Okta, Inc. (OKTA)

Price$170.60Cached quoteAs of 2026-09-05 02:38 UTC

AI: Fair-priced

Price checkThe valuation is demanding, but strong cash generation keeps it within a defensible range.

Okta, Inc. is the Nasdaq-listed identity-security company under ticker OKTA. Using the latest quoted equity value, August share count, July net cash position, and management’s fiscal 2027 revenue midpoint, enterprise value—equity value plus debt minus cash—is about 8.7 times guided sales. That is a premium for roughly 10%–11% expected revenue growth, but the premium is partly supported by unusually strong cash margins. The shares therefore look fair-priced, though with limited room for execution misses.

Big pictureRecurring subscriptions and improving backlog support durability, while enterprise spending cycles still matter.

Second-quarter revenue grew 11%, subscription revenue grew 12%, and current remaining performance obligations grew 14%. RPO is contracted subscription revenue not yet recognized, so its acceleration gives useful visibility into future sales. Management expects fiscal 2027 free cash flow of $910 million to $930 million; free cash flow means operating cash left after capital spending. About 98% of first-half revenue was subscription-based, reducing cyclicality, although Okta says longer enterprise sales cycles can still delay bookings, cash collections, and growth.

Business strengthLiquidity is strong, debt pressure fell, and buybacks are offsetting some equity dilution.

Okta held $2.299 billion of cash, cash equivalents, and short-term investments at July 31 after paying the remaining $350 million principal on its convertible notes. That leaves substantial liquidity and little conventional debt pressure. During the first half, Okta repurchased and retired 4.57 million Class A shares for $366 million, with $555 million of authorization remaining. Stock-based compensation was $231 million, an economic cost that can dilute shareholders by increasing share count, but repurchases and net-share tax settlements are helping counter that effect.

What could change the storyAI-led growth could justify the premium; slower renewals or weaker monetization would challenge it.

The bull case assumes current RPO stays around mid-teens growth, net retention remains comfortably above 100%, and newer governance, privileged-access, threat-detection, and AI-agent products lift revenue growth while free-cash-flow margins stay near the high twenties. Under that path, today’s premium valuation can hold. The bear case is revenue settling near high-single-digit growth, customer expansion weakening, sales cycles lengthening, or AI products taking longer to monetize. Acquisition spending or renewed share issuance could also reduce per-share cash benefits and force the valuation multiple lower.

AI: News

Governance platform expandsOn September 9, Okta unveiled broader governance, privileged-access, and identity-threat controls for agentic enterprises.

On September 9, 2026, Okta announced new Identity Governance and Privileged Access capabilities alongside expanded threat detection using Permiso technology. Planned features include automated access-remediation, finer AWS entitlement management, broader just-in-time privileged access, and faster creation of integrations. The release strengthens Okta’s attempt to sell a wider identity-security platform rather than only authentication products. That could increase customer spending, although several announced capabilities are still scheduled for future early access or general availability.

Auth0 targets agentic commerceOn September 2, Auth0 added tools aimed at secure AI commerce and easier enterprise customer onboarding.

On September 2, 2026, Okta introduced new Auth0 capabilities spanning consumer conversion, agent-assisted commerce, and business-to-business identity management. The products are designed to let developers add AI-ready identity features without replacing underlying applications. Strategically, this broadens Auth0 from authentication toward revenue-enabling customer experiences and AI transactions. The opportunity could expand Okta’s addressable market, but investors still need evidence that these newer agentic-commerce features generate meaningful incremental subscription revenue rather than mainly strengthening the existing platform.

Quarter beats expectationsOn August 26, Okta reported faster backlog growth, stronger profit, and higher full-year guidance.

On August 26, 2026, Okta reported second-quarter revenue of $805 million, up 11%, while current RPO increased 14%. GAAP operating margin improved to 13%, and free cash flow reached $227 million. Management raised fiscal 2027 revenue guidance to $3.216 billion–$3.226 billion and free-cash-flow guidance to $910 million–$930 million. The combination of accelerating contracted revenue and strong cash conversion was important because it showed the business can improve profitability while still producing double-digit subscription growth.

Permiso acquisition closesOn August 26, Okta completed Permiso Security, expanding identity threat detection across cloud and AI environments.

Okta completed its acquisition of Permiso Security on August 26, 2026. Permiso detects suspicious activity across human, machine, and AI-agent identities in multi-cloud environments, adding behavioral analytics and threat-response capabilities to Okta’s platform. The deal moves Okta further into security-operations workflows and could improve cross-selling with governance and privileged-access products. The latest 10-Q said Okta was still evaluating the consideration transferred and post-combination costs, so the full acquisition economics and integration burden were not yet disclosed.

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Revenue	$2.92B	$2.61B	$2.26B	$1.86B	$1.30B	$835.0M	$586.1M	$399.3M	$256.5M	$160.8M	$85.9M
Gross profit	$2.26B	$1.99B	$1.68B	$1.31B	$904.0M	$617.0M	$426.7M	$285.8M	$175.8M	$104.9M	$49.9M
Gross margin	77.36%	76.32%	74.33%	70.61%	69.54%	73.89%	72.80%	71.59%	68.52%	65.21%	58.07%
Research & development	$639.0M	$642.0M	$656.0M	$620.0M	$469.0M	$223.0M	$159.3M	$102.4M	$70.8M	$38.7M	$28.8M
Operating expenses	$2.11B	$2.07B	$2.20B	$2.12B	$1.67B	$821.0M	$612.5M	$405.5M	$287.6M	$179.5M	$125.9M
Operating income	$149.0M	−$74.0M	−$516.0M	−$812.0M	−$768.0M	−$204.0M	−$185.8M	−$119.6M	−$111.9M	−$74.7M	−$76.0M
Operating margin	5.10%	−2.84%	−22.80%	−43.70%	−59.08%	−24.43%	−31.71%	−29.96%	−43.60%	−46.43%	−88.45%
EBITDA	$245.0M	$24.0M	−$417.0M	−$707.0M	−$687.0M	−$184.0M	−$166.4M	−$108.1M	−$105.0M	−$70.5M	−$74.0M
EBITDA margin	8.39%	0.92%	−18.43%	−38.05%	−52.85%	−22.04%	−28.40%	−27.08%	−40.91%	−43.82%	−86.13%
Net income	$235.0M	$28.0M	−$355.0M	−$815.0M	−$848.0M	−$266.0M	−$208.9M	−$125.5M	−$109.8M	−$75.1M	−$76.3M
Net profit margin	8.05%	1.07%	−15.69%	−43.86%	−65.23%	−31.86%	−35.65%	−31.43%	−42.82%	−46.67%	−88.82%
Basic EPSper basic share	$1.33	$0.16	-$2.17	-$5.16	-$5.73	-$2.09	-$1.78	-$1.17	-$1.32	-$3.94	-$4.28
Diluted EPSper diluted share	$1.31	$0.06	-$2.17	-$5.16	-$5.73	-$2.09	-$1.78	-$1.17	-$1.32	-$3.94	-$4.28

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈11.25%of listed shares

BlackRock, Inc.18.7M shares · Jun 30, 2026

View holders

Top 20 reported holders of OKTA
Holder	% owned
BlackRock, Inc.	≈11.25%18.7M shares
FMR LLC	≈9.80%16.27M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈5.39%8.95M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈4.57%7.59M shares
STATE STREET CORP	≈3.78%6.27M shares
FIRST TRUST ADVISORS LP	≈2.71%4.5M shares
Allspring Global Investments Holdings, LLC	≈2.19%3.63M shares
MORGAN STANLEY	≈2.07%3.44M shares
GEODE CAPITAL MANAGEMENT, LLC	≈1.97%3.27M shares
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	≈1.84%3.06M shares
AMERICAN CENTURY COMPANIES INC	≈1.76%2.92M shares
JPMORGAN CHASE & CO	≈1.63%2.71M shares
Swedbank AB	≈1.55%2.57M shares
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	≈1.45%2.42M shares
AMERIPRISE FINANCIAL INC	≈1.41%2.35M shares
Pictet Asset Management Holding SA	≈1.32%2.19M shares
VICTORY CAPITAL MANAGEMENT INC	≈1.31%2.17M shares
CITADEL ADVISORS LLC	≈1.27%2.11M shares
UBS Group AG	≈1.24%2.06M shares
Point72 Asset Management, L.P.	≈1.11%1.85M shares

Percentages use 166.12M shares of this listed class outstanding on May 26, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$267.4K disclosed value

Sells (SEC code S)177$277.38M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 22, 2026Form 4 · 10b5-1	Schwartz LarissaSee Remarks	SellClass A Common Stock	2.5K	$120.00	$295.6K	25.2K
Jun 18, 2026Form 4 · 10b5-1	Kelleher Eric RobertSee Remarks	SellClass A Common Stock	100	$118.49	$11.8K	19.6K
Jun 18, 2026Form 4 · 10b5-1	Kelleher Eric RobertSee Remarks	SellClass A Common Stock	1.8K	$117.59	$209.0K	19.7K
Jun 18, 2026Form 4 · 10b5-1	Kelleher Eric RobertSee Remarks	SellClass A Common Stock	200	$115.34	$23.1K	21.5K
Jun 18, 2026Form 4 · 10b5-1	Kelleher Eric RobertSee Remarks	SellClass A Common Stock	300	$112.15	$33.6K	21.7K

Review ownership filings at SEC.gov ↗

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