JFrog Ltd. reported Q3 2025 revenue of $136.9 million, a 26% year‑over‑year increase that surpassed the consensus estimate of $128.4 million by $8.5 million, or 6.6%. Non‑GAAP diluted earnings per share rose to $0.22, beating the $0.16 estimate by $0.06, a 37.5% lift that reflects disciplined cost management and a favorable product mix.
The revenue surge was driven largely by a 50% jump in cloud‑based services, which now account for a larger share of the company’s top line. Security‑focused offerings, including the newly launched AppTrust governance platform, also contributed to higher sales, while enterprise‑grade customers with annual recurring revenue above $1 million grew by 54% to 71 accounts, underscoring strong demand for JFrog’s end‑to‑end supply‑chain platform.
Gross margin expanded to 83.9% from 83.4% in the prior quarter, while operating margin grew to 18.7% from 17.9%. The margin improvement is attributable to higher‑margin SaaS revenue and operational leverage as the business scales, offsetting modest increases in support and professional‑services costs.
Management raised its full‑year 2025 outlook, projecting revenue of $523 million to $525 million—up from the previous $520 million range—and non‑GAAP diluted EPS of $0.78 to $0.80, a lift that signals confidence in sustained demand for cloud and security products.
CEO Shlomi Ben Haim said the quarter “demonstrates that JFrog has become the system of record for modern software supply chains, especially in the AI era.” CFO Ed Grabscheid highlighted that the beat was driven by “strong go‑to‑market execution, continued momentum in cloud revenues, and growing adoption of security products.” The company’s focus on AI, security, and governance is positioned to capture expanding market share in the DevOps, DevSecOps, and MLOps arenas.
The results reinforce JFrog’s trajectory of high‑margin growth and validate its strategy of expanding cloud and security offerings, positioning the company for continued success in the competitive software supply‑chain market.
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