JFrog posts record revenue of $179.2 million, up 31% in third quarter
Key Facts
JFrog reported third-quarter 2026 revenue of $179.2 million, up 31% year over year and above analysts’ estimate of $165.77 million, according to company data and StreetInsider. The quarter ended on September 30, 2026, according to the company’s statement issued on November 5. Non-GAAP diluted earnings per share were $0.32, versus an estimate of $0.23 cited by StreetInsider. GAAP diluted earnings per share were $0.05. The results highlight cloud activity accelerating relative to overall revenue, alongside improvements in large-customer metrics and spending retention across the customer base.
Cloud revenue was $101.5 million for the quarter, up 60% year over year and accounting for 57% of total revenue, compared with 46% in the same period a year earlier, according to JFrog. That means the business grew faster than overall revenue, which rose 31%, while its share of the business mix increased over the year. In the second quarter of 2026, cloud revenue was $87.5 million, up 53% year over year, while total revenue reached $163.8 million, up 29%, according to the company’s quarterly results. Thus, cloud’s annual growth rate increased between the two quarters from 53% to 60%, while overall revenue growth rose from 29% to 31%. The comparison shows cloud activity expanding within the company alongside growth in its overall business.
GAAP gross margin was 79.6%, while non-GAAP gross margin was 83.6%, according to JFrog’s statement. The company posted a GAAP operating loss of $1.8 million, equivalent to a negative operating margin of 1.0%. On a non-GAAP basis, it reported operating income of $40.7 million and an operating margin of 22.7%. Cash flow from operations was $69.3 million, while free cash flow reached $66.5 million during the quarter. The company also reported cash, cash equivalents and investments of $880.9 million as of September 30, 2026. These figures put operating profitability and cash flows alongside sales growth, with a clear difference between GAAP results and the company’s non-GAAP measures.
The base of high-spending customers expanded: JFrog had 112 customers with more than $1 million in annual recurring revenue, up 58% year over year, according to the company. The number of customers with more than $100,000 in annual recurring revenue was 1,357, compared with 1,121 in the same period a year earlier. Net dollar retention, calculated over the previous four quarters, was 124%, compared with 118% a year earlier. The metric indicates revenue growth from the existing customer base under the company’s definition, while the increase in large customers reflects expansion in the segment with higher-value subscriptions. Integrated Enterprise+ platform subscriptions also accounted for 61% of total revenue in the quarter, versus 56% in the same period a year earlier. Together, these indicators show growth in the number of customers with high annual recurring revenue, alongside a greater share of enterprise subscriptions and higher net retention.
Remaining performance obligations were $812.4 million as of September 30, 2026, up 60% year over year, according to the company. The item measures performance obligations that have not yet been recognized as revenue, as reported by JFrog in its results. Chief Executive Shlomi Ben Haim said enterprises “are standardizing on the JFrog Platform as their software supply chain system of record.” The statement puts enterprise adoption of the platform at the center of the company’s interpretation of its results, alongside growth in cloud revenue and customers with large subscriptions. In market trading after the results, JFrog shares rose 23.29%, after falling 13.57% during Thursday’s regular session, according to Investing.com. The site said the post-results move more than made up for the session’s decline, while the stock closed at $86.34 on November 4, according to EL7 data.
JFrog forecast fourth-quarter 2026 revenue of between $183 million and $185 million, and non-GAAP diluted earnings per share of between $0.28 and $0.30. For full-year 2026, the company set a revenue range of $680 million to $682 million and non-GAAP diluted earnings per share of between $1.14 and $1.16. The midpoint of the annual revenue range is $681 million, above analysts’ estimate of $650.7 million cited by Investing.com. The company is scheduled to hold a call to discuss its third-quarter results on November 5, 2026, at 2:00 p.m. Pacific time, or 5:00 p.m. Eastern time. The financial outlook and scheduled call set out the company’s next steps after reporting results for the period ended in September.