Summary
JFrog closed fiscal 2025 with fourth-quarter revenue of $145.3 million, up 25% year over year. Fiscal 2025 revenue reached $531.8 million, up 24%. The top line benefited from cloud adoption. Fourth-quarter cloud revenue was $70.2 million, up 42%, and represented 48% of total revenue, compared with 43% a year earlier. Fiscal 2025 cloud revenue was $243.3 million, up 45%. The company ended the year with remaining performance obligations of $565.7 million, up 40% year over year, and deferred revenue of $342.0 million, up 24.7%. Those balances point to bookings momentum, but they also raise execution expectations for future periods.
Profitability remains mixed. Fourth-quarter GAAP gross profit was $113.1 million, and GAAP gross margin was 77.9%, up 2.4 percentage points from 75.4%. Full-year GAAP gross profit was $408.4 million, with GAAP gross margin of 76.8%, down 0.3 percentage points from 77.1%. Fourth-quarter GAAP operating loss was $21.3 million, an improvement from a $25.4 million loss a year earlier. Fourth-quarter GAAP operating margin was -14.7%, up 7.2 percentage points. For the full year, GAAP operating loss was $91.9 million, slightly wider than a $91.1 million loss. Full-year GAAP operating margin was -17.3%, up 4.0 percentage points. Fourth-quarter GAAP net loss was $15.2 million, narrower than a $23.2 million loss. Full-year GAAP net loss was $71.8 million, wider than a $69.2 million loss. Full-year diluted EPS was -$0.62, compared with -$0.63.
Cash generation and customer metrics were solid. Fourth-quarter operating cash flow was $50.7 million, up 3.2%, and full-year operating cash flow was $145.7 million, up 31.4%. Capital expenditures were $0.84 million in the fourth quarter and $3.46 million for the full year. Free cash flow, a non-GAAP measure, was $49.9 million in the fourth quarter and $142.3 million for fiscal 2025. Cash, cash equivalents and investments were $704.4 million as of December 31, 2025. Net dollar retention for the trailing four quarters was 119%. Customers with ARR greater than $1 million rose to 74 from 52, and customers with ARR greater than $100,000 rose to 1,168 from 1,018. Enterprise+ represented 57% of fourth-quarter revenue versus 54% a year earlier. The customer base was about 6,600 organizations, including approximately 83% of the Fortune 100. The 10 largest customers represented about 9% of total revenue, and 40% of revenue came from outside the United States.
Guidance points to continued growth. For the first quarter of 2026, the outlook is revenue between $146 million and $148 million, non-GAAP operating income between $25 million and $26 million, and non-GAAP net income per diluted share between $0.20 and $0.22, assuming about 127 million weighted average diluted shares. For full fiscal 2026, the outlook is revenue between $623 million and $628 million, non-GAAP operating income between $106 million and $108 million, and non-GAAP net income per diluted share between $0.88 and $0.92, assuming about 128 million weighted average diluted shares. Risks include a history of losses, challenges from rapid growth, a security breach or product vulnerability, competition, and macroeconomic uncertainty. The company also has purchase obligations of $310.5 million and operating lease obligations of $13.6 million as of December 31, 2025, plus an additional $114.0 million operating lease commitment for a facility that has not commenced. Those commitments and the need to integrate acquisitions and expand sales capacity are key items to watch.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $145.3M | $136.9M | +6.1% | $116.1M | +25.2% |
| Gross profit | $113.1M | $106.0M | +6.7% | $87.6M | +29.2% |
| Gross margin | 77.9% | 77.4% | +0.4 pp | 75.4% | +2.4 pp |
| Research & development | $53.2M | $51.2M | +3.9% | $44.9M | +18.4% |
| Sales & marketing | $59.7M | $56.0M | +6.7% | $50.0M | +19.5% |
| General & administrative | $21.6M | $20.5M | +5.4% | $18.1M | +19.3% |
| Total operating expenses | $134.5M | $127.6M | +5.4% | $113.0M | +19.0% |
| Operating income (loss) | -$21.3M | -$21.6M | +1.2% | -$25.4M | +16.1% |
| Operating margin | -14.7% | -15.8% | +1.1 pp | -21.9% | +7.2 pp |
| Net income (loss) | -$15.2M | -$16.4M | +7.4% | -$23.2M | +34.4% |
| Net margin | -10.5% | -12.0% | +1.5 pp | -20.0% | +9.5 pp |
| Diluted EPS | -$0.13 | -$0.14 | +$0.01 | -$0.21 | +$0.08 |
| Customers | 1,018 | 1,018 | ±0.0% | 886 | +14.9% |
| Net retention rate | 119.0% | 118.0% | +1.0 pp | 116.0% | +3.0 pp |
Risks
JFrog faces rapid AI/MLOps competition and execution risk as it expands into agentic security, AI Catalog, and AppTrust. The filing notes competitors may incorporate AI technology more quickly or successfully, and third-party AI model suppliers could terminate or raise prices.
Adverse macroeconomic conditions, tariffs, and non-tariff trade barriers could reduce enterprise IT spending and lengthen sales cycles. The filing states JFrog has experienced longer sales cycles and enhanced budget scrutiny and expects these challenges to continue.
JFrog competes with in-house solutions, DevOps vendors like GitHub and GitLab, cloud providers AWS, Azure, and Google Cloud, and security point solutions. Some competitors have announced acquisition plans, and industry consolidation could heighten competition from better-resourced companies.
JFrog incurred a net loss of $71.8 million for FY2025, and the year-to-date net loss widened compared with FY2024. The company had an accumulated deficit of $431.5 million as of December 31, 2025, and expects operating expenses to increase substantially.
A material part of R&D and more than half of employees and consultants are in Israel, exposing operations to regional conflict, reserve duty absences, and boycotts. The filing notes the October 2025 ceasefire but says the situation remains volatile and may escalate again.
New AI laws, including the EU AI Act with fines up to 35 million euros or 7% of global income, may require changes to JFrog's AI features and increase operating costs. The company also cites the European Commission's Digital Omnibus Proposal as an early-stage amendment.
Sales cycles are unpredictable, especially for large customers, and large individual sales have occurred in later quarters or not at all. Because expenses are relatively fixed in the short term, revenue shortfalls in a quarter could harm results.
SaaS subscriptions contributed 46% of total revenue for FY2025, up from 39% for FY2024, and SaaS offerings have lower gross margin than self-managed. A continued shift in mix could harm gross margin and results.
JFrog depends on key employees and faces intense competition for engineers, security experts, and support staff. Headcount grew from approximately 1,600 at December 31, 2024 to approximately 1,800 at December 31, 2025, increasing integration and retention demands.
JFrog outsources substantially all cloud infrastructure to public cloud providers and depends on AWS, Microsoft Azure, and Google Cloud, which are also potential competitors. Service interruptions, capacity limits, or termination of agreements could disrupt SaaS delivery and increase costs.
Real or perceived defects, security vulnerabilities, or performance failures in the platform could lead to liability, customer loss, and reputational harm. As products expand into more sensitive and mission-critical uses, contractual liability and scrutiny may increase.
JFrog has acquired Qwak and may pursue more acquisitions, which could divert management attention, dilute shareholders, or fail to achieve synergies. Integration of Qwak contributed to higher intangible amortization and share-based compensation.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Cloud Revenue
Customers with ARR > $100K
Customers with ARR > $1M
Net Dollar Retention
Remaining Performance Obligations (RPO)
Total Customers
Enterprise+ Subscription as % of Revenue
Summary, forecast, risks and KPIs are extracted from JFrog Ltd's SEC filings for Q4 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.