Executive Summary

Beat-and-raise quarter: Q4 FY2025 revenue $682M (+13% YoY), non-GAAP EPS $0.78, with record operating cash flow ($286M) and free cash flow ($284M); RPO accelerated to $4.215B (+25% YoY), cRPO $2.248B (+15% YoY) .
Raised FY2026 outlook across the board: revenue to $2.850–$2.860B (+9–10% YoY), non-GAAP operating margin to 25%, non-GAAP EPS to $3.15–$3.20, FCF margin ~26% .
Go-to-market specialization (Okta vs. Auth0 sellers) and new products drove scale: over $1B TCV bookings in Q4; top 25 deals >$320M TCV; record Auth0 bookings; ~70% of deals partner-influenced; $1B cumulative AWS Marketplace sales milestone .
Near-term catalyst: strong execution on large-enterprise consolidation deals and new product upsell (OIG/PAM/ITP), amid prudent Q1 FY26 guide (seasonally softer cRPO) and specialization transition watchpoints .

What Went Well and What Went Wrong

What Went Well
- “Q4 was a blowout… first time ever, we had over $1 billion of bookings in a quarter; record quarter for Auth0” .
- New products contributed >20% of Q4 bookings; OIG at ~1,300 customers and >$100M ACV; governance-related business (Lifecycle Management + Workflows) >$400M ACV .
- Partner motion and scale: ~70% of Q4 deals partner-influenced; AWS Marketplace revenue grew >80% in FY25; cumulative sales passed $1B .
What Went Wrong
- Seat/MAU headwinds persisted (macro rationalization), pressuring NRR; Q4 NRR ~107% and expected to hover near this range in FY26, tied to upsell/new business mix .
- Seasonality: Q1 historically lowest quarter; cRPO guide lower sequentially (normal seasonality), requiring careful modeling .
- International growth lagged North America given tougher macro; mid-market/SMB remains softer vs enterprise strength .

Financial Results

Sequential performance (oldest → newest):

Metric	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD Millions)	$646	$665	$682
GAAP Operating Income (Loss) ($USD Millions)	$(19)	$(16)	$8
Non-GAAP Operating Income ($USD Millions)	$148	$138	$168
GAAP Diluted EPS ($USD)	$0.15	$0.00	$0.13
Non-GAAP Diluted EPS ($USD)	$0.72	$0.67	$0.78
Gross Margin % (GAAP)	76%	76%	77%
Gross Margin % (Non-GAAP)	82%	81%	82%
Operating Cash Flow ($USD Millions)	$86	$159	$286
Free Cash Flow ($USD Millions)	$78	$154	$284
Free Cash Flow Margin %	12%	23%	42%

Year-over-year Q4 comparison:

Metric	Q4 2024	Q4 2025
Revenue ($USD Millions)	$605	$682
GAAP Operating Income (Loss) ($USD Millions)	$(83)	$8
Non-GAAP Operating Income ($USD Millions)	$129	$168
GAAP Diluted EPS ($USD)	$(0.26)	$0.13
Non-GAAP Diluted EPS ($USD)	$0.63	$0.78
Operating Cash Flow ($USD Millions)	$174	$286
Free Cash Flow ($USD Millions)	$166	$284
Gross Margin % (GAAP)	76%	77%
Gross Margin % (Non-GAAP)	82%	82%

Revenue mix:

Revenue Mix ($USD Millions)	Q2 2025	Q3 2025	Q4 2025
Subscription	$632	$651	$670
Professional services and other	$14	$14	$12

Key KPIs:

KPI	Q2 2025	Q3 2025	Q4 2025
RPO ($USD Billions)	$3.505	$3.659	$4.215
cRPO ($USD Billions)	$1.995	$2.062	$2.248
Cash, cash equivalents & short-term investments ($USD Billions)	$2.358 (7/31/24)	$2.248 (10/31/24)	$2.523 (1/31/25)

Q4 scale metrics (spotlight):

KPI (Q4 2025)	Value
Total bookings crossed $1B TCV (record)	Yes
Top 25 deals TCV	>$320M
$1M+ ACV customers added in Q4	25; total 470 (+22% YoY)
Partner-influenced deals	~70% of Q4 deals; 18 of top 20
AWS Marketplace cumulative sales milestone	>$1B TCV (4 years)

Note: Wall Street consensus estimates from S&P Global were unavailable at the time of request due to API limit; comparisons vs external consensus are therefore not presented.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD Billions)	FY 2026	$2.77–$2.78	$2.850–$2.860	Raised
Non-GAAP Operating Margin (%)	FY 2026	≥22%	25%	Raised
Non-GAAP Diluted EPS ($USD)	FY 2026	N/A	$3.15–$3.20	New metric
Free Cash Flow Margin (%)	FY 2026	≥24%	~26%	Raised
Total Revenue ($USD Millions)	Q1 FY 2026	N/A	$678–$680	New
cRPO ($USD Billions)	Q1 FY 2026	N/A	$2.185–$2.190	New
Non-GAAP Operating Margin (%)	Q1 FY 2026	N/A	25%	New
Non-GAAP Diluted EPS ($USD)	Q1 FY 2026	N/A	$0.76–$0.77	New
Free Cash Flow Margin (%)	Q1 FY 2026	N/A	~25% (incl. ~$11M restructuring cash)	New

Earnings Call Themes & Trends

Topic	Q2 2025	Q3 2025	Q4 2025	Trend
AI/technology initiatives	Launched Identity Threat Protection (ITP), Identity Security Posture Management (ISPM), Highly Regulated Identity (HRI)	>30 features highlighted at Oktane; continued innovation	Auth for GenAI early access; agentic AI authentication/authorization; Okta AI embedded	Expanding
Partner ecosystem	40%+ revenue via indirect; partner deals >3x direct; 8/10 top global deals with partners	All top 10 deals involved partners	~70% of Q4 deals partner-influenced; AWS Marketplace >$1B cumulative; FY25 rev via AWS +80%	Strengthening
Public sector (U.S. federal)	Ongoing progress; focus area	5 of top 10 deals in U.S. federal; DoD wins; healthcare federal provider	Strong NA; public sector robust; SIEM for U.S. public sector enhancements	Robust
Sales specialization	Early hunter–farmer in SMB Americas	Further specialization plans (IT/security vs developers)	Split Okta vs Auth0 sellers; improved productivity momentum	Expanding
Seat/MAU headwinds & NRR	Macro rationalization; NRR ticking down; SMB weaker	Continued pressure; prudent guide	Headwind abating as cohorts roll; NRR ~107%; FY26 NRR ~±1pt range	Moderating
RPO/contract duration	Contract duration increasing; total RPO growth > cRPO growth	RPO acceleration; back-end loaded year	RPO +25%; weighted avg term multiyear high	Accelerating

Management Commentary

Strategic positioning: “Identity has become fragmented… customers are increasingly interested in unified platforms… Okta’s market‑leading and expanding product portfolio makes us uniquely positioned” .
Product momentum: “Over 20% of Q4 bookings were from new products… OIG now has over 1,300 customers contributing over $100 million in ACV… combined governance-related business >$400 million” .
Large enterprise focus: “We achieved record bookings in Q4… crossed $1 billion in total contract value… large deals and large customers continue to be the driving force” .
Guidance philosophy: “We talked about reducing the conservatism in the model… you see the revenue growth going up… giving it to you right there” .
Rule-of-40 execution: “Approximately 9 points of operating margin growth and 6 points of free cash flow margin growth in FY ’25… finish the fiscal year above the Rule of 40” .

Q&A Highlights

Guidance and macro: Management raised FY26 across metrics while keeping prudence; macro viewed as consistent; execution driving upside .
cRPO seasonality: Q1 cRPO guide lower sequentially due to back-end loaded seasonality; not a demand issue .
Specialization details: Okta vs Auth0 seller split to better address buyer personas; expected to boost productivity and upsell penetration .
Seat/MAU dynamics: Headwinds moderating as prior cohorts rightsize; growth driven more by multi-product adoption than seat expansion .
Large enterprise and partners: Large platform deals with GSIs; longer-duration contracts underpin RPO growth .

Estimates Context

S&P Global consensus estimates were unavailable at the time of retrieval due to API limits; as a result, external consensus comparisons cannot be presented.
Company guide vs actual: Q4 FY25 actual revenue ($682M) exceeded the prior Q3 guide ($667–$669M); cRPO ($2.248B) exceeded the Q3 guide ($2.130–$2.135B), reinforcing beat-and-raise momentum .

Key Takeaways for Investors

Beat-and-raise with quality: Revenue, margin, and cash flow strength alongside accelerating RPO and longer contract terms; FY26 guide raised across revenue, margins, and EPS .
Large-enterprise consolidation is the engine: Record bookings, many large multi-product platform deals; partners (GSIs/AWS Marketplace) are amplifiers .
New product flywheel: OIG, PAM, ITP, FGA/Auth for GenAI driving upsell; governance/PAM uplift often ~30–40% ACV on upgrades per management commentary .
Go-to-market specialization should support mix/upsell: Expect productivity gains and deeper account penetration; monitor transition execution in 1H FY26 .
Seasonality and NRR: Q1 is seasonally softer; NRR around ~107% with potential drift ±1pt depending on new vs upsell mix; watch SMB/international demand recovery .
Cash generation and leverage: FCF margins trending higher (42% in Q4); FY26 FCF ~26% even after restructuring cash in Q1, supporting optionality .
Near-term trading setup: Positive skew on execution of large deals/new product attach and partner-led channels; risks include macro, specialization ramp, and seat/MAU rationalization persistence .

Okta, Inc. (OKTA)·Q4 2025 Earnings Summary