One-glance verdict
Overvalued
$56.82 our estimate vs market $87.18
Wall Street consensus: $112.00 (97.1% higher than our fair-value estimate)
53% above our estimate, beyond the bull case
Fundamentals snapshot
JFrog Ltd.
FROG · NMS · Technology · Software - Application
Current price
$87.18
52-week range
$34.05 - $105.76
Market cap
$10.75B
Balance sheet
Healthy
-3.48x Concerning
Net cash $809.92M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 12.8% last year.
- Reward Free cash flow was positive in 8/10 years.
- Risk Return on equity was -4.9% last year — the company lost money on shareholders' equity.
What this company does
JFrog Ltd.
JFrog provides tools to manage the software supply chain (the entire journey of code from a developer's computer to the final product, like an app). The company makes money primarily by selling subscriptions to its platform, which acts like a secure digital warehouse for all the bits and pieces of software a company uses. This is important because it helps businesses build and update their applications quickly while protecting them from security vulnerabilities.
What it actually does
Think of JFrog as providing a secure warehouse and logistics system for software creation. When developers build applications, they create and use many digital building blocks, like packages of code. JFrog's platform helps companies manage this entire "software supply chain" from start to finish. It provides a central place to store these building blocks, scan them for security risks, and then distribute the final software to users or devices. This process helps ensure that the software companies release is secure and reliable.
JFrog Platform Subscriptions
The company makes money by selling subscriptions to its software platform, which bundles its various tools together. Customers can choose to have JFrog manage the software for them in the cloud (a SaaS, or Software-as-a-Service, subscription) or they can manage it themselves on their own servers (a self-managed subscription). The cloud-based subscriptions are the fastest-growing part of the business and now make up more than half of the company's revenue. Customers pay recurring fees for access to the platform, with different tiers of service available.
Artifactory
This is JFrog's original and core product, acting as a universal storage hub for all the different pieces, or "artifacts," that developers use to build software. It's like a library or warehouse where every component, from code packages to container images and AI models, is organized, versioned, and stored. This central system ensures that development teams have consistent and reliable access to the building blocks they need. Artifactory is the foundation of the entire JFrog platform.
Xray
JFrog Xray is a security tool that scans the software components stored in Artifactory to find vulnerabilities (weaknesses that could be attacked) and licensing issues. It acts like a security guard for the software warehouse, continuously checking all the packages and their dependencies (other pieces of code they rely on) for known risks. This helps developers identify and fix security problems early in the development process, long before the software reaches customers. Xray is sold as an integrated part of the broader JFrog platform subscriptions.
Connect
This part of the business focuses on managing software for connected devices, often called the Internet of Things (IoT). JFrog Connect allows companies to remotely update, monitor, and control large fleets of devices like smart home gadgets or industrial sensors. It provides tools to automate software updates and troubleshoot problems without needing physical access to the devices. This service is integrated with the rest of the JFrog platform, allowing for a secure and streamlined process from the developer to the device.
What management is betting on now
JFrog is heavily focused on securing the entire software supply chain, especially with the rise of AI-generated code. The company is positioning its platform as the essential system of record for managing and securing not just traditional software components, but also AI models and all the related assets. A major priority is expanding its security offerings and encouraging customers to adopt its comprehensive Enterprise+ platform subscription. They are also pushing for more customers to move to their cloud-based offerings and are making strategic acquisitions to enhance their capabilities in AI and machine learning.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$26.70M
FY2024 Q4
$48.48M
FY2025 Q1
$28.14M
FY2025 Q2
$35.46M
FY2025 Q3
$28.81M
FY2025 Q4
$49.85M
FY2026 Q1
$37.29M
FY2026 Q2
$53.75M
Revenue
$163.77M
Net income
$-4.17M
Diluted EPS
-0.03
Operating cash flow
$57.06M
Free cash flow
$53.75M
Fetching…
Sources
Revenue
$153.98M
Net income
$-8.27M
Diluted EPS
-0.07
Operating cash flow
$38.36M
Free cash flow
$37.29M
Fetching…
Sources
Revenue
$145.31M
Net income
$-15.21M
Diluted EPS
-0.13
Operating cash flow
$50.70M
Free cash flow
$49.85M
Fetching…
Sources
Revenue
$136.91M
Net income
$-16.43M
Diluted EPS
-0.14
Operating cash flow
$30.16M
Free cash flow
$28.81M
Fetching…
Sources
Revenue
$127.22M
Net income
$-21.68M
Diluted EPS
-0.19
Operating cash flow
$36.09M
Free cash flow
$35.46M
Fetching…
Sources
Revenue
$122.41M
Net income
$-18.50M
Diluted EPS
-0.16
Operating cash flow
$28.79M
Free cash flow
$28.14M
Fetching…
Sources
Revenue
$116.08M
Net income
$-23.20M
Diluted EPS
-0.21
Operating cash flow
$49.12M
Free cash flow
$48.48M
Fetching…
Sources
Revenue
$109.06M
Net income
$-22.95M
Diluted EPS
-0.21
Operating cash flow
$27.64M
Free cash flow
$26.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $56.82 vs current price $87.18
Wall Street consensus is the average analyst price target: $112.00 (97.1% higher than our fair-value estimate).
Our most-likely fair value is $56.82 a share — about 34.8% below today's price of $87.18, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $809.9M - more cash than debt. Interest coverage -3.5x.
Net debt
$-809.92M
Interest coverage
-3.48x
JFrog Ltd.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
FROG
BASELINE
JFrog Ltd.
Total debt $14.57M Interest coverage -3.48x This is the baseline the peer rows are being compared against.
Total debt $0.00 Interest coverage -1.54x Neither company has much profit cushion over interest right now.
Total debt $128.81B Interest coverage 50.88x This peer still has a real interest-payment cushion, while FROG does not.
Total debt $1.23B Interest coverage 0.21x This peer still has a real interest-payment cushion, while FROG does not.
Total debt $1.28B Interest coverage -4.01x Neither company has much profit cushion over interest right now.
What you should know
The case for and against FROG
2 Rewards
1 Risk
Rewards
-
Revenue grew 12.8% last year.
-
Free cash flow was positive in 8/10 years.
Risks
-
Return on equity was -4.9% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
76.14x
P/B
11.17x
P/S
17.92x
EV/EBITDA
-245.04x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
77.9%
Operating margin
-7.1%
Net margin
-7.3%
ROE
-4.9%
ROA
-2.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
2.13x
Quick ratio
2.02x
Total debt
$14.57M
Total cash
$824.49M
Growth
How the business has been compounding
Revenue TTM
$599.96M
Revenue 5Y CAGR
26.7%
EPS TTM
-0.37
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$176.26M
Free CF TTM
$142.27M
FCF margin
23.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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