Summary
JFrog closed FY2025 Q3 with revenue of $136.9 million, up 26% year over year. Gross profit was $106.0 million and gross margin was 77.4%. The company still posted a GAAP operating loss of $21.6 million, and operating margin was negative 15.8%. GAAP net loss was $16.4 million, and diluted EPS was negative $0.14. On a non-GAAP basis, operating income was $25.6 million and diluted EPS was $0.22. Non-GAAP gross margin was 83.9%, and non-GAAP operating margin was 18.7%. Non-GAAP net income was $27.5 million. Operating cash flow was $30.2 million, while free cash flow was $28.8 million. Capital expenditures were $1.3 million.
Net dollar retention rate for the trailing four quarters was 118%. Customers with ARR above $1 million reached 71, up from 46. Customers with ARR above $100,000 reached 1,121, compared with 966. Enterprise+ subscriptions accounted for 56% of total revenue, versus 50% a year earlier. Remaining performance obligations were $508 million, up 46.8% year over year. Deferred revenue was $281.0 million, up 25.5% year over year. Product releases included AppTrust for governance and AI Catalog for secure AI model delivery, plus Fly, an agentic repository. The company also announced the appointment of Sigal Zarmi to its Board, effective November 1, 2025.
Guidance points to fourth quarter 2025 revenue between $136.5 million and $138.5 million. Non-GAAP operating income is expected between $21 million and $22 million. Non-GAAP net income per diluted share is guided to $0.18 to $0.20, assuming about 125 million weighted average diluted shares. For the full fiscal year 2025, revenue is guided to $523 million to $525 million. Non-GAAP operating income is guided to $87.3 million to $88.3 million. Non-GAAP net income per diluted share is guided to $0.78 to $0.80, assuming about 122 million weighted average diluted shares. The fourth quarter outlook is for the next quarter, while the fiscal year outlook covers the full year. Year to date, revenue was $386.5 million, up 23.7%. The year-to-date operating loss was $70.5 million, and the year-to-date net loss was $56.6 million. Year-to-date diluted EPS was negative $0.49. Year-to-date operating cash flow was $95.0 million, up 53.8%. Year-to-date gross margin was 76.4%. Year-to-date operating margin was negative 18.2%.
The quarter shows a clear split between the income statement and cash generation. Revenue growth and gross margin expansion helped narrow the quarterly GAAP operating loss. Yet the company remains unprofitable on a GAAP basis, and year-to-date losses widened from the prior-year period. The gap between GAAP and non-GAAP results remains wide. Risks include the company's history of losses, managing rapid growth, retaining and upgrading existing customers, attracting new customers, expanding sales and marketing, integrating acquisitions, and responding to security breaches or product vulnerabilities. The Middle East conflict remains a background risk. A ceasefire was reached in October 2025, but the situation is volatile. JFrog also has an additional $110.0 million operating lease commitment for a facility that has not commenced, plus an $8.1 million lease extension in October 2025. Those commitments will affect future cash needs. The company also faces competition and macroeconomic uncertainty.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2025 | Q2 FY2025 | QoQ | Q3 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $136.9M | $127.2M | +7.6% | $109.1M | +25.5% |
| Gross profit | $106.0M | $97.0M | +9.3% | $81.8M | +29.6% |
| Gross margin | 77.4% | 76.3% | +1.2 pp | 75.0% | +2.5 pp |
| Research & development | $51.2M | $47.4M | +7.9% | $43.0M | +19.0% |
| Sales & marketing | $56.0M | $55.4M | +1.0% | $51.0M | +9.8% |
| General & administrative | $20.5M | $20.1M | +1.6% | $17.7M | +15.4% |
| Total operating expenses | $127.6M | $123.0M | +3.7% | $111.7M | +14.2% |
| Operating income (loss) | -$21.6M | -$26.0M | +16.9% | -$29.9M | +27.8% |
| Operating margin | -15.8% | -20.4% | +4.6 pp | -27.4% | +11.7 pp |
| Net income (loss) | -$16.4M | -$21.7M | +24.2% | -$22.9M | +28.4% |
| Net margin | -12.0% | -17.0% | +5.0 pp | -21.0% | +9.0 pp |
| Diluted EPS | -$0.14 | -$0.19 | +$0.05 | -$0.21 | +$0.07 |
| Customers | 1,018 | 1,018 | ±0.0% | 886 | +14.9% |
| Net retention rate | 118.0% | 118.0% | ±0.0 pp | 117.0% | +1.0 pp |
Risks
The company had a net loss of $56.6 million for the nine months ended September 30, 2025, compared with $46.0 million in the prior-year period, and an accumulated deficit of $359.7 million as of December 31, 2024. It may not achieve profitability on a consistent basis.
A material part of research and development and more than half of employees and consultants are located in Israel. The October 2025 ceasefire between Israel and Hamas remains volatile, and employees may be called for military service, which could disrupt operations.
The company competes with in-house solutions, DevOps vendors, cloud providers such as AWS, Microsoft Azure, and Google Cloud, and security point solutions. Some competitors have greater financial, technical, and other resources and may bundle or discount competing offerings.
JFrog Artifactory is at the center of the platform and all subscriptions. If demand for Artifactory declines due to malfunction, inferior performance, or increased competition, demand for other products would also decline.
SaaS subscriptions contributed 46% and 45% of total revenue for the three and nine months ended September 30, 2025, respectively, compared to 39% and 38% for the corresponding periods in 2024. The nine-month gross margin decreased to 76.4% from 77.7%, primarily due to this mix shift and intangible amortization.
Although total revenues grew 26% for the quarter and 24% for the nine months ended September 30, 2025, the filing states it expects its revenue growth rate to decline in future periods due to greater market penetration, increased competition, market consolidation, and slowing demand.
AI and machine learning may change the way the industry operates, and competitors or other third parties may incorporate AI technology into their products more quickly or more successfully. The EU AI Act adds compliance obligations with fines up to EUR 35 million or 7% of global income.
The company has experienced longer sales cycles for certain products and enhanced budget scrutiny by customers and expects these challenges to continue given the current macroeconomic environment, which could delay revenue recognition.
The September 19, 2025 Proclamation imposing a $100,000 fee for certain H-1B visas significantly increases the cost of recruiting new talent from outside the U.S. and reduces the talent pool for U.S. positions, especially for technical roles.
A limited-functionality version of JFrog Artifactory is licensed under AGPL, which allows commercial licensees to use it internally for free or provide it for free to compete. This could reduce demand for paid products and put pricing pressure on subscriptions.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Cloud Revenue
Non-GAAP Gross Margin
Customers with ARR > $100K
Customers with ARR > $1M
Cloud Revenue as % of Total Revenue
Remaining Performance Obligations (RPO)
Enterprise+ Subscription as % of Total Revenue
Summary, forecast, risks and KPIs are extracted from JFrog Ltd's SEC filings for Q3 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.