Okta (OKTA) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and FY25 results, with Q4 revenue reaching $682M (up 13% year-over-year) and FY25 revenue at $2.61B, driven by strong demand for workforce and customer identity products, large enterprise deals, and product innovation.

• RPO grew 25% year-over-year to $4.215B, with accelerating CRPO and record profitability, supported by strategic focus on security, partner ecosystem, and go-to-market specialization.

• Significant wins in public sector and international markets, with notable expansion in both workforce and customer identity segments.

• Okta continues to focus on secure identity solutions, industry leadership, and expanding its customer base, with 19,650 total customers at year-end.

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

Financial highlights

• Q4 FY25 non-GAAP operating margin was 24.6%, free cash flow margin reached 41.6%, and non-GAAP gross margin was 81.8%.

• Net retention rate was 107% for the quarter, with strong gross retention and robust upsell activity.

• Top 25 Q4 deals totaled over $320M in contract value; 25 new customers with $1M+ ACV added in Q4, growing the $1M+ cohort by 22% to 470 customers.

• Revenue from AWS Marketplace grew over 80% in FY25, with aggregate TCV from AWS surpassing $1B.

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

Outlook and guidance

• Q1 FY26 guidance: revenue of $678M–$680M (10% growth), CRPO growth of 12%, non-GAAP operating margin of 25%, and free cash flow margin of ~25%.

• FY26 full-year guidance: revenue of $2.85B–$2.86B (9–10% growth), non-GAAP operating margin of 25%, free cash flow margin of ~26%, and diluted non-GAAP EPS of $3.15–$3.20.

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