JFrog Reports 23% Revenue Growth to $127.2 Million in Q2 2025

JFrog Ltd. reported significant financial results for the second quarter of 2025, with total revenue reaching $127.2 million, a 23% increase from $103.0 million in the same period last year. For the first half of 2025, revenue also grew by 23%, totaling $249.6 million compared to $203.4 million in the first half of 2024. The company's subscription revenue, which includes both self-managed and SaaS offerings, accounted for the majority of this growth, with SaaS subscriptions contributing 45% of total revenue for the quarter, up from 38% in the prior year. Despite the revenue growth, JFrog reported a net loss of $21.7 million for the second quarter, compared to a loss of $14.3 million in the same quarter of 2024.

The company experienced a notable increase in operating expenses, which rose to $123.0 million for the second quarter, up from $100.3 million a year earlier. This increase was primarily driven by higher research and development costs, which grew by 28% to $47.4 million, and sales and marketing expenses, which increased by 21% to $55.4 million. The rise in expenses reflects JFrog's ongoing investment in product development and customer acquisition strategies. The gross profit margin for the second quarter was 76%, down from 79% in the previous year, attributed to higher hosting costs associated with the growing SaaS revenue.

JFrog's operational metrics indicate a solid customer base, with 1,076 customers generating annual recurring revenue (ARR) of $100,000 or more, an increase from 1,018 customers at the end of 2024. The company also reported a net dollar retention rate of 118% as of June 30, 2025, suggesting strong customer engagement and expansion within existing accounts. The total number of customers increased, reflecting JFrog's successful strategy in attracting new clients through its self-service and inbound sales model.

In terms of financial position, JFrog's total assets increased to $1.21 billion as of June 30, 2025, up from $1.13 billion at the end of 2024. The company had cash and cash equivalents of $51.3 million and short-term investments of $560.4 million, providing a solid liquidity position to support future growth initiatives. JFrog's management remains optimistic about the company's prospects, emphasizing plans to enhance its product offerings and expand its market presence, particularly in international markets. The company is also focused on maintaining its technology leadership and increasing usage among existing customers, which are seen as key drivers for future revenue growth.