JFrog Ltd Goodwill & Intangibles Disclosure
9. Goodwill and Intangible Assets, Net
Goodwill
The following table represents the changes to goodwill:
|
|
Carrying Amount |
|
|
|
|
(in thousands) |
|
|
Balance as of December 31, 2023 |
|
$ |
247,955 |
|
Addition from acquisition |
|
|
123,557 |
|
Balance as of December 31, 2024 and 2025 |
|
$ |
371,512 |
|
Intangible Assets, Net
Intangible assets consisted of the following as of December 31, 2025:
|
|
Gross Carrying Amount |
|
|
Accumulated |
|
|
Net Carrying Amount |
|
|
Weighted- |
|
||||
|
|
(in thousands) |
|
|
(in years) |
|
||||||||||
Developed technology |
|
$ |
89,962 |
|
|
$ |
(51,147 |
) |
|
$ |
38,815 |
|
|
|
3.2 |
|
Customer relationships |
|
|
4,200 |
|
|
|
(3,107 |
) |
|
|
1,093 |
|
|
|
1.5 |
|
Total |
|
$ |
94,162 |
|
|
$ |
(54,254 |
) |
|
$ |
39,908 |
|
|
|
|
|
Intangible assets consisted of the following as of December 31, 2024:
|
|
Gross Carrying Amount |
|
|
Accumulated |
|
|
Net Carrying Amount |
|
|
Weighted- |
|
||||
|
|
(in thousands) |
|
|
(in years) |
|
||||||||||
Developed technology |
|
$ |
92,762 |
|
|
$ |
(35,836 |
) |
|
$ |
56,926 |
|
|
|
3.8 |
|
Customer relationships |
|
|
9,374 |
|
|
|
(5,474 |
) |
|
|
3,900 |
|
|
|
1.4 |
|
Total |
|
$ |
102,136 |
|
|
$ |
(41,310 |
) |
|
$ |
60,826 |
|
|
|
|
|
Gross carrying amount and accumulated amortization of fully amortized intangibles are removed from the preceding tables. Amortization expenses for intangible assets were $20.9 million, $17.6 million and $11.8 million for the years ended December 31, 2025, 2024, and 2023, respectively.
The expected future amortization expenses by year related to the intangible assets as of December 31, 2025 are as follows:
|
|
December 31, 2025 |
|
|
|
|
(in thousands) |
|
|
Year Ending December 31, |
|
|
|
|
2026 |
|
$ |
14,974 |
|
2027 |
|
|
10,117 |
|
2028 |
|
|
9,733 |
|
2029 |
|
|
5,084 |
|
Total |
|
$ |
39,908 |
|
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 Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.