JFrog (FROG) Gains Momentum Following 26% Revenue Growth Beat

Wasatch Global Investors, an asset management company, released its "Small Cap Growth Strategy" Q4 2025 investor letter. A copy of the letter can be downloaded here. The Wasatch Small Cap Growth Strategy experienced a challenging fourth quarter as small-cap equities lagged broader market indices, reflecting investor caution and a continued preference for larger, more liquid stocks. During the period, the Russell 2000® Growth Index gained 1.22%, while the strategy finished the quarter in negative territory, with performance driven by stock-specific factors rather than macroeconomic stress. Results contrasted with strength in select areas of the small-cap market, as biotechnology emerged as one of the strongest segments, with the biotech component of the Russell 2000® Growth Index rising nearly 27%. For the 2025 calendar year, the Russell 2000 Growth Index advanced 13.01%, while the strategy posted a loss, highlighting the impact of earnings volatility and valuation compression across several holdings despite management citing improving fundamentals and easing financial conditions as potential longer-term supports. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Wasatch Global Investors highlighted stocks like JFrog Ltd. (NASDAQ:FROG). JFrog Ltd. (NASDAQ:FROG) operates a DevOps platform that enables software teams to manage, secure, and automate the distribution of software packages across the development lifecycle. The one-month return of JFrog Ltd. (NASDAQ:FROG) was -8.00% while its shares traded between $27.00 and $70.43 over the last 52 weeks. On February 13, 2026, JFrog Ltd. (NASDAQ:FROG) stock closed at approximately $51.68 per share, with a market capitalization of about $6.171 billion.

Wasatch Global Investors stated the following regarding JFrog Ltd. (NASDAQ:FROG) in its Q4 2025 investor letter:

JFrog Ltd. (NASDAQ:FROG) was the top contributor to strategy performance for the quarter. The company provides a software-supply-chain platform, delivering tools like package repositories, continuous-delivery pipelines and security scanning that help companies manage, build and secure their software delivery lifecycle. JFrog’s stock rallied in November, driven by a strong third-quarter earnings report that included 26% revenue growth and earnings growth that came in ahead of consensus expectations. Cloud revenue reaccelerated during the reported period, with security, governance, and AI driving product adoption.

JFrog Ltd. (NASDAQ:FROG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held JFrog Ltd. (NASDAQ:FROG) at the end of the third quarter, which was 46 in the previous quarter. While we acknowledge the risk and potential of JFrog Ltd. (NASDAQ:FROG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered JFrog Ltd. (NASDAQ:FROG) and shared the list of stocks outperforming market expectations. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.