JFrog (NASDAQ:FROG) Posts Earnings Results, Misses Estimates By $0.28 EPS

JFrog (NASDAQ:FROG) announced its quarterly earnings results on Thursday. The company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.28), Zacks reports. JFrog had a negative net margin of 15.88% and a negative return on equity of 6.69%. JFrog updated its FY 2026 guidance to 0.880-0.920 EPS and its Q1 2026 guidance to 0.200-0.220 EPS.

Here are the key takeaways from JFrog’s conference call:

• JFrog reported FY2025 total revenue of $531.8M (+24% YoY) and Q4 revenue of $145.3M (+25% YoY), with cloud revenue growing 45% YoY to $243.3M and representing ~48% of Q4 sales.
• Security is a clear growth engine — JFrog Advanced Security and Curation now comprise over 10% of ARR, security represented 16% of ending RPO (up from 12%), and attach/expansion are driving multi‑year commitments and a 119% net dollar retention.
• Management guided FY2026 revenue to $623M–$628M (~17.5% YoY at midpoint), signaling deceleration vs. 2025, and called out a FX headwind to operating expenses with expected gross margins of ~82%–83% in 2026.
• Leadership warned of a “tsunami of binaries” from AI and coding agents that creates volatile usage spikes; the company will keep a conservative guidance posture and focus on converting usage overages into annual commitments.
• Strong financial position with $704M in cash and short‑term investments and $142.2M of free cash flow for FY2025 (27% margin), enabling continued investment in cloud, security, and AI roadmap.

JFrog Stock Performance

JFrog stock traded up $1.31 during mid-day trading on Thursday, reaching $53.30. The stock had a trading volume of 6,044,444 shares, compared to its average volume of 2,459,864. JFrog has a fifty-two week low of $27.00 and a fifty-two week high of $70.43. The stock’s 50-day simple moving average is $60.32 and its 200-day simple moving average is $53.53. The firm has a market capitalization of $6.31 billion, a PE ratio of -76.14 and a beta of 1.13.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on FROG shares. Wall Street Zen lowered shares of JFrog from a “buy” rating to a “hold” rating in a research report on Saturday, February 7th. Oppenheimer raised JFrog from a “market perform” rating to an “outperform” rating and set a $75.00 target price for the company in a research note on Friday, November 7th. Morgan Stanley increased their price target on JFrog from $65.00 to $70.00 and gave the company an “overweight” rating in a research note on Friday, November 7th. Canaccord Genuity Group upped their price target on shares of JFrog from $55.00 to $65.00 and gave the company a “buy” rating in a research report on Friday, November 7th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of JFrog in a research report on Thursday, January 22nd. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $65.71.

Key Headlines Impacting JFrog

Here are the key news stories impacting JFrog this week:

• Positive Sentiment: Management raised Q1 FY2026 guidance to $0.200–$0.220 EPS and revenue of $146–$148M, well above consensus — a near-term beat that supports upside to estimates. Q4 press release / slides
• Positive Sentiment: JFrog raised FY2026 guidance to $0.880–$0.920 EPS and $623–$628M revenue versus consensus ~ $0.43 EPS / $576.9M — the bigger upward revision for the full year is the key catalyst for today’s rally. Business Wire: FY2025 results
• Positive Sentiment: Q4 revenue of ~$145M (+25% YoY) and gross profit growth beat expectations, and operating cash flow remained positive — evidence of revenue momentum even as GAAP EPS was negative. Quiver: Q4 financials
• Positive Sentiment: Analyst coverage and price targets remain constructive (median target ~$70, multiple recent Buys/Overweights), and some large institutions have added positions — supportive for medium-term sentiment. Quiver: analyst/holder summary
• Neutral Sentiment: Press narratives highlight AI security and shifting growth story for JFrog, which could re-rate expectations if adoption accelerates but is still narrative-driven. Yahoo Finance: AI narrative
• Neutral Sentiment: Short-interest data in the feeds shows zeros/NaN (likely reporting anomalies) and does not provide a reliable signal today.
• Negative Sentiment: GAAP/diluted EPS missed expectations (company reported negative EPS for the quarter), and JFrog still posted an operating loss — fundamentals that limit the upside until profitability trends improve. Q4 press release / slides
• Negative Sentiment: Significant insider selling activity reported over the past six months (many disclosed sales) could concern some investors about near-term insider conviction. Quiver: insider trading
• Negative Sentiment: Total liabilities grew year‑over‑year, which investors will watch alongside cash balances as the company scales and invests in growth. Quiver: balance sheet notes

Insider Activity

In related news, CRO Tali Notman sold 13,357 shares of the company’s stock in a transaction dated Monday, December 8th. The shares were sold at an average price of $64.80, for a total value of $865,533.60. Following the sale, the executive owned 631,325 shares in the company, valued at $40,909,860. This represents a 2.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO Yoav Landman sold 70,000 shares of JFrog stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $69.22, for a total value of $4,845,400.00. Following the transaction, the chief technology officer owned 5,958,641 shares of the company’s stock, valued at $412,457,130.02. This trade represents a 1.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 407,814 shares of company stock valued at $24,969,260. 14.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Royal Bank of Canada raised its position in JFrog by 48.4% in the 1st quarter. Royal Bank of Canada now owns 189,148 shares of the company’s stock valued at $6,053,000 after buying an additional 61,685 shares during the last quarter. Cubist Systematic Strategies LLC bought a new position in shares of JFrog during the first quarter valued at about $205,000. AQR Capital Management LLC bought a new position in shares of JFrog during the first quarter valued at about $368,000. Integrated Wealth Concepts LLC purchased a new position in JFrog during the first quarter worth about $203,000. Finally, Goldman Sachs Group Inc. grew its position in JFrog by 14.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 692,909 shares of the company’s stock worth $22,173,000 after purchasing an additional 88,784 shares in the last quarter. Hedge funds and other institutional investors own 85.02% of the company’s stock.

About JFrog

JFrog is a software company specializing in DevOps solutions designed to streamline the management, distribution and security of software binaries. Its core offering, JFrog Artifactory, serves as a universal artifact repository manager compatible with all major package formats, enabling development teams to store, version and share build artifacts across the software delivery pipeline. The company’s platform also includes tools for continuous integration and delivery (CI/CD), security scanning and release automation.

Among JFrog’s flagship products are JFrog Xray, a security and compliance scanning service that analyzes artifacts and dependencies for vulnerabilities; JFrog Pipelines, a CI/CD orchestration engine that automates build and release workflows; and JFrog Distribution, which accelerates the secure distribution of software releases to edge nodes and end users.