Okta, Inc., the leading independent identity partner, today announced financial results for its first quarter ended April 30, 2025.
“Okta had a solid start to FY26 highlighted by record operating profit and another quarter of robust free cash flow,” said Todd McKinnon, Chief Executive Officer and co-founder of Okta. “The world's biggest organisations continue to turn to Okta to solve identity security across their workforces, customers, and AI use cases. We remain focused on driving profitable growth, accelerating innovation, and delivering the only modern, unified identity security platform for our customers."
First Quarter Fiscal 2026 Financial Highlights:
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Revenue: Total revenue was $688 million, an increase of 12% year-over-year. Subscription revenue was $673 million, an increase of 12% year-over-year.
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RPO: RPO, or subscription backlog, was $4.084 billion, an increase of 21% year-over-year. cRPO, which represents subscription backlog expected to be recognized over the next 12 months, was $2.227 billion, up 14% compared to the first quarter of fiscal 2025.
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GAAP Operating Income/Loss: GAAP operating income was $39 million, or 6% of total revenue, compared to a GAAP operating loss of $47 million, or (8)% of total revenue, in the first quarter of fiscal 2025.
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Non-GAAP Operating Income: Non-GAAP operating income was $184 million, or 27% of total revenue, compared to a non-GAAP operating income of $133 million, or 22% of total revenue, in the first quarter of fiscal 2025.
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GAAP Net Income/Loss: GAAP net income was $62 million, compared to a GAAP net loss of $40 million in the first quarter of fiscal 2025. GAAP basic and diluted net income per share were $0.36 and $0.35, respectively, compared to a GAAP basic and diluted net loss per share of $0.24 in the first quarter of fiscal 2025.
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Non-GAAP Net Income: Non-GAAP net income was $158 million, compared to non-GAAP net income of $117 million in the first quarter of fiscal 2025. Non-GAAP diluted net income per share was $0.86, compared to non-GAAP diluted net income per share of $0.65 in the first quarter of fiscal 2025.
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Cash Flow: Net cash provided by operations was $241 million, or 35% of total revenue, compared to net cash provided by operations of $219 million, or 36% of total revenue, in the first quarter of fiscal 2025. Free cash flow was $238 million, or 35% of total revenue, compared to $214 million, or 35% of total revenue, in the first quarter of fiscal 2025.
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Cash, cash equivalents, and short-term investments were $2.725 billion at April 30, 2025.
The section titled "Non-GAAP Financial Measures" below contains a description of the non-GAAP financial measures, and reconciliations between GAAP and non-GAAP information are contained in the tables below.
Financial Outlook:
We continue to take a prudent approach to forward guidance that factors in our go-to-market specialization that was rolled out in Q1 of FY26. Additionally, we’re now factoring in potential risks related to the uncertain economic environment for the remainder of FY26.
For the second quarter of fiscal 2026, the Company expects:
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Total revenue of $710 million to $712 million, representing a growth rate of 10% year-over-year;
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Current RPO of $2.200 billion to $2.205 billion, representing a growth rate of 10% to 11% year-over-year;
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Non-GAAP operating income of $183 million to $185 million, which yields a non-GAAP operating margin of 26%;
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Non-GAAP diluted net income per share of $0.83 to $0.84, assuming diluted weighted-average shares outstanding of approximately 186 million and a non-GAAP tax rate of 26%; and
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Non-GAAP free cash flow margin of approximately 19%.
For the full year fiscal 2026, the Company expects:
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Total revenue of $2.850 billion to $2.860 billion, representing a growth rate of 9% to 10% year-over-year;
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Non-GAAP operating income of $710 million to $720 million, which yields a non-GAAP operating margin of 25%;
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Non-GAAP diluted net income per share of $3.23 to $3.28, assuming diluted weighted-average shares outstanding of approximately 186 million and a non-GAAP tax rate of 26%; and
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Non-GAAP free cash flow margin of approximately 27%.
These statements are forward-looking and actual results may differ materially. Refer to the "Forward-Looking Statements" safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Okta has not reconciled its forward-looking non-GAAP financial measures to their most directly comparable GAAP measures because certain items are out of Okta’s control or cannot be reasonably predicted. Accordingly, reconciliations for forward-looking non-GAAP financial measures are not available without unreasonable effort.
Source : Press Release
