# Jfrog (FROG.US)

Canonical: https://gigainvestors.com/s/FROG

Analysis as of: 2026-10-16T07:28:38.166Z. Financial observations: FY2018–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $94.54 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 0

- Years with a net loss: 9

- Operating margin variation: 0.53×

Chart: Operating margin; fiscal year observations.

- FY2018: -0.42×

- FY2019: -0.07×

- FY2020: -0.09×

- FY2021: -0.33×

- FY2022: -0.32×

- FY2023: -0.22×

- FY2024: -0.21×

- FY2025: -0.17×

- LTM to Jun 2026: -0.11×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -7.8%

- ROIC, second-lowest year: -10.7%

- Typical minus recent gross margin: 0.9 pp

- Typical gross margin (annual median): 78.0%

- Recent gross margin (lower of latest and 3-year median): 77.1%

- Years with nonpositive capital: 8

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: -23.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 0.0%

- FY2019: 0.0%

- FY2020: -2.0%

- FY2021: -317.8%

- FY2022: -10.7%

- FY2023: -8.3%

- FY2024: -8.9%

- FY2025: -7.8%

- LTM to Jun 2026: -5.4%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$289M

- Net income, five-year total: -$357M

- Return on incremental invested capital: -239.5%

- Working capital / revenue, annual change: -0.5 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$60M

- FY2022: -$80M

- FY2023: -$48M

- FY2024: -$51M

- FY2025: -$51M

### management: fail

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.0% vs -8.3%

- Per-share earnings: -0.20 to -0.62 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 20.1%

- Diluted shares, 5-year annual growth: 20.1%

- Per-share value change: -$0.42

- Per-share value, starting three-year median: -$0.20

- Per-share value, ending three-year median: -$0.62

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.1%

- Buyback history: 2 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 0.0%

- ROIC, last three-year median: -8.3%

Chart: Earnings per share; fiscal year observations.

- FY2018: -$0.32

- FY2019: -$0.07

- FY2020: -$0.20

- FY2021: -$0.68

- FY2022: -$0.91

- FY2023: -$0.59

- FY2024: -$0.63

- FY2025: -$0.62

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -16.2%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 107.5%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.46×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -15.9%

- FY2019: -6.5%

- FY2020: -5.6%

- FY2021: -10.8%

- FY2022: -12.8%

- FY2023: -13.9%

- FY2024: -15.9%

- FY2025: -16.2%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Up 320% since Oct 2023 · "JFrog Stock Soars After Earnings. CEO Says AI Will Drive More Demand." (finance.yahoo.com, May 2026) · sales +12.8%

Story as of 2026-10-16T09:58:47.152Z; price observation 2026-10-15.

- 2025-05-08: JFrog (NASDAQ:FROG) Beats Q1 Sales Targets, Quarterly Revenue Guidance Slightly Exceeds Expectations ([finance.yahoo.com](https://finance.yahoo.com/news/jfrog-nasdaq-frog-beats-q1-201551599.html))

- 2025-08-11: FROG Q2 Deep Dive: Cloud, Security, and AI Drive Expansion Amid Hybrid Demand Shift ([finance.yahoo.com](https://finance.yahoo.com/news/frog-q2-deep-dive-cloud-133129868.html))

- 2025-11-08: JFrog (FROG) Is Up 26.4% After Surpassing Q3 Estimates and Lifting Full-Year Cloud Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/jfrog-frog-26-4-surpassing-201333441.html))

- 2026-05-11: Assessing JFrog (FROG) Valuation After Strong Q1 2026 Beat And New US$300m Buyback Plan ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/assessing-jfrog-frog-valuation-strong-071602653.html))

- 2026-08-07: JFrog Q2 Earnings Beat Estimates on Cloud and Security Growth ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/jfrog-q2-earnings-beat-estimates-181400287.html))

### Sales · FY2025–2026

sales +12.8%; source https://www.sec.gov/Archives/edgar/data/1800667/000119312526051382/frog-20251231.htm; observed 2026-02-13.

- FY2018: $64M 

- FY2019: $105M 

- FY2020: $151M 

- FY2021: $207M 

- FY2022: $280M 

- FY2023: $350M 

- FY2024: $428M 

- FY2025: $532M 

- FY2026: $600M 

### Gross margin · FY2026

gross margin 77.9%; source https://www.sec.gov/Archives/edgar/data/1800667/000119312526051382/frog-20251231.htm; observed 2026-02-13.

- FY2018: 83.1% 

- FY2019: 80.9% 

- FY2020: 81.1% 

- FY2021: 79.8% 

- FY2022: 77.8% 

- FY2023: 78.0% 

- FY2024: 77.1% 

- FY2025: 76.8% 

- FY2026: 77.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 531.8 million.

- Source: https://www.sec.gov/Archives/edgar/data/1800667/000119312526051382/frog-20251231.htm (filed 2026-02-13); FY2025: revenue 531840000; grossProfit 408387000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FROG.US: JFrog Ltd. provides software supply chain platform in the United States, Israel, India, and internationally. The company offers JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage software packages; JFrog Curation functions as a guardian outside the software development pipeline, controlling the admission of packages into an organization, from open source or public repositories; JFrog Xray, scans JFrog Artifactory to secure all software packages; JFrog Advanced Security, an optional add-on for select JFrog subscriptions; and JFrog Runtime Security, an optional add-on for select JFrog subscriptions to work with other JFrog Security solutions. It also provides JFrog ML, a platform-integrated solution designed for data science and MLOps teams to transform and store data, build, train, and deploy models, and monitor the entire Machine Learning pipeline; JFrog AI Catalog, an extension of JFrog Curation functionality that allows companies to secure, govern, consume and deploy AI technologies; JFrog AppTrust, an optional component with application risk governance of DevGovOps requirements; JFrog Distribution that provides software package distribution; and JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance in IoT device fleets. In addition, the company offers JFrog Pro that provides access to the universal version of JFrog Artifactory and ongoing updates, upgrades, and bug fixes; JFrog Pro X, a self-managed-only subscription; JFrog Enterprise X, offers cluster configuration, federated repositories, multi-region replication, larger enterprise-scale deployments, service-level agreement support, and deeper security; and JFrog Enterprise Plus, a full platform subscription option. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California with additional office in Netanya, Israel.

### Why customers stay

Margins ranged from 76.8% to 78% during 2023–25; it lost 7.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2023: grossProfit / revenue = 78%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); FY2024: grossProfit / revenue = 77.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1800667/000119312526051382/frog-20251231.htm (filed 2026-02-13); FY2025: grossProfit / revenue = 76.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); 9-year return on capital observations [[2018,0],[2019,0],[2020,-0.020241562465020384],[2021,-3.177521473114484],[2022,-0.10663693744994839],[2023,-0.08312139051562764],[2024,-0.08871728546877598],[2025,-0.07836395945637391],[2026,-0.054407146702212195]]; median -0.07836395945637391. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 8 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Dividend observations: [[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 9.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FROG.US SharesStats.PercentInsiders = 9.895 percentage points; cache date 2026-10-16.

### What the price says

The price is 20.7 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-13); Closing price 94.54 USD; reporting-to-trading FX 1; FY2025 annual sales per share 4.576900867377103; price multiple 20.655898552196152. FY2025 cash earnings/share -0.43696735567452577. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2020-09: $84.65 per share

- 2020-10: $72.43 per share

- 2020-11: $70.36 per share

- 2020-12: $62.83 per share

- 2021-01: $62.47 per share

- 2021-02: $53.49 per share

- 2021-03: $44.37 per share

- 2021-04: $49.03 per share

- 2021-05: $41.75 per share

- 2021-06: $45.52 per share

- 2021-07: $43.82 per share

- 2021-08: $38.44 per share

- 2021-09: $33.50 per share

- 2021-10: $32.69 per share

- 2021-11: $31.96 per share

- 2021-12: $29.70 per share

- 2022-01: $26.72 per share

- 2022-02: $24.77 per share

- 2022-03: $26.95 per share

- 2022-04: $20.87 per share

- 2022-05: $18.65 per share

- 2022-06: $21.07 per share

- 2022-07: $22.20 per share

- 2022-08: $21.15 per share

- 2022-09: $22.11 per share

- 2022-10: $25.40 per share

- 2022-11: $21.98 per share

- 2022-12: $21.33 per share

- 2023-01: $25.71 per share

- 2023-02: $23.00 per share

- 2023-03: $19.70 per share

- 2023-04: $18.57 per share

- 2023-05: $24.36 per share

- 2023-06: $27.70 per share

- 2023-07: $30.77 per share

- 2023-08: $28.69 per share

- 2023-09: $25.36 per share

- 2023-10: $22.49 per share

- 2023-11: $26.98 per share

- 2023-12: $34.61 per share

- 2024-01: $32.53 per share

- 2024-02: $44.79 per share

- 2024-03: $44.22 per share

- 2024-04: $39.88 per share

- 2024-05: $32.17 per share

- 2024-06: $37.55 per share

- 2024-07: $38.56 per share

- 2024-08: $27.76 per share

- 2024-09: $29.04 per share

- 2024-10: $29.18 per share

- 2024-11: $31.15 per share

- 2024-12: $29.41 per share

- 2025-01: $34.76 per share

- 2025-02: $36.75 per share

- 2025-03: $32.00 per share

- 2025-04: $33.77 per share

- 2025-05: $42.94 per share

- 2025-06: $43.88 per share

- 2025-07: $43.41 per share

- 2025-08: $49.37 per share

- 2025-09: $47.33 per share

- 2025-10: $47.48 per share

- 2025-11: $60.98 per share

- 2025-12: $62.46 per share

- 2026-01: $54.80 per share

- 2026-02: $40.15 per share

- 2026-03: $46.93 per share

- 2026-04: $46.44 per share

- 2026-05: $79.48 per share

- 2026-06: $90.88 per share

- 2026-07: $79.79 per share

- 2026-08: $100.07 per share

- 2026-09: $97.04 per share

- 2026-10: $94.54 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1800667/000119312526051382/frog-20251231.htm); period 2025-12-31, filed 2026-02-13.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.