Okta (OKTA) Financials

Okta’s financial profile has improved substantially over the reported period. Revenue increased from $382.8 million in Q4 2022 to $805 million in Q2 2027, while the company moved from a $240.8 million net loss to $116 million of net income. The latest quarter also marked a clear improvement in operating profitability, with operating income rising to $107 million, or approximately 13.3% of revenue.

• Sustained revenue growth: Quarterly revenue rose in nearly every comparable period, reaching $805 million in Q2 2027 versus $728 million in Q2 2026 and $646 million in Q2 2025. This represents year-over-year growth of approximately 10.6% in the latest quarter.
• Gross margin remains strong: Gross profit reached $641 million in Q2 2027, producing a gross margin of roughly 79.6%. Gross margin has generally remained near or above 78% as revenue expanded.
• Operating profitability is improving: Okta’s operating income increased from $8 million in Q4 2025 and $23 million in Q3 2026 to $107 million in Q2 2027. Operating expenses also declined modestly from $539 million in Q1 2027 to $534 million in Q2, despite higher revenue.
• Net income and EPS have turned meaningfully positive: Net income grew from losses of $243 million in Q1 2023 and $209 million in Q3 2023 to $116 million in Q2 2027. Diluted EPS improved from negative figures in earlier periods to $0.65 in the latest quarter.
• Operating cash flow is consistently strong: Cash flow from operations was $234 million in Q2 2027, up from $167 million in Q2 2026 and $86 million in Q2 2025. Operating cash flow has remained positive in every reported quarter in the more recent period, even when net income was lower or negative.
• Large liquid asset base and reduced debt: Okta held $763 million of cash and equivalents plus $1.536 billion of short-term investments at July 31, 2026. Short-term debt fell to zero from $859 million in Q2 2026, and total liabilities declined to $2.165 billion from $2.796 billion a year earlier.
• Deferred revenue continues to provide visibility: Current deferred revenue increased to $1.751 billion from $1.394 billion in Q2 2025. Deferred revenue is not the same as cash earnings, but it reflects contracted customer payments that can support future revenue recognition.
• Share repurchases are returning capital: Okta repurchased $124 million of common stock in Q2 2027 following a $248 million repurchase in Q1. These buybacks may support per-share results if the company can reduce its share count over time.
• Cash growth was limited in the latest quarter: Despite $234 million of operating cash flow and $271 million of investing cash flow, financing outflows of $501 million and foreign-exchange effects reduced the net increase in cash to just $1 million. The investing result was driven primarily by sales and maturities of investments rather than operating expansion.
• Goodwill and accumulated losses remain significant: Goodwill totaled $5.487 billion, or approximately 60% of total assets, while retained earnings remained negative at $2.377 billion. This asset concentration increases the importance of avoiding future impairment charges and sustaining profitability.

Overall, the trend is favorable for investors. Okta has progressed from heavy operating losses to positive operating income, positive net income and robust operating cash generation. The balance sheet is also stronger because debt has been reduced and liquid investments remain substantial. Investors should nevertheless monitor whether revenue growth can remain above 10%, whether profitability is sustainable without relying heavily on noncash adjustments, and whether stock-based compensation offsets the benefit of share repurchases.