JFrog Revenue Climbs 31% to $179.2M as Cloud Growth Hits 60%

JFrog posted $179.2 million in third-quarter revenue, up 31% year over year and above the high end of its own guidance. The company attributed the beat to cloud adoption, security demand, and expansion of its Enterprise+ subscriptions, according to a TradingView analysis by Jacob_Raymond.

Growth carried through the entire income statement. Gross profit reached $149.8 million, with gross margin at 83.6% versus 83.9% a year earlier. Operating expenses were $109.1 million, or 61% of revenue, down from $89.3 million, or 65%, in the prior-year quarter. Operating profit came in at $40.7 million — a 22.7% margin, up from 18.7%.

Cash generation improved faster than sales. Operating cash flow was $69.3 million. Free cash flow reached $66.5 million, or 37% of revenue, versus $28.8 million and 21% a year earlier. JFrog ended the quarter with $880.9 million in cash and short-term investments, up from $704.4 million at year-end 2025. Remaining performance obligations stood at $812 million, up 60% year over year.

What drove the cloud shift?

Cloud revenue was $101.5 million, up 60% year over year, and now makes up 57% of total revenue versus 46% a year earlier. On-premises revenue grew 6% to $77.7 million. Management said cloud growth reflected higher usage, conversion of overage fees into annual commitments, and increased security adoption. The company is actively engaging self-managed customers on cloud or hybrid migration paths.

Enterprise+ subscriptions contributed 61% of revenue, up from 56%, and grew 42% year over year. The customer base moved upmarket: 112 customers now generate more than $1 million in annual recurring revenue, up from 71. Customers above $100,000 in ARR totaled 1,357, versus 1,121 a year earlier.

Retention metrics strengthened alongside the mix shift. Trailing four-quarter net dollar retention hit 124%, up 6 percentage points year over year and 3 points sequentially. Gross retention was 97%. No single customer accounted for more than 3% of revenue at quarter-end.

How is AI reshaping demand?

AI coding agents are changing what JFrog stores and secures. New artifact types — models, datasets, MCP servers, skills, and plugins — are increasing demand for storage, security, governance, and scalable systems of record, according to the analysis. Rising software supply-chain attacks and malicious open-source campaigns are reinforcing demand for integrated security, and management described a sustained, healthy security purchasing environment.

Customer evidence backs the trend. Credit Karma reported zero detected supply-chain attacks since implementing JFrog's Curation across its remote repositories. Curation assessed 47 million new open-source package requests in a single quarter. Ford migrated more than a petabyte of artifacts to Artifactory. Keysight described using AppTrust to embed governance in delivery pipelines while balancing compliance with speed.

The quarter's flagship deal underscored the pattern: a $76 million multi-year SaaS agreement with a major telecommunications customer represented 167% growth in cloud data consumption versus its prior usage commitment, and included security and governance adoption.

What does guidance signal?

JFrog raised its full-year 2026 revenue guidance to $680 million–$682 million, representing 28% year-over-year growth at the midpoint. The company guided non-GAAP operating income of $142.5 million–$144.5 million and diluted EPS of $1.14–$1.16, based on roughly 129 million diluted shares.

For the fourth quarter, JFrog expects revenue of $183 million–$185 million, non-GAAP operating profit of $36.2 million–$38.2 million, and diluted EPS of $0.28–$0.30 on approximately 131 million shares. Baseline cloud growth guidance rose to 52%–54%. The company set a 2026 trailing four-quarter net dollar retention floor of 122% and projected full-year gross margin of 83%–83.5%. Spending plans prioritize platform innovation while maintaining operating discipline.

Two caveats sit inside the outlook. Guidance excludes usage above customers' annual minimum commitments, so realized revenue depends partly on converting that usage into contracted commitments. The outlook also excludes the largest opportunities where deal timing remains uncertain — meaning reported growth could land above plan if those deals close.