GICS Sector : Technology
JFrog Ltd.provides DevOps platform in the United States.The company's products include JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages at any scale; JFrog Pipelines, an integration/continuous delivery tool for automating and orchestrating the movement of software packages; JFrog Xray, which scan JFrog Artifactory; and JFrog Distribution that provides software package distribution with enterprise-grade performance.
JFrog reported a robust third quarter of 2025, with total revenue reaching $136.9 million, a 26% year-over-year increase. The company's cloud revenue grew 50% to $63.4 million, representing 46% of total revenues. The operating margin was 18.7%, demonstrating JFrog's ongoing discipline in managing expenses and making strategic investments. The actual EPS came out at $0.22, beating estimates of $0.16.
Publication Date: Nov -16
JFrog's revenue growth was driven by strong cloud adoption, with 50% year-over-year growth in cloud revenue. The company's hybrid and multi-cloud offerings have positioned it well to capture expansion due to AI, whether in the cloud or on-prem. As Shlomi Ben Haim, CEO of JFrog, noted, "Our hybrid and multi-cloud offerings differentiate JFrog and uniquely position us to capture expansion due to AI." This is reflected in the company's growing customer base, with 71 customers now generating over $1 million in annual revenue, a 54% year-over-year increase.
Looking at JFrog's valuation metrics, the company's P/S Ratio stands at 13.91, indicating that investors are pricing in significant revenue growth. The EV/EBITDA ratio is -119.45, suggesting that the company's EBITDA is not yet positive. However, with a Free Cash Flow Yield of 2.02%, JFrog is generating cash from its operations. Analysts estimate next year's revenue growth at 16.5%, which may be challenging to achieve given the company's current growth trajectory.
JFrog's customers are increasingly adopting the company's security solutions, with a growing pipeline of security wins. The company's net dollar retention rate remains stable at 118%, indicating strong customer loyalty. As Shlomi Haim noted, "The sustainability of these budgets is a key area of focus." With a growing focus on securing the software supply chain for AI models and continuous packages, JFrog is well-positioned to capture new budgets and drive growth.
JFrog's Q4 guidance is cautious, with revenue expected to be in the range of $143 million to $147 million, representing a year-over-year growth of 25% to 28%. The company's updated 2025 guidance range suggests sustained contributions from the JFrog Security core, steady expansion of customer commitments, and adoption of the full JFrog platform. As Ed Grabscheid, CFO of JFrog, noted, "We continue to derisk our outlook by excluding our largest opportunities given the uncertainty regarding the timing of certain large customer deployments."
JFrog Ltd. (FROG) Presents at UBS Global Technology and AI Conference 2025 Transcript
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Nov -24
JFrog to Present at Upcoming Investor Conferences
Nov -20
JFrog Exposes Enterprise AI Blind Spots, Driving Centralized Software Supply Chain Governance
Nov -13
JFrog (FROG) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
Nov -08
Overlooked Stock: FROG Leaps to 4-Year High
Nov -07
Why JFrog Rallied Over 25%, Even on a Bad Day for the Nasdaq
Nov -07
JFrog (FROG) Is Up 24% Today: 3 Things We Learned From Earnings
Nov -07
JFrog's subscription growth of 18.97% is driven by increasing adoption of cloud-native and DevOps practices, rising demand for efficient software development and deployment, and the company's expanding presence in the global market, particularly in the Asia-Pacific region. Additionally, JFrog's innovative products, such as Artifactory and Xray, are gaining traction among large enterprises and Fortune 500 companies.
JFrog's 14.4% growth in Software-as-a-Service is driven by increasing adoption of cloud-native applications, DevOps practices, and digital transformation. The company's platform provides a unified solution for managing and securing software packages, appealing to enterprises seeking efficient and secure software development. Additionally, JFrog's expansion into new markets, strategic partnerships, and continuous innovation in artificial intelligence and machine learning capabilities further fuel growth.
JFrog's 14.07% growth driven by increasing adoption of DevOps and digital transformation, rising demand for efficient software release management, and expansion into new markets and geographies, fueled by strategic partnerships and innovative products such as Artifactory and Xray.
A universal binary repository manager that integrates with your existing ecosystem to provide a single source of truth for all your binaries, including Docker images, npm packages, and more.
A fully-featured, cloud-based package repository that provides a single source of truth for all your software packages, including npm, Docker, and more.
A universal artifact analysis platform that provides deep insights into your software components, including open-source and third-party dependencies.
A cloud-based, continuous integration and continuous deployment (CI/CD) platform that automates and streamlines your software delivery process.
A centralized management platform that provides real-time visibility and control over your JFrog products and services.
JFrog's products are highly specialized and customized, making it difficult for substitutes to emerge.
While JFrog's customers have some bargaining power due to the availability of alternative solutions, the company's strong brand reputation and high-quality products mitigate this power.
JFrog has a diverse supplier base, and its suppliers have limited bargaining power due to the company's strong market position.
While there are barriers to entry in the DevOps and software development markets, new entrants can still emerge, especially with the rise of open-source alternatives.
The DevOps and software development markets are highly competitive, with several established players and new entrants vying for market share.
| Value | |
|---|---|
| Debt Weight | 3.17% |
| Debt Cost | 3.95% |
| Equity Weight | 96.83% |
| Equity Cost | 8.98% |
| WACC | 8.82% |
| Leverage | 3.27% |
Value: 4.5
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