Software supply chain platform JFrog (NASDAQ: FROG) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 25.8% year on year to $154 million. Guidance for next quarter’s revenue was optimistic at $155 million at the midpoint, 2.2% above analysts’ estimates. Its non-GAAP profit of $0.27 per share was 26.6% above analysts’ consensus estimates.
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JFrog (FROG) Q1 CY2026 Highlights:
- Revenue: $154 million vs analyst estimates of $147.5 million (25.8% year-on-year growth, 4.4% beat)
- Adjusted EPS: $0.27 vs analyst estimates of $0.21 (26.6% beat)
- Adjusted Operating Income: $32.94 million vs analyst estimates of $25.57 million (21.4% margin, 28.8% beat)
- The company slightly lifted its revenue guidance for the full year to $630 million at the midpoint from $625.5 million
- Management raised its full-year Adjusted EPS guidance to $0.95 at the midpoint, a 5.6% increase
- Operating Margin: -8.4%, up from -18.8% in the same quarter last year
- Free Cash Flow Margin: 24.2%, down from 34.3% in the previous quarter
- Customers: 1,225 customers paying more than $100,000 annually
- Net Revenue Retention Rate: 120%, up from 119% in the previous quarter
- Billings: $153.4 million at quarter end, up 24% year on year
- Market Capitalization: $6.52 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 performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, JFrog’s 28.1% annualized revenue growth over the last five years was impressive. 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 23.3% 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 25.8%, and its $154 million of revenue topped Wall Street estimates by 4.4%. Company management is currently guiding for a 21.8% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 16% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above the sector average and indicates the market is forecasting some success for its newer products and services.
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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 $153.4 million in Q1, and over the last four quarters, its growth was impressive as it averaged 22.1% year-on-year increases. This alternate topline metric grew slower than total sales, meaning the company recognizes revenue faster than it collects cash - a headwind for its liquidity that could also signal a slowdown in future revenue growth. 
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 119% in Q1. This means JFrog would’ve grown its revenue by 18.7% 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 Q1 Results
This was a beat and raise quarter. We were impressed by how significantly JFrog blew past analysts’ billings expectations this quarter. We were also glad its EPS guidance for next quarter trumped Wall Street’s estimates. The company also lifted full-year revenue and EPS guidance. Zooming out, we think this quarter featured some important positives. The stock traded up 17.5% to $67.05 immediately after reporting.
JFrog put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
