Jfrog Stock Earnings Reports

JFrog reported a strong Q1 2026 with total revenue of $154M, up 26% YoY, driven by a 50% YoY increase in cloud revenue ($78.9M) which for the first time represented a majority (51%) of total revenue. Key growth drivers are accelerating cloud consumption tied to AI-driven software creation (more binaries), expanding demand for supply chain security (Curation, Xray, Advanced Security), and upsells into higher-tier Enterprise Plus subscriptions (58% of revenue). Customer metrics improved: net dollar retention for trailing four quarters was 120%, gross retention 97%, customers spending >$1M grew to 80 (from 54). Financial strength: Q1 gross margin 83.8% (guidance for full-year 82–83%), operating margin 21.4%, operating cash flow $38.4M, FCF $37.3M, cash & short-term investments $741.2M. RPO was $574.9M (up 36% YoY). Board authorized up to $300M share repurchase program. Product innovation: announced MCP Registry and Skills Registry (in partnership with NVIDIA) to govern AI artifacts/agent skills; positioned Artifactory as a unified system of record for binaries, models and skills. Outlook: Q2 revenue guide $154–156M; Q2 non-GAAP operating profit $28–30M; full-year 2026 revenue guide $628–632M (approx. 18.5% growth at midpoint), non-GAAP operating income $112–116M, non-GAAP EPS $0.93–0.97. Management raised baseline cloud growth outlook to 33–35% and set a 2026 net dollar retention floor of 118%. Management emphasized a conservative guidance philosophy: current cloud over-usage is real but only converted/recognized in guidance when captured in annual commitments.