Okta posts strong Q2 results with growth in revenue and profitability

Okta, an independent identity partner, has reported financial results for its second quarter ended 31 July 2025, highlighting growth in revenue, profitability, and cash flow.

Todd McKinnon, CEO and co-founder, Okta, said, “Okta’s unified identity platform is winning customers ranging from the world’s largest global organisations to massive government agencies. Our solid Q2 results are highlighted by continued strength in new product adoption, the public sector, Auth0, and cash flow. In the age of AI, Okta’s independence and neutrality will continue to give organisations the freedom to innovate securely and on their own terms.”

Okta second quarter fiscal 2026 highlights

• Revenue: Total revenue was USD 728 million, up 13% year-over-year. Subscription revenue grew 12% to USD 711 million.

• RPO: Subscription backlog (RPO) was USD 4.152 billion, an increase of 18% year-over-year. Current RPO (cRPO) rose 13% to USD 2.265 billion.

• GAAP operating income: USD 41 million (6% of total revenue) compared to a GAAP operating loss of USD 19 million in Q2 FY25.

• Non-GAAP operating income: USD 202 million (28% of revenue), compared to USD 148 million (23% of revenue) in Q2 FY25.

• GAAP net income: USD 67 million, or USD 0.38 per basic share and USD 0.37 per diluted share, compared to USD 29 million, or USD 0.18 per basic share, in Q2 FY25.

• Non-GAAP net income: USD 169 million, or USD 0.91 per diluted share, compared to USD 131 million, or USD 0.72 per diluted share, in Q2 FY25.

• Cash flow: Net cash from operations was USD 167 million (23% of revenue), compared to USD 86 million (13% of revenue) in Q2 FY25. Free cash flow stood at USD 162 million (22% of revenue), compared to USD 78 million (12% of revenue) in Q2 FY25.

• Cash position: Cash, cash equivalents, and short-term investments were USD 2.858 billion as of 31 July 2025.

Financial outlook

For the third quarter of fiscal 2026, Okta expects:

• Revenue between USD 728 million and USD 730 million, up 9%–10% year-over-year.

• Current RPO of USD 2.260 billion to USD 2.265 billion, up 10% year-over-year.

• Non-GAAP operating income of USD 160 million to USD 162 million, yielding a margin of 22%.

• Non-GAAP diluted net income per share between USD 0.74 and USD 0.75.

• Non-GAAP free cash flow margin of approximately 21%.

For the full year fiscal 2026, the company projects:

• Total revenue of USD 2.875 billion to USD 2.885 billion, up 10%–11% year-over-year.

• Non-GAAP operating income of USD 730 million to USD 740 million, yielding a margin of 25%–26%.

• Non-GAAP diluted net income per share between USD 3.33 and USD 3.38.

• Non-GAAP free cash flow margin of approximately 28%.

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