Software supply chain platform JFrog (NASDAQ:FROG) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 25.2% year on year to $145.3 million. Guidance for next quarter’s revenue was optimistic at $147 million at the midpoint, 2.4% above analysts’ estimates. Its non-GAAP profit of $0.22 per share was 16.2% above analysts’ consensus estimates.
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JFrog (FROG) Q4 CY2025 Highlights:
- Revenue: $145.3 million vs analyst estimates of $138.1 million (25.2% year-on-year growth, 5.2% beat)
- Adjusted EPS: $0.22 vs analyst estimates of $0.19 (16.2% beat)
- Adjusted Operating Income: $25.75 million vs analyst estimates of $21.82 million (17.7% margin, 18% beat)
- Revenue Guidance for Q1 CY2026 is $147 million at the midpoint, above analyst estimates of $143.6 million
- Adjusted EPS guidance for the upcoming financial year 2026 is $0.90 at the midpoint, beating analyst estimates by 1.8%
- Operating Margin: -14.7%, up from -21.9% in the same quarter last year
- Free Cash Flow Margin: 34.3%, up from 21% in the previous quarter
- Customers: 1,168 customers paying more than $100,000 annually
- Net Revenue Retention Rate: 119%, up from 118% in the previous quarter
- Billings: $178.5 million at quarter end, up 22.2% year on year
- Market Capitalization: $6.15 billion
Company Overview
Named after the amphibian that continuously evolves from egg to tadpole to adult, JFrog (NASDAQ:FROG) provides a platform that helps organizations securely create, store, manage, and distribute software packages across any system.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, JFrog’s 28.7% annualized revenue growth over the last five years was impressive. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.
Long-term growth is the most important, but within software, a half-decade historical view may miss new innovations or demand cycles. JFrog’s annualized revenue growth of 23.3% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
This quarter, JFrog reported robust year-on-year revenue growth of 25.2%, and its $145.3 million of revenue topped Wall Street estimates by 5.2%. Company management is currently guiding for a 20.1% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 15% over the next 12 months, a deceleration versus the last two years. Still, this projection is above the sector average and indicates the market sees some success for its newer products and services.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
JFrog’s billings punched in at $178.5 million in Q4, and over the last four quarters, its growth was impressive as it averaged 22.8% year-on-year increases. This performance aligned with its total sales growth, indicating robust customer demand. The high level of cash collected from customers also enhances liquidity and provides a solid foundation for future investments and growth. 
Customer Retention
One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company’s products and services over time.
JFrog’s net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 118% in Q4. This means JFrog would’ve grown its revenue by 17.8% even if it didn’t win any new customers over the last 12 months.
Trending up over the last year, JFrog has a good net retention rate, proving that customers are satisfied with its software and getting more value from it over time, which is always great to see.
Key Takeaways from JFrog’s Q4 Results
We were impressed that JFrog beat analysts’ billings expectations this quarter. This led to beats on the revenue and adjusted operating profit lines. We were also glad its revenue and EPS guidance for next quarter exceeded Wall Street’s estimates. On the other hand, there was some topline deceleration in the quarter, and the company's revenue guidance for next year suggests further deceleration in growth. Overall, we still think this was a solid quarter with some key metrics above expectations. With fears that AI is a net negative to enterprise software companies, investors were likely hoping for more, and shares traded down 10.2% to $48.67 immediately after reporting.
Is JFrog an attractive investment opportunity at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).