Revenue growth accelerated to 28.7% YoY in Q2 2026 with gross margin expanding to 77.9%, while operating margin improved to -8.1% from -20.0% a year earlier, indicating early operating leverage.
JFrog Ltd. (FROG) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 599.96M | 531.84M | 428.49M | 349.89M | 280.04M | 206.68M | 150.83M | 104.72M | 63.53M |
| Revenue Growth % | 26.37% | 24.12% | 22.46% | 24.94% | 35.49% | 37.03% | 44.03% | 64.82% | - |
| Cost of Goods Sold | 132.82M | 123.45M | 98.3M | 77.04M | 62.29M | 41.82M | 28.45M | 20.04M | 10.71M |
| COGS % of Revenue | - | 23.21% | 22.94% | 22.02% | 22.24% | 20.24% | 18.86% | 19.13% | 16.86% |
| Gross Profit | 467.14M | 408.39M | 330.19M | 272.84M | 217.75M | 164.86M | 122.38M | 84.68M | 52.82M |
| Gross Margin % | 77.86% | 76.79% | 77.06% | 77.98% | 77.76% | 79.76% | 81.14% | 80.87% | 83.14% |
| Gross Profit Growth % | - | 23.68% | 21.02% | 25.3% | 32.08% | 34.72% | 44.51% | 60.32% | - |
| Operating Expenses | 534.31M | 498.31M | 419.32M | 348.11M | 307.59M | 233.23M | 136.57M | 91.62M | 79.68M |
| OpEx % of Revenue | - | 93.7% | 97.86% | 99.49% | 109.84% | 112.84% | 90.55% | 87.49% | 125.41% |
| Selling, General & Admin | 321.33M | 300.42M | 255.18M | 212.09M | 186.37M | 153.63M | 95.45M | 61.89M | 53.81M |
| SG&A % of Revenue | - | 56.49% | 59.55% | 60.62% | 66.55% | 74.33% | 63.29% | 59.1% | 84.71% |
| Research & Development | 210.17M | 195.09M | 160.86M | 134.58M | 121.22M | 79.6M | 41.11M | 29.73M | 25.86M |
| R&D % of Revenue | - | 36.68% | 37.54% | 38.47% | 43.29% | 38.52% | 27.26% | 28.39% | 40.71% |
| Other Operating Expenses | 1000K | 2.81M | 3.27M | 1.43M | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -67.17M | -89.93M | -89.13M | -75.26M | -89.84M | -68.37M | -14.19M | -6.94M | -26.86M |
| Operating Margin % | -11.2% | -16.91% | -20.8% | -21.51% | -32.08% | -33.08% | -9.41% | -6.62% | -42.27% |
| Operating Income Growth % | - | -0.89% | -18.43% | 16.23% | -31.4% | -381.74% | -104.58% | 74.17% | - |
| EBITDA | -44.83M | -65.42M | -67.67M | -59.96M | -75.19M | -59.62M | -10.53M | -4.13M | -25.73M |
| EBITDA Margin % | -7.47% | -12.3% | -15.79% | -17.14% | -26.85% | -28.85% | -6.98% | -3.94% | -40.51% |
| EBITDA Growth % | 41.54% | 3.32% | -12.86% | 20.25% | -26.1% | -466.11% | -155.2% | 83.96% | - |
| D&A (Non-Cash Add-back) | 22.34M | 24.5M | 21.46M | 15.3M | 14.65M | 8.75M | 3.66M | 2.81M | 1.12M |
| EBIT | -40.73M | -66.04M | -65.82M | -54.52M | -84.75M | -67.63M | -14.19M | -6.94M | -26.86M |
| Net Interest Income | 20.67M | 25.82M | 25.28M | 21.03M | 5.09M | 744K | 2.04M | 3.17M | 1.31M |
| Interest Income | 20.67M | 25.82M | 25.28M | 21.03M | 5.09M | 744K | 2.04M | 3.17M | 1.31M |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 26.44M | 23.89M | 23.31M | 20.75M | 5.09M | 744K | 2.04M | 3.17M | 1.31M |
| Pretax Income | -40.73M | -66.04M | -65.82M | -54.52M | -84.75M | -67.63M | -12.15M | -3.77M | -25.55M |
| Pretax Margin % | -6.79% | -12.42% | -15.36% | -15.58% | -30.26% | -32.72% | -8.05% | -3.6% | -40.21% |
| Income Tax | 3.35M | 5.78M | 3.42M | 6.74M | 5.44M | -3.42M | -2.74M | 1.63M | 470K |
| Effective Tax Rate % | -8.22% | -8.76% | -5.19% | -12.36% | -6.42% | 5.06% | 22.57% | -43.23% | -1.84% |
| Net Income | -44.07M | -71.82M | -69.24M | -61.26M | -90.18M | -64.2M | -9.4M | -5.39M | -26.02M |
| Net Margin % | -7.35% | -13.5% | -16.16% | -17.51% | -32.2% | -31.06% | -6.24% | -5.15% | -40.95% |
| Net Income Growth % | 48.94% | -3.73% | -13.03% | 32.08% | -40.47% | -582.65% | -74.36% | 79.27% | - |
| Net Income (Continuing) | -44.07M | -71.82M | -69.24M | -61.26M | -90.18M | -64.2M | -9.4M | -5.39M | -26.02M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.36 | -0.62 | -0.63 | -0.59 | -0.91 | -0.68 | -0.20 | -0.07 | -0.32 |
| EPS Growth % | 52.1% | 1.59% | -6.78% | 35.16% | -33.82% | -240% | -197.62% | 79% | - |
| EPS (Basic) | - | -0.62 | -0.63 | -0.59 | -0.91 | -0.68 | -0.20 | -0.07 | -0.32 |
| Diluted Shares Outstanding | 121.82M | 116.2M | 109.69M | 103.32M | 99.24M | 94.78M | 46.49M | 80.31M | 80.31M |
| Basic Shares Outstanding | 121.82M | 116.2M | 109.69M | 103.32M | 99.24M | 94.78M | 46.49M | 80.31M | 80.31M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying FROG stock.
For fiscal year 2025, JFrog Ltd. (FROG) reported total revenue of $531.8M. This represents a 737.1% increase compared to $63.5M in 2018.
JFrog Ltd. (FROG) reported a net loss of $71.8M for the fiscal year ending 2025.
JFrog Ltd. (FROG) reported an operating income of $-89.9M, resulting in an operating profit margin of -16.9%. This margin reflects the operational efficiency of the business before interest and taxes.
JFrog Ltd. (FROG) generated $408.4M in gross profit for the year, representing a gross profit margin of 76.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent operating losses despite growth
Metrics are mathematically derived from official filings.
Revenue Growth Accelerating on Cloud Shift
JFrog's revenue grew 28.7% year-over-year in Q2 2026, accelerating from 23.5% in Q2 2025, according to recent SEC filings, driven by cloud adoption and AI-driven artifact volumes.
The sequential acceleration from 25.8% in Q1 2026 to 28.7% in Q2 2026 suggests strengthening demand, likely from cloud migration and security modules. However, forward guidance of $164M-$166M implies a sequential moderation from Q2's $163.8M, indicating potential seasonality or pipeline timing. Investors should monitor whether this deceleration is temporary or signals a maturing growth curve.
Gross Margin Expansion Despite Cloud Mix
Gross margin improved to 77.9% in Q2 2026 from 76.3% a year earlier, as reported in financial statements, indicating better cost management despite higher cloud hosting costs.
The 160 basis point year-over-year improvement suggests JFrog is achieving scale efficiencies in its cloud infrastructure, possibly through better utilization or pricing. However, the gross margin remains below pure-play SaaS peers like GitLab (87.4%) and Datadog (80.0%), reflecting the hybrid deployment model's higher support costs. The sustainability of this expansion depends on the cloud mix shift, which typically carries lower margins than on-premise.
Operating Leverage Emerging as Losses Narrow
Operating margin improved to -8.1% in Q2 2026 from -20.0% in Q2 2025, based on reported figures, as revenue growth outpaced expense growth, signaling early operating leverage.
While still loss-making, the operating loss narrowed to $13.2M from $25.5M a year ago, despite R&D and SG&A increasing 14% and 17% respectively. This suggests that revenue scaling is beginning to outpace fixed cost growth, a positive sign for future profitability. However, the absolute losses remain substantial, and the path to breakeven requires continued revenue growth without proportional cost increases.
Net Loss Narrowing but SBC Masks Cash Burn
Net loss improved to -$4.2M in Q2 2026 from -$21.7M in Q2 2025, per financial statements, but stock-based compensation of $39.6M exceeds the net loss, indicating significant non-cash charges.
The narrowing net loss is partly due to a lower tax provision and improved operating performance, but the high SBC (24% of revenue) suggests that GAAP profitability remains distant. The gap between GAAP and non-GAAP metrics is substantial, and investors should focus on cash flow to assess true economic performance. The company's ability to generate positive cash flow will be critical to justify its valuation.
R&D and SG&A Discipline Key to Profitability
R&D and SG&A grew 14% and 17% year-over-year in Q2 2026, respectively, as reported in SEC filings, slower than revenue growth of 28.7%, indicating improving cost discipline.
The deceleration in expense growth relative to revenue is a positive sign, but SG&A remains the largest cost at $86.8M, reflecting heavy investment in sales and marketing. R&D spending of $54.0M is also elevated, supporting the platform expansion strategy. Management's ability to maintain this discipline while investing in growth will determine the timeline to operating profitability.
2025Q2 Marks Turning Point in Margin Trajectory
Operating margin improved from -20.0% in Q2 2025 to -8.1% in Q2 2026, based on reported figures, marking a clear inflection point in the company's path to profitability.
The improvement was driven by accelerating revenue growth (from 23.5% to 28.7%) and moderating expense growth, particularly in SG&A. This inflection suggests that JFrog's investments in cloud and security are beginning to pay off, but the company remains loss-making. The durability of this trend will depend on sustaining growth while controlling costs, especially as competition intensifies.
What Could Invalidate the Base Case
Despite the improving margins, JFrog's persistent operating losses and high stock-based compensation may indicate that reported profitability is overstated, as per financial statements.
Short-sellers might argue that the narrowing losses are partly due to one-time items or aggressive cost cutting that is not sustainable. The high SBC, which exceeds net loss, suggests that cash burn continues, and the company may need to raise capital or dilute shareholders. Additionally, the forward revenue guidance implies a deceleration, which could signal market saturation or increased competition from integrated DevOps platforms like GitLab. If growth slows below the 20% threshold, the valuation could compress significantly.