JFrog’s fourth-quarter performance was met with a positive market reaction, underpinned by robust demand for its software supply chain platform and notable expansion in both cloud and security segments. Management attributed this growth to increased adoption of JFrog Advanced Security and Curation, as well as deeper industry partnerships. CEO Shlomi Ben Haim emphasized that the company’s evolution into a unified platform for managing and securing binaries is resonating with enterprise customers, particularly as software creation accelerates in the era of artificial intelligence.
Is now the time to buy FROG? Find out in our full research report (it’s free for active Edge members).
JFrog (FROG) Q4 CY2025 Highlights:
- Revenue: $145.3 million vs analyst estimates of $138.1 million (25.2% year-on-year growth, 5.2% beat)
- Adjusted EPS: $0.22 vs analyst estimates of $0.19 (16.2% beat)
- Adjusted Operating Income: $25.75 million vs analyst estimates of $21.82 million (17.7% margin, 18% beat)
- Revenue Guidance for Q1 CY2026 is $147 million at the midpoint, above analyst estimates of $143.6 million
- Adjusted EPS guidance for the upcoming financial year 2026 is $0.90 at the midpoint, beating analyst estimates by 1.8%
- Operating Margin: -14.7%, up from -21.9% in the same quarter last year
- Customers: 1,168 customers paying more than $100,000 annually
- Net Revenue Retention Rate: 119%, up from 118% in the previous quarter
- Annual Recurring Revenue: $580.4 million (21.8% year-on-year growth, beat)
- Billings: $178.5 million at quarter end, up 22.2% year on year
- Market Capitalization: $5.70 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From JFrog’s Q4 Earnings Call
- Oscar Savedra (Morgan Stanley) asked about the ongoing focus on higher-value enterprise customers and how this will impact the customer count. CEO Shlomi Ben Haim explained that the strategy is to prioritize large enterprise accounts, even if it means letting go of lower-value customers, as this aligns with the company’s commitment to durable growth.
- Ravi Shankar (UBS) questioned the impact of persistent software supply chain security incidents on long-term demand. Ben Haim responded that such threats are now structural, not episodic, and will continue to drive consistent adoption of JFrog’s security products.
- Michael Cikos (Needham) sought clarification on the correlation between large-scale security incidents and revenue opportunities. Ben Haim detailed that growth is more closely tied to upsell opportunities within the existing enterprise base, new enterprise wins, and expanded usage within current customers, rather than incident-driven spikes.
- William Miller Jump (Truist) asked if customers leveraging AI coding agents are driving higher consumption. Ben Haim confirmed an ongoing surge in binary creation, noting that AI agents are amplifying developer productivity and increasing the demand for JFrog’s core infrastructure.
- Mark Charles Cash (Raymond James) inquired about governance and regulatory pressures with the adoption of AI tools. Ben Haim described the company’s AppTrust solution as addressing these governance bottlenecks by providing a single source of truth for both human and agent-generated code.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will monitor (1) the pace of security suite adoption among both existing and new enterprise customers, (2) the conversion rate of increased binary and model creation—especially from AI agents—into higher annual commitments, and (3) the impact of new partnerships, such as those with NVIDIA and Hugging Face, on customer acquisition and platform usage. Additional attention will be given to JFrog’s execution on disciplined investment and its ability to manage potential currency headwinds.
JFrog currently trades at $47.41, down from $53.30 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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