Okta (OKTA) Q4 2025 earnings summary

Executive summary

• Q4 FY25 revenue grew 13% year-over-year to $682 million, with subscription revenue also up 13% to $670 million and representing 98% of total revenue.

• FY25 total revenue was $2.61 billion, up 15% year-over-year, with 19,650 total customers and 700 net new customers added; 4,800 customers had $100,000+ ACV and 470 had $1 million+ ACV.

• Achieved record operating profitability and cash flow, with significant improvement in both GAAP and non-GAAP metrics.

• Recognized as a leader in multiple industry analyst reports, including the Gartner Magic Quadrant for Access Management for the eighth consecutive year, and received several technology partner awards.

• Strategic focus on security, partner ecosystem, product innovation, and go-to-market specialization led to significant momentum and market leadership.

Financial highlights

• RPO grew 25% year-over-year to $4.215 billion; current RPO up 15% to $2.248 billion.

• Q4 non-GAAP operating margin was 25%, up from 21% last year; FY25 non-GAAP operating margin was 22.5%.

• Q4 free cash flow was $284 million (42% margin); FY25 free cash flow margin was 28%.

• Dollar-based net retention rate for the trailing 12 months was 107%.

• Rule of 40 (TTM revenue growth + free cash flow margin) reached 54%.

Outlook and guidance

• Q1 FY26 revenue expected at $678–$680 million (10% growth), CRPO at $2.185–$2.19 billion (12% growth), non-GAAP operating margin of 25%, and free cash flow margin of ~25%.

• FY26 revenue outlook raised to $2.85–$2.86 billion (9–10% growth), non-GAAP operating margin of 25%, free cash flow margin of ~26%, and non-GAAP diluted net income per share of $3.15–$3.20.

• Guidance philosophy remains prudent, with upside reflected immediately in raised outlook.