FROG earnings analysis
What we found in FROG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
JFrog delivered strong Q2 growth, with revenue up 29% year over year to $163.772M, materially narrower operating losses, and GAAP diluted loss per share improving to $0.03 from $0.19. Customer expansion, a 121% net dollar retention rate, and six-month free cash flow of $91.035M support the positive operating trend. Offsetting concerns include continued GAAP losses, rapidly rising SaaS mix, substantial lease and hosting commitments, and heightened AI, privacy, and geopolitical risks.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth remained strong
- Revenue was $163.772M, up $36.552M, or 29%, year over year, and approximately 6% sequentially from $154M in Q1 2026. Existing customers contributed approximately $30.3M of year-over-year growth, with the remainder from new customers.
- High gross margin with SaaS mix shift
- Gross profit was $127.620M and gross margin was approximately 77.9%, up from 76.3% in Q2 2025 but slightly below 78.2% in Q1 2026. SaaS represented 53% of quarterly revenue versus 45% a year earlier.
- Operating leverage improved
- Operating loss narrowed to $13.249M, or approximately 8.1% of revenue, from $25.971M, or 20.4%, in Q2 2025. The improvement reflects revenue growth and operating leverage despite higher personnel and software costs.
- GAAP loss narrowed materially
- GAAP diluted loss per share improved to $0.03 from $0.19 in Q2 2025 and $0.07 in Q1 2026. Net loss declined to $4.165M from $21.675M year over year.
- Enterprise customer expansion
- Customer expansion metrics were positive: net dollar retention was 121% versus 118% a year earlier; customers with ARR of at least $100,000 increased to 1,291 from 1,168 at December 31, 2025, while customers with ARR of at least $1.0M increased to 97 from 74.
- Cash generation accelerated
- Six-month operating cash flow increased to $95.412M from $64.877M, while free cash flow increased to $91.035M from $63.603M. Capital expenditures were $4.377M, or approximately 1.4% of six-month revenue.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Profitability remains unproven
- The company remains loss-making, with a six-month net loss of $12.432M and accumulated deficit of $443.919M as of June 30, 2026. Management expects research and development, sales and marketing, and general and administrative expenses to increase as it invests in growth.
- SaaS mix may pressure margins
- SaaS revenue increased to $87.488M, or 53% of quarterly revenue, from $57.102M, or 45%, a year earlier. Management states that SaaS offerings have lower gross margins than self-managed offerings, creating mix-related margin risk as SaaS grows.
- Large future contractual commitments
- The company had $264.969M of non-cancelable purchase obligations, primarily for hosting and software services, plus $17.247M of operating lease obligations and an additional $122.2M office lease commitment beginning in July 2026.
- AI regulation and security exposure
- The filing highlights expanded AI-related risks, including potential EU AI Act fines of up to €35M or 7% of global annual turnover, and higher costs or liability from AI model use, agentic workflows, and vulnerabilities in AI-generated code.
- Escalating Middle East conflict
- Geopolitical risk has intensified: the filing describes a February 28, 2026 offensive involving Israel and the U.S. against Iran, renewed Hezbollah attacks, and continued mutual attacks after the April 8 ceasefire. Certain employees and consultants have been called into military service, although no material operating impact had occurred as of the filing date.
- Privacy and cross-border data regulation
- Israeli Privacy Protection Law Amendment 13 became effective August 14, 2025 and expanded investigative authority and monetary sanctions that can reach millions of NIS. The company also faces U.S. restrictions on certain bulk sensitive-data transfers involving countries of concern, including China where it has limited operations.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.03
- Gross margin
- 77.9%
- Operating margin
- -8.1%
- Segment
- One operating/reportable segment: $163.772M revenue; self-managed subscription $76.284M, SaaS $87.488M, and license $8.227M.
What they said about what is next.
The 10-Q does not provide explicit numeric revenue or EPS guidance. Management expects net dollar retention to remain relatively stable with minor fluctuations around 121% and states that cash, cash equivalents, short-term investments, and operating cash flow will be sufficient for the next 12 months and long term.
The filing reads better than the one before it.
What came before.
- 10-Q · May 8, 2026
- JFrog reported strong Q1 2026 earnings with revenue of $154 million and EPS of $0.27, both exceeding estimates. The company experienced 26% year-over-year revenue growth, primarily driven by increasing customer adoption…
- 10-K · February 13, 2026
- JFrog positions the JFrog Platform as a unified system-of-record for the software supply chain in an AI-first world, citing partnerships (e.g., Hugging Face) and a JFrog Catalog of over 4 million unique packages.…
- 10-Q · November 7, 2025
- JFrog reported Q3 revenue of $136,907,000, up from $109,056,000 year-over-year, with gross margin expanding to 77.4% and operating loss narrowing to $21,590,000. Net loss per share improved to $(0.14) from $(0.21) in Q3…
- 10-Q · August 8, 2025
- JFrog reported quarterly revenue of $127,220,000 (Q2 2025), up 23.5% year-over-year from $103,043,000 and up about $4.8M sequentially (Q1 2025 implied revenue $122,407,000). Gross margin expanded to ~76.3% (gross profit…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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