Okta Inc (0KB7.L) Q4 2025 Earnings Report

Okta Inc delivered a solid Q4 2025 top-line result with revenue of $682 million, marking a year-over-year increase of 12.7% and a quarter-over-quarter uptick of 2.6%. The gross margin remained robust at 76.8%, while operating income reached $8 million and net income was $23 million, translating to an earnings per share (EPS) of $0.13. Operating leverage remains modest in the near term, as the company continues to invest heavily in R&D and go-to-market initiatives, resulting in an operating margin of 1.17% and an EBITDA margin of approximately 6.3%. Free cash flow generation was strong at $284 million, supported by $286 million of cash from operations and a sizable working capital contribution, underscoring Okta’s ability to fund growth initiatives and optionality in capital allocation.

Okta’s liquidity position remains robust, with cash and short-term investments totaling roughly $2.523 billion against an aggregate debt of $952 million, yielding a net debt figure that reflects substantial liquidity (though reported metrics may show reporting inconsistencies in some lines). The balance sheet shows a durable asset base, a large goodwill/intangible asset footprint (reflective of past acquisitions and platform expansion), and a disciplined financing posture as evidenced by modest financing activity and stock repurchases in the period. Management commentary (where available) typically emphasizes ongoing expansion of the Identity Cloud and Auth0 offerings, customer expansion, and investment in product capabilities to sustain long-term growth. Investor takeaway: revenue resilience and robust FCF generation support a constructive view, but the stock’s valuation remains premium, and margin expansion will hinge on operating leverage as Okta scales and optimizes its go-to-market and R&D mix.