JFrog Signs $76 Million Cloud Deal as Customer Consumption Rises 167%
Key Facts
JFrog said it signed a multi-year cloud software services agreement in the third quarter of 2026 with one of the world’s largest telecommunications companies, with a total contract value of $76 million. The company disclosed the deal on its earnings call on November 5, after the agreement was signed during the quarter, rather than as a new contract announced alongside the results. The agreement represents a 167% expansion in the customer’s commitment to consume cloud data compared with its previous commitment, according to Benzinga’s account of the call. Management said the deal also included an expansion of security solutions and the addition of governance. It added that the commitment would be recorded going forward, without disclosing details of how the deal was calculated.
The deal came as the company’s revenue grew to $179.2 million in the third quarter, up 31% year over year and above the high end of JFrog’s previous revenue guidance. The company’s announcement did not include a documented comparison with analysts’ average estimates, so the reported outperformance here is relative to its previous guidance range. Cloud revenue was $101.5 million, up 60% year over year. That lifted cloud’s share to 57% of total revenue, compared with 46% in the year-earlier period. The figures show that cloud business grew faster than total revenue during the period.
Management linked the expansion in the business to increased customer use of the cloud and demand for software supply chain security. Net dollar retention for the trailing four quarters was 124%, up from 118% in the year-earlier period. The company said the rate reflects growing demand for software supply chain security solutions and cloud consumption. The metric measures spending growth among the existing customer base, including the effect of increased service use, according to the company’s explanation. On the earnings call, the CEO said the retention rate rose, driven by demand for supply chain security and cloud consumption, indicating that growth is not limited to adding new customers.
The company discussed the impact of artificial intelligence tools on software management needs, with the CEO saying AI agents write code faster than any developer can review it. He added: "Every output becomes a software product that must be stored, secured and managed." The statement places security and governance, both elements of the announced deal, among the needs involved in handling software outputs. The company did not provide a separate figure for revenue tied to this factor. Management also did not disclose details of the deal commitment calculations, saying only that it would record the commitment going forward.
On customers, the number of companies with more than $1 million in annual recurring revenue rose to 112 in the third quarter, from 71 a year earlier. At the same time, the CEO said no customer accounted for more than 3% of JFrog’s total revenue through the end of the quarter. The figures show an expanding base of large customers, while the disclosed upper limit for any single customer’s share remained 3%. The company did not say that the telecom customer with which it signed the agreement accounted for any particular share of revenue. The contract is valued at $76 million over several years, which the company described as its total contract value.
Commercial indicators were reinforced by remaining performance obligations of $812.4 million as of September 30, 2026, up 60% year over year. The company also recorded operating cash flow of $69.3 million and free cash flow of $66.5 million in the third quarter. Remaining performance obligations provide a view of contracted performance value not yet recognized as revenue, while the cash flow figures reflect the quarter, according to the published results. The company did not directly link these indicators to the $76 million agreement. It reported them alongside revenue growth and expansion in its base of large customers as part of its performance for the period.
For the fourth quarter of 2026, JFrog expects revenue of between $183 million and $185 million. Its estimate for fiscal 2026 puts revenue between $680 million and $682 million. The guidance follows third-quarter revenue of $179.2 million, which exceeded the high end of the company’s previous range. JFrog scheduled its third-quarter earnings call for November 5, 2026, at 5:00 p.m. Eastern time, where it provided details of the deal and growth indicators. The fourth-quarter and fiscal-year ranges remain company estimates for the upcoming periods.