Executive Summary
Okta Inc delivered a solid QQ3 2025 revenue performance with 665 million USD in revenue, up 13.9% year over year and 2.9% quarter over quarter, underscoring sustained demand for its identity solutions. Gross profit reached 508 million USD, producing a robust gross margin of 76.4%, while operating income remained negative at -16 million USD, reflecting continued investment in product development, go-to-market expansion, and platform integration. Importantly, cash generation was strong, with operating cash flow of 159 million USD and free cash flow of 158 million USD, supported by a cash and cash equivalents plus short-term investments position of roughly 2.25 billion USD and a net debt position of about 650 million USD. Net income printed at 16 million USD and basic/diluted EPS of 0.09/0.0937 USD, illustrating a path to profitability as leverage shifts and operating leverage improves.
Key Performance Indicators
QoQ: -44.83% | YoY:119.75%
QoQ: -47.06% | YoY:118.37%
Key Insights
Revenue: 665.0M USD; YoY +13.87%; QoQ +2.94%
Gross Profit: 508.0M USD; Margin 76.39%; YoY +15.72%; QoQ +3.46%
Operating Income: -16.0M USD; Margin -2.41%; YoY +85.59%; QoQ +15.79%
EBITDA: -16.0M USD; Margin -2.41%
Net Income: 16.0M USD; Margin 2.41%; YoY +119.75%; QoQ -44.83%
EPS (GAAP): 0.09 USD; Diluted EPS: 0.0937 USD; YoY +118.37%; QoQ -47.06%
Free Cash Flow: 158.0M USD; FCF per share ≈ 0.93 USD; Operating Cash Flow: 159.0M USD; CapEx: 12.99M USD
Liquidity & Balance Sheet: Cash & e...
Financial Highlights
Revenue: 665.0M USD; YoY +13.87%; QoQ +2.94%
Gross Profit: 508.0M USD; Margin 76.39%; YoY +15.72%; QoQ +3.46%
Operating Income: -16.0M USD; Margin -2.41%; YoY +85.59%; QoQ +15.79%
EBITDA: -16.0M USD; Margin -2.41%
Net Income: 16.0M USD; Margin 2.41%; YoY +119.75%; QoQ -44.83%
EPS (GAAP): 0.09 USD; Diluted EPS: 0.0937 USD; YoY +118.37%; QoQ -47.06%
Free Cash Flow: 158.0M USD; FCF per share ≈ 0.93 USD; Operating Cash Flow: 159.0M USD; CapEx: 12.99M USD
Liquidity & Balance Sheet: Cash & equiv. 310.0M; Short-term investments 1.938B; Total cash + investments ≈ 2.248B; Total assets 9.01B; Total debt 0.96B; Net debt ≈ 0.65B; Equity ≈ 6.265B; Current ratio 1.287; Debt/Equity 0.153; Gross goodwill 5.45B; Intangibles 151M; ROA ~0.18%; ROE ~0.26%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
665.00M |
13.87% |
2.94% |
| Gross Profit |
508.00M |
15.72% |
3.46% |
| Operating Income |
-16.00M |
85.59% |
15.79% |
| Net Income |
16.00M |
119.75% |
-44.83% |
| EPS |
0.09 |
118.37% |
-47.06% |
Key Financial Ratios
operatingProfitMargin
-2.41%
operatingCashFlowPerShare
$0.93
freeCashFlowPerShare
$0.93
priceEarningsRatio
191.73
Management Commentary
Note: The earnings transcript was not provided in the data set. As a result, transcript-specific insights and management quotes could not be sourced or quoted. If you can supply the QQ3 2025 earnings call transcript, I will extract quotes by theme (strategy, operations, market conditions) and attach them with context and significance.
Forward Guidance
Explicit management targets or forward guidance were not included in the provided data. Given QQ3 2025 fundamentals—mid-teens revenue growth, solid gross margins, positive free cash flow, and continued but controlled operating losses—the base case assumes continued investment in product development (notably in Okta Identity Cloud and Auth0 integration) with gradual improvement in operating profitability. Key factors to monitor include: (1) trajectory of operating leverage as R&D and SG&A investments mature; (2) customer retention and cross-sell momentum (core identity customers plus Auth0 penetration); (3) cadence of operating cash flow and free cash flow generation in 4Q25 and beyond; and (4) competitive dynamics from Entra (Microsoft), SailPoint, and other identity players. Without formal guidance, a conservative scenario would expect revenue growth in the low- to mid-teens, gross margin stability near current levels, and a path toward positive EBITDA as scale effects and mix improve. Optimistic scenarios would hinge on stronger cross-sell of Auth0, higher ARR retention, and cost discipline that accelerates EBITDA toward break-even and beyond.