JFrog Ltd Fair Value Disclosure
5. Fair Value Measurements
The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis:
|
|
December 31, 2025 |
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|
|
Fair Value |
|
|
Level 1 |
|
|
Level 2 |
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|||
|
|
(in thousands) |
|
|||||||||
Financial Assets: |
|
|
|
|
|
|
|
|
|
|||
Money market funds |
|
$ |
26,407 |
|
|
$ |
26,407 |
|
|
$ |
— |
|
Cash equivalents |
|
|
26,407 |
|
|
|
26,407 |
|
|
|
— |
|
Certificates of deposit |
|
|
1,503 |
|
|
|
— |
|
|
|
1,503 |
|
Commercial paper |
|
|
11,763 |
|
|
|
— |
|
|
|
11,763 |
|
Corporate debt securities |
|
|
276,036 |
|
|
|
— |
|
|
|
276,036 |
|
Municipal securities |
|
|
29,493 |
|
|
|
— |
|
|
|
29,493 |
|
Government and agency debt |
|
|
162,301 |
|
|
|
— |
|
|
|
162,301 |
|
Marketable securities |
|
|
481,096 |
|
|
|
— |
|
|
|
481,096 |
|
Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets |
|
|
5,170 |
|
|
|
— |
|
|
|
5,170 |
|
Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets |
|
|
448 |
|
|
|
— |
|
|
|
448 |
|
Restricted bank deposits included in prepaid expenses and other current assets |
|
|
11 |
|
|
|
— |
|
|
|
11 |
|
Total financial assets |
|
$ |
513,132 |
|
|
$ |
26,407 |
|
|
$ |
486,725 |
|
Financial Liabilities: |
|
|
|
|
|
|
|
|
|
|||
Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities |
|
$ |
9 |
|
|
$ |
— |
|
|
$ |
9 |
|
Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities |
|
|
217 |
|
|
|
— |
|
|
|
217 |
|
Total financial liabilities |
|
$ |
226 |
|
|
$ |
— |
|
|
$ |
226 |
|
|
|
December 31, 2024 |
|
|||||||||
|
|
Fair Value |
|
|
Level 1 |
|
|
Level 2 |
|
|||
|
|
(in thousands) |
|
|||||||||
Financial Assets: |
|
|
|
|
|
|
|
|
|
|||
Money market funds |
|
$ |
19,218 |
|
|
$ |
19,218 |
|
|
$ |
— |
|
Cash equivalents |
|
|
19,218 |
|
|
|
19,218 |
|
|
|
— |
|
Certificates of deposit |
|
|
251 |
|
|
|
— |
|
|
|
251 |
|
Commercial paper |
|
|
7,342 |
|
|
|
— |
|
|
|
7,342 |
|
Corporate debt securities |
|
|
161,296 |
|
|
|
— |
|
|
|
161,296 |
|
Municipal securities |
|
|
17,414 |
|
|
|
— |
|
|
|
17,414 |
|
Government and agency debt |
|
|
180,312 |
|
|
|
— |
|
|
|
180,312 |
|
Marketable securities |
|
|
366,615 |
|
|
|
— |
|
|
|
366,615 |
|
Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets |
|
|
846 |
|
|
|
— |
|
|
|
846 |
|
Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets |
|
|
4 |
|
|
|
— |
|
|
|
4 |
|
Restricted bank deposits included in prepaid expenses and other current assets |
|
|
12 |
|
|
|
— |
|
|
|
12 |
|
Total financial assets |
|
$ |
386,695 |
|
|
$ |
19,218 |
|
|
$ |
367,477 |
|
Financial Liabilities: |
|
|
|
|
|
|
|
|
|
|||
Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities |
|
$ |
228 |
|
|
$ |
— |
|
|
$ |
228 |
|
Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities |
|
|
83 |
|
|
|
— |
|
|
|
83 |
|
Total financial liabilities |
|
$ |
311 |
|
|
$ |
— |
|
|
$ |
311 |
|
The Company classifies its money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its restricted deposits, certificates of deposit, commercial paper, corporate debt securities, municipal securities, government and agency debt, and derivative financial instruments within Level 2 because they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. As of December 31, 2025 and 2024, the Company did not have any assets or liabilities valued based on Level 3 valuations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 12, 2021 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.