A maker of software tools that help developers build and ship programs. Its JFrog Platform, built around the Artifactory package manager, keeps track of all the pieces of code and even AI models, while tools like JFrog Xray scan for security flaws—used by most of the Fortune 100. Founded in 2008 in Israel by three developers, it grew from the open-source Artifactory project. The name comes from the founders' belief that, like a frog, the company only leaps forward and never backward.
JFrog's net dollar retention rate rose to 121%, its highest in over three years, as existing customer expansion accelerated.
The expansion engine is accelerating. rose 29% to $163.8 million and the net loss narrowed to $4.2 million as existing customers drove $30.3 million of the increase and SaaS subscriptions crossed 53% of revenue. The company is approaching profitability while generating $57.1 million in quarterly .
Key takeaways
The rose to 121%, up from 115% a year ago and 120% in the prior quarter, as customers with over $100,000 grew to 1,275 from 1,225 at the end of Q1.
rose 29% to $163.8 million, with approximately $30.3 million of the $36.6 million increase coming from existing customers.
SaaS subscriptions reached 53% of total , up from 45% a year ago, and Enterprise Plus subscriptions grew to 59% of revenue from 55%, signaling broader adoption of the end-to-end platform.
Section summaries
Management's Discussion and Analysis
JFrog Q2 FY2026 revenue grew 29% to $163.8M, driven by existing customer expansion and SaaS adoption, while net loss narrowed to $4.2M.
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Total rose 29% to $163.8M, with approximately $30.3M of the $36.6M increase coming from existing customers.
improved 1.7 points to 77.9%, as growth of 29% outpaced a 20% rise in cost of revenue driven by higher third-party hosting costs tied to the SaaS mix shift.
Operating loss narrowed to $13.2 million from $26.0 million a year ago, as operating expenses grew only 15% while grew 29%, demonstrating improved .
rose 52% to $53.7 million, supported by $57.1 million in , bringing the six-month total to $91.0 million.
What changed
The , flagged for over two years as a key watch item while it declined to 115%, has now risen for three consecutive quarters to 121%, confirming the expansion engine has sustainably re-accelerated.
The trajectory of , previously pressured by the SaaS mix shift and intangible , improved to 77.9% from 76.3% a year ago as growth outpaced the rise in hosting costs.
The operating loss continued to narrow toward breakeven, falling to $13.2 million from $26.0 million a year ago, as the gap between growth and expense growth widened in the company's favor.
, which had been flagged for potential reversion if the build normalized, rose 52% to $53.7 million for the quarter, with the six-month total reaching $91.0 million.
The geopolitical risk to R&D continuity in Israel, disclosed in updated risk factors, persists as a multi-front conflict involving Israel, the U.S., and Iran threatens to disrupt primary operations and employee availability.
What to watch
Whether the of 121% holds or rises further in Q3, confirming that the re-acceleration in existing customer expansion is durable.
The trajectory of the operating loss and whether the company reaches operating breakeven in the next quarter or two, given the loss narrowed to $13.2 million.
The pace at which customers with over $100,000, now 1,275, continue to grow, as this cohort is the primary driver of the improvement.
The impact of the authorized $300 million program on share count and capital allocation, and whether buyback activity begins in the coming quarters.
SaaS subscriptions contributed 53% of total , up from 45% a year ago, and Enterprise Plus subscriptions grew to 59% of revenue from 55%.
improved to 78% from 76%, as growth outpaced a 20% rise in cost of revenue, which was driven by higher third-party hosting costs.
Operating loss narrowed to $13.2M from $26.0M, as operating expenses grew only 15% while grew 29%, demonstrating improved .
Net was $95.4M for the six months, and reached $91.0M, up from $63.6M a year ago.
The company had $824.5M in cash, equivalents, and short-term investments as of June 30, 2026, and a $300M program was authorized in February 2026.
Quantitative and Qualitative Disclosures About Market Risk
Primary market risk is NIS expense exposure, hedged with derivatives; interest and cash FX risks are deemed immaterial.
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A significant portion of operating costs in Israel, mainly salaries and facilities, is denominated in NIS, creating FX exposure.
The company hedges forecasted NIS cash flows and certain assets/liabilities with foreign currency contracts of up to eighteen months.
A hypothetical 10% FX rate change, after considering hedges, would not materially impact results for the three and six months ended June 30, 2026.
Cash, equivalents, and short-term investments are mostly in USD; a 10% FX move would not materially affect their balances.
A hypothetical 1% interest rate increase would not materially impact the of cash, equivalents, and short-term investments.
Inflation has not materially affected the business, but sustained cost inflation in labor, marketing, or hosting may not be fully offset by price increases.
The information set forth under the heading “Legal Proceedings” in Note 10 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q is incorporated herein by reference.
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The information set forth under the heading “Legal Proceedings” in Note 10 to the condensed consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q is incorporated herein by reference.
JFrog faces risks from managing rapid growth, evolving competition in DevOps/DevSecOps/AI markets, and geopolitical instability affecting its Israeli R&D operations.
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Sustaining 27-29% growth strains management, infrastructure, and corporate culture, risking execution failures if systems and hiring do not scale effectively.
The platform's centrality of JFrog Artifactory means any decline in its demand or competitive position would directly reduce sales of all other products.
Intensifying competition from cloud providers (AWS, Azure, Google Cloud), DevOps vendors (GitHub, GitLab), and security point solutions could erode market share and pricing power.
Geopolitical turmoil, specifically the multi-front conflict involving Israel, the U.S., and Iran, threatens to disrupt the company's primary R&D operations and employee availability in Israel.
Rapid technological shifts, particularly in AI/ML, require continuous innovation; failure to integrate AI securely or keep pace with AI-powered coding agents could make the platform obsolete or introduce novel security liabilities.
A history of net losses ($71.8M in FY2025) and an of $431.5M persist, with future profitability dependent on scaling faster than rising investments in R&D and sales.