JFrog Ltd

Previous wording

We generate revenue from the sale of subscriptions to customers. We offer subscription tiers for self-managed deployments, where our customers deploy and manage our products across their public cloud, on-premises, private cloud, or hybrid environments, as well as JFrog-managed public cloud deployments, which we refer to as our SaaS subscriptions. Revenue from SaaS subscriptions contributed 51% of our total revenue for the three months ended March 31, 2026, compared to 43% for the three months ended March 31, 2025.

Current wording

We generate revenue from the sale of subscriptions to customers. We offer subscription tiers for self-managed deployments, where our customers deploy and manage our products across their public cloud, on-premises, private cloud, or hybrid environments, as well as JFrog-managed public cloud deployments, which we refer to as our SaaS subscriptions. Revenue from SaaS subscriptions contributed 53% and 52% of our total revenue for the three and six months ended June 30, 2026, respectively, compared to 45% and 44% for the corresponding periods in 2025, respectively.

Previous wording

Our self-managed subscriptions are offered on an annual and multi-year basis, and our SaaS subscriptions are offered on a monthly, annual, and multi-year basis. Revenue from Enterprise Plus subscription represented approximately 58% of our total revenue for the three months ended March 31, 2026, compared to approximately 55% for the three months ended March 31, 2025. The growth in revenue from our Enterprise Plus subscription demonstrates the increased demand for our end-to-end solutions for customers’ entire software supply chain management.

Current wording

Our self-managed subscriptions are offered on an annual and multi-year basis, and our SaaS subscriptions are offered on a monthly, annual, and multi-year basis. Revenue from Enterprise Plus subscription represented approximately 59% of our total revenue for the three and six months ended June 30, 2026, respectively, compared to approximately 55% for each of the corresponding periods in 2025. The growth in revenue from our Enterprise Plus subscription demonstrates the increased demand for our end-to-end solutions for customers’ entire software supply chain management.

Previous wording

We generated revenue of $154.0 million and $122.4 million for the three months ended March 31, 2026 and 2025, respectively, representing 26% growth. We have continued to invest in our business and had a net loss of $8.3 million and $18.5 million for the three months ended March 31, 2026 and 2025, respectively.

Current wording

We generated revenue of $163.8 million and $127.2 million for the three months ended June 30, 2026 and 2025, respectively, representing 29% growth, and $317.7 million and $249.6 million for the six months ended June 30, 2026 and 2025, respectively, representing 27% growth. We have continued to invest in our business and had a net loss of $4.2 million and $21.7 million for the three months ended June 30, 2026 and 2025, respectively, and $12.4 million and $40.2 million for the six months ended June 30, 2026 and 2025, respectively.

Previous wording

On October 7, 2023, Hamas militants and members of other terrorist organizations infiltrated Israel’s southern border from the Gaza Strip and conducted a series of terror attacks on civilian and military targets. Following the attack, Israel declared war against Hamas and commenced a military campaign against these terrorist organizations. Israel has also been involved in military conflicts with Hezbollah, a terrorist organization based in Lebanon, and Iran, both directly and through proxies such as the Houthi movement in Yemen. In October 2025, a ceasefire agreement was reached between Israel and Hamas, leading to a cessation of direct military activities between these parties. In June 2025, following intelligence assessments indicating imminent attacks, Israel conducted strikes against Iranian military and nuclear infrastructure together with the United States, which led to Iranian counterattacks before a ceasefire was reached on June 24, 2025, after 12 days of hostilities. On February 28, 2026, Israel and the United States launched a second, larger-scale offensive against Iran. Iran retaliated with sustained attacks across the Middle East and was joined by renewed Hezbollah attacks on Israel. On April 8, 2026, a temporary ceasefire agreement was reached, resulting in a cessation of military activities. However, the situation remains volatile, with the potential for renewed escalation involving Iran or other terrorist organizations.

Current wording

On October 7, 2023, Hamas militants and members of other terrorist organizations infiltrated Israel’s southern border from the Gaza Strip and conducted a series of terror attacks on civilian and military targets. Following the attack, Israel declared war against Hamas and commenced a military campaign against these terrorist organizations. Israel has also been involved in military conflicts with Hezbollah, a terrorist organization based in Lebanon, and Iran, both directly and through proxies such as the Houthi movement in Yemen. In October 2025, a ceasefire agreement was reached between Israel and Hamas, leading to a cessation of direct military activities between these parties. In June 2025, following intelligence assessments indicating imminent attacks, Israel conducted strikes against Iranian military and nuclear infrastructure together with the United States, which led to Iranian counterattacks before a ceasefire was reached on June 24, 2025, after 12 days of hostilities. On February 28, 2026, Israel and the United States launched a second, larger-scale offensive against Iran. Iran retaliated with sustained attacks across the Middle East and was joined by renewed Hezbollah attacks on Israel. On April 8, 2026, a temporary ceasefire agreement was reached, resulting in a cessation of military activities. Since then, however, there have been mutual attacks between Iran and the United States, indicating that the situation remains volatile and subject to further escalation.

Previous wording

We quantify our expansion across existing customers through our net dollar retention rate. Our net dollar retention rate compares our annual recurring revenue (“ARR”) from the same set of customers across comparable periods. We define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last month of the quarter. The ARR includes monthly subscription customers so long as we generate revenue from these customers. We annualize our monthly subscriptions by taking the revenue we would contractually expect to receive from such customers in a given month and multiplying it by 12. We calculate net dollar retention rate by first identifying customers (the “Base Customers”), which were customers in the last month of a particular quarter (the “Base Quarter”). We then calculate the contracted ARR from these Base Customers in the last month of the same quarter of the subsequent year (the “Comparison Quarter”). This calculation captures upsells, contraction, and attrition since the Base Quarter. We then divide total Comparison Quarter ARR by total Base Quarter ARR for Base Customers. Our net dollar retention rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters. Our net dollar retention rate may fluctuate as a result of a number of factors, including the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. As of March 31, 2026 and 2025, our net dollar retention rate was 120% and 116%, respectively. We expect our net dollar retention rate to remain relatively stable, with minor fluctuations around current levels.

Current wording

We quantify our expansion across existing customers through our net dollar retention rate. Our net dollar retention rate compares our annual recurring revenue (“ARR”) from the same set of customers across comparable periods. We define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last month of the quarter. The ARR includes monthly subscription customers so long as we generate revenue from these customers. We annualize our monthly subscriptions by taking the revenue we would contractually expect to receive from such customers in a given month and multiplying it by 12. We calculate net dollar retention rate by first identifying customers (the “Base Customers”), which were customers in the last month of a particular quarter (the “Base Quarter”). We then calculate the contracted ARR from these Base Customers in the last month of the same quarter of the subsequent year (the “Comparison Quarter”). This calculation captures upsells, contraction, and attrition since the Base Quarter. We then divide total Comparison Quarter ARR by total Base Quarter ARR for Base Customers. Our net dollar retention rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters. Our net dollar retention rate may fluctuate as a result of a number of factors, including the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. As of June 30, 2026 and 2025, our net dollar retention rate was 121% and 118%, respectively. We expect our net dollar retention rate to remain relatively stable, with minor fluctuations around current levels.

Previous wording

We focus on growing the number of large customers as a measure of our ability to scale with our customers and attract larger organizations to adopt our products. As of March 31, 2026, 1,225 of our customers had ARR of $100,000 or more, increasing from 1,168 customers as of December 31, 2025. We had 80 customers with ARR of at least $1.0 million as of March 31, 2026, increasing from 74 customers as of December 31, 2025.

Current wording

We focus on growing the number of large customers as a measure of our ability to scale with our customers and attract larger organizations to adopt our products. As of June 30, 2026, 1,291 of our customers had ARR of $100,000 or more, increasing from 1,168 customers as of December 31, 2025. We had 97 customers with ARR of at least $1.0 million as of June 30, 2026, increasing from 74 customers as of December 31, 2025.

Previous wording

Research and development costs primarily consist of personnel-related expenses, share-based compensation expenses, associated with our engineering personnel responsible for the design, development, and testing of our products, cost of development environments and tools, and allocated overhead. We expect that our research and development expenses will continue to increase as we increase our research and development headcount to further strengthen and enhance our products and invest in the development of our software.

Current wording

Research and development costs, net of applicable refundable tax credits, primarily consist of personnel-related expenses, share-based compensation expenses, associated with our engineering personnel responsible for the design, development, and testing of our products, cost of development environments and tools, and allocated overhead. We expect that our research and development expenses will continue to increase as we increase our research and development headcount to further strengthen and enhance our products and invest in the development of our software.

Previous wording

Income tax expense consists primarily of income taxes related to the U.S. and other foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on deferred tax assets in Israel as we have concluded that it is not more likely than not that the deferred tax assets will be realized. Our effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, non-deductible expenses, excess tax benefits from share-based compensation awards, and changes in our valuation allowance.

Current wording

Income tax expense (benefit) consists primarily of income taxes related to the foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on deferred tax assets in Israel as we have concluded that it is not more likely than not that the deferred tax assets will be realized. Our effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, non-deductible expenses, excess tax benefits from share-based compensation awards, and changes in our valuation allowance.

Previous wording

The increase in total subscription revenue for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, consisted of approximately $26.2 million growth from existing customers and the remaining attributable to new customers.

Current wording

The increase in total subscription revenue for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 consisted of approximately $30.3 million in growth from existing customers and the remaining attributable to new customers.

Previous wording

Total cost of revenue increased for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily attributable to an increase of $2.1 million in third-party hosting costs mainly driven by increased revenue from SaaS subscriptions and an increase of $1.5 million in personnel-related expenses mainly as a result of increased headcount.

Current wording

Total cost of revenue increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily attributable to an increase of $4.2 million in third-party hosting costs mainly driven by increased revenue from SaaS subscriptions and an increase of $1.4 million in personnel-related expenses mainly as a result of increased headcount.

Previous wording

Gross margin increased for three months ended March 31, 2026 compared to the three months ended March 31, 2025 primarily due to revenue growth with improved operating leverage.

Current wording

Gross margin increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to revenue growth with improved operating leverage.

Previous wording

Research and development expense increased for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily attributable to an increase of $7.2 million in personnel-related expenses mainly as a result of increased headcount.

Current wording

Research and development expense increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily attributable to an increase of $6.1 million in personnel-related expenses mainly as a result of increased headcount and an increase of $2.3 million in costs for third-party software, development environment, and engineering tools, partially offset by $1.5 million refundable tax credits commencing in 2026.

Previous wording

Sales and marketing expense increased for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily attributable to an increase of $4.3 million in personnel-related expenses mainly as a result of increased headcount.

Current wording

Sales and marketing expense increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily attributable to an increase of $4.9 million in personnel-related expenses mainly as a result of increased headcount.

Previous wording

General and administrative expense increased for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily attributable to an increase of $2.6 million in share-based compensation expense as discussed in the section titled “Share-Based Compensation Expense” below and an increase of $1.9 million in personnel-related expenses mainly as a result of increased headcount.

Current wording

General and administrative expense increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily attributable to an increase of $2.7 million in share-based compensation expense as discussed in the section titled “Share-Based Compensation Expense” below and an increase of $2.3 million in personnel-related expenses mainly as a result of increased headcount.

Previous wording

Share-based compensation expense increased for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily within general and administrative expenses. The increase was attributable to equity awards granted to new and existing employees and an increased allocation to general and administrative functions.

Current wording

Share-based compensation expenses increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily within general and administrative expenses. The increase was attributable to equity awards granted to new and existing employees and an increased allocation to general and administrative functions.

Previous wording

Interest and other income, net increased for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, primarily due to higher interest income as a result of increased investments in bank deposits and marketable securities.

Current wording

Interest and other income, net increased for the three months ended June 30, 2026 compared to the three months ended June 30, 2025, primarily due to higher interest income on short-term investments as a result of higher investment balances.

Previous wording

As of March 31, 2026, our principal sources of liquidity were cash, cash equivalents, and short-term investments of $741.2 million. Cash and cash equivalents primarily consist of cash in banks and money market funds. Short-term investments generally consist of bank deposits, certificates of deposit, commercial paper, corporate debt securities, municipal securities, and government and agency debt. We believe our existing cash, cash equivalents, and short-term investments, together with cash provided by operations, will be sufficient to meet our needs for the next 12 months, as well as in the long-term.

Current wording

As of June 30, 2026, our principal sources of liquidity were cash, cash equivalents, and short-term investments of $824.5 million. Cash and cash equivalents primarily consist of cash in banks and money market funds. Short-term investments generally consist of bank deposits, certificates of deposit, commercial paper, corporate debt securities, municipal securities, and government and agency debt. We believe our existing cash, cash equivalents, and short-term investments, together with cash provided by operations, will be sufficient to meet our needs for the next 12 months, as well as in the long-term.

Previous wording

Net cash provided by operating activities of $38.4 million for three months ended March 31, 2026 was related to our net loss of $8.3 million, adjusted for non-cash charges of $46.3 million, including share-based compensation expense of $39.6 million and depreciation and amortization of $5.6 million, and changes in our operating assets and liabilities of $0.4 million. Changes in our operating assets and liabilities consisted primarily of a decrease of $6.3 million in accounts receivable due to timing of billing and collections, partially offset by an increase of $2.4 million in prepaid expenses and other assets due to timing of payments, a decrease of $2.1 million in operating lease liabilities as a result of lease payments, and a decrease of $1.8 million in accrued expense and other liabilities. The decrease in accrued expense and other liabilities were primarily attributable to commission payouts and a reduction in ESPP withholdings as a result of employee share purchases, partially offset by lease incentives received for a lease that has not yet commenced.

Current wording

Net cash provided by operating activities of $64.9 million for the six months ended June 30, 2025 was related to our net loss of $40.2 million adjusted for non-cash charges of $89.0 million, including share-based compensation expense of $74.9 million and depreciation and amortization expense of $13.3 million, and changes in our operating assets and liabilities of $16.0 million. Changes in our operating assets and liabilities were primarily related to an increase of $9.5 million in accrued expense and other liabilities mainly due to accrued compensation and benefits and accrued acquisition-related compensation, a decrease of $7.7 million in accounts receivable due to timing of collection, and an increase of $7.6 million in deferred revenue. The inflows were partially offset by a decrease of $4.3 million in operating lease liabilities as a result of payments, and an increase of $3.1 million in deferred contract acquisition costs. The increases in deferred revenue and deferred contract acquisition costs were driven by higher sales.

Previous wording

Net cash used in investing activities of $53.1 million for the three months ended March 31, 2026 consisted primarily of net purchases of short-term investments of $52.0 million.

Current wording

Net cash used in investing activities of $103.1 million for the six months ended June 30, 2026 consisted primarily of net purchases of short-term investments of $98.8 million.

Previous wording

Net cash used in investing activities of $45.8 million for the three months ended March 31, 2025 consisted primarily of net purchases of short-term investments of $45.1 million.

Current wording

Net cash used in investing activities of $85.3 million for the six months ended June 30, 2025 consisted primarily of net purchases of short-term investments of $84.1 million.

Previous wording

Net cash used in financing activities of $0.2 million for the three months ended March 31, 2026 consisted primarily of net payments of $8.9 million to tax authorities and employees from our employee equity transactions, partially offset by proceeds from employee share purchases under our ESPP of $8.2 million.

Current wording

Net cash provided by financing activities of $28.9 million for the six months ended June 30, 2026 consisted primarily of net proceeds from employee equity transactions to be remitted to tax authorities or refunded to employees of $18.0 million and proceeds from employee share purchases under our ESPP of $8.2 million.

Previous wording

Net cash provided by financing activities of $11.5 million for the three months ended March 31, 2025 consisted of proceeds from employee share purchases under our ESPP of $6.3 million, proceeds from exercise of share options of $3.8 million, and net proceeds of $1.5 million from our employee equity transactions to be remitted to tax authorities.

Current wording

Net cash provided by financing activities of $21.1 million for the six months ended June 30, 2025 consisted of net proceeds from employee equity transactions to be remitted to tax authorities or refunded to employees of $7.9 million, proceeds from exercise of share options of $6.9 million, and proceeds from employee share purchases under our ESPP of $6.3 million.

Previous wording

As of March 31, 2026, we had an additional commitment of $114.9 million for an operating lease related to a facility that had not yet commenced. The lease is expected to commence in the third quarter of 2026 with a lease term of 10 years.

Current wording

As of June 30, 2026, we had an additional commitment of $122.2 million under an operating lease for office space that we occupied beginning in July 2026 and has a lease term of 10 years.

Previous wording

In February 2026, the Board of Directors approved a share repurchase program authorizing the repurchase of up to $300.0 million of our ordinary shares. The program became effective in March 2026 and has no expiration date but may be suspended, terminated, or modified at any time. Shares may be repurchased from time to time in the open market or through negotiated transactions at prevailing market rates, or by other means in accordance with U.S. federal securities laws. The timing of the repurchases will depend on certain factors, including market conditions, prices, and management’s discretion. As of March 31, 2026, $300.0 million remained available for repurchases.

Current wording

In February 2026, the Board of Directors approved a share repurchase program authorizing the repurchase of up to $300.0 million of our ordinary shares. The program became effective in March 2026 and has no expiration date but may be suspended, terminated, or modified at any time. Shares may be repurchased from time to time in the open market or through negotiated transactions at prevailing market rates, or by other means in accordance with U.S. federal securities laws. The timing of the repurchases will depend on certain factors, including market conditions, prices, and management’s discretion. As of June 30, 2026, $298.0 million remained available for repurchases.

Previous wording

Our critical accounting policies and estimates were disclosed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report. There have been no significant changes to these policies and estimates during the three months ended March 31, 2026.

Current wording

Our critical accounting policies and estimates were disclosed in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report. There have been no significant changes to these policies and estimates during the six months ended June 30, 2026.