Okta (OKTA) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and FY25 results, with Q4 revenue of $682M (up 13% year-over-year) and FY25 revenue of $2.61B, driven by strong demand for workforce and customer identity products, new product innovation, and a robust partner ecosystem.

• RPO grew 25% year-over-year to $4.215B, with accelerating CRPO and record profitability and free cash flow.

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

• FY26 priorities include elevating security leadership, winning IT/security buyers, and winning developers with Auth0.

• Okta continues to expand its customer base, reaching 19,650 total customers, up 4% year-over-year.

Financial highlights

• Q4 FY25 non-GAAP operating margin was 24.6%, with free cash flow margin at 41.6%; FY25 non-GAAP operating margin was 22.5% and free cash flow margin ~26%.

• Q4 GAAP operating income was $8M (1% margin); non-GAAP operating income was $168M (25% margin).

• Rule of 40 exceeded for the fiscal year, with TTM value at 54%.

• Net retention rate was 107% in Q4, expected to remain stable in FY26.

• Customers with >$100K ACV increased 7% year-over-year to 4,800.

Outlook and guidance

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

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

• Guidance philosophy is to reflect upside immediately, with reduced conservatism.