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Jan 31, 2025
Okta Q4 2025 Earnings Report
Okta reported strong financial results with revenue and subscription growth, along with record profitability and cash flow.
Key Takeaways
Okta delivered solid Q4-25 results with revenue of $682M, driven by strong subscription revenue. The company achieved record profitability, reporting a GAAP net income of $23M and free cash flow of $284M. RPO and cRPO continued to grow significantly, reflecting strong demand.
Total revenue reached $682M, up 13% YoY.
GAAP net income was $23M, compared to a net loss of $44M in Q4-24.
Record free cash flow of $284M, representing 42% of revenue.
Subscription backlog (RPO) grew 25% YoY to $4.215B.
Revenue by Segment
Forward Guidance
Okta projects continued revenue growth in fiscal 2026, with a focus on operational efficiency and innovation in identity security.
Positive Outlook
- Q1 FY26 revenue guidance set at $678M-$680M, representing 10% YoY growth.
- FY26 revenue forecast of $2.85B-$2.86B, growing 9%-10% YoY.
- Non-GAAP operating margin expected to remain strong at 25%.
- Free cash flow margin projected at approximately 26% for FY26.
- Continued investment in innovation on the Okta and Auth0 platforms.
Challenges Ahead
- Guidance reflects a prudent approach due to go-to-market specialization.
- cRPO growth is expected to slow to around 12% YoY in Q1 FY26.
- Organizational restructuring costs of approximately $11M to impact Q1 free cash flow.
- Competitive pressures in the identity security space could impact growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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