# Okta (OKTA) Q2 2026 Financial Results Summary
On August 26, 2025, Okta, Inc. (Nasdaq: OKTA), the leading independent identity partner, announced its financial results for the second quarter of fiscal year 2026, which ended on July 31, 2025.
## Key Financial Highlights for Q2 2026:
– **Revenue**:
– Total revenue reached **$728 million**, representing a **13% growth year-over-year**.
– Subscription revenue totaled **$711 million**, an increase of **12% year-over-year**.
– **Remaining Performance Obligations (RPO)**:
– RPO stood at **$4.152 billion**, marking an **18% growth year-over-year**.
– Current RPO (cRPO) was **$2.265 billion**, up **13% compared to Q2 2025**.
– **Operating and Net Income**:
– GAAP operating income was **$41 million**, or **6% of total revenue**, compared to a GAAP operating loss of **$19 million** in Q2 2025.
– Non-GAAP operating income was **$202 million**, or **28% of total revenue**, compared to **23%** in the previous year.
– GAAP net income increased to **$67 million**, up from **$29 million** year-over-year.
– **Net Income Per Share**:
– GAAP basic net income per share was **$0.38**, compared to **$0.18** in Q2 2025.
– Non-GAAP diluted net income per share was **$0.91**, up from **$0.72** in the same quarter of the previous year.
– **Cash Flow**:
– Operating cash flow amounted to **$167 million** (representing **23% of total revenue**), compared to **$86 million** (13% of total revenue) a year ago.
– Free cash flow was **$162 million**, or **22% of total revenue**, compared to **$78 million** (12% of total revenue) a year earlier.
– **Cash, Cash Equivalents, and Short-Term Investments**:
– On July 31, 2025, these totaled **$2.858 billion**.
## Additional Insights:
– **Management Commentary**: Todd McKinnon, the CEO, highlighted strong performance in new product adoption and notable customer acquisitions, especially in the public sector.
– **Financial Outlook**:
– For Q3 FY 2026, Okta expects total revenue of **$728 million to $730 million**, a growth rate of **9% to 10% year-over-year**.
– Current RPO expected between **$2.260 billion** and **$2.265 billion**, reflecting **10% year-over-year growth**.
– Non-GAAP operating income projected at **$160 million to $162 million**, yielding a margin of **22%**.
– For full year FY 2026, total revenue is anticipated to be between **$2.875 billion and $2.885 billion**, indicating a growth rate of **10% to 11% year-over-year**.
## Share Repurchase and Dividend Activity:
– No quarterly dividend was declared by Okta in this report.
– Share repurchase details were not specified in the announcement.
This report outlines Okta’s solid financial performance and optimistic outlook as it continues to cement its position in the identity management space amidst ongoing technological advancements and increased focus on security.
| Revenue: | 2025 | 2024 | 2025 | 2024 |
|---|---|---|---|---|
| Subscription | 711 | 632 | 1,384 | 1,235 |
| Professional services and other | 17 | 14 | 32 | 28 |
| Total revenue | 728 | 646 | 1,416 | 1,263 |
| Cost of revenue: | ||||
| Subscription(1) | 147 | 137 | 283 | 267 |
| Professional services and other(1) | 21 | 18 | 40 | 36 |
| Total cost of revenue | 168 | 155 | 323 | 303 |
| Gross profit | 560 | 491 | 1,093 | 960 |
| Operating expenses: | ||||
| Research and development(1) | 160 | 164 | 314 | 327 |
| Sales and marketing(1) | 246 | 238 | 483 | 474 |
| General and administrative(1) | 113 | 108 | 216 | 225 |
| Total operating expenses | 519 | 510 | 1,013 | 1,026 |
| Operating income (loss) | 41 | -19 | 80 | -66 |
| Interest expense | -1 | -1 | -2 | -3 |
| Interest income and other, net | 27 | 29 | 57 | 56 |
| Gain on early extinguishment of debt | — | 3 | — | 3 |
| Interest and other, net | 26 | 31 | 55 | 56 |
| Income (loss) before provision for | 67 | 12 | 135 | -10 |
| (benefit from) income taxes | ||||
| Provision for (benefit from) income taxes | — | -17 | 6 | 1 |
| Net income (loss) | 67 | 29 | 129 | -11 |
| Net income (loss) per share, basic | 0.38 | 0.18 | 0.74 | -0.06 |
| Net income (loss) per share, diluted | 0.37 | 0.15 | 0.72 | -0.06 |
| Weighted-average shares used to compute | ||||
| net income (loss) per share, basic | 175,460 | 168,612 | 174,827 | 168,045 |
| Weighted-average shares used to compute | ||||
| net income (loss) per share, diluted | 180,966 | 174,443 | 181,356 | 168,045 |
(1) Amounts include stock-based compensation expense as follows:
| Assets | July 31, 2025 | January 31, 2025 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | 876 | 409 |
| Short-term investments | 1,982 | 2,114 |
| Accounts receivable, net of allowances | 417 | 621 |
| Deferred commissions | 150 | 140 |
| Prepaid expenses and other current assets | 141 | 132 |
| Total current assets | 3,566 | 3,416 |
| Property and equipment, net | 39 | 43 |
| Operating lease right-of-use assets | 68 | 74 |
| Deferred commissions, noncurrent | 268 | 267 |
| Intangible assets, net | 104 | 138 |
| Goodwill | 5,448 | 5,448 |
| Other assets | 57 | 51 |
| Total assets | 9,550 | 9,437 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | 12 | 13 |
| Accrued expenses and other current liabilities | 90 | 103 |
| Accrued compensation | 136 | 207 |
| Convertible senior notes, net | 859 | 509 |
| Deferred revenue | 1,550 | 1,691 |
| Total current liabilities | 2,647 | 2,523 |
| Convertible senior notes, net, noncurrent | — | 349 |
| Operating lease liabilities, noncurrent | 81 | 94 |
| Deferred revenue, noncurrent | 24 | 27 |
| Other liabilities, noncurrent | 44 | 39 |
| Total liabilities | 2,796 | 3,032 |
| Stockholders’ equity: | ||
| Preferred stock | — | — |
| Class A common stock | — | — |
| Class B common stock | — | — |
| Additional paid-in capital | 9,426 | 9,219 |
| Accumulated other comprehensive loss | 1 | -12 |
| Accumulated deficit | -2,673 | -2,802 |
| Total stockholders’ equity | 6,754 | 6,405 |
| Total liabilities and stockholders’ equity | 9,550 | 9,437 |
