JFrog Ltd.

Ladies and gentlemen, thank you for joining us and welcome to the JFROG Second Quarter 2026 Financial Results Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star 9 to raise your hand and star 6 to unmute. I will now hand the conference over to Jeffrey Schreiner, Head of Investor Relations. Jeffrey, please go ahead.

Thank you, Nicole. Good afternoon, and thank you for joining us as we review JFrog's second quarter 2026 financial results, which were announced following the market close today via press release. Leading the call today will be JFrog CEO and Co-Founder Shlomi Ben Haim and Ed Grabscheid, JFrog CFO. During this call, we may make statements related to our business that are forward-looking under federal securities laws and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. including statements related to our future financial performance and including our outlook for the third quarter and full year of 2026. The words anticipate, believe, continue, estimate, expect, intend, will, and similar expressions are intended to identify forward-looking statements or similar indications of future expectations. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our views only as of today and not as of any subsequent date. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revisions to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For a discussion of material risks and other important factors that could affect our actual results, please refer to our Form 10-Q for the quarter ended March 31, 2026, which is available on the Investor Relations section of our website and the Ernst Press Release issued earlier today. Additional information will be made available in our Form 10-Q for the quarter ended June 30, 2026 and other filings and reports that we may file from time to time with the SEC. Additionally, non-GAAP financial measures will be discussed on this conference call. These non-GAAP financial measures, which are used as measures of JFROG's performance, should be considered in addition to, not as a substitute for, or in isolation from, GAAP measures. Please refer to the tables in our earnings release for a reconciliation of those measures to their most directly comparable GAAP financial measures. A replay of this call will be available on the JFROG Investor Relations website for a limited time. With that, I'd like to turn the call over to JFROG CEO Shlomi Ben Haim. Shlomi?

Thank you, Jeff. Good afternoon and thank you all for joining the call. We are pleased with our second quarter results, which exceed the high end of our guidance across all metrics. Our first half-2026 achievements reflect strong execution and the clear strategic importance of JFrog in enterprise software supply chains. It is clear now that the world is moving at the speed of AI. What began as a technology shift is becoming the foundation of every business and increasingly ambient infrastructure as they build and deliver software. As AI accelerates software creation, engineering velocity, and code quality, the challenge is no longer generating source code but managing the tsunami of binaries compiled. It is now about establishing trust in these software artifacts, models, agents, and packages that AI and humans increasingly produce without sacrificing speed. The JFrog platform is evolving for a future where AI agents become first-class citizens of the software supply chain. By extending our platform to treat AI agents as trusted participants alongside human developers, we believe JFrog is building the control plane for the next generation of software delivery. We see software engineering evolving into software supply chain engineering, not because every developer becomes a supply chain expert, but because every developer or AI agent must rely on a trusted software supply chain delivered by the organization. For this new era, our customers are reaffirming JFrog as the single source of truth, and we believe this reality is fueling the momentum we are seeing across our business. During the second quarter, JFrog's total revenue was $163.8 million, representing 29% of the year's gross. Cloud revenue grew 53%, driven by increased secure binary consumption through Artifactory, reinforcing its central role as the single source of truth for software supply chains. In addition to continued strength in cloud growth, our enterprise-focused go-to-market strategy continues to deliver strong results at the high end of our customer base. Customers with annual spend exceeding $1 million grew to 97, up from 61 a year ago, representing 59% year-over-year growth. Customers spending more than $100,000 annually grew to $1,291 compared to $1,076 in the prior year, an increase of 20% year-over-year. On today's call, I will walk you through the second quarter in more detail, and Ed will then follow with additional financial insights and outlook. First, I will cover our cloud business, where strong consumption trends continue to drive demand across additional and AI software artifacts. Second, I will discuss our security business. As software supply chain attacks grow in scale and sophistication, customers are looking for a unified security integrated with their system of records. Last, I will discuss governance and compliance. The era of agentic software development is driving the industry's next evolution, DevGovOps. I'll start with cloud. In Q2, our cloud business continued to expand as we supported the scaling volume of software artifacts flowing through our customers' software supply chain pipelines. As AI accelerates software development, customers are creating, storing, and distributing more binaries than before. Over the past several quarters, and even more since the beginning of the year, we have observed the following key trends driving this change in cloud consumption. First, the rapid adoption of AI tools accelerates software development activity and increases the volume of binaries moving through our platform as agents and tools consume more software at a pace and scale no human workflow ever could. Second, the increase in the number of AI-specific software packages, such as MCP, Skills, and others that organizations create and manage. Third, continued uncertainty is making forecasting difficult for customers in the evolving AI economy, leading them to sometimes favor the flexibility of a consumption-based on-demand cloud model. These trends and the first half results validate our strategy and business model, continuing to reinforce the value of our cloud offering, which enables customers to scale with demand while maintaining efficiency and operational flexibility. Our enterprise sales teams remain focused on securing long-term enterprise commitments allowing customers better unit economics in the evolving AI spending environment. At the same time, and as always, we give customers the flexibility to determine the balance between committed capacity and on-demand usage. Consistent with our guidance philosophy, we continue to exclude usage above committed levels from our outlook. Ed would refer to it later on the call. Now, to the continued momentum we're seeing in security. JFOC provides the infrastructure for creating, managing, and securing software artifacts at enterprise scale. By integrating comprehensive software supply chain security directly with Artifactory, our customers' single source of truth, we enable them to build and deploy software we trust at the scale and speed of AI. As software supply chain threats continue to grow in scale and sophistication, CISO's team increasingly sees JFrog security as a mission-critical component of their software infrastructure, not an optional capability. Validating this fact, JFrog was recently named a leader in the Gartner magic quadrant for software supply chain security, based not only on our highest rated ability to execute, but also on our strategy of incorporating security alongside the software supply chain single source of truth in one platform. We continue to see strong momentum in our security business, reflected in higher attach rate on new customers' win, continued expansion with existing accounts, and an increasing number of larger security-led transactions. In the second quarter, more than 80% of the customers that joined our over $1 million cohort added security. This momentum extends to our new logo business, where over 40% of overall new logo wins included security as part of their initial land with JFrog. In addition, AI-powered software supply chain attacks continue to escalate this quarter, with threat actors increasingly targeting open source package ecosystems. As AI accelerates software creation, it also accelerates the pace and sophistication of software supply chain attacks. Throughout this incidence, customers using JFog curation remained protected. By tightly integrating curation with Artifactory, JFog delivers a trusted, A policy-driven software supply chain firewall that blocks malicious and risky packages before they enter the enterprise, allowing developers and AI coding agents to move fast without compromising trust or security. In Q2, we will focus on making sure our security solutions become too integrated to fail, powered by the AI ecosystem. In the past, we focused on securing human developers. Today, we are extending that same trusted experience to AI agents that increasingly interact with the JFORC platform. Consistent with our universal trust layer strategy, we recently announced integrations with leading AI coding agents, including Cloud Code and Cursor, protecting our customers, developers, and agents from vulnerable or malicious dependencies, enforcing enterprise security policies, and receiving trusted remediation guidance in real time. By embedding security directly into AI-driven development workflows, JFrog helps customers accelerate software delivery while preserving trust across the entire software supply chain. The continued validation of our strategy by security leaders, accelerating customers' adoption, expanding platform usage, larger security-driven transactions, and our deep partnerships across the AI ecosystem reinforce our confidence in JFrog's security roadmap. We expect our security core to remain one of JFrog's most significant long-term growth drivers. Finally, on security, we are excited to welcome Keynote Security Executive from both Entropic and Cursor as speakers at our annual SwampUP User Conference this September in New York City. Next, I want to briefly address governance and DevGovOps. It is becoming increasingly clear that AI will only be adopted at enterprise scale if it is trusted. That trust requires governance, compliance, and auditability to be engineered directly into the software development workflows, not introduced as a separate manual step. The challenge is not whether these controls can be enforced, but how they can be enforced in a multi-agent and hybrid development environment without slowing AI-driven delivery. This is why we believe DevGovOps represent the next evolution of software supply chain management and automation. embedding governance into the software delivery lifecycle so organizations can move fast while remaining secure, compliant, and auditable. In Q2, a leading publicly traded provider of electronic design, simulation, validation, and test solutions for AI infrastructure signed a seven-figure agreement with JFrog, adopting JFrog UpTrust bundled with our software supply chain security solutions. Building on JFrog's role as the customer's system of record, they expanded their investment to embed DevGovOps across the software delivery lifecycle, enabling centralized governance, compliance, trusted software consumption, and policy enforcement to meet evolving global regulatory and audit requirements for distributed software assets. As governance, compliance, and DevGovOps continue to rise to the boardroom level, we believe JFrog is uniquely positioned to capture this opportunity. As the infrastructure layer powering the software supply chain, JFrog sits at the center of the software delivery lifecycle, enabling customers to automate governance, enforce policies, and embed compliance natively into their development pipelines rather than relying on manual downstream processes. As we execute on the security expansion of our platform, we continue to invest in expanding our platform to help enterprises not only build and secure software, but also govern it with the same level of control, automation, trust and scale. Finally, I want to deliver comments on AI adoption and revenue. AI is meaningfully impacting our customers' software supply chain, as they increasingly see the need for JFrog to function as their infrastructure for the software that both machines and humans build and consume. We see their usage of AI-specific packages and their dependencies expanding on top of their traditional DevOps and DevSecOps workload growth. In Q2, we were excited to announce partnerships and integrations that are solidifying JFrog as the enterprise standard for AI-powered software supply chain infrastructure. These investments included the tight integration with Anthropic that brings JFrog security and governance solutions to the millions of cloud-code developers. We also announced the partnership with Cursor, which powers over a million daily users that now have access to development and governance workflows directly in their development environment. We also continue to expand our footprint with the world's leading AI native companies, welcoming a new logo, displacing a competitive solution that failed to scale with its growth. This customer migrated to JFrog Platform as its software supply chain system of record and binary distribution engine across a multi-region hybrid deployment. As AI leaders increasingly build software with AI for AI, this win further validates our strategy and reinforces JFrog's position as the trusted software infrastructure for the next generation of AI native, autonomous, and multi-agent software development. The accelerating adoption of AI development practices and coding agents across our customer base, combined with our deep partnerships with the world's leading AI companies, is also helping us navigate the enterprise shift toward token economy optimization. As organizations increasingly govern and cap token consumption, the economics of software development are changing. JFrog's value proposition is fundamentally aligned with this transition because we are focused on the compiled output of software, the binary, not on the number of prompts or lines of code generated. Whether software is written by a human developer, an AI agent, or both, it ultimately results in more trusted binaries that must be secured, managed, governed, and distributed. As AI reshapes how software is created, we remain focused not only on what is growing, but also on why it's growing and what matters most, the trusted binaries that power production. And with that, I will hand it over to Ed for a detailed review of our second quarter financials and our updated outlook for the third quarter and full year of 2026. Ed.