JFrog Ltd Leases Disclosure
10. Leases
The Company has entered into non-cancelable lease agreements for its offices with lease periods expiring at various dates through 2036.
Components of operating lease expense were as follows:
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
(in thousands) |
|
|||||||||
Operating lease cost |
|
$ |
9,388 |
|
|
$ |
8,994 |
|
|
$ |
9,144 |
|
Short-term lease cost |
|
|
949 |
|
|
|
1,067 |
|
|
|
571 |
|
Variable lease cost |
|
|
1,319 |
|
|
|
580 |
|
|
|
398 |
|
Total operating lease cost |
|
$ |
11,656 |
|
|
$ |
10,641 |
|
|
$ |
10,113 |
|
Supplementary cash flow information related to operating leases was as follows:
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cash paid for operating leases |
|
$ |
9,317 |
|
|
$ |
8,665 |
|
|
$ |
8,453 |
|
ROU assets obtained in exchange for operating lease liabilities |
|
$ |
6,834 |
|
|
$ |
164 |
|
|
$ |
6,282 |
|
As of December 31, 2025, the weighted-average discount rate is 4.4% and the weighted-average remaining term is 3.1 years. Maturities of the Company’s operating lease liabilities as of December 31, 2025 were as follows:
|
|
December 31, 2025 |
|
|
|
|
(in thousands) |
|
|
Year Ending December 31, |
|
|
|
|
2026 |
|
$ |
6,234 |
|
2027 |
|
|
1,676 |
|
2028 |
|
|
1,752 |
|
2029 |
|
|
1,648 |
|
2030 |
|
|
1,697 |
|
Thereafter |
|
|
581 |
|
Total operating lease payments |
|
|
13,588 |
|
Less: imputed interest |
|
|
(1,132 |
) |
Total operating lease liabilities |
|
$ |
12,456 |
|
As of December 31, 2025, the Company had an additional commitment of $114.0 million for an operating lease related to a facility that had not yet commenced. The lease is expected to commence in 2026 with a lease term of 10 years.
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 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.