Upgrades - Piper Sandler upgraded Expedia (EXPE) to Neutral from Underweight with a price target of $250, increased from $190, following "very strong" Q3 results and positive Q4 guidance [2] - Macquarie upgraded Unity (U) to Outperform from Neutral with a price target of $50, up from $33, after a Q3 earnings beat as Vector continues to improve [2] - Oppenheimer upgraded JFrog (FROG) to Outperform from Perform with a price target of $75, citing strong quarterly performance and accelerating Cloud growth [3] - Benchmark upgraded Trade Desk (TTD) to Buy from Hold with a price target of $65, noting revenue growth of about 22% year-over-year excluding political acceleration [3] - KeyBanc upgraded Datadog (DDOG) to Overweight from Sector Weight with a price target of $230 post Q3 report, highlighting revenue acceleration excluding OpenAI and sustained visibility into OpenAI spending [4] Downgrades - Williams Trading downgraded Canada Goose (GOOS) to Sell from Hold with a price target of C$12, down from C$20, indicating that the company will not be sold or go private [5] - Needham downgraded CarMax (KMX) to Hold from Buy, citing a choppy macro recovery and increased competition leading to negative unit growth [5] - RBC Capital also downgraded CarMax to Sector Perform from Outperform with a price target of $34, down from $59 [5] - Needham downgraded Penn Entertainment (PENN) to Hold from Buy, removing the previous $22 price target after the early termination of the partnership with Disney's ESPN [5] - Goldman Sachs downgraded Sweetgreen (SG) to Sell from Neutral with a price target of $5, down from $10, due to pressures on both revenue and profitability [5] - UBS downgraded Cogent (CCOI) to Neutral from Buy with a price target of $27, down from $50, following softer results and a dividend cut [5]

Software supply chain platform JFrog (NASDAQ:FROG) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 25.5% year on year to $136.9 million. On top of that, next quarter’s revenue guidance ($137.5 million at the midpoint) was surprisingly good and 4.8% above what analysts were expecting. Its non-GAAP profit of $0.22 per share was 34.4% above analysts’ consensus estimates. Is now the time to buy FROG? Find out in our full research report (it’s free for active Edge members). JFrog (FROG) Q ...

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Motorsport Games Inc. (MSGM) has seen a substantial increase of 122%, trading at $4.88 [3] - Globus Medical, Inc. (GMED) is up 27%, currently priced at $78.75 [3] - JFrog Ltd. (FROG) has risen by 26%, trading at $59.60 [3] - FIGS, Inc. (FIGS) is up 19%, with a trading price of $8.97 [3] - Organogenesis Holdings Inc. (ORGO) has increased by 18%, trading at $4.59 [3] - PureCycle Technologies, Inc. (PCT) is up 17%, currently priced at $11.31 [3] - Expedia Group, Inc. (EXPE) has risen by 16%, trading at $255.10 [3] - 10x Genomics, Inc. (TXG) is up 13%, currently priced at $14.72 [3] - Abacus Global Management, Inc. (ABL) has increased by 12%, trading at $5.95 [3] - GigaCloud Technology Inc. (GCT) is up 9%, currently priced at $27.80 [3] Premarket Losers - Davis Commodities Limited (DTCK) has experienced a significant decline of 65%, trading at $2.23 [4] - Eledon Pharmaceuticals, Inc. (ELDN) is down 46%, currently priced at $2.19 [4] - Treace Medical Concepts, Inc. (TMCI) has decreased by 35%, trading at $4.00 [4] - Energys Group Limited (ENGS) is down 30%, currently priced at $2.77 [4] - Intellia Therapeutics, Inc. (NTLA) has seen a decline of 27%, trading at $8.89 [4] - Fox Factory Holding Corp. (FOXF) is down 24%, currently priced at $16.60 [4] - Opendoor Technologies Inc. (OPEN) has decreased by 24%, trading at $4.94 [4] - AirSculpt Technologies, Inc. (AIRS) is down 21%, currently priced at $8.27 [4] - Power Solutions International, Inc. (PSIX) has seen a decline of 20%, trading at $64.25 [4] - ClearPoint Neuro, Inc. (CLPT) is down 17%, currently priced at $15.00 [4]

Core Insights - JFrog Ltd. reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.15 per share a year ago, resulting in an earnings surprise of +37.50% [1] - The company achieved revenues of $136.91 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.63% and up from $109.06 million year-over-year [2] - JFrog shares have increased approximately 56.8% year-to-date, significantly outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The future performance of JFrog's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $131.57 million, and for the current fiscal year, it is $0.70 on revenues of $509.48 million [7] Industry Context - The Internet - Software industry, to which JFrog belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $136.9 million, representing a 26% year-over-year increase [7][23] - Operating margin improved to 18.7%, up from 13.5% in Q3 2024 [26] - Cloud revenue reached $63.4 million, a 50% increase year-over-year, accounting for 46% of total revenue compared to 39% in the prior year [24][26] - Gross profit was $114.9 million, with a gross margin of 83.9%, up from 82.8% in the year-ago period [25][26] - Net dollar retention was 118%, consistent with the prior quarter, indicating sustained growth among existing customers [9][25] Business Line Data and Key Metrics Changes - Enterprise Plus subscriptions contributed 56% of total revenues, up from 50% in the previous year, with a 39% year-over-year growth in revenue from these subscriptions [24][25] - Customers spending over $1 million annually grew to 71, a 54% increase year-over-year [8][26] - Customers spending more than $100,000 annually increased to 1,121, a 16% year-over-year growth [8] Market Data and Key Metrics Changes - The company noted strong cloud growth driven by increased usage of various software packages, including AI-related artifacts [8][10] - The demand for JFrog's security solutions has been a significant driver of cloud revenue growth [36] Company Strategy and Development Direction - JFrog aims to position itself as a foundational platform for software delivery, focusing on cloud and security solutions [7][10] - The company is embracing AI and machine learning, integrating these capabilities into its platform to enhance software supply chain management [16][22] - JFrog introduced the DevGovOps solution to address the growing need for governance and compliance in software delivery [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, emphasizing the importance of security and governance in the current market landscape [15][29] - The company is prepared for ongoing macroeconomic volatility while maintaining a focus on profitable growth [28][30] Other Important Information - JFrog completed payments of $5.7 million related to the acquisition of Qwak, which was finalized in July 2024 [28] - The company ended Q3 2025 with $651.1 million in cash and short-term investments, up from $522 million at the end of 2024 [28] Q&A Session Summary Question: Was there anything one-time in the cloud revenue results? - Management confirmed that the strong cloud revenue was not due to one-time events but a combination of strong usage across multiple package types and security solutions [36] Question: What has changed in the go-to-market execution for cloud? - Management highlighted consistent execution and a strategy of converting customers with overusage to higher commitments, leading to stable cloud growth [38] Question: Can you elaborate on the types of artifacts managed by Artifactory? - Management noted an increase in the usage of AI-related artifacts alongside traditional software artifacts, indicating a growing trend [42] Question: How relevant is the UI/UX change due to AI for JFrog? - Management acknowledged the importance of adapting to AI-driven software creation and emphasized the need for agentic capabilities in their offerings [45] Question: What is the outlook for net dollar retention? - Management indicated that net dollar retention remains stable at 118%, with expectations for continued growth driven by security solutions and increased cloud usage [50] Question: How is the pipeline for security deals tracking? - Management reported a growing pipeline for security solutions, although sales cycles are longer due to the need to displace existing solutions [88]

Financial Data and Key Metrics Changes - JFrog's total revenue for Q3 2025 was $136.9 million, representing a 26% year-over-year increase [7][23] - Operating margin improved to 18.7%, up from 13.5% in Q3 2024 [26] - Cloud revenue reached $63.4 million, marking a 50% year-over-year growth and accounting for 46% of total revenues compared to 39% in the prior year [24][26] - Net dollar retention was 118%, consistent with the previous quarter, indicating sustained growth among the customer base [9][25] Business Line Data and Key Metrics Changes - Enterprise+ subscriptions contributed 56% of total revenues, up from 50% in the prior year, with a 39% year-over-year growth in revenue from these subscriptions [24][26] - Self-managed or on-prem revenues were $73.5 million, reflecting a 10% year-over-year increase [24] Market Data and Key Metrics Changes - The number of customers spending over $1 million annually grew to 71, a 54% increase year-over-year [8] - Customers spending more than $100,000 annually increased to 1,121, representing a 16% year-over-year growth [8] Company Strategy and Development Direction - JFrog is focusing on becoming a foundational platform for software delivery, emphasizing cloud growth and security solutions [7][9] - The company is positioning itself as a universal binary repository and model registry for software supply chains, particularly in the context of AI and machine learning [10][16] - JFrog's strategy includes guiding cloud customers towards higher annual commitments to foster long-term partnerships [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, particularly in cloud adoption and security solutions, while acknowledging macroeconomic uncertainties [29][30] - The company anticipates continued strong demand for its security offerings due to increasing software supply chain attacks [14][15] - JFrog is preparing for the ongoing AI revolution, focusing on securing AI models and software packages [16][17] Other Important Information - JFrog completed payments of $5.7 million related to the acquisition of Qwak, which was finalized in July 2024 [28] - The company ended Q3 2025 with $651.1 million in cash and short-term investments, up from $522 million at the end of 2024 [28] Q&A Session Summary Question: Was there anything one-time in the cloud revenue results? - Management confirmed that the strong cloud revenues were not one-time but a result of strong usage across multiple package types and security solutions [36] Question: What has changed in the go-to-market execution for cloud growth? - Management highlighted consistent execution and a strategy of converting overusage customers to higher commitments as key factors for cloud growth [38] Question: Can you elaborate on the types of artifacts managed by Artifactory? - Management noted an increase in the usage of AI-related artifacts alongside traditional software artifacts, indicating a growing trend [42] Question: How relevant is the UI/UX change due to AI for JFrog? - Management acknowledged that the JFrog Fly release is designed to accommodate both developers and AI agents, reimagining the software supply chain [45] Question: What is the confidence level in closing big deals in the security pipeline? - Management indicated a growing pipeline for security solutions, with longer sales cycles due to the need for displacing existing solutions [88]

Financial Data and Key Metrics Changes - JFrog's total revenue for Q3 2025 was $136.9 million, representing a 26% year-over-year increase [5][20][27] - Operating margin improved to 18.7%, up from 13.5% in Q3 2024 [24] - Cloud revenue reached $63.4 million, marking a 50% year-over-year growth and accounting for 46% of total revenues [22][27] - Gross profit was $114.9 million, with a gross margin of 83.9%, compared to 82.8% in the previous year [23][24] - Net dollar retention was 118%, consistent with the prior quarter, indicating strong customer growth [7][23] Business Line Data and Key Metrics Changes - Cloud revenue growth was driven by increased usage of software packages and artifacts, including PyPI, Docker containers, and NPM [6][10] - Self-managed or on-prem revenues were $73.5 million, up 10% year-over-year [22] - The number of customers spending over $1 million annually grew to 71, a 54% increase from the previous year [6][23] Market Data and Key Metrics Changes - JFrog's enterprise focus led to significant wins across various verticals and geographies, including a $9 million deal with the UK Customs and Revenue Agency [11][12] - The company noted a rise in software supply chain attacks, emphasizing the need for robust security solutions [12][13] Company Strategy and Development Direction - JFrog aims to be the universal binary repository and model registry for software supply chains, focusing on AI and machine learning developments [8][15] - The company is committed to integrating security solutions into its platform, addressing the growing demand for software supply chain security [12][41] - JFrog introduced new products like JFrog Uptrust to enhance governance and compliance in software delivery [17][60] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, particularly in cloud adoption and security solutions [26][30] - The company is monitoring AI-driven usage closely, believing it is still early to predict significant cloud usage growth [10][46] - JFrog's guidance for 2025 suggests sustained contributions from security products and customer commitments, with a projected revenue range of $523 million to $525 million [27][26] Other Important Information - JFrog completed payments of $5.7 million related to the acquisition of Qwak [25] - The company ended Q3 2025 with $651.1 million in cash and short-term investments, up from $522 million at the end of 2024 [25] Q&A Session Summary Question: Was there anything one-time in the cloud revenue results? - Management confirmed that the strong cloud revenues were not one-time but a result of strong usage across multiple package types and security solutions [31][32] Question: What has changed in the go-to-market execution for cloud growth? - Management highlighted consistent execution and a strategy of converting customers with overusage to higher commitments, leading to stable cloud growth [33] Question: Can you elaborate on the types of artifacts managed by Artifactory? - Management noted a growth in AI-related artifacts, including those from Hugging Face and various programming languages, indicating a trend towards using JFrog as a system of record for all packages [34][35] Question: How relevant is the UI/UX change due to AI for JFrog? - Management emphasized that JFrog Fly is designed to accommodate both developers and AI agents, reimagining the software supply chain [36][37] Question: What is the sustainability of new budgets allocated towards security? - Management indicated that there is an increasing focus on security budgets, especially in light of recent software supply chain attacks [50][52] Question: How is the pipeline for security tracking for Q4 and beyond? - Management reported a growing pipeline for security solutions, although sales cycles are longer due to the need for customers to upgrade from existing solutions [57][58]

Financial Performance - JFrog's 3Q'25 Last Twelve Months (LTM) revenue reached $503 million[7] - The company experienced a 23% year-over-year (YoY) revenue growth in 3Q'25 LTM[7] - JFrog's 3Q'25 LTM Free Cash Flow was $141 million[7] - The Net Dollar Retention Rate for 3Q'25 LTM was 118%[7] - The company projects FY'25 revenue between $523 million and $525 million[145] Customer Base - JFrog has 7,300 customers as of FY24[7] - 82% of Fortune 100 companies are JFrog customers[7] Platform and Security - JFrog discovered over 2.8 million malicious artifacts[51] - JFrog Security Research has scored over 1700 CVEs[51] - JFrog Security Research has disclosed over 200 zero-day vulnerabilities[51] Economic Impact - The JFrog platform accelerates software delivery time, resulting in $13.5 million in value[27] - Automation of activities on Open Source Software (OSS) contributes $6.7 million in economic impact[27] - Increased productivity due to JFrog leads to $3.4 million in value[27]

Financial Performance - Arog's earnings are jumping, with shares up significantly by 26-27% [1] - Earnings per share (EPS) reached $0.22 adjusted, exceeding estimates of $0.16 [1] - Revenue surpassed expectations, reaching $137 million versus the expected $128 million [1] - The company's fourth-quarter EPS guidance is $0.18 to $0.20 per share, ahead of the $0.16 estimate [1] Market Drivers - Cyber security challenges are contributing to Arog's success, as the company plays a role in securing software [2]

Core Insights - Arog's earnings have significantly increased, with shares rising by 26-27% following the announcement [1] - Adjusted earnings per share (EPS) came in at 22 cents, surpassing estimates of 16 cents [1] - Revenue also exceeded expectations, reported at $137 million compared to the anticipated $128 million [1] - The company provided optimistic fourth-quarter guidance for both EPS and revenue, with EPS guidance set at 18 to 20 cents, again above the 16 cents estimate [1] Industry Context - Cybersecurity challenges in the market are influencing Arog's performance, as the company plays a role in securing software amidst these challenges [2]