Revenue growth has decelerated to 10.6% in 2027Q2, but operating margins have expanded significantly to 13.3%, demonstrating the emergence of operating leverage.
Okta, Inc. (OKTA) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 |
|---|
| Sales/Revenue | 3.07B | 2.92B | 2.61B | 2.26B | 1.86B | 1.3B | 835M | 586.07M | 399.25M | 256.55M | 160.81M | 85.91M | 41.01M |
| Revenue Growth % | 11.22% | 11.84% | 15.33% | 21.8% | 42.92% | 55.69% | 42.48% | 46.79% | 55.63% | 59.54% | 87.19% | 109.48% | - |
| Cost of Goods Sold | 672M | 661M | 618M | 581M | 546M | 396.4M | 217.68M | 159.38M | 113.42M | 80.75M | 55.95M | 36.02M | 18.73M |
| COGS % of Revenue | - | 22.64% | 23.68% | 25.67% | 29.39% | 30.49% | 26.07% | 27.2% | 28.41% | 31.48% | 34.79% | 41.93% | 45.67% |
| Gross Profit | 2.4B | 2.26B | 1.99B | 1.68B | 1.31B | 904M | 617M | 426.69M | 285.83M | 175.79M | 104.86M | 49.88M | 22.28M |
| Gross Margin % | 78.13% | 77.36% | 76.32% | 74.33% | 70.61% | 69.54% | 73.89% | 72.8% | 71.59% | 68.52% | 65.21% | 58.07% | 54.33% |
| Gross Profit Growth % | - | 13.35% | 18.43% | 28.2% | 45.13% | 46.52% | 44.6% | 49.28% | 62.6% | 67.65% | 110.21% | 123.89% | - |
| Operating Expenses | 2.17B | 2.1B | 2.06B | 2.2B | 2.12B | 1.67B | 821M | 612.52M | 405.45M | 287.64M | 179.53M | 125.87M | 81.06M |
| OpEx % of Revenue | - | 72.11% | 78.74% | 97.13% | 114.32% | 128.62% | 98.32% | 104.51% | 101.55% | 112.12% | 111.64% | 146.52% | 197.66% |
| Selling, General & Admin | 1.51B | 1.47B | 1.41B | 1.49B | 1.48B | 1.2B | 598M | 453.25M | 303.07M | 216.82M | 140.87M | 97.11M | 62.69M |
| SG&A % of Revenue | - | 50.22% | 54.14% | 65.66% | 79.39% | 92.54% | 71.62% | 77.34% | 75.91% | 84.52% | 87.6% | 113.04% | 152.87% |
| Research & Development | 651M | 639M | 642M | 656M | 620M | 469M | 223M | 159.27M | 102.39M | 70.82M | 38.66M | 28.76M | 18.37M |
| R&D % of Revenue | - | 21.89% | 24.6% | 28.99% | 33.37% | 36.08% | 26.71% | 27.18% | 25.64% | 27.61% | 24.04% | 33.48% | 44.79% |
| Other Operating Expenses | 0 | 0 | 0 | 56M | 29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 236M | 153M | -63M | -516M | -812M | -768M | -204M | -185.83M | -119.62M | -111.85M | -74.67M | -75.99M | -58.78M |
| Operating Margin % | 7.68% | 5.24% | -2.41% | -22.8% | -43.7% | -59.08% | -24.43% | -31.71% | -29.96% | -43.6% | -46.43% | -88.45% | -143.34% |
| Operating Income Growth % | - | 342.86% | 87.79% | 36.45% | -5.73% | -276.47% | -9.78% | -55.35% | -6.95% | -49.8% | 1.73% | -29.27% | - |
| EBITDA | 322M | 249M | 35M | -432M | -698M | -660M | -167M | -168.02M | -111.62M | -104.85M | -70.1M | -73.1M | -56.86M |
| EBITDA Margin % | 10.48% | 8.53% | 1.34% | -19.09% | -37.57% | -50.77% | -20% | -28.67% | -27.96% | -40.87% | -43.59% | -85.09% | -138.65% |
| EBITDA Growth % | 103.8% | 611.43% | 108.1% | 38.11% | -5.76% | -295.21% | 0.61% | -50.52% | -6.46% | -49.57% | 4.1% | -28.56% | - |
| D&A (Non-Cash Add-back) | 67M | 96M | 98M | 84M | 114M | 108M | 37M | 17.82M | 8M | 7M | 4.57M | 2.89M | 1.92M |
| EBIT | 283M | 153M | -63M | -329M | -790M | -759M | -193M | -183.31M | -110.44M | -110.17M | -74.63M | -75.99M | -58.78M |
| Net Interest Income | 69M | 106M | 101M | 73M | 11M | -82M | -60M | -9.93M | -5.89M | 1.68M | 0 | 0 | 0 |
| Interest Income | 72M | 110M | 106M | 81M | 22M | 9M | 12.89M | 17.09M | 9.18M | 1.68M | 0 | 0 | 0 |
| Interest Expense | 3M | 4M | 5M | 8M | 11M | 91M | 72.66M | 27.02M | 15.07M | 0 | 0 | 0 | 0 |
| Other Income/Expense | 88M | 102M | 109M | 179M | 11M | -82M | -62M | -24.5M | -5.89M | 1.68M | 39K | -19K | -199K |
| Pretax Income | 324M | 255M | 46M | -337M | -801M | -850M | -266M | -210.33M | -125.51M | -110.17M | -74.63M | -76.01M | -58.98M |
| Pretax Margin % | 10.54% | 8.74% | 1.76% | -14.89% | -43.11% | -65.38% | -31.86% | -35.89% | -31.44% | -42.94% | -46.41% | -88.48% | -143.82% |
| Income Tax | 28M | 20M | 18M | 18M | 14M | -2M | 0 | -1.42M | -17K | -321K | 425K | 295K | 130K |
| Effective Tax Rate % | 8.64% | 7.84% | 39.13% | -5.34% | -1.75% | 0.24% | 0% | 0.67% | 0.01% | 0.29% | -0.57% | -0.39% | -0.22% |
| Net Income | 296M | 235M | 28M | -355M | -815M | -848M | -266M | -208.91M | -125.5M | -109.85M | -75.06M | -76.3M | -59.11M |
| Net Margin % | 9.63% | 8.05% | 1.07% | -15.69% | -43.86% | -65.23% | -31.86% | -35.65% | -31.43% | -42.82% | -46.67% | -88.82% | -144.14% |
| Net Income Growth % | 76.19% | 739.29% | 107.89% | 56.44% | 3.89% | -218.8% | -27.33% | -66.47% | -14.24% | -46.36% | 1.63% | -29.08% | - |
| Net Income (Continuing) | 296M | 235M | 28M | -355M | -815M | -848M | -266M | -208.91M | -125.5M | -109.85M | -75.06M | -76.3M | -59.11M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.66 | 1.31 | 0.06 | -2.17 | -5.16 | -5.73 | -2.09 | -1.78 | -1.17 | -1.38 | -0.92 | -0.84 | -0.65 |
| EPS Growth % | 75.9% | 2083.33% | 102.77% | 57.95% | 9.95% | -174.16% | -17.42% | -52.14% | 15.22% | -50% | -9.52% | -29.23% | - |
| EPS (Basic) | - | 1.34 | 0.17 | -2.17 | -5.16 | -5.73 | -2.09 | -1.78 | -1.17 | -1.38 | -0.92 | -0.84 | -0.65 |
| Diluted Shares Outstanding | 178.81M | 179.29M | 175.09M | 163.63M | 158.02M | 148.04M | 127.21M | 117.22M | 107.5M | 83M | 90.76M | 90.76M | 90.76M |
| Basic Shares Outstanding | 174.3M | 175.88M | 169.57M | 163.63M | 158.02M | 148.04M | 127.21M | 117.22M | 107.5M | 83M | 90.76M | 90.76M | 90.76M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying OKTA stock.
For fiscal year 2026, Okta, Inc. (OKTA) reported total revenue of $2.92B. This represents a 7017.8% increase compared to $41.0M in 2015.
Okta, Inc. (OKTA) is profitable, generating $235.0M in net income for the fiscal year ending 2026 with a net profit margin of 8.1%.
Okta, Inc. (OKTA) reported an operating income of $153.0M, resulting in an operating profit margin of 5.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Okta, Inc. (OKTA) generated $2.26B in gross profit for the year, representing a gross profit margin of 77.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Security breach reputational risk
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Profitability Push
Okta's revenue growth has decelerated from 19.1% in 2025Q1 to 10.6% in 2027Q2, a clear trend suggesting the company is transitioning from a high-growth phase to a more mature, profitability-focused stage.
The sequential decline in year-over-year revenue growth from the high-teens to low-double-digits indicates a maturation of the core Workforce Identity business and potentially slower-than-expected adoption in the Customer Identity segment. This deceleration appears to be a deliberate trade-off, as management has prioritized operating margin expansion over top-line growth, evidenced by the dramatic swing from a -7.6% operating margin in 2025Q1 to 13.3% in 2027Q2. The durability of this growth rate will be a key test of the company's ability to maintain its competitive position against bundled alternatives.
Gross Margin Resilience, Operating Leverage Emerging
Gross margins have expanded from 76.0% to 79.6% over the past ten quarters, while operating margins have swung from negative to 13.3%, indicating successful cost discipline and the emergence of operating leverage.
The steady improvement in gross margin suggests Okta is successfully managing its cloud hosting costs and potentially benefiting from a more favorable product mix. More significantly, the dramatic improvement in operating margin, driven by a reduction in SG&A as a percentage of revenue, indicates that the company is finally scaling its cost structure. This shift from a -7.6% operating loss to a 13.3% operating profit in just two years represents a fundamental change in the business model's profitability profile, though it remains below the 20%+ margins of mature SaaS peers.
SG&A Discipline Drives Operating Leverage
Operating income has swung from a loss of $47M to a profit of $107M, driven by SG&A growing at a slower pace than revenue, demonstrating meaningful operating leverage in the business model.
The data shows SG&A expenses have been held relatively flat in absolute dollars while revenue has grown, indicating improved sales efficiency and a shift away from aggressive, high-cost customer acquisition. This operating leverage is the primary driver of the company's path to profitability. However, the leverage appears to be driven more by cost containment than by revenue scaling, as R&D spending has also been held flat. Investors should monitor whether this discipline can be maintained without sacrificing product innovation or market share.
SBC Remains a Significant Dilutive Force
Stock-based compensation of $114M in 2027Q2 represents 14.2% of revenue, a substantial non-cash expense that continues to bridge the gap between GAAP and non-GAAP profitability and dilutes existing shareholders.
The magnitude of SBC is a critical factor in assessing Okta's true economic earnings. While the company has achieved GAAP profitability, the high SBC level indicates that a significant portion of employee compensation is equity-based, creating ongoing dilution. The trend shows SBC has decreased from $151M to $114M over the period, which is a positive sign for shareholders, but it remains a material headwind. The quality of earnings is further complicated by the lumpy nature of net income, which swung from a $40M loss to a $116M profit, partly due to non-operating items.
The Pivot to Profitability in 2026
The 2026 fiscal year marked a clear operational inflection, with the company moving from consistent operating losses to sustained profitability, driven by a combination of revenue growth and strict cost control.
The inflection point is clearly visible in the transition from 2025Q4, where operating income was just $8M, to the subsequent quarters where it consistently exceeded $40M. This shift was not driven by a single event but by the cumulative effect of slowing expense growth while revenue continued to expand. The lasting impact is a fundamentally different financial profile, moving the company from a cash-burning growth story to a self-funding entity. This inflection allows for a re-rating of the business model from a pure growth multiple to one that incorporates a profitability component.
Margin Expansion May Be Peaking
The rapid margin expansion from -7.6% to 13.3% may be unsustainable, as further gains would require deeper cuts to R&D or S&M that could compromise long-term growth and competitive positioning.
The strongest challenge to the current narrative is that the low-hanging fruit of cost-cutting has likely been picked. SG&A as a percentage of revenue has already been reduced significantly, and further reductions could impair the sales engine needed to combat Microsoft's bundled offering. Similarly, holding R&D flat while revenue grows is a strategy with a finite shelf life in a rapidly evolving security landscape. If growth continues to decelerate toward single digits, the market may question whether the current margin level is a peak or a sustainable plateau, potentially leading to a de-rating.