Okta (OKTA) Q3 2025 earnings summary

Executive summary

• Q3 FY25 revenue reached $665M, up 14% year-over-year, driven by subscription growth, large customer wins, and expansion in the $1M+ ACV cohort, now representing ~$1B in ACV.

• Net income was $16M, reversing a net loss of $81M in the prior year; non-GAAP net income was $121M, with non-GAAP diluted EPS of $0.67.

• Total customers increased to over 19,450, with 4,705 customers above $100K ACV and a dollar-based net retention rate of 108%.

• Product innovation, partner ecosystem momentum, and public sector wins, especially in the U.S. federal segment, contributed to growth.

• Completed the Spera acquisition to enhance identity threat detection capabilities.

Financial highlights

• Non-GAAP operating margin improved to 21% in Q3 FY25, up from 15% year-over-year; free cash flow margin was 23%.

• Remaining performance obligations (RPO) grew 19% year-over-year to $3.66B; current RPO up 13% to $2.06B.

• Non-GAAP gross margin was 81%, with subscription gross margin at 83.2%.

• Net cash provided by operating activities was $464M for the nine months ended October 31, 2024.

• No quantifiable impact from the October 2023 security incident was observed in Q3.

Outlook and guidance

• Q4 FY25: Revenue expected at $667–$669M (10–11% growth), current RPO at $2.13–$2.135B (9% growth), non-GAAP operating margin at 23%, and free cash flow margin at ~32%.

• FY25: Revenue guidance raised to $2.595–$2.597B (15% growth), non-GAAP operating margin at 22%, free cash flow margin at ~25%, and non-GAAP EPS $2.75–$2.76.

• Preliminary FY26: Revenue of $2.77–$2.78B (7% growth), non-GAAP operating margin at least 22%, and free cash flow margin at least 24%.