Okta (OKTA) AI Stock Analysis

• Market Cap: $18.40B
• Dividend Yield: N/A
• Average Volume (3M): 5.13M
• Price to Earnings (P/E): 163.1
• Beta (1Y): 1.33
• Revenue Growth: 13.51%
• EPS Growth: N/A
• Country: US
• Employees: 5,914
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): 0.86
• Shares Outstanding: 167,163,420
• 10 Day Avg. Volume: 7,303,834
• 30 Day Avg. Volume: 5,130,459
• PEG Ratio: 0.27
• Price to Book (P/B): 2.79K
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.76
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.71
• Enterprise Value/Gross Profit: 11.53
• Enterprise Value/Ebitda: 219.47
• 1Y Price Target: $125.88
• Price Target Upside: 19.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 35

• Rating: 65 Neutral
• Price Target: $113.00 ▲(7.54%Upside)

Okta's stock score is primarily driven by its robust financial performance, with strong revenue growth and cash flow metrics. The earnings call and corporate events further support a positive outlook despite macroeconomic concerns. However, technical indicators and high valuation present near-term risks.

Positive Factors

Customer Growth

Okta reported strong up/cross sell, stable seats, and one of the strongest quarters for net new customers in the last two years.

Financial Performance

Okta continues to make strides towards improving profitability, reporting record net income of $158mn and a healthy free cash flow margin of 35%.

Product Development

Management highlighted new products continue to resonate exhibited by the number of workflow executions increasing ~400% over the past three years.

Negative Factors

Demand Concerns

The decline in the cRPO coverage ratio raised investor worries about hidden signals of weakness in demand, contrasting with the company's narrative.

Growth Deceleration

The focal point of the quarter was the weak underlying trends of the company in addition to a lackluster 2Q cRPO guide signaling further deceleration is on the horizon.

Revenue Guidance

The guide itself is low as the company added additional conservatism from macroeconomic factors and a specific business area headwind, which is considered justified.

Okta Business Overview & Revenue Model

Company Description

Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products and services, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access applications in the cloud or on-premise from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, Web applications, and data; Lifecycle Management that enables IT organizations or developers to manage a user's identity throughout its lifecycle; API Access Management that enables organizations to secure APIs; Access Gateway that enables organizations to extend the Okta Identity Cloud from the cloud to their existing on-premise applications; and Advanced Server Access to secure cloud infrastructure. It also provides Auth0 products, including Universal Login that allows customers to provide login experience across different applications and devices; Attack Protection, a suite of security capabilities that protect from malicious traffics; Adaptive Multi-Factor Authentication that minimizes friction to end users; Passwordless authentication enables users to login without a password and supports in various login methods; Machine to Machine provides standards-based authentication and authorization; private Cloud that allows customers to run a dedicated cloud instance of Auth0; and Organizations that enables customers to independent configurations, login experiences, and security options. It offers customer support, training, and professional services. It sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

How the Company Makes Money

Okta makes money primarily through subscription fees for its cloud-based identity and access management services. The company offers its products on a per-user, per-month subscription basis, which provides a recurring revenue model. Key revenue streams include its Identity Cloud products, encompassing both workforce identity solutions for employee access and customer identity solutions for managing customer experiences. Significant partnerships, such as integrations with major cloud service providers and application vendors, enhance Okta's product offerings and expand its market reach. Factors contributing to its earnings include the rising demand for secure digital solutions and the growing need for efficient access management in increasingly complex IT environments.

Okta Financial Statement Overview

Summary

Okta demonstrates strong revenue growth and cash flow metrics, indicating operational efficiency and financial health. The balance sheet is solid with manageable leverage and strong equity backing. However, profitability remains a challenge, which needs addressing for long-term success.

Income Statement

Okta has demonstrated a strong revenue growth trajectory, with TTM revenue increasing significantly from previous years. The gross profit margin remains robust, indicating effective cost management. However, the company still faces challenges with profitability, as evidenced by negative EBIT and fluctuating net income. The improvement in EBITDA margin in the TTM period suggests operational efficiency gains, although the path to consistent profitability remains a work in progress.

Balance Sheet

The balance sheet reflects a strong equity position with a favorable equity ratio, highlighting financial stability. The debt-to-equity ratio is manageable, indicating prudent leverage use. Improvements in stockholders' equity strengthen the company's financial foundation. However, the relatively high level of liabilities warrants careful attention to ensure liquidity adequacy in the event of market fluctuations.

Cash Flow

The cash flow analysis reveals strong operational cash flow generation, with significant growth in free cash flow, particularly in the TTM period. The operating cash flow to net income ratio indicates efficient cash conversion, supporting financial flexibility. Despite fluctuations in financing and investing cash flows, the overall positive cash flow trajectory enhances Okta's capacity for reinvestment and strategic initiatives.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
2.68B	2.61B	2.26B	1.86B	1.30B	835.42M
	Gross Profit
1.52B	1.99B	1.68B	1.31B	903.80M	617.74M
	EBIT
-26.96M	-74.00M	-460.00M	-783.00M	-767.10M	-204.16M
	EBITDA
61.04M	25.00M	-230.00M	-676.00M	-649.90M	-156.00M
	Net Income Common Stockholders
68.06M	28.00M	-355.00M	-815.00M	-848.41M	-266.33M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.37B	2.52B	2.20B	2.58B	2.50B	2.59B
	Total Assets
1.87B	9.44B	8.99B	9.31B	9.21B	3.30B
	Total Debt
1.08B	952.00M	1.27B	2.33B	2.00B	1.95B
	Net Debt
41.80M	543.00M	932.00M	2.07B	1.74B	1.51B
	Total Liabilities
1.47B	3.03B	3.10B	3.84B	3.28B	2.60B
	Stockholders Equity
398.39M	6.41B	5.89B	5.47B	5.92B	694.04M
Cash Flow		Free Cash Flow
520.24M	730.00M	488.00M	63.00M	87.36M	110.59M
	Operating Cash Flow
531.24M	750.00M	512.00M	86.00M	104.12M	127.96M
	Investing Cash Flow
-120.12M	-314.00M	441.00M	-130.00M	-366.81M	-1.31B
	Financing Cash Flow
-57.31M	-359.00M	-883.00M	48.00M	89.07M	1.09B

Okta Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 105.08
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OKTA, the sentiment is Neutral. The current price of 105.08 is below the 20-day moving average (MA) of 116.40, below the 50-day MA of 109.15, and above the 200-day MA of 91.40, indicating a neutral trend. The MACD of -2.32 indicates Positive momentum. The RSI at 40.01 is Neutral, neither overbought nor oversold. The STOCH value of 11.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OKTA.

Okta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PANW	81 Outperform	$133.09B	114.22	21.16%	―	13.91%	-50.96%
FTNT	80 Outperform	$80.32B	43.19	205.91%	―	13.83%	58.13%
CRWD	79 Outperform	$116.75B	721.64	-5.76%	―	25.94%	-226.80%
NET	74 Outperform	$62.28B	―	-7.35%	―	27.79%	56.19%
ZS	74 Outperform	$47.18B	―	-2.68%	―	25.46%	49.20%
OKTA	65 Neutral	$18.40B	163.14	2.08%	―	13.51%	―
Sector *	62 Neutral	$11.81B	10.34	-7.44%	2.91%	7.41%	-7.93%

Okta Corporate Events

Okta Reports Strong Q1 2026 Financial Results

On May 27, 2025, Okta announced its financial results for the first quarter of fiscal year 2026, ending April 30, 2025. The company reported a 12% increase in total revenue and subscription revenue year-over-year, with record GAAP and non-GAAP operating profitability. Okta’s remaining performance obligations grew by 21%, and the company achieved an operating cash flow of $241 million. The announcement underscores Okta’s focus on driving profitable growth and innovation in identity security solutions, with significant implications for its market positioning and stakeholder confidence.

The most recent analyst rating on (OKTA) stock is a Hold with a $81.00 price target. To see the full list of analyst forecasts on Okta stock, see the OKTA Stock Forecast page.