Free cash flow remains positive with a 24.2% margin in 2026Q1, supported by a low capital intensity evidenced by a CapEx/Revenue ratio of 0.7%.
| Cash from Operations | 155.29M | 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 % | 161.65% | 31.38% | 49.58% | 246.11% | -23.21% | -5.28% | 194.46% | 16.84% | - |
| Net Income | -61.58M | -71.82M | -69.24M | -61.26M | -90.18M | -64.2M | -9.4M | -5.39M | -26.02M |
| Depreciation & Amortization | 20.95M | 24.5M | 21.46M | 15.3M | 14.65M | 14.85M | 3.66M | 2.81M | 1.12M |
| Stock-Based Compensation | 118.5M | 156.66M | 131.11M | 95.17M | 68.66M | 0 | 23.85M | 9.37M | 20.17M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 46.84M | 2.92M | 2.46M | 1.63M | 11.51M | 62.47M | 1.91M | -374K | 27.88M |
| Working Capital Changes | 30.58M | 33.47M | 25.13M | 23.31M | 16.78M | 14.78M | 9.45M | 3.59M | 13.29M |
| Change in Receivables | -29.49M | -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 | 5.82M | 3.62M | -7.32M | 1.71M | 4.1M | 504K | 4.92M | 1.79M | 1.48M |
| Cash from Investing | -159.56M | -152.27M | -165.36M | -53.48M | -53.34M | -125.55M | -311.8M | -149.59M | -3.08M |
| Capital Expenditures | -3.88M | -3.46M | -3.14M | -1.98M | -4.63M | -4.83M | -3.52M | -1.8M | -3.08M |
| CapEx % of Revenue | 0.69% | 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 | 19.55M | 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) | 2.56M | 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 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -192K | 0 |
| Other Financing | 16.99M | 19.16M | 2.13M | 1.72M | -71K | -8.48M | 12.65M | 1.03M | 23K |
| Net Change in Cash | 16.57M | 25.92M | -34.15M | 39.17M | -22.93M | -96.18M | 123.8M | -138.84M | 119.96M |
| Free Cash Flow | 151.41M | 142.27M | 107.78M | 72.17M | 16.8M | 23.67M | 25.94M | 8.2M | 5.49M |
| FCF Margin % | 26.87% | 26.75% | 25.15% | 20.63% | 6% | 11.45% | 17.2% | 7.83% | 8.64% |
| FCF Growth % | 26.92% | 32% | 49.34% | 329.68% | -29.05% | -8.72% | 216.25% | 49.46% | - |
| FCF per Share | 1.26 | 1.22 | 0.98 | 0.70 | 0.17 | 0.25 | 0.56 | 0.10 | 0.07 |
| FCF Conversion (FCF/Net Income) | -2.46x | -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 |
Persistent GAAP operating losses
Based on reported financial statements, JFrog consistently generates positive operating cash flow despite recurring net losses, with the OCF/NI ratio frequently exceeding -1.50, suggesting that non-cash expenses like stock-based compensation are the primary drivers behind the significant disconnect between accounting profitability and actual cash generation.
The persistent gap between net income and operating cash flow indicates that the company's reported losses are heavily influenced by non-cash charges rather than operational cash burn. Investors should monitor whether this conversion quality remains stable as the company attempts to scale toward GAAP profitability.
As reported in recent SEC filings, JFrog has demonstrated a consistent ability to generate positive free cash flow, with margins reaching as high as 41.8% in 2024Q4, signaling that the core business model is becoming increasingly efficient at converting revenue into liquid capital over time.
The upward trend in FCF margins suggests that the company is successfully managing its cost structure relative to its revenue growth. This trajectory implies that the business may be approaching an inflection point where operational scale begins to outweigh the heavy investment in R&D and sales.
According to quarterly data, JFrog maintains a remarkably low capital intensity, with CapEx/Revenue ratios consistently remaining below 1.0%, which highlights the company's asset-light software model and its ability to preserve cash for strategic growth initiatives rather than heavy infrastructure maintenance or hardware replacement.
The minimal capital expenditure requirements provide the company with significant flexibility to allocate resources toward product development and market expansion. This low-intensity profile is a key structural advantage that supports the company's ability to remain cash-flow positive despite its negative GAAP net income.
Based on the provided cash flow statements, working capital changes have been highly volatile, swinging from a $25.8 million contribution in 2024Q4 to a $5.2 million outflow in 2024Q1, which suggests that timing differences in customer collections and deferred revenue recognition significantly influence quarterly cash flow.
The fluctuations in working capital highlight the sensitivity of the company's cash position to the timing of large enterprise contract renewals and billing cycles. Analysts should interpret these swings as operational noise rather than a fundamental shift in the company's ability to collect on its receivables.
As indicated by the financial data, stock-based compensation consistently exceeds $30 million per quarter, effectively masking the underlying cash burn and complicating the assessment of the company's true path toward sustainable GAAP net income and long-term shareholder value creation through organic operational efficiency.
The reliance on stock-based compensation as a primary component of the compensation structure warrants further investigation into the potential for future dilution. Investors should consider whether the current cash flow strength is sustainable if the company were forced to shift toward cash-based compensation models.
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.