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Jan 31
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.
Okta
Okta
Okta Revenue by Segment
Revenue by Segment
Subscription Revenue
CapyFin.comProf. Services & Other Revenue
CapyFin.com 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.
- Macroeconomic uncertainty may affect customer demand in the coming quarters.
Revenue & Expenses
Visualization of income flow from segment revenue to net income