JFrog Ltd.'s 37% Appreciation: A Closer Look at the Technology Company's Q2 2025 Performance

TimesSquare Capital Management's US Mid Cap Growth Strategy highlighted JFrog Ltd. (NASDAQ:FROG) as a stock that provided a software supply chain platform. The fund added to its position on near-term lows at the start of the quarter and trimmed it after the company's reported revenues and earnings surpassed expectations, lifting its shares up by 37%. The strategy returned 13.13% (gross) and 12.91% (net) in Q2 2025, compared to the Russell Midcap Growth Index's 18.20% return.

In its latest investor letter, TimesSquare Capital Management's U.S. Mid Cap Growth Strategy highlighted JFrog Ltd. (NASDAQ:FROG) as a notable performer in the second quarter of 2025. The fund added to its position on near-term lows at the start of the quarter and trimmed it after the company's reported revenues and earnings surpassed expectations, lifting its shares by 37%. The strategy returned 13.13% (gross) and 12.91% (net) in Q2 2025, compared to the Russell Midcap Growth Index's 18.20% return.

JFrog Ltd. provides an end-to-end hybrid software supply chain platform, offering a suite of tools including JFrog Artifactory, JFrog Curation, JFrog Xray, JFrog Advanced Security, and JFrog Distribution. The company reported a 23.5% year-over-year revenue increase for the last quarter, achieving $127.20 million, surpassing analyst expectations. The company's earnings per share (EPS) also beat estimates, reporting $0.18 EPS compared to the consensus of $0.16.

The positive performance has led multiple analysts to raise their target prices for JFrog. JPMorgan Chase & Co. raised its target price to $55.00, indicating a potential upside of 9.56% from its current price. Other analysts such as Raymond James Financial, DA Davidson, Cantor Fitzgerald, and Barclays also upgraded their ratings and target prices, reflecting a bullish outlook on the stock.

Institutional investors have also shown strong interest in JFrog. Alliancebernstein L.P. raised its holdings by 1,974.0%, and T. Rowe Price Investment Management Inc. increased its position by 65.1%. Additionally, insiders sold shares during the quarter, indicating a mixed sentiment among top executives.

Despite the strong performance, JFrog faces challenges such as a negative net margin of 18.18% and a negative return on equity of 7.54%. However, the company's guidance for FY 2025 and Q3 2025 indicates continued growth potential.

TimesSquare Capital Management's focus on JFrog reflects the company's strong performance and the potential for further growth in the software supply chain sector. As the fund continues to navigate the mid-cap growth space, JFrog remains a key player in its portfolio.