How JFrog's (FROG) Mixed Q2 Results and Raised Guidance Have Changed Its Investment Story

• On August 7, 2025, JFrog Ltd. reported its second quarter earnings results, showing revenue of US$127.22 million and a net loss of US$21.68 million, and also issued updated revenue guidance for the third quarter and full year 2025.
• This combination of strong year-over-year revenue growth but increasing net losses provides a mixed view of JFrog’s current financial momentum and future performance outlook.
• We'll explore how JFrog's higher revenue guidance alongside widening net losses may influence its longer-term investment narrative.

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JFrog Investment Narrative Recap

To be a JFrog shareholder right now, you have to see the long-term potential of its enterprise software platform to transform how organizations manage and secure DevOps pipelines. JFrog’s raise in revenue guidance for 2025 is a near-term catalyst, but the persistently increasing net losses remain the most important risk; at this stage, the new earnings report doesn’t fundamentally change these short-term dynamics. The most relevant recent announcement is the updated revenue guidance, now targeting US$507 million to US$510 million for 2025. This upward revision supports confidence in enterprise demand, but profitability remains elusive, underscoring the balancing act between growth investments and sustained financial health. However, investors should also be aware that, despite the positive revenue outlook, rising net losses may signal...

Read the full narrative on JFrog (it's free!)

JFrog's outlook anticipates $688.1 million in revenue and $92.9 million in earnings by 2028. This is based on a projected annual revenue growth rate of 15.2% and a $171.8 million increase in earnings from the current level of -$78.9 million.

Uncover how JFrog's forecasts yield a $51.81 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Four independent fair value estimates from the Simply Wall St Community span US$29.83 to US$141.21 per share, capturing wide-ranging expectations. In light of JFrog's updated revenue guidance and continued losses, you may want to weigh how differing views on growth and profitability shape the outlook for this stock.

Explore 4 other fair value estimates on JFrog - why the stock might be worth 29% less than the current price!

Build Your Own JFrog Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your JFrog research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free JFrog research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate JFrog's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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