are getting growth-stock volatility, not utility-stock sleep quality.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 152 buyers vs. 135 sellers in 3q2025. total institutional holdings: 85.5M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$20
$77
$57
current price
$49
target midpoint · 14% from current · 3-5yr high: $105 (+85% · 17% ann'l return)
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