Okta's Q4 2025 Earnings: Accelerating Growth and Record Profitability

Okta, Inc. (NASDAQ: OKTA), the leading independent Identity partner, recently reported its fourth quarter and full year fiscal 2025 financial results, highlighting accelerating growth and record profitability. The company's strong performance was driven by increasing market demand for its identity security solutions, product innovation, and go-to-market specialization. Okta's shares jumped over 10% in post-market trading following the announcement.

Key Financial Highlights:

* Total revenue increased by 13% year-over-year to $682 million, with subscription revenue up 13% to $670 million.
* Remaining Performance Obligations (RPO) grew by 25% to $4.215 billion, while Current RPO (cRPO) increased by 15% to $2.248 billion.
* Non-GAAP operating income margin improved to 25%, with non-GAAP operating income of $168 million.
* Non-GAAP net income was $141 million, with non-GAAP diluted net income per share of $0.78.
* Net cash provided by operations and free cash flow both increased to 42% of total revenue.

Drivers of Growth and Profitability:

1. Accelerating RPO and cRPO: Okta's increasing RPO and cRPO reflect strong customer demand and commitment to its identity security solutions. This growth indicates that customers are investing in longer-term contracts and larger deals, demonstrating their confidence in Okta's offerings.
2. Product Innovation: Okta's relentless focus on product innovation has led to the introduction of new products, such as Okta Identity Governance, Privilege Access, Device Access, Fine-Grained Authorization, Identity Security Posture Management, and Identity Threat Protection with Okta AI. These new products have contributed to Okta's accelerating RPO and cRPO and driven revenue growth.
3. Go-to-Market Specialization: Okta's go-to-market specialization strategy has helped the company capture more of the massive market opportunity in front of it. By prioritizing its partner ecosystem, increasing product innovation, and enhancing go-to-market specialization, Okta has been able to drive customer demand and commitment to its products and services.

Future Outlook:

Okta expects:

* Total revenue of $678 million to $680 million in Q1 2026, representing a growth rate of 10% year-over-year.
* Current RPO of $2.185 billion to $2.190 billion, representing a growth rate of 12% year-over-year.
* Non-GAAP operating income of $168 million to $170 million, which yields a non-GAAP operating margin of 25%.
* Non-GAAP diluted net income per share of $0.76 to $0.77.

Okta's strong financial performance in Q4 2025 and its positive outlook for the future reflect the company's ability to capture market demand for its identity security solutions and execute on its product innovation and go-to-market specialization strategies. As organizations continue to face evolving IT and security landscapes, they will likely turn to Okta as their identity partner for its ability to deliver a broad array of modern identity security solutions with the flexibility to meet their demands.