Core Insights - JFrog's shares increased by 26.6% despite a 0.5% decline in the Nasdaq Composite, following strong earnings and raised full-year guidance [1] Financial Performance - In Q3, JFrog's revenue grew by 25.5% to $136.9 million, with adjusted non-GAAP EPS rising by 46.7% to $0.22, both exceeding expectations [2] - Cloud revenues surged by 50% to $63.4 million, constituting nearly half of total revenue, while the net dollar retention rate increased to 118%, indicating strong customer spending [3] Guidance and Management Commentary - Management raised full-year revenue guidance to a range of $523 million to $525 million, up from $507 million to $510 million, and adjusted EPS guidance to $0.78 to $0.80, up from $0.68 to $0.70 [4] - CEO Shlomi Ben Haim emphasized strong execution across various operational areas, including DevOps and MLOps, and highlighted the company's innovation in Governance and Compliance [4] Market Position and Valuation - JFrog's shares trade at over 13 times sales, which is considered not cheap but reasonable for a software company, especially if cloud business growth continues [6][7] - The company holds approximately $650 million in cash with no debt, representing nearly 10% of its market cap [7]

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 - JFrog reported Q3 CY2025 revenue of $136.9 million, exceeding Wall Street expectations by 6.6% and reflecting a year-on-year growth of 25.5% [6][8] - The company provided a positive revenue guidance for Q4 CY2025 at $137.5 million, which is 4.8% above analyst estimates [6] - Non-GAAP profit per share was $0.22, surpassing analysts' consensus by 34.4% [6] Company Overview - JFrog is a software supply chain platform that enables organizations to securely create, store, manage, and distribute software packages [4] - The company is recognized as a foundational element in modern software supply chains, particularly in the context of AI [3] Revenue Growth - Over the last five years, JFrog has achieved a compounded annual growth rate of 29.3%, outperforming the average software company [5] - The company reported an annualized revenue growth of 23.6% over the last two years, indicating healthy demand despite being below the five-year trend [7] Financial Performance - Adjusted operating income was $25.61 million, with an 18.7% margin, significantly beating analyst estimates [6] - The operating margin improved to -15.8%, up from -27.4% in the same quarter last year [6] - Free cash flow margin was reported at 21%, a decrease from 27.9% in the previous quarter [6] Customer Metrics - JFrog has 1,121 customers paying more than $100,000 annually, demonstrating a strong customer base [6] - The net revenue retention rate stood at 118%, consistent with the previous quarter [6] Market Position - JFrog's market capitalization is currently valued at $5.38 billion [6] - Billings reached $163.8 million at the end of the quarter, reflecting a year-on-year increase of 24.1% [6]