JFrog: Sell as 26.8% Stock-Based Compensation Consumes 94.9% of Free Cash Flow at 3.55x DCF Value
Artifactory binary lock-in and cloud DevSecOps adoption drove +26.7% TTM revenue growth to $600.0M, yet $161.0M in annual equity grants and 5.2% share dilution leave just 1.5% in true owner cash margin.
Score Locked · Full AccessResearchPublished Nov 9, 2026 · Data as of Jun 30, 2026· 2 min read · 2 exhibits
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JFrog Ltd. generated $600.0M ($599.96M exact) in trailing twelve-month GAAP revenue through June 30, 2026, accelerating top-line expansion to +26.65% year over year from +22.47% in FY2024 and +24.12% in FY2025 as Fortune 500 engineering organizations migrated self-hosted binary repositories to JFrog Cloud and adopted Xray and Curation supply-chain security suites. [1]
Our primary-filing audit separates software product quality from outside-shareholder economics. Across every single fiscal year from FY2021 through FY2025 and Q2 2026 TTM, JFrog has posted deep GAAP operating losses: -$68.37M in FY2021, -$89.84M in FY2022, -$75.55M in FY2023, -$91.10M in FY2024, -$91.85M in FY2025, and -$69.09M (-11.52% margin) over the trailing twelve months.
[1] The culprit is extreme employee equity issuance: stock-based compensation reached $161.01M in TTM (26.84% of revenue, following 30.60% in FY2024 and 29.46% in FY2025), transferring $0.95 of every $1.00 in GAAP free cash flow to insiders and expanding diluted share count by 28.52% since FY2021 (from 94.78M to 121.82M shares). [1][2]
Even when our 3-statement valuation engine generously normalizes JFrog's SBC-burdened Owner FCF margin more than tenfold from 1.45% today to 16.00% at scale, intrinsic value stands at $16.59 per share (-71.82% downside from $58.87). [1] Remarkably, even if an investor ignored $161.01M of annual stock compensation altogether, our unburdened GAAP FCF DCF yields $50.17 per share, meaning $58.87 overpays by 17.3% before accounting for a single dollar of dilution.
Filed GAAP revenue (primary bars) and headline GAAP FCF margin before SBC deduction (secondary line).
Revenue
FCF margin
Source: JFrog Ltd. SEC Form 10-K and Q2 2026 Form 10-Q filings.
PTC: Hold as 37.8% Industrial CAD and PLM Margin Trades 14% Above Base DCF
PTC's Creo CAD and Windchill PLM digital thread generates an 84.5% gross margin, 37.8% GAAP operating margin, and 1.02x R&D payback, but 11.0% revenue growth at $169.41 prices shares 13.9% above our $148.79 base DCF.
