JFrog (FROG) investor relations material

Executive summary

• Q2 2026 revenue grew 29% year-over-year to $163.8 million, with cloud revenue up 53% to $87.5 million and cloud now 53% of total revenue.

• Net dollar retention rate reached 121% for the trailing four quarters, up from 118% a year ago.

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

• Platform recognized as a leader in Gartner's Magic Quadrant for software supply chain security.

• Security and governance are increasingly critical, with DevGovOps and AI adoption accelerating software creation and complexity.

Financial highlights

• Total revenue for Q2 2026 was $163.8 million, up 29% year-over-year; FY 2026 revenue guidance is $648–$652 million.

• Gross margin was 83.2% (non-GAAP) and 77.9% (GAAP) for Q2 2026; gross profit was $136.2 million (non-GAAP).

• Free cash flow for Q2 2026 was $53.8 million (33% margin); LTM free cash flow reached $170 million.

• Cash, cash equivalents, and investments totaled $824.5 million as of June 30, 2026.

• Operating profit was $32.6 million (non-GAAP, 19.9% margin); GAAP net loss per share was $(0.03).

Outlook and guidance

• Q3 2026 revenue expected between $164 million and $166 million; non-GAAP operating profit $27–$29 million; non-GAAP EPS $0.22–$0.24.

• FY 2026 revenue guidance raised to $648–$652 million; non-GAAP operating income $116–$120 million; non-GAAP EPS $0.96–$1.00.

• Gross margin expected to remain in the 82–83% range for 2026.

• Free cash flow margin projected at 24% in FY 2026.

• Net dollar retention floor set at 120% for 2026.