JFrog Ltd. Q4 FY2025 earnings call

• 2025 was a remarkable year with strong growth, including 24% year-over-year revenue growth. Cloud revenue grew 45% year over year while remaining disciplined in usage management and migrating customers to annual commitments.
• Security solutions saw significant momentum, with security core products (excluding JFrog Xray) becoming an important growth engine. As of 12/31/2025, they comprised over 10% of ARR and 16% of RPO. Partnerships with cloud providers and AI entities were strengthened, and the company focused on its enterprise go-to-market strategy.
• The company expanded its security offerings, including AI Catalog and agentic remediation capabilities, and partnered with NVIDIA and Hugging Face to secure model consumption.

In fiscal year 2025, JFrog Ltd. achieved total revenue of $531,800,000, up 24% year over year. Cloud revenue for 2025 was $243,300,000, representing a 45% year-over-year growth and accounting for 46% of total revenues. Self-managed (on-prem) revenues for the full year 2025 were $288,500,000, up 11% year over year. Security core products, excluding contributions from JFrog Xray, made up 7% of total revenues in 2025 and comprised over 10% of the company's ending total ARR. Additionally, security core represented 16% of the remaining performance obligation (RPO) as of 12/31/2025, compared to 12% in the prior year.

• For Q1 2026, revenues are anticipated to be in the range of $146,000,000 to $148,000,000, non-GAAP operating profit between $25,000,000 and $26,000,000, and non-GAAP earnings per diluted share of $0.20 to $0.22.
• For full year 2026, revenue is expected to be in the range of $623,000,000 to $628,000,000, representing 17.5% year-over-year growth at the midpoint. Non-GAAP operating income is expected to be between $106,000,000 and $108,000,000, and non-GAAP diluted earnings per share of $0.88 to $0.92.
• Baseline cloud growth for 2026 is estimated to be in the range of 30% to 32%.

• Software supply chain attacks pose a risk, as seen with incidents like the npm Shaykhulud attack, which highlight the need for robust security solutions.
• The weakening U.S. dollar against global currencies creates a headwind for operating expenses.
• Potential confusion from market trends diverting focus from the company's core mission of being the system of record for software binaries.

Q: Kingsley Crane asked about MLOps consumption profile and JFrog Ltd.'s position as an LLM repository.

A: Shlomi Ben Haim replied that MLOps treats models as binaries, potentially driving higher consumption and storage, and JFrog Ltd. is well-positioned as it provides CI/CD experience for models and secures model consumption.

Q: Eamon Robert Coughlin asked about MLOps and LLM consumption compared to traditional binaries.

A: Shlomi Ben Haim explained that MLOps for models has a consumption profile where models as larger binaries can drive higher storage and consumption, and JFrog Ltd. is positioned as the default due to its security and storage capabilities for models.