Software supply chain platform JFrog (NASDAQ: FROG) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 28.7% year on year to $163.8 million. On top of that, next quarter’s revenue guidance ($165 million at the midpoint) was surprisingly good and 3.8% above what analysts were expecting. Its non-GAAP profit of $0.27 per share was 12.4% above analysts’ consensus estimates.
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JFrog (FROG) Q2 CY2026 Highlights:
- Revenue: $163.8 million vs analyst estimates of $155.6 million (28.7% year-on-year growth, 5.2% beat)
- Adjusted EPS: $0.27 vs analyst estimates of $0.24 (12.4% beat)
- Adjusted Operating Income: $32.59 million vs analyst estimates of $28.93 million (19.9% margin, 12.7% beat)
- The company lifted its revenue guidance for the full year to $650 million at the midpoint from $630 million, a 3.2% increase
- Management raised its full-year Adjusted EPS guidance to $0.98 at the midpoint, a 3.2% increase
- Operating Margin: -8.1%, up from -20.4% in the same quarter last year
- Free Cash Flow Margin: 32.8%, up from 24.2% in the previous quarter
- Customers: 1,291 customers paying more than $100,000 annually
- Net Revenue Retention Rate: 121%, up from 120% in the previous quarter
- Billings: $208.1 million at quarter end, up 55.8% year on year
- Market Capitalization: $10.24 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 sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, JFrog grew its sales at an impressive 27.9% compounded annual growth rate. 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 24.2% 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 28.7%, and its $163.8 million of revenue topped Wall Street estimates by 5.2%. Company management is currently guiding for a 20.5% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 13.7% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.
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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 $208.1 million in Q2, and over the last four quarters, its growth was fantastic as it averaged 31.5% year-on-year increases. This alternate topline metric grew faster than total sales, meaning the company collects cash upfront and then recognizes the revenue over the length of its contracts - a boost for its liquidity and future revenue prospects. 
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 121% in Q2. This means JFrog would’ve grown its revenue by 21% 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 Q2 Results
We were impressed by how significantly JFrog blew past analysts’ billings expectations this quarter. We were also excited its adjusted operating income outperformed Wall Street’s estimates by a wide margin. Looking ahead, the company raised full-year revenue and full-year EPS guidance as well. Zooming out, we think this was a solid print. The stock traded up 13.2% to $94.96 immediately following the results.
Indeed, JFrog had a rock-solid quarterly earnings result, but is this stock a good investment here? 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).
