JFrog (FROG) AI Stock Analysis

• Market Cap: $5.86B
• Dividend Yield: N/A
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 21.97%
• EPS Growth: -69.32%
• Country: US
• Employees: 1,600
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.18
• Shares Outstanding: 116,741,770
• 10 Day Avg. Volume: 1,365,102
• 30 Day Avg. Volume: 1,583,920
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 9.39
• Enterprise Value/Gross Profit: 12.61
• Enterprise Value/Ebitda: -83.18
• 1Y Price Target: $54.50
• Price Target Upside: 8.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

• Rating: 71 Outperform
• Price Target: $49.00 ▼(-2.37% Downside)

JFrog's overall stock score is driven by strong financial performance in terms of revenue growth and cash flow management, supported by positive technical indicators. However, profitability challenges and valuation concerns due to negative earnings weigh on the score. The company's strategic partnerships and leadership confidence provide additional support, but macroeconomic uncertainties and cloud adoption challenges remain risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for JFrog's solutions, enhancing long-term business sustainability and competitive positioning.

Strategic Partnerships

The partnership with NVIDIA strengthens JFrog's position in the AI ecosystem, potentially driving future growth and expanding its market reach.

Cash Flow Management

Strong cash flow management ensures financial flexibility, supporting strategic investments and operational stability in the long term.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder JFrog's ability to reinvest in growth and innovation, affecting its competitive edge over time.

Cloud Growth Challenges

Challenges in cloud adoption due to AI cost predictability may slow down JFrog's growth in this segment, impacting future revenue streams.

Macroeconomic Uncertainties

Macroeconomic uncertainties could affect JFrog's growth trajectory, as economic conditions may influence customer spending and investment decisions.

JFrog Business Overview & Revenue Model

Company Description

JFrog Ltd. is a software company specializing in DevOps solutions that facilitate the management and distribution of software binaries and artifacts. Founded in 2008, JFrog is best known for its flagship product, Artifactory, a universal artifact repository manager that supports various package formats. The company operates in the software development sector, providing tools that enhance software development workflows across industries, enabling continuous integration and continuous delivery (CI/CD) processes.

How the Company Makes Money

JFrog generates revenue primarily through a subscription-based model, offering various tiers of its products and services, including Artifactory, JFrog Xray, and JFrog Pipelines. These subscriptions are typically sold to enterprises needing robust solutions for managing software artifacts and dependencies. The company also provides additional services such as training, support, and consulting, which contribute to its revenue streams. Key partnerships with cloud service providers and integrations with popular CI/CD tools further enhance its market reach and sales opportunities. Additionally, the company offers a free tier to attract smaller teams and organizations, with the aim to convert them to paid plans as their needs grow.

JFrog Financial Statement Overview

Summary

JFrog exhibits strong revenue growth and cash flow management, with a solid balance sheet characterized by low leverage. However, the company faces profitability challenges, as evidenced by negative profit margins and return on equity. To enhance its financial health, JFrog should focus on improving operational efficiency and profitability while maintaining its growth trajectory.

Income Statement

JFrog's revenue growth has been consistent, with a 5.37% increase in the TTM period. However, the company is facing profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin remains strong at 75.53%, suggesting efficient cost management. Overall, while revenue is growing, the company needs to address its profitability issues.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.017, indicating low leverage and financial stability. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is healthy, suggesting a solid asset base supported by equity. The company is financially stable but needs to improve its profitability to enhance ROE.

Cash Flow

JFrog's cash flow performance is robust, with a 16.34% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is strong at 0.41, indicating good cash generation relative to net income. The free cash flow to net income ratio is close to 1, showing efficient cash conversion. The company demonstrates strong cash flow management despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	474.76M	428.49M	349.89M	280.04M	206.68M	150.83M
Gross Profit	353.54M	326.92M	271.07M	216.95M	163.85M	121.72M
EBITDA	-53.61M	-44.36M	-39.21M	-62.73M	-52.77M	-8.49M
Net Income	-86.32M	-69.24M	-61.26M	-90.18M	-64.20M	-9.40M
Balance Sheet
Total Assets	1.21B	1.13B	972.56M	871.22M	852.53M	689.23M
Cash, Cash Equivalents and Short-Term Investments	611.70M	522.01M	545.01M	443.20M	421.13M	598.06M
Total Debt	13.84M	13.98M	22.23M	23.96M	27.31M	0.00
Total Liabilities	381.73M	356.38M	293.43M	246.45M	213.95M	135.34M
Stockholders Equity	826.45M	773.53M	679.12M	624.77M	638.58M	553.89M
Cash Flow
Free Cash Flow	138.79M	107.78M	72.17M	16.80M	23.07M	25.94M
Operating Cash Flow	141.63M	110.92M	74.16M	21.43M	27.90M	29.46M
Investing Cash Flow	-338.95M	-165.36M	-53.48M	-53.34M	-125.55M	-311.80M
Financing Cash Flow	30.41M	21.23M	18.37M	11.03M	1.44M	406.13M

JFrog Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FROG, the sentiment is Positive. The current price of 50.19 is above the 20-day moving average (MA) of 49.20, above the 50-day MA of 45.45, and above the 200-day MA of 38.35, indicating a bullish trend. The MACD of 1.22 indicates Positive momentum. The RSI at 60.72 is Neutral, neither overbought nor oversold. The STOCH value of 74.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FROG.

JFrog Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWAN	74 Outperform	5.43B	11.50	20.64%	―	36.68%	―
FROG	71 Outperform	$5.86B	―	-11.15%	―	21.97%	-69.32%
BILL	69 Neutral	5.42B	-333.42	0.61%	―	13.36%	―
GTLB	69 Neutral	8.25B	-1,453.57	-0.82%	―	28.97%	98.96%
ZETA	66 Neutral	5.26B	-112.12	-5.43%	―	40.60%	79.56%
COMP	56 Neutral	4.25B	-73.45	-7.40%	―	21.23%	78.54%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

JFrog Corporate Events

JFrog Approves CEO’s Dual Role in AGM

On May 20, 2025, JFrog Ltd. held its annual general meeting where several key proposals were voted on and passed. These included the re-election of directors, the re-appointment of independent auditors, and various changes to executive and board compensation policies. Additionally, the meeting approved Shlomi Ben Haim’s dual role as CEO and Chairman for three years, reflecting shareholder support for the company’s leadership and strategic direction.