Okta Inc.

OKTA
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$747M
Q4 FY2026 · +10% YoY · Beat consensus by 0.4%
TTM ROIC
35%
FY2026 · NOPAT / Invested Capital ex-goodwill; NOPAT = non-GAAP operating income × (1 - tax) · WACC ~11% · Moat spread +24pp

Financial Snapshot

ticker: OKTA step: 04 generated: 2026-05-13 source: quick-research

Okta, Inc. (OKTA) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $1.30B $1.86B $2.26B +21.8%
Non-GAAP Op. Margin ~-10% ~1% ~13%
GAAP Net Income ~-$815M ~-$1.0B ~-$356M improving
Non-GAAP EPS ~$0.04 ~$1.31 ~$2.24

FY2025: Revenue $2.61B (+15.3%); first full-year GAAP net income ($28M); Non-GAAP EPS ~$3.26. Q3 FY2026: Revenue $742M (+11.6%) — above estimates; adj. EPS $0.82 (+22% YoY).

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$0.5B
Free Cash Flow ~$0.4B
Capital Expenditures ~$0.1B
Cash & Equivalents ~$2.5B
Total Debt ~$1.5B (convertible notes)

FY2026: FCF margin reached 26% — strong conversion. Cash + short-term investments ~$2.5B against ~$1.5B convertible notes. Stock-based compensation remains elevated (~20%+ of revenue), suppressing GAAP earnings.

Key Ratios (approximate)

  • P/E: ~18x (non-GAAP FY2026E) | EV/EBITDA: ~20x | FCF Yield: ~4%
  • Revenue Growth: 11–15% | Non-GAAP Operating Margin: ~16–18%

Growth Profile

Okta's revenue growth decelerated from 55% (FY2022) through a breach-impacted period (FY2024: +22%) to ~11–15% currently. The financial profile is improving rapidly: FY2025 delivered first GAAP profitability, non-GAAP margins are expanding, and FCF reached 26% margin. The stock fell 20% in early 2026 before recovering 16.9% on AI agent identity catalysts. At ~4.7x FY2026 revenue multiple — well below SaaS peers at 8–10x — Okta screens as undervalued if double-digit growth is sustainable.

Forward Estimates

  • FY2026 consensus: Revenue ~$2.95B (+13%); Non-GAAP EPS ~$3.50
  • FY2027: Revenue ~$3.30B (+12%); EPS re-rating potential if AI agent revenues materialize
  • New products (Governance, Privileged Access, AI): ~30% of Q4 bookings; +40% ACV uplift
  • Analyst mean PT: ~$101 (+49% from ~$68); 25 Strong Buy / 12 Hold / 2 Sell
  • Auth0 for AI Agents (Apr 30, 2026): potential TAM expansion into multi-trillion-dollar AI agent market

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $OKTA.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/okta/financials/md · → thesis · → memo