Okta, Inc. ( (OKTA) ) has released its Q4 earnings. Here is a breakdown of the information Okta, Inc. presented to its investors.
Okta, Inc. is a leading independent identity management company that provides secure identity solutions for businesses and developers, empowering them to drive security and efficiency while protecting users, employees, and partners. In its latest earnings report for the fourth quarter and fiscal year 2025, Okta reported a 13% year-over-year increase in total revenue, reaching $682 million for the quarter, with subscription revenue also rising by 13% to $670 million. The company achieved record operating profitability and cash flow, with operating cash flow hitting $286 million and free cash flow at $284 million.
Key financial highlights include a 25% year-over-year growth in remaining performance obligations (RPO) and a 15% increase in current RPO. Okta’s GAAP operating income for the quarter was $8 million, a significant improvement from a loss of $83 million in the previous year. Non-GAAP operating income rose to $168 million, or 25% of total revenue. The company also reported a GAAP net income of $23 million, compared to a net loss of $44 million in the same quarter last year, while non-GAAP net income increased to $141 million.
For the full fiscal year 2025, Okta’s total revenue grew by 15% to $2.610 billion, with subscription revenue up by 16%. The company reduced its GAAP operating loss to $74 million from $516 million in fiscal 2024, and its non-GAAP operating income increased to $587 million. Okta ended the year with a strong cash position, holding $2.523 billion in cash, cash equivalents, and short-term investments.
Looking ahead, Okta is taking a cautious approach to its fiscal 2026 guidance, expecting total revenue growth of 9% to 10% for the year. The company plans to continue focusing on innovation and customer service, leveraging its Okta and Auth0 platforms to enhance its offerings in the identity security market.