📊 OKTA Key Takeaways
Is Okta, Inc. (OKTA) a Good Investment?
Okta demonstrates exceptional free cash flow generation ($875M FCF, 30% margin) and a fortress balance sheet with zero debt, but profitability metrics reveal concerning underlying challenges: operating margins of only 5.1% despite 77.4% gross margins, paired with very poor returns on capital (ROE 3.4%, ROA 2.4%), suggest operational inefficiency. The dramatic net income growth (+739.3%) appears disconnected from modest revenue growth (+11.8%), raising earnings quality concerns.
Okta is transitioning to durable, profitable growth with 77% gross margin, positive GAAP earnings, and strong free cash flow supported by a debt‑free balance sheet. Growth has moderated, but operating leverage and cash generation provide flexibility to invest while maintaining financial resilience.
Why Buy Okta, Inc. Stock? OKTA Key Strengths
- Exceptional free cash flow generation ($875M) and 30% FCF margin indicating high-quality earnings
- Fortress balance sheet with $858M cash, zero debt (0.00x debt/equity), and 74.5x interest coverage
- Market-leading gross margins at 77.4%, demonstrating strong pricing power and product value
- Capital-light model with minimal CapEx ($9M), enabling efficient cash deployment
- Debt-free balance sheet with $858M cash and solid liquidity
- High gross margin (77.4%) and positive GAAP profitability
- Robust free cash flow (30% margin) with minimal capex
OKTA Stock Risks: Okta, Inc. Investment Risks
- Alarmingly low returns on capital: 3.4% ROE and 2.4% ROA suggest capital is not being deployed efficiently
- Operating margin collapse at 5.1% despite 77.4% gross margin indicates high operating expenses (R&D/Sales) are not scaling with revenue
- Explosive net income growth (+739.3% YoY) is disconnected from revenue growth (+11.8%), suggesting one-time items or non-operational benefits rather than operational improvement
- Slowing revenue growth at 11.8% YoY is moderate for SaaS and may indicate market maturation or competitive pressures
- Revenue growth deceleration (~12% YoY) amid competitive pressures
- Thin operating margin (5.1%) and low ROE/ROA
- FCF quality sensitivity to stock-based compensation and working-capital timing
Key Metrics to Watch
- Operating margin trend - must improve toward 15%+ to justify operating expense levels
- Revenue growth acceleration - monitor if growth can reaccelerate above 15% organically
- Return on Equity and Asset trends - must improve meaningfully from 3.4% ROE to demonstrate capital efficiency
- Recurring revenue and net revenue retention - assess whether customer base is expanding or contracting
- Operating margin
- Billings and deferred revenue growth
Okta, Inc. (OKTA) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 30.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
OKTA Profit Margin, ROE & Profitability Analysis
OKTA vs Technology Sector: How Okta, Inc. Compares
How Okta, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Okta, Inc. Stock Overvalued? OKTA Valuation Analysis 2026
Based on fundamental analysis, Okta, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Okta, Inc. Balance Sheet: OKTA Debt, Cash & Liquidity
OKTA Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Okta, Inc.'s revenue has grown significantly by 125% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.17 indicates the company is currently unprofitable.
OKTA Revenue Growth, EPS Growth & YoY Performance
OKTA Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $665.0M | $5.0M | $0.00 |
| Q2 2026 | $646.0M | -$11.0M | $-0.06 |
| Q1 2026 | $617.0M | -$40.0M | $-0.24 |
| Q3 2025 | $584.0M | $5.0M | $0.00 |
| Q2 2025 | $556.0M | -$11.0M | $-0.06 |
| Q1 2025 | $518.0M | -$40.0M | $-0.24 |
| Q3 2024 | $481.0M | -$81.0M | $-0.49 |
| Q2 2024 | $452.0M | -$111.0M | $-0.68 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Okta, Inc. Dividends, Buybacks & Capital Allocation
OKTA SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Okta, Inc. (CIK: 0001660134)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 9, 2026 | 4 | xslF345X06/wk-form4_1775768642.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775250295.xml | View → |
| Mar 27, 2026 | 4 | xslF345X06/wk-form4_1774645512.xml | View → |
| Mar 25, 2026 | 4 | xslF345X06/wk-form4_1774472556.xml | View → |
| Mar 23, 2026 | 4 | xslF345X06/wk-form4_1774303658.xml | View → |
❓ Frequently Asked Questions about OKTA
What is the AI rating for OKTA?
Okta, Inc. (OKTA) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OKTA's key strengths?
Claude: Exceptional free cash flow generation ($875M) and 30% FCF margin indicating high-quality earnings. Fortress balance sheet with $858M cash, zero debt (0.00x debt/equity), and 74.5x interest coverage. ChatGPT: Debt-free balance sheet with $858M cash and solid liquidity. High gross margin (77.4%) and positive GAAP profitability.
What are the risks of investing in OKTA?
Claude: Alarmingly low returns on capital: 3.4% ROE and 2.4% ROA suggest capital is not being deployed efficiently. Operating margin collapse at 5.1% despite 77.4% gross margin indicates high operating expenses (R&D/Sales) are not scaling with revenue. ChatGPT: Revenue growth deceleration (~12% YoY) amid competitive pressures. Thin operating margin (5.1%) and low ROE/ROA.
What is OKTA's revenue and growth?
Okta, Inc. reported revenue of $2.9B.
Does OKTA pay dividends?
Okta, Inc. does not currently pay dividends.
Where can I find OKTA SEC filings?
Official SEC filings for Okta, Inc. (CIK: 0001660134) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OKTA's EPS?
Okta, Inc. has a diluted EPS of $1.31.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is OKTA a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Okta, Inc. has a BUY rating with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is OKTA stock overvalued or undervalued?
Valuation metrics for OKTA: ROE of 3.4% (sector avg: 22%), net margin of 8.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy OKTA stock in 2026?
Our dual AI analysis gives Okta, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OKTA's free cash flow?
Okta, Inc.'s operating cash flow is $884.0M, with capital expenditures of $9.0M. FCF margin is 30.0%.
How does OKTA compare to other Technology stocks?
Vs Technology sector averages: Net margin 8.1% (avg: 18%), ROE 3.4% (avg: 22%), current ratio 1.43 (avg: 2.5).