JFrog Ltd (FROG): Results of Operations and Financial Condition
JFrog Ltd (FROG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 JFrog Announces Second Quarter 2026 Results • Total Second Quarter Revenues of $163.8 million; up 29% Year-over-Year • Second Quarter Cloud Revenues of $87.5 million; up 53% Year-over-Year • Customers with ARR greater than $1 million equaled 97, up 59% Year-over-Year
How this was made
The 30-second read
Why it matters
The key tradable elements are the reported growth rates (revenue +29% YoY, cloud +53% YoY), retention and customer expansion (NDR 121%, >$1M ARR customers 97), and explicit revenue and non-GAAP income guidance ranges.
Market read
A fresh earnings-and-guidance disclosure for a growth software/security name, with cloud mix rising to 53% of revenue and clear forward ranges.
What to watch
Investors may scrutinize the gap between GAAP and non-GAAP margins, and whether remaining performance obligations growth ($659.0M, +38% YoY) converts into durable revenue acceleration.
JFrog Announces Second Quarter 2026 Results
Revenue grew 29% year-over-year, cloud revenue grew 53% year-over-year, non-GAAP operating income was $32.6 million, and operating cash flow was $57.1 million. The company also reported improving enterprise customer metrics, 121% trailing four quarter net dollar retention, and fiscal year 2026 revenue outlook of $648 million to $652 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $163.8 million | – | up 29% year-over-year |
| GAAP Gross ProfitGAAP | $127.6 million | – | – |
| GAAP Gross MarginGAAP | 77.9% | – | – |
| Non-GAAP Gross Profitnon-GAAP | $136.2 million | – | – |
| Non-GAAP Gross Marginnon-GAAP | 83.2% | – | – |
| GAAP Operating LossGAAP | ($13.2) million | – | – |
| GAAP Operating MarginGAAP | (8.1%) | – | – |
| Non-GAAP Operating Incomenon-GAAP | $32.6 million | – | – |
| Non-GAAP Operating Marginnon-GAAP | 19.9% | – | – |
| GAAP Net Loss Per ShareGAAP | ($0.03) | – | – |
| Non-GAAP Diluted Earnings Per Sharenon-GAAP | $0.27 | – | – |
| Operating Cash Flowother | $57.1 million | – | – |
| Free Cash Flownon-GAAP | $53.7 million | – | – |
| Cash, Cash Equivalents and Investmentsother | $824.5 million as of June 30, 2026 | – | – |
| Remaining performance obligationsother | $659.0 million as of June 30, 2026 | – | up 38% year-over-year |
| Net Dollar Retention rate for the trailing four quartersother | 121% | – | – |
| Customers with greater than $1 million ARRother | 97 | – | up 59% year-over-year |
| Customers with greater than $100K ARRother | 1,291 | – | – |
| Cloud revenue as a percentage of total revenueother | 53% | – | – |
| Customers adopting the end-to-end JFrog Platform Enterprise+ subscription as a percentage of total revenueother | 59% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CloudStrong cloud adoption and growing demand for security solutions. | $87.5 million | – | an increase of 53% year-over-year |
Third Quarter and Fiscal Year 2026 outlook
- RevenueThird Quarter 2026: Revenue between $164 million and $166 million; Fiscal Year 2026: Revenue between $648 million to $652 million
- NoteThird Quarter 2026: Non-GAAP operating income between $27 million and $29 million
- NoteThird Quarter 2026: Non-GAAP net income per diluted share between $0.22 and $0.24, assuming approximately 130 million weighted average diluted shares outstanding
- NoteFiscal Year 2026: Non-GAAP operating income between $116 million and $120 million
- NoteFiscal Year 2026: Non-GAAP net income per diluted share between $0.96 and $1.00, assuming approximately 129 million weighted average diluted shares outstanding
What drove it
- Cloud revenue equaled $87.5 million during the second quarter of 2026, an increase of 53% year-over-year.
- Net Dollar Retention rate for the trailing four quarters was 121%, driven by growing demand for software supply chain security solutions and cloud consumption.
- Customers with greater than $1 million ARR increased to 97, up from 61 in the year-ago period.
- Customers adopting the end-to-end JFrog Platform Enterprise+ subscription represented 59% of total revenue during the second quarter of 2026, versus 55% in the year-ago period.
- JFrog delivered a plugin in collaboration with Anthropic to bring enterprise-grade software supply chain governance and security to Claude Code.
- JFrog delivered security solutions to >1M AI developers with Cursor Coding agent plugin.
Concerns
- GAAP Operating Loss was ($13.2) million and GAAP Operating Margin was (8.1%).
- GAAP Net Loss Per Share was ($0.03).
- The release identifies risks associated with managing rapid growth, customer retention and upgrades, sales and marketing expansion, security breaches or product vulnerabilities, product interruptions, competition, acquisitions, and macroeconomic uncertainty.
What to watch
- Third Quarter 2026 revenue outlook between $164 million and $166 million.
- Third Quarter 2026 non-GAAP operating income outlook between $27 million and $29 million.
- Fiscal Year 2026 revenue outlook between $648 million to $652 million.
- Cloud revenue growth, cloud revenue as a percentage of total revenue, and net dollar retention.
- Expansion in customers with greater than $1 million ARR and adoption of the JFrog Platform Enterprise+ subscription.
- Demand for software supply chain security solutions and cloud consumption.
Balance sheet and cash flow
- Operating Cash Flow was $57.1 million.
- Free Cash Flow of $53.7 million.
- Cash, Cash Equivalents and Investments were $824.5 million as of June 30, 2026.
- Remaining performance obligations were $659.0 million as of June 30, 2026, up 38% year-over-year.
Analysis
JFrog reported second-quarter 2026 revenue of $163.8 million, up 29% year-over-year. Cloud revenue was $87.5 million, up 53% year-over-year, and represented 53% of total revenue compared to 45% in the year-ago period. The release attributes net dollar retention of 121% to demand for software supply chain security solutions and cloud consumption.
The customer base continued to move toward larger deployments. Customers with greater than $1 million ARR reached 97, up from 61 in the year-ago period, while customers with greater than $100K ARR increased to 1,291 from 1,076. Enterprise+ subscription customers represented 59% of total revenue, versus 55% in the year-ago period. Remaining performance obligations were $659.0 million as of June 30, 2026, up 38% year-over-year.
Reported profitability showed a meaningful distinction between GAAP and non-GAAP results. GAAP gross margin was 77.9% and GAAP operating margin was (8.1%), producing a GAAP operating loss of ($13.2) million and GAAP net loss per share of ($0.03). Non-GAAP gross margin was 83.2%, while non-GAAP operating income was $32.6 million at a 19.9% non-GAAP operating margin. Non-GAAP diluted earnings per share were $0.27.
Cash generation and liquidity were notable in the period. Operating cash flow was $57.1 million and free cash flow was $53.7 million. Cash, cash equivalents and investments totaled $824.5 million as of June 30, 2026. The filing did not report share repurchases, dividends, or debt figures in the provided text.
For the third quarter, JFrog guided revenue between $164 million and $166 million, non-GAAP operating income between $27 million and $29 million, and non-GAAP net income per diluted share between $0.22 and $0.24. Fiscal year 2026 guidance calls for revenue between $648 million to $652 million, non-GAAP operating income between $116 million and $120 million, and non-GAAP net income per diluted share between $0.96 and $1.00. The principal reported operating indicators to monitor are cloud adoption, security-solution demand, net dollar retention, larger-customer growth, and Enterprise+ revenue mix.
Management, verbatim
Q2 reflected the strength of our strategy and the disciplined execution of the JFrog team,
Shlomi Ben Haim, CEO and Co-founder of JFrog
As enterprises standardize on JFrog as their Software Supply Chain System of Record, we continue to benefit from strong cloud adoption and growing demand for our security solutions.
Shlomi Ben Haim, CEO and Co-founder of JFrog
With AI coding agents accelerating software development, and increasingly sophisticated cyber threats raising the bar for trust, we believe JFrog is well positioned to capture this long-term opportunity while continuing to execute with discipline and efficiency.
Shlomi Ben Haim, CEO and Co-founder of JFrog
Not in the filing
stated, not guessed- GAAP net loss amount
- GAAP net income or earnings per diluted share
- Prior-year and prior-quarter values for total revenue
- Prior-year and prior-quarter gross profit, gross margin, operating income or loss, operating margin, net income or loss, and EPS comparisons
- Prior-quarter comparisons for cloud revenue, net dollar retention, customer counts, Enterprise+ subscription revenue mix, remaining performance obligations, operating cash flow, free cash flow, and cash
- Debt balances
- Share repurchases
- Dividend declarations or payments
- Capital expenditures
- Guidance for gross margin, operating expenses, and tax rate
- Prior-period outlook needed for comparison of actual results with prior guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K with JFrog’s Q2 2026 results (ended June 30, 2026) and forward guidance for Q3 and FY2026.
Ticker impact
JFrog reported Q2 2026 revenue of $163.8M (+29% YoY) and guided Q3 revenue to $164M-$166M, plus FY2026 outlook.
Bias toward upside if investors focus on cloud acceleration, NDR, and raised/solid non-GAAP outlook; GAAP loss may cap enthusiasm.
The filing provides fresh, decision-useful datapoints: quarterly results, trailing NDR, ARR customer counts, and forward guidance ranges for Q3 and FY2026.
Market effects
Reinforces demand narrative for software supply chain security and cloud adoption among DevSecOps platforms.
Limited direct regional spillover; primarily impacts US-listed software security peers via read-across on cloud growth.
Global enterprise security spend and AI-era software artifact governance demand could be viewed as strengthening.
Counterpoint
GAAP operating loss of ($13.2)M and GAAP EPS loss may signal profitability still lags, making the stock sensitive to any non-GAAP normalization concerns.
Key entities
- issuerJFrog Ltd.
Nasdaq-listed software supply chain platform company reporting Q2 results and issuing Q3 and FY2026 guidance.
- executiveShlomi Ben Haim
CEO and co-founder quoted on strategy execution and AI-driven demand.
