# Okta (OKTA.US)

Canonical: https://gigainvestors.com/s/OKTA

Analysis as of: 2026-10-16T07:30:52.588Z. Financial observations: FY2015–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $208.52 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 7

- Operating margin variation: 0.86×

Chart: Operating margin; fiscal year observations.

- FY2018: -0.44×

- FY2019: -0.30×

- FY2020: -0.32×

- FY2021: -0.24×

- FY2022: -0.59×

- FY2023: -0.44×

- FY2024: -0.23×

- FY2025: -0.02×

- FY2026: 0.05×

- LTM to Jul 2026: 0.08×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -24.4%

- ROIC, second-lowest year: -278.9%

- Typical minus recent gross margin: -4.1 pp

- Typical gross margin (annual median): 72.2%

- Recent gross margin (lower of latest and 3-year median): 76.3%

- Years with nonpositive capital: 6

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: -13.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 0.0%

- FY2018: -40.6%

- FY2019: -94.4%

- FY2020: -252.1%

- FY2021: -278.9%

- FY2022: -1238.2%

- FY2023: -8.2%

- FY2024: -5.7%

- FY2025: -0.6%

- FY2026: 1.9%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$1.3B

- Net income, five-year total: -$1.8B

- Return on incremental invested capital: 75.1%

- Working capital / revenue, annual change: 0.9 pp

- Working capital / revenue, change between three-year averages: 5.2 pp

- Working capital / revenue, final three-year average: 23.5%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: -$757M

- FY2023: -$724M

- FY2024: -$295M

- FY2025: $106M

- FY2026: $322M

### management: fail

- Historical market-dollar context (not the management verdict): 2018 to 2026 (8 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -40.6% vs -0.6%

- Per-share earnings: -0.84 to 0.16 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 7.0%

- Ordinary dilution, 5-year annual growth: 7.1%

- Market cap gain: $13B

- Cumulative retained earnings: -$2.2B

- Diluted shares, 10-year annual growth: 7.0%

- Diluted shares, 5-year annual growth: 7.1%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2026

- Per-share value change: $1.00

- Per-share value, starting three-year median: -$0.84

- Per-share value, ending three-year median: $0.16

- Buybacks concentrated in cheaper years (correlation): -0.40

- Average buyback yield: 0.9%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- Acquisition spending: $5.7B

- Cumulative net income, 10 years: -$2.5B

- ROIC, first three-year median: -40.6%

- ROIC, last three-year median: -0.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: -$0.79

- FY2018: -$1.32

- FY2019: -$1.17

- FY2020: -$1.78

- FY2021: -$2.09

- FY2022: -$5.73

- FY2023: -$5.16

- FY2024: -$2.17

- FY2025: $0.16

- FY2026: $1.31

### accounting: pass

- Sloan accruals: -7.0%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 0.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.89×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.80×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -25.2%

- FY2018: -21.2%

- FY2019: -14.3%

- FY2020: -13.5%

- FY2021: -11.9%

- FY2022: -10.3%

- FY2023: -9.7%

- FY2024: -9.6%

- FY2025: -7.7%

- FY2026: -7.0%

## Holders

- [Dennis Hong](https://gigainvestors.com/SP): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Up 209% since Oct 2023 · "AI Agent Security Boosts Okta Shares" (finance.yahoo.com, Jul 2026) · sales +5.3%

Story as of 2026-10-16T09:59:19.309Z; price observation 2026-10-15.

- 2025-12-03: Okta outlines 11% FY '26 revenue growth target while advancing AI identity security strategy ([seekingalpha.com](https://seekingalpha.com/news/4527901-okta-outlines-11-percent-fy-26-revenue-growth-target-while-advancing-ai-identity-security?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-03-04: Okta beats Q4 estimates but shares dip on muted outlook ([finance.yahoo.com](https://finance.yahoo.com/news/okta-beats-q4-estimates-shares-215229645.html))

- 2026-05-30: Okta (OKTA) Is Up 33.6% After Raising 2027 Guidance On AI-Driven Enterprise Security Demand ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/okta-okta-33-6-raising-090514597.html))

- 2026-06-09: OKTA's Strong Backlog and AI Opportunity Drive Growth: What's Ahead? ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/oktas-strong-backlog-ai-opportunity-154300091.html))

- 2026-08-27: Okta Q2 2027 earnings beat estimates as AI agent security drives growth ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/okta-q2-2027-earnings-beat-114844337.html))

- 2026-09-06: Okta Jumps 20% as AI-Driven Security Fears Fuel a Beat-and-Raise Quarter ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/okta-jumps-20-ai-driven-193519966.html))

### Sales · FY2026–2027

sales +5.3%; source https://www.sec.gov/Archives/edgar/data/1660134/000166013426000020/okta-20260131.htm; observed 2026-03-05.

- FY2018: $257M 

- FY2019: $399M 

- FY2020: $586M 

- FY2021: $835M 

- FY2022: $1.3B 

- FY2023: $1.9B 

- FY2024: $2.3B 

- FY2025: $2.6B 

- FY2026: $2.9B 

- FY2027: $3.1B 

### Gross margin · FY2026

gross margin 77.4%; source https://www.sec.gov/Archives/edgar/data/1660134/000166013426000020/okta-20260131.htm; observed 2026-03-05.

- FY2017: 65.2% 

- FY2018: 68.5% 

- FY2019: 71.6% 

- FY2020: 72.8% 

- FY2021: 73.9% 

- FY2022: 69.5% 

- FY2023: 70.6% 

- FY2024: 74.3% 

- FY2025: 76.3% 

- FY2026: 77.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software infrastructure; annual sales are USD 2.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1660134/000166013426000020/okta-20260131.htm (filed 2026-03-05); FY2026: revenue 2919000000; grossProfit 2258000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OKTA.US: Okta, Inc. operates as an identity partner in the United States and internationally. It offers Single Sign-on to secure access to cloud and on-premises applications from any device; Adaptive MFA for a risk-based layer of security for an organization's cloud, mobile, and web applications; API Access Management, which enables organizations to secure APIs as systems; Access Gateway, which extends the Okta platform to hybrid IT environments; Okta Device Access, which extends Okta platform's secure access management to the device login experience; Universal Directory for a cloud-based system of record. The company also provides Identity Threat Protection; Identity Security Posture Management for security measures and safeguards digital assets; Okta for AI Agents to discover, register, authenticate, govern, and manage AI Agents; Identity Governance and Administration products, including Lifecycle Management, Okta Workflows, Okta Identity Governance, and Cross App Access; Advanced Server Access for continuous and contextual access management to secure cloud infrastructure; and Okta Privileged Access to reduce risk with unified access and governance management. In addition, it provides Universal Login, a standards-based login infrastructure; Attack Protection Suite to minimize risks associated with identity-targeted attacks; Adaptive MFA; Passwordless, which enables users to login without a password; Machine-to-Machine Tokens for authentication and authorization with NHIs; Private Cloud, a deployment option; Organizations, which support a large number of partners or customers; Extensibility, which enables customers to build customized identity flows; Fine Grained Authorization, which manages complex authorization scenarios; and Auth0 for AI Agents to secure and scale agentic applications. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

### Why customers stay

Margins ranged from 74.3% to 77.4% during 2024–26; it lost 24.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2024: grossProfit / revenue = 74.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2025: grossProfit / revenue = 76.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1660134/000166013426000020/okta-20260131.htm (filed 2026-03-05); FY2026: grossProfit / revenue = 77.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); 10-year return on capital observations [[2017,0],[2018,-0.40612325751343203],[2019,-0.9439942861709354],[2020,-2.5210324043068364],[2021,-2.789296964242445],[2022,-12.38204081632653],[2023,-0.08189454870420018],[2024,-0.056734864300626305],[2025,-0.005566127497621313],[2026,0.019000134752728742]]; median -0.24400890310881612. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 73 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2025: growth capex 0; upkeep 20000000; owner earnings 106000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1660134/000166013426000020/okta-20260131.htm (filed 2026-03-05); FY2026: growth capex 0; upkeep 9000000; owner earnings 322000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1660134/000166013426000020/okta-20260131.htm (filed 2026-03-05); FY2026: cash repurchases 73000000 USD.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); OKTA.US SharesStats.PercentInsiders = 0.514 percentage points; cache date 2026-10-16.

### What the price says

The price is 12.8 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); Closing price 208.52 USD; reporting-to-trading FX 1; FY2026 annual sales per share 16.2808857158793; price multiple 12.807657005823915. FY2026 cash earnings/share 1.7959730046293714. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2017-04: $26.05 per share

- 2017-05: $26.10 per share

- 2017-06: $22.80 per share

- 2017-07: $21.95 per share

- 2017-08: $26.99 per share

- 2017-09: $28.21 per share

- 2017-10: $28.92 per share

- 2017-11: $29.21 per share

- 2017-12: $25.61 per share

- 2018-01: $29.45 per share

- 2018-02: $38.59 per share

- 2018-03: $39.85 per share

- 2018-04: $42.81 per share

- 2018-05: $56.21 per share

- 2018-06: $50.37 per share

- 2018-07: $49.65 per share

- 2018-08: $61.83 per share

- 2018-09: $70.36 per share

- 2018-10: $58.36 per share

- 2018-11: $63.65 per share

- 2018-12: $63.80 per share

- 2019-01: $82.43 per share

- 2019-02: $84.88 per share

- 2019-03: $82.73 per share

- 2019-04: $104.03 per share

- 2019-05: $113.22 per share

- 2019-06: $123.51 per share

- 2019-07: $130.83 per share

- 2019-08: $126.50 per share

- 2019-09: $98.46 per share

- 2019-10: $109.07 per share

- 2019-11: $129.78 per share

- 2019-12: $115.37 per share

- 2020-01: $128.05 per share

- 2020-02: $128.06 per share

- 2020-03: $122.26 per share

- 2020-04: $151.30 per share

- 2020-05: $195.58 per share

- 2020-06: $200.23 per share

- 2020-07: $220.98 per share

- 2020-08: $215.37 per share

- 2020-09: $213.85 per share

- 2020-10: $209.83 per share

- 2020-11: $245.04 per share

- 2020-12: $254.26 per share

- 2021-01: $259.01 per share

- 2021-02: $261.45 per share

- 2021-03: $220.43 per share

- 2021-04: $269.70 per share

- 2021-05: $222.44 per share

- 2021-06: $244.68 per share

- 2021-07: $247.79 per share

- 2021-08: $263.60 per share

- 2021-09: $237.34 per share

- 2021-10: $247.18 per share

- 2021-11: $215.23 per share

- 2021-12: $224.17 per share

- 2022-01: $197.89 per share

- 2022-02: $182.84 per share

- 2022-03: $150.96 per share

- 2022-04: $119.31 per share

- 2022-05: $83.05 per share

- 2022-06: $90.40 per share

- 2022-07: $98.45 per share

- 2022-08: $91.40 per share

- 2022-09: $56.87 per share

- 2022-10: $56.12 per share

- 2022-11: $53.32 per share

- 2022-12: $68.33 per share

- 2023-01: $73.61 per share

- 2023-02: $71.29 per share

- 2023-03: $86.24 per share

- 2023-04: $68.53 per share

- 2023-05: $90.90 per share

- 2023-06: $69.35 per share

- 2023-07: $76.86 per share

- 2023-08: $83.51 per share

- 2023-09: $81.51 per share

- 2023-10: $67.41 per share

- 2023-11: $67.05 per share

- 2023-12: $90.53 per share

- 2024-01: $82.65 per share

- 2024-02: $107.30 per share

- 2024-03: $104.62 per share

- 2024-04: $92.98 per share

- 2024-05: $88.68 per share

- 2024-06: $93.61 per share

- 2024-07: $93.94 per share

- 2024-08: $78.73 per share

- 2024-09: $74.34 per share

- 2024-10: $71.89 per share

- 2024-11: $77.56 per share

- 2024-12: $78.80 per share

- 2025-01: $94.22 per share

- 2025-02: $90.49 per share

- 2025-03: $105.22 per share

- 2025-04: $112.16 per share

- 2025-05: $103.17 per share

- 2025-06: $99.97 per share

- 2025-07: $97.80 per share

- 2025-08: $92.77 per share

- 2025-09: $91.70 per share

- 2025-10: $91.53 per share

- 2025-11: $80.33 per share

- 2025-12: $86.47 per share

- 2026-01: $84.48 per share

- 2026-02: $72.50 per share

- 2026-03: $78.71 per share

- 2026-04: $73.65 per share

- 2026-05: $123.27 per share

- 2026-06: $136.45 per share

- 2026-07: $141.93 per share

- 2026-08: $173.04 per share

- 2026-09: $209.11 per share

- 2026-10: $226.53 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1660134/000166013426000020/okta-20260131.htm); period 2026-01-31, filed 2026-03-05.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.