Earnings

JFrog Cloud Sales Reach 57% Of Revenue — Up From 46% A Year Earlier

Larger subscriptions and rising customer spending helped lift third-quarter revenue 31% to $179.2 million.

JFrog, which helps companies manage and secure software packages and AI models, grew third-quarter revenue 31% to $179.2 million, with cloud sales accounting for 57% of the total versus 46% a year earlier. The company announced the results Thursday in an earnings release accompanying its SEC filing.

Cloud And Larger Accounts Expand

Cloud revenue reached $101.5 million, up 60% from a year earlier. FROG shares soared about 30% to $96.85 in Friday trading, following Thursday’s results announcement.

The customer base shifted toward larger subscriptions. JFrog counted 112 customers with annualized subscription revenue above $1 million, compared with 71 a year earlier; accounts above $100,000 reached 1,357, versus 1,121. Enterprise+, its end-to-end platform subscription, supplied 61% of quarterly sales, compared with 56%.

Existing customers also expanded their spending. JFrog’s retention measure, averaged over the trailing four quarters, put annualized subscription revenue from the same customers at 124% of its year-earlier level, versus 118% previously. The company attributed that expansion to increased cloud consumption and demand for software-security tools.

AI Code Needs A Repository

JFrog’s core product, Artifactory, stores the software packages companies use to build applications. Other tools scan for security problems, control outside packages entering a business and manage software updates for connected devices. Customers choose among four paid subscription tiers, with free trials and a limited open-source version providing routes into paid plans.

As of December 31, 2025, JFrog had about 6,600 customers, including about 83% of the Fortune 100. Customers outside the United States generated about 40% of its 2025 revenue.

“AI agents are writing code faster than any developer can review it,” Shlomi Ben Haim, JFrog’s CEO and co-founder, said in the earnings release. “Every output becomes an artifact that must be stored, secured, and governed.”

JFrog introduced tools to apply verified vulnerability fixes automatically, working with Broadcom, Chainguard, Echo, IBM/Red Hat, Moderne, TuxCare and Seal Security. Its AI security additions included AI Asset Scanning, Agent Guard and support for Microsoft’s Agent Package Manager. A partnership with Wiz connects code, cloud and running applications to help teams address cyber threats.

Net Profit, Operating Loss

JFrog earned $6.553 million under standard accounting, compared with a $16.431 million net loss a year earlier. Operations remained loss-making, however: the operating loss narrowed to $1.8 million from $21.590 million. Adjusted operating profit reached $40.7 million, with a 22.7% margin versus 18.7% a year earlier.

Stock-based pay of $41.793 million was the largest adjustment separating the two operating measures. Diluted earnings were $0.05 per share under standard accounting and $0.32 adjusted. Gross margins were 79.6% and 83.6%, respectively.

Quarterly operating cash flow totaled $69.3 million, while free cash flow—cash from operations after capital spending—was $66.5 million. JFrog ended the quarter with $880.9 million in cash, cash equivalents and investments. Contracted revenue awaiting recognition reached $812.4 million, up 60% from a year earlier.

For the fourth quarter, management forecasts revenue of $183 million to $185 million, adjusted operating profit of $36.2 million to $38.2 million and adjusted diluted earnings of $0.28 to $0.30. Its full-year outlook calls for revenue of $680 million to $682 million, adjusted operating profit of $142.5 million to $144.5 million and adjusted diluted earnings of $1.14 to $1.16.