JFrog Q3 2026 Revenue Rises 31% as Enterprise+ Adoption Grows

JFrog Ltd. posted a sharp increase in third-quarter 2026 revenue while narrowing its GAAP operating loss and generating substantially more free cash flow. Expansion among existing customers and rising adoption of its Enterprise+ subscriptions were key indicators of the software supply-chain platform’s performance.

Revenue for the three months ended Sept. 30 reached $179.2 million, up about 31% from $136.9 million a year earlier. On a trailing-12-month basis, revenue was $642 million, representing 28% year-over-year growth.

JFrog’s trailing four-quarter average net dollar retention rate rose to 124% from 118% in the third quarter of 2025. The measure incorporates customer expansion, contraction and attrition. Gross dollar retention, which reflects customer losses but excludes expansion and contraction, was 97%.

Enterprise+ subscriptions accounted for 61% of quarterly revenue, or $109 million, compared with 55% and $70 million in the year-earlier period. The higher contribution underscores customers’ adoption of JFrog’s broader platform, which combines artifact management, software supply-chain security, AI and machine-learning lifecycle tools, governance and compliance capabilities.

Operating loss narrows as non-GAAP margin expands

GAAP gross profit increased to $142.7 million from $106.0 million, while GAAP gross margin rose to 79.6% from 77.4%. Non-GAAP gross profit was $149.8 million, compared with $114.9 million a year earlier, although non-GAAP gross margin edged down to 83.6% from 83.9%.

JFrog reported a GAAP operating loss of $1.8 million, or 1.0% of revenue, narrowing from a loss of $21.6 million and a 15.8% negative margin in the prior-year quarter. Non-GAAP operating income climbed to $40.7 million from $25.6 million, lifting the corresponding margin to 22.7% from 18.7%.

The non-GAAP operating calculation excluded $41.8 million of share-based compensation, $3.0 million of acquired-intangible amortization and $1.4 million of acquisition-related costs. It also reflected $3.6 million of acquisition-related refundable research and development tax credits.

Operating cash flow more than doubled to $69.3 million from $30.2 million. Free cash flow rose to $66.5 million from $28.8 million after capital expenditures, bringing trailing-12-month free cash flow to $207 million. For the first nine months of 2026, free cash flow totaled $157.5 million, compared with $92.4 million in the same period of 2025.

Platform strategy spans security, AI and governance

JFrog continues to position its software supply-chain platform as a single system of record spanning development, security, operations and AI workloads. Its offerings include Artifactory for managing software and AI artifacts, Xray and Advanced Security for identifying and enforcing policies around vulnerabilities and other risks, Runtime for monitoring deployed applications, and AppTrust for application governance and compliance.

The company is also extending its platform into machine-learning operations and AI security. Its presentation highlighted model and dataset management, model scanning, license compliance and controls intended to block malicious models. JFrog said its partnership with Hugging Face has supported the scanning of more than 2 million public models, including more than 400 found to contain malicious behavior.

Strategic integrations with NVIDIA and GitHub are intended to connect JFrog’s artifact, security and governance capabilities with AI deployment and software-development workflows. The company supports SaaS, multi-cloud, hybrid and self-managed deployments, as well as more than 100 integrations and over 40 technologies and package types.

Full-year outlook points to continued growth

JFrog expects full-year 2026 revenue of $680 million to $682 million, with the midpoint implying growth of about 28% from $531.8 million in 2025. Its fiscal 2026 model calls for a non-GAAP gross margin of 83.0% to 83.5%, a non-GAAP operating margin of 20.9% to 21.2%, and free cash flow of $194 million to $196 million.

The presentation also listed fiscal 2027 targets of $775 million to $825 million in revenue, an approximately 80% gross margin, a 21% to 23% operating margin and $200 million to $240 million of free cash flow. JFrog noted that this longer-term target model was issued in May 2023.

Management cautioned that actual results could differ from its expectations because of competition from larger and better-funded companies, adverse economic and market conditions, changing data-privacy and other regulations, and challenges in attracting new customers or expanding existing subscriptions. Other risks include dependence on third-party integrations, the integration of acquired technology, the need to keep improving the platform, and the company’s ability to fund product development while maintaining the reliability and accuracy of its offerings.