Here’s What Led JFrog Ltd’s (FROG) 37% Appreciation
TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. During the quarter, the fund returned 13.13% (gross) and 12.91% (net), compared to the Russell Midcap® Growth Index’s 18.20% return. Equities recorded double-digit returns in the second quarter as global economic activity measures lifted. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted stocks such as JFrog Ltd. (NASDAQ:FROG). Incorporated in 2008, JFrog Ltd. (NASDAQ:FROG) is a technology company that provides a software supply chain platform. The one-month return of JFrog Ltd. (NASDAQ:FROG) was 3.34%, and its shares gained 75.71% of their value over the last 52 weeks. On September 29, 2025, JFrog Ltd. (NASDAQ:FROG) stock closed at $49.48 per share, with a market capitalization of $5.848 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding JFrog Ltd. (NASDAQ:FROG) in its second quarter 2025 investor letter:
"Jumping back to the positive was JFrog Ltd. (NASDAQ:FROG), which provides systems to manage and speed up the release of software updates from developers to users. We added to our position on near-term lows at the start of the quarter. Later, its reported revenues and earnings surpassed expectations, and JFrog’s management lifted its prior guidance for 2025. In addition to a stable level of new business wins, there were levels of customer usage beyond their contractual commitments that also boosted revenues. That lifted its shares up by 37% and we trimmed the position."
JFrog Ltd. (NASDAQ:FROG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 46 hedge fund portfolios held JFrog Ltd. (NASDAQ:FROG) at the end of the second quarter, up from 43 in the previous quarter. In Q2 2025, JFrog Ltd. (NASDAQ:FROG) reported revenue of $127.2 million, reflecting an increase of 23% year-over-year. While we acknowledge the potential of JFrog Ltd. (NASDAQ:FROG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. 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 thebest short-term AI stock.
In another article, we covered JFrog Ltd. (NASDAQ:FROG) and shared the list of hot software stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
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