Cash conversion is strong despite GAAP losses, with Q2 2026 operating cash flow of $57.1M and FCF margin of 32.8%, though SBC of $39.6M per quarter dilutes shareholders.
JFrog Ltd. (FROG) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Cash from Operations | 176.26M | 145.73M | 110.92M | 74.16M | 21.43M | 27.9M | 29.46M | 10M | 8.56M |
| Operating CF Margin % | - | 27.4% | 25.89% | 21.19% | 7.65% | 13.5% | 19.53% | 9.55% | 13.48% |
| Operating CF Growth % | 103.65% | 31.38% | 49.58% | 246.11% | -23.21% | -5.28% | 194.46% | 16.84% | - |
| Net Income | -44.07M | -71.82M | -69.24M | -61.26M | -90.18M | -64.2M | -9.4M | -5.39M | -26.02M |
| Depreciation & Amortization | 21.41M | 24.5M | 21.46M | 15.3M | 14.65M | 8.75M | 3.66M | 2.81M | 1.12M |
| Stock-Based Compensation | 161.01M | 156.66M | 131.11M | 95.17M | 68.66M | 56.95M | 23.85M | 9.37M | 20.17M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 5.75M | 2.92M | 2.46M | 1.63M | 11.51M | 11.63M | 1.91M | -374K | 27.88M |
| Working Capital Changes | 32.16M | 33.47M | 25.13M | 23.31M | 16.78M | 14.78M | 9.45M | 3.59M | 13.29M |
| Change in Receivables | -52.98M | -29.33M | -13.51M | -14.11M | -11.19M | -12.81M | -12.31M | -4.93M | -6.96M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.01M | -3.18M |
| Change in Payables | -2.47M | 3.62M | -7.32M | 1.71M | 4.1M | 504K | 4.92M | 1.79M | 1.48M |
| Cash from Investing | -170.07M | -152.27M | -165.36M | -53.48M | -53.34M | -125.55M | -311.8M | -149.59M | -3.08M |
| Capital Expenditures | -6.56M | -3.46M | -3.14M | -1.98M | -4.63M | -4.83M | -3.52M | -1.8M | -3.08M |
| CapEx % of Revenue | 1.09% | 0.65% | 0.73% | 0.57% | 1.65% | 2.34% | 2.34% | 1.72% | 4.84% |
| Acquisitions | 0 | 0 | -156.71M | 0 | -179K | -195.75M | 308.27M | -20.86M | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | -308.27M | 0 | -1M |
| Cash from Financing | 39M | 31.21M | 21.23M | 18.37M | 11.03M | 1.44M | 406.13M | 736K | 114.48M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 1.66M | 12.05M | 19.1M | 16.65M | 11.1M | 9.93M | 393.48M | -293K | 114.45M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2.03M | 0 | 0 | 0 | 0 | 0 | 0 | -192K | 0 |
| Other Financing | 37.34M | 19.16M | 2.13M | 1.72M | -71K | -8.48M | 12.65M | 1.03M | 23K |
| Net Change in Cash | 45.37M | 25.92M | -34.15M | 39.17M | -22.93M | -96.18M | 123.8M | -138.84M | 119.96M |
| Free Cash Flow | 169.7M | 142.27M | 107.78M | 72.17M | 16.8M | 23.67M | 25.94M | 8.2M | 5.49M |
| FCF Margin % | 28.29% | 26.75% | 25.15% | 20.63% | 6% | 11.45% | 17.2% | 7.83% | 8.64% |
| FCF Growth % | 22.27% | 32% | 49.34% | 329.68% | -29.05% | -8.72% | 216.25% | 49.46% | - |
| FCF per Share | 1.39 | 1.22 | 0.98 | 0.70 | 0.17 | 0.25 | 0.56 | 0.10 | 0.07 |
| FCF Conversion (FCF/Net Income) | -3.85x | -2.03x | -1.60x | -1.21x | -0.24x | -0.43x | -3.13x | -1.85x | -0.33x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 4.24M | 5M | 1.71M | 153K | 0 | 2.07M | 2.97M |
Quick answers to the most common questions about buying FROG stock.
JFrog Ltd. (FROG) generated $145.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
JFrog Ltd. (FROG) generated $142.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
JFrog Ltd. (FROG) spent $3.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Persistent operating losses despite growth
Metrics are mathematically derived from official filings.
Cash Conversion Diverges from GAAP Losses
Despite net losses, JFrog generated $57.1M operating cash flow in Q2 2026, a stark contrast to the -$4.2M net income, per SEC filings, highlighting substantial non-cash charges.
The OCF/NI ratio of -13.7 in Q2 2026 underscores the massive gap between accounting losses and cash generation, driven primarily by $39.6M in stock-based compensation and $5.5M in D&A. This suggests that reported losses overstate the true cash burn, and the company's operations are actually cash-generative on a recurring basis. Investors should monitor whether this conversion quality persists as SBC growth moderates.
Free Cash Flow Margin Expansion Accelerates
FCF margin reached 32.8% in Q2 2026, up from 15.5% in Q2 2024, as reported in financial statements, indicating rapid operational leverage despite ongoing GAAP losses.
FCF grew from $16.0M in Q2 2024 to $53.7M in Q2 2026, a 236% increase, while revenue grew at a slower pace, driving margin expansion. This trajectory suggests that the company is scaling efficiently, with cash generation outpacing revenue growth, likely due to the high-margin subscription model and disciplined cost control. The sequential moderation in Q3 2026 guidance may temper this trend, but the underlying cash flow momentum appears robust.
Asset-Light Model Keeps CapEx Minimal
Capital expenditures averaged just 0.8% of revenue over the past ten quarters, per reported figures, reflecting a software business with minimal fixed asset requirements.
CapEx never exceeded $3.3M in any quarter, and the capital intensity is exceptionally low, allowing nearly all operating cash flow to convert to FCF. This suggests that the company's growth is not constrained by physical asset investments, and the high FCF margins are sustainable. The modest CapEx likely supports infrastructure for cloud services, but the overall asset-light model enhances cash flow durability.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes contributed $14.3M to operating cash flow in Q2 2026, but were negative in Q1 2024 and Q2 2024, per SEC filings, indicating quarter-to-quarter variability.
The positive working capital contributions in recent quarters, particularly Q4 2025 ($18.0M) and Q2 2026 ($14.3M), suggest efficient collections and deferred revenue growth, which may be tied to multi-year contracts. However, the negative swings in early 2024 highlight the lumpiness of cash collections, possibly due to timing of billings. This variability warrants monitoring, as it can distort quarterly cash flow comparisons.
Capital Deployment Focused on Growth, Not Returns
JFrog paid no dividends and repurchased only $2.0M in Q2 2026, per financial statements, while allocating capital primarily to R&D and acquisitions, such as the $156.7M in Q3 2024.
The absence of shareholder returns and minimal buybacks indicate that management is reinvesting cash into the business to drive growth, consistent with the platform expansion strategy. The significant acquisition in Q3 2024 (likely Vdoo) shows a willingness to deploy capital for strategic tuck-ins, but the lack of buybacks may signal that management views the stock as overvalued or prefers internal investment. Investors should assess whether these investments yield sufficient returns to justify the lack of direct capital returns.
Cumulative Cash Generation Outpaces Net Losses
Over the last ten quarters, JFrog accumulated $352.2M in operating cash flow versus $153.5M in net losses, based on reported data, underscoring the cash-generative nature of the business.
The cumulative gap of $505.7M between operating cash flow and net income is primarily attributable to non-cash charges like SBC and D&A, which totaled over $300M in the period. This divergence suggests that the company's economic reality is far healthier than GAAP earnings imply, and the cash flow is being reinvested to fuel growth. However, the reliance on SBC as a compensation tool may dilute shareholders over time, and investors should weigh the cash flow strength against potential dilution.
What the Cash Flow Statement Obscures
While operating cash flow appears robust, the $39.6M quarterly SBC, per SEC filings, is a non-cash expense that still dilutes shareholders and may mask underlying cash burn when adjusted for growth investments.
The cash flow statement does not directly reflect the economic cost of stock-based compensation, which totaled $39.6M in Q2 2026, nearly equal to the entire operating cash flow. This suggests that if SBC were treated as a cash expense, the company's true cash generation would be significantly lower, potentially turning positive FCF into a cash burn. Additionally, capitalized deferred commissions and the timing of collections may inflate operating cash flow in the short term, warranting a closer look at the sustainability of these cash flows.