
JFrog Ltd.

FROG (JFrog Ltd.) trades at 6.6x EV/Revenue — reasonably priced for a devops/software supply chain company with best-in-class gross margins (76%) and healthy growth (+19% YoY). The business is pre-profit. Forward PE of 47x.
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JFrog operates a cloud-native software development platform that manages the entire software supply chain — from code creation to deployment. They help developers and enterprises securely store, manage, and distribute software packages while ensuring security throughout the development process. The company generates revenue through subscription-based software licenses for both cloud-hosted and self-managed solutions.
JFrog delivered 24% revenue growth in 2025 to $532M, with cloud revenue accelerating 45% to represent 46% of total revenue. The company is capitalizing on two key trends: increased focus on software supply chain security following high-profile attacks, and the explosion of AI-generated code requiring sophisticated management infrastructure. Security products are becoming a meaningful growth driver alongside continued cloud migration.
JFrog demonstrates strong profitability with 83.7% gross margins and generated $142M in free cash flow (27% margin) in 2025. The company achieved 17.7% operating margins while investing in growth, and expects to maintain gross margins in the 82-83% range. With $704M in cash and consistent profitability, the company has a strong financial foundation for continued investment.
JFrog has established itself as a leading platform in the DevOps toolchain with over 7,400 customers including 74 paying over $1M annually. Their comprehensive platform approach — spanning artifact management, security, and now AI/MLOps — creates switching costs and positions them well against point solutions. The company's early investment in security capabilities differentiates them in an increasingly security-conscious market.
Q4 2025 results exceeded expectations with 25% revenue growth and strong cloud acceleration, driven by larger annual commitments and security product adoption. The company beat revenue estimates and EPS guidance while demonstrating continued momentum in large customer growth (42% increase in $1M+ customers). Management's positioning around AI infrastructure and security resonated positively with investors.
Analysts appear constructive on JFrog's positioning in high-growth markets (AI, security) while monitoring the expected growth deceleration in 2026. The consensus estimates suggest revenue growth of 19.4% in 2026 with continued margin expansion and EPS growth to $0.90-$1.09. The debate likely centers on whether security and AI opportunities can offset broader DevOps market maturation.
JFrog is successfully evolving from a DevOps infrastructure company to a comprehensive software supply chain security platform, with AI tailwinds providing additional momentum just as growth from their core business begins to moderate.
| '25E | '26E | '27E | '28E | |
|---|---|---|---|---|
| Revenue | $525M | $627M | $732M | $882M |
| Growth | — | +19% | +17% | +20% |
| EBITDA | — | $118M | $143M | — |
| Growth | — | +22% | ||
| FCF | $142M | $74M | $92M | $-3M |
| Margin | 27% | 12% |
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| 13% |
| -0% |
| EPS (PF) | $0.79 | $0.90 | $1.09 | $1.37 |
| Growth | — | +13% | +22% | +25% |
| PF Op Inc | — | $278M | $334M | — |