JFrog Ltd (FROG)
Vertical SaaSSaaS Metrics & Investor Data — Q2 2026
analyticsEditorial Financial Analysis
Financial Performance & Trajectory
JFrog is demonstrating accelerating top-line momentum, with trailing revenue scaling to $0.54B in Q1 2026 from $0.50B in Q3 2025. Growth has re-accelerated notably, from 15.7% YoY in Q3 2025 to 26.1% in Q1 2026, signaling strong demand for its DevOps pipeline platform. Gross margins, however, show some volatility—dipping from a peak of 82.4% in Q3 2025 to 76.9% in Q1 2026, likely reflecting a shift in revenue mix toward cloud or lower-margin services. Cash generation remains robust but is moderating; Free Cash Flow margin compressed from 28.7% in Q3 2025 to 14.9% in Q1 2026, suggesting increased investment in growth or a temporary working capital drag. The business is scaling efficiently, with revenue approaching the half-billion-dollar annual run rate.
Operational & Go-to-Market (GTM) Efficiency
JFrog’s GTM efficiency is strong, evidenced by a Rule of 40 score that has improved from 44.4 in Q3 2025 to 50.9 in Q4 2025, before settling at a still-respectable 41.1 in Q1 2026. The Q4 spike reflects a period of optimal balance between growth and profitability. The absence of disclosed Net Revenue Retention (NRR) and CAC Payback metrics limits visibility into customer expansion dynamics and sales efficiency, but the sustained Rule of 40 above 40 indicates that JFrog is generating healthy returns on its reinvestments. The 26.1% growth rate, combined with a 76.9% gross margin, implies that R&D and sales investments are yielding solid incremental revenue, though the margin compression warrants monitoring for potential competitive or pricing pressure.
Market Valuation & Sentiment
At 17.7x trailing EV/Revenue, JFrog trades at a premium that reflects its re-accelerated growth profile and market leadership in binary repository management. This multiple has expanded from 10.8x in Q3 2025, indicating improving investor confidence as growth re-accelerated. Insider activity is a notable concern: the last 10 filings show net insider selling of -$3.66M with zero buys, suggesting some internal skepticism at current valuations. Wall Street sentiment remains bullish, with a consensus Buy rating (20 Buys, 2 Holds) and an average price target of $77.13. The target implies modest upside from current levels, but the insider selling trend introduces a cautionary note, particularly against the backdrop of elevated multiples and declining FCF margins.
Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.
JFrog Ltd (FROG) is a Vertical SaaS SaaS company with a market cap of $10.6B as of Q2 2026. The company trades at 18.1x EV/Revenue and has delivered +35.8% revenue growth year-over-year. With a gross margin of 78% and FCF margin of 13.9%, JFrog Ltd scores 50 on the Rule of 40 — placing it in the upper half of public SaaS companies tracked by SaaSDB.
compare_arrowsSector Benchmarking
Latest company metrics compared to the Vertical SaaS sector medians
EV/Revenue is 18.1x (sector median: 5.2x) — trading at a premium of 12.9x relative to peers.
Rule of 40 is 49.7% (sector median: 32.8%) — outperforming peers by 16.8%.
Revenue Growth is 35.8% (sector median: 18.4%) — outperforming peers by 17.4%.
Gross Margin is 77.5% (sector median: 73.7%) — outperforming peers by 3.8%.
FCF Margin is 13.9% (sector median: 11.9%) — in-line with peers.
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From the makers of SaaSDB
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rocket_launchFounder & Operator Metrics
Not publicly disclosed by this company: Net Revenue Retention·Gross Retention·ARR·ARR Growth·CAC Payback
trending_upEfficiency & Investment Trends
biotechR&D Intensity Trend
R&D expense as % of revenue over time
FROG's R&D spend represents a significant product investment relative to revenue, typical of early/expansion-stage SaaS.
insightsOperating Leverage Trend
Operating leverage ratio (margin expansion vs growth)
Growing efficiently. Operating income is expanding faster than revenue growth, indicating positive operating leverage.
Insider Trading Activity
90-Day Insider Sentiment: Bearish / Net Selling. Insiders executed 18 sell transactions (totaling $37.2M) with zero buys. Last activity on Sep 2, 2026.
Analyst Ratings
From the makers of SaaSDB
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