JFrog (FROG) investor relations material

Executive summary

• Q1 2026 revenue reached $154 million, up 26% year-over-year, driven by strong cloud/SaaS and Enterprise Plus subscription growth.

• Cloud/SaaS revenue grew 50% year-over-year to $78.9 million, now 51% of total revenue, surpassing on-prem for the first time.

• Enterprise Plus subscriptions contributed 58–59% of total revenue, up from 55% a year ago.

• Customer base expanded, with 80 customers spending over $1 million annually (up 48% year-over-year) and 1,225 spending over $100,000 (up 17%).

• AI adoption, software supply chain security, and unified governance are key growth drivers, with strong demand for secure, automated solutions.

Financial highlights

• Gross profit was $129 million (non-GAAP, 83.8% margin); GAAP gross profit was $120.4 million (78.2% margin).

• Operating profit reached $32.9 million (non-GAAP, 21.4% margin); GAAP operating loss was $12.9 million.

• Free cash flow was $37.3 million, up from $28.1 million a year ago.

• Cash and short-term investments totaled $741.2 million at quarter-end.

• Remaining performance obligations (RPO) were $574.9 million, up 36% year-over-year.

Outlook and guidance

• Q2 2026 revenue expected between $154 million and $156 million; non-GAAP operating profit $28–$30 million; EPS $0.23–$0.25.

• Full-year 2026 revenue guidance raised to $628–$632 million; non-GAAP operating income $112–$116 million; EPS $0.93–$0.97.

• Baseline cloud growth guidance increased to 33–35% for 2026.

• Net dollar retention floor raised to 118% for 2026.

• Gross margin expected to remain in the 82–83% range for the year.