JFrog Ltd

JFrog operates in the DevOps, DevSecOps, DevGovOps, and AI/MLOps markets, providing a unified platform for managing and securing the software supply chain in the Artificial Intelligence era. The company's platform, the JFrog Platform, allows organizations to unify development speed, volume, security, governance, and delivery of software applications across hybrid teams. The markets are maturing and evolving, with the convergence of DevOps, DevSecOps, DevGovOps, and AI/MLOps practices exposing new challenges in process, security, governance, and compliance for software delivery. The proliferation of open source software, AI and ML models, and technologies such as Agentic AI and Generative AI enable organizations to produce software at an increasing rate, but also introduce complexity through disparate services, malicious packages, security vulnerabilities, and unchecked deployment across hybrid and multi-cloud environments.

The industry is highly competitive, fragmented, and subject to rapid technological change. JFrog competes on factors including the ability to provide an end-to-end, unified platform, breadth of technologies supported, total cost of ownership, and brand recognition. Named competitors include Microsoft's GitHub, GitLab, Cloudsmith, Sonatype, Aqua Security, Snyk, Black Duck, and cloud providers such as Amazon Web Services, Microsoft Azure, and Alphabet Inc.'s Google Cloud, which may compete with a subset of JFrog functionality while also being partners. Many competitors have greater financial, technical, and other resources, larger sales forces, and broader distribution networks. As of December 31, 2025, JFrog had a global customer base of approximately 6,600 organizations, including approximately 83% of Fortune 100 organizations, and approximately 31% of the Forbes Global 2000 were customers.

JFrog generates revenue from the sale of subscriptions to customers through a multi-tiered subscription structure including JFrog Pro, JFrog Pro X, JFrog Enterprise X, and JFrog Enterprise Plus. The business model combines bottom-up and top-down go-to-market approaches, with free trials and open source software options providing low-friction entry points. Revenue is derived from self-managed subscriptions, where customers deploy and manage products, and SaaS subscriptions, which are JFrog-managed public cloud deployments. Subscription revenue is recognized ratably over the subscription term, while license revenue from self-managed subscriptions is recognized upfront. The company's net dollar retention rate was 119% as of December 31, 2025, highlighting expansion within the existing customer base.

The JFrog Platform includes several solutions. JFrog Artifactory is the core universal package management solution, serving as the single source of truth for software artifacts and supporting all major package technologies. JFrog Curation functions as a guardian outside the software development pipeline, controlling the admission of packages and AI models into an organization, relying on the JFrog Catalog of open-source package information with over 4 million unique packages. JFrog Xray continuously scans JFrog Artifactory to secure software packages, analyzing them at a binary level to uncover vulnerabilities and license compliance issues. JFrog Advanced Security offers in-depth binary and contextual scanning, including SAST, secrets detection, and Infrastructure as Code scanning. JFrog Runtime Security provides insight into runtime environments like Kubernetes clusters. JFrog Distribution provides reliable software package distribution. JFrog Connect is a connected device management solution for IoT device fleets. JFrog ML is a platform-integrated solution for data science and AI/MLOps teams. JFrog AI Catalog, offered as an extension of JFrog Curation, allows companies to secure, govern, and deploy AI technologies. JFrog AppTrust provides application risk governance for DevGovOps requirements. Revenue from Enterprise Plus subscriptions represented approximately 56% of total revenue for the year ended December 31, 2025, compared to approximately 51% for the year ended December 31, 2024.

In 2025, JFrog released multiple platform features across DevOps, DevSecOps, DevGovOps, and AI/MLOps, including agentic security capabilities, AI Catalog, and JFrog AppTrust for DevGovOps and compliance. The company also released new subscription bundles to align with emerging market needs around application security and AI development. In July 2024, JFrog acquired Qwak, a privately-held AI development platform company, for total consideration including cash and ordinary shares. The company also has a partnership with Hugging Face for in-workflow adoption of AI and ML models. As of December 31, 2025, JFrog had approximately 1,800 employees globally, including approximately 950 in Israel and approximately 400 in the United States.

For the year ended December 31, 2025, JFrog generated total revenue of $531.8 million, representing a year-over-year growth rate of 24% compared to $428.5 million in 2024. The company reported a net loss of $71.8 million for 2025, compared to a net loss of $69.2 million in 2024. Gross margin remained consistent at 77% for both years. The company generated positive operating cash flow of $145.7 million and free cash flow of $142.3 million in 2025. As of December 31, 2025, JFrog had cash, cash equivalents, and short-term investments of $704.4 million and an accumulated deficit of $431.5 million.

A primary growth vector is extending technology leadership through continued investment in building new capabilities and extending the platform to bring software supply chain management to broader use cases, including maturation of security solutions for DevSecOps, expansion of AI-enabling technologies including MLOps, and continuing to enable DevOps solutions for distributing to the edge. The company also intends to pursue acquiring new technologies to complement organic innovation efforts. Another key growth vector is expanding within the existing customer base, as demonstrated by a net dollar retention rate of 119% as of December 31, 2025, highlighting the increasing value of products to customers. The company intends to continue expanding its strategic sales team to identify new use cases and drive expansion and standardization on the JFrog Platform.

A further growth vector is acquiring new customers through free trial subscription options and the open source version of JFrog Artifactory, which increase familiarity and allow for low-friction product adoption. AI-powered and MLOps functionality may expose JFrog solutions to new audiences such as AI/machine learning engineers and data scientists, while DevGovOps functionality may allow penetration into high-budget departments within legal, compliance, and governance organizations. The company also intends to continue expanding regionally as AI, DevOps, and DevSecOps practices are increasingly adopted around the world. Additionally, JFrog plans to expand and develop its technology partnership ecosystem, including channel and alliance partners and cloud providers, to grow market presence and drive greater sales efficiency.

Management expects cost of subscription and SaaS revenue to increase in absolute dollars as subscription and SaaS revenue increases. Research and development expenses are expected to continue to increase as the company increases headcount to further strengthen and enhance products and invest in software development. Sales and marketing expenses are planned to increase over the foreseeable future as the company continues to hire additional personnel and invest in sales and marketing programs. General and administrative expenses are expected to increase to support the growth of the business. The company anticipates that operating expenses will increase substantially in the foreseeable future as it continues to enhance products, broaden the customer base, expand sales and marketing activities, and continue to develop technology.

The company expects to continue to invest in research and development capabilities to extend the platform and products. JFrog intends to continue to expand its strategic sales team and invest in customer support, research and development, and sales and marketing. The company also plans to continue to expand its channel strategy throughout the world, with a focus on emerging markets and localized buying patterns. As of December 31, 2025, JFrog had approximately 1,800 employees globally, and the company expects headcount to continue to grow.

The company's principal uses of cash have been funding operations, investing in capital expenditures, and business and asset acquisitions. As of December 31, 2025, JFrog had cash, cash equivalents, and short-term investments of $704.4 million. The company believes existing cash, cash equivalents, and short-term investments, together with cash provided by operations, will be sufficient to meet needs for the next 12 months and in the long-term. Future capital requirements will depend on factors including revenue growth rate, subscription renewal activity, and the timing and extent of spending to support sales, marketing, and research and development efforts. The company may in the future enter into arrangements to acquire or invest in complementary businesses, services, and technologies.

Management has explicitly flagged that the markets for JFrog's products are maturing and may evolve more slowly or differently than expected, which could affect customer adoption and demand. The company also notes that unfavorable economic conditions, including inflationary trends, slower growth or recession, changes to fiscal and monetary policies, higher interest rates, currency fluctuations, and adverse changes to global trade relationships including newly imposed tariffs and non-tariff trade barriers, could adversely impact enterprise spending and negatively affect demand for products. The company has experienced longer sales cycles for certain products and enhanced budget scrutiny by customers due to the current macroeconomic environment.

The company faces structural headwinds from the regional conflict in the Middle East, the war between Russia and Ukraine, and other areas of geopolitical tension, which could cause disruptions in business or the business of partners and customers. As of December 31, 2025, approximately 950 employees were located in Israel, and the company's research and development activities are concentrated there. The company notes that military reservists in Israel are expected to perform long reserve duty service, which could further impact operations. Additionally, the company is exposed to fluctuations in currency exchange rates, particularly the NIS against the U.S. dollar, as a significant portion of headcount-related expenses are denominated in NIS.

A material risk is the company's history of losses and inability to achieve profitability on a consistent basis, with net losses of $71.8 million ¹, $69.2 million ², and $61.3 million ³ for the years ended December 31, 2025, 2024, and 2023 respectively, and an accumulated deficit of $431.5 million ⁴ as of December 31, 2025. The company's significant operations in Israel expose it to risks from regional conflict, with approximately 950 employees located in Israel as of December 31, 2025, and the potential for employee absences due to military reserve duty. The company faces intense competition from larger competitors with greater financial and technical resources, including Microsoft's GitHub, GitLab, Sonatype, and cloud providers like AWS, Azure, and Google Cloud, which could lead to pricing pressure and loss of market share. A breach of security measures or unauthorized access to proprietary data could result in significant liabilities, as the company collects and processes sensitive information, and has experienced vulnerabilities in the past. The company's reliance on third-party public cloud providers for its SaaS offerings creates vulnerability to service interruptions and changes in their product offerings, which could adversely affect business operations and financial results.

Management's message emphasizes JFrog's goal to provide a system of record for the software supply chain in the AI era, with the JFrog Platform enabling companies to unify development speed, volume, security, governance, and delivery of software applications. The tone is forward-looking, highlighting the company's commitment to extending technology leadership, expanding within the existing customer base, acquiring new customers, and developing the technology partnership ecosystem. Key strategic priorities include continuing to invest in building new capabilities and extending the platform, expanding the strategic sales team to drive expansion and standardization, and cultivating channel and alliance partners including cloud providers. Management notes that the net dollar retention rate of 119% as of December 31, 2025 highlights the increasing value of products to the customer base, and that the company expects this rate to remain relatively stable with minor fluctuations around current levels.