Okta has achieved significant operating leverage, moving from an $83 million operating loss in 2024Q4 to a 7.3% operating margin by 2027Q1 despite revenue growth slowing to 11.2%.
| Sales/Revenue | 3B | 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 % | 11.75% | 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 | 676M | 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 | 2.32B | 2.26B | 1.99B | 1.68B | 1.31B | 904M | 617M | 426.69M | 285.83M | 175.79M | 104.86M | 49.88M | 22.28M |
| Gross Margin % | 77.44% | 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 | 2.15B | 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 | 1.5B | 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 | 648M | 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 | 170M | 153M | -63M | -516M | -812M | -768M | -204M | -185.83M | -119.62M | -111.85M | -74.67M | -75.99M | -58.78M |
| Operating Margin % | 5.67% | 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 | 261M | 249M | 35M | -432M | -698M | -660M | -167M | -168.02M | -111.62M | -104.85M | -70.1M | -73.1M | -56.86M |
| EBITDA Margin % | 8.71% | 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 % | 163.64% | 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) | 91M | 96M | 98M | 84M | 114M | 108M | 37M | 17.82M | 8M | 7M | 4.57M | 2.89M | 1.92M |
| EBIT | 225M | 153M | -63M | -329M | -790M | -759M | -193M | -183.31M | -110.44M | -110.17M | -74.63M | -75.99M | -58.78M |
| Net Interest Income | 76M | 106M | 101M | 73M | 11M | -82M | -60M | -9.93M | -5.89M | 1.68M | 0 | 0 | 0 |
| Interest Income | 80M | 110M | 106M | 81M | 22M | 9M | 12.89M | 17.09M | 9.18M | 1.68M | 0 | 0 | 0 |
| Interest Expense | 4M | 4M | 5M | 8M | 11M | 91M | 72.66M | 27.02M | 15.07M | 0 | 0 | 0 | 0 |
| Other Income/Expense | 95M | 102M | 109M | 179M | 11M | -82M | -62M | -24.5M | -5.89M | 1.68M | 39K | -19K | -199K |
| Pretax Income | 265M | 255M | 46M | -337M | -801M | -850M | -266M | -210.33M | -125.51M | -110.17M | -74.63M | -76.01M | -58.98M |
| Pretax Margin % | 8.85% | 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 | 18M | 20M | 18M | 18M | 14M | -2M | 0 | -1.42M | -17K | -321K | 425K | 295K | 130K |
| Effective Tax Rate % | 6.79% | 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 | 247M | 235M | 28M | -355M | -815M | -848M | -266M | -208.91M | -125.5M | -109.85M | -75.06M | -76.3M | -59.11M |
| Net Margin % | 8.24% | 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 % | 90% | 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) | 247M | 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) | 1.39 | 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 % | 90.69% | 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 | 177.7M | 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 | 176.13M | 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 | - | - | - | - | - | - | - | - | - | - | - | - | - |
Enterprise spending and competition
As reported in recent financial statements, Okta's year-over-year revenue growth has decelerated from 19.1% in 2025Q1 to 11.2% by 2027Q1, signaling a transition from a high-growth land-grab phase toward a more mature, sustainable expansion model that is increasingly sensitive to broader enterprise IT spending cycles.
The consistent decline in top-line growth rates suggests that the company is facing saturation in its core workforce identity segment. Investors should monitor whether the shift toward usage-based pricing in the customer identity segment can offset the inherent volatility of seat-based contracts in a cautious macroeconomic environment.
Based on reported figures, Okta has maintained a stable gross margin profile, hovering around 77% over the last ten quarters, which reflects the inherent scalability of its cloud-native identity platform despite the ongoing infrastructure costs associated with hosting services on third-party public cloud providers.
This consistency in gross margin indicates that the company possesses significant pricing power and has successfully managed its cost of revenue despite the integration of complex acquisitions. However, further expansion of these margins may be limited by the competitive necessity of maintaining high-availability infrastructure to satisfy enterprise security requirements.
According to recent SEC filings, Okta has successfully pivoted from operating losses of $83 million in 2024Q4 to an operating profit of $56 million in 2027Q1, demonstrating a clear trend of operating leverage as the company scales its revenue base relative to its fixed operating expenses.
The improvement in operating margins from negative territory to 7.3% suggests that management is successfully exercising expense discipline, particularly in managing SG&A costs. This transition appears to be a deliberate effort to prioritize GAAP profitability, which may be a response to investor demands for more efficient capital allocation.
As indicated by the provided data, Okta's net income remains heavily influenced by significant stock-based compensation, which reached $117 million in 2027Q1, highlighting a persistent gap between GAAP profitability and the underlying cash-generation capacity of the business that investors must carefully adjust for in their valuation models.
While the company has achieved positive net income, the reliance on equity-based incentives to attract and retain talent remains a material factor that dilutes shareholder value. Analysts should scrutinize the sustainability of these earnings, as the absence of significant SBC in certain periods suggests that GAAP figures may not fully capture the true economic cost of operations.
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.