Okta, Inc.

Okta, Inc.

OKTAยทNASDAQ

$124.65

-11%
TechnologySoftware - Infrastructure

Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. The company offers Okta Identity Cloud, a platform that offers a suite of products and services, such as Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization; Single Sign-On that enables users to access applications in the cloud or on-premise from various devices; Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, Web applications, and data; Lifecycle Management that enables IT organizations or developers to manage a user's identity throughout its lifecycle; API Access Management that enables organizations to secure APIs; Access Gateway that enables organizations to extend the Okta Identity Cloud from the cloud to their existing on-premise applications; and Advanced Server Access to secure cloud infrastructure. It also provides Auth0 products, including Universal Login that allows customers to provide login experience across different applications and devices; Attack Protection, a suite of security capabilities that protect from malicious traffics; Adaptive Multi-Factor Authentication that minimizes friction to end users; Passwordless authentication enables users to login without a password and supports in various login methods; Machine to Machine provides standards-based authentication and authorization; private Cloud that allows customers to run a dedicated cloud instance of Auth0; and Organizations that enables customers to independent configurations, login experiences, and security options. It offers customer support, training, and professional services. It sells its products directly to customers through sales force and channel partners. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

At a Glance

Live Snapshot
Market Cap$20.90B
EPS1.3400
P/E Ratio93.02
Earnings Date08/25/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 93.0).

Valuation inputs: P/E 93.0, earnings yield +1.1%, momentum -10.8%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +3.4%, ROIC +1.9%).

Profitability stack: net margin +8.1%, ROE +3.4%, ROIC +1.9%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +27.9%, momentum -10.8%, net margin +8.1%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

okta

Okta, Inc. Market vs Earnings Trajectory

OKTA ยท NASDAQ

Loading price and EPS data...

Okta, Inc.

Okta, Inc. Fair Value Envelope

OKTA ยท NASDAQ

Our analysis suggests that OKTA has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $124.65, this represents a potential HIDDEN relative to our calculated worth for Okta, Inc..

Intrinsic Value
Current Price: $124.65
3Y-126.0%
5Y-164.0%
10Y-246.0%
3Y+57.0%
5Y+250.0%
10Y+1715.0%
3Y-129.0%
5Y-188.0%
10Y-413.0%
3Y+963.0%
5Y+614.0%
10Y-2271.0%
3Y+1337.0%
5Y+715.0%
10Y-1781.0%
3Y+4.0%
5Y+194.0%
10Y+7333.0%
Okta, Inc.

Okta, Inc. Profit Bridge

OKTA ยท NASDAQ
Revenue2.92B
Cost of Goods Sold (661.00M)
Gross Profit2.26B
Operating Expenses (2.10B)
Operating Income153.00M
Interest Expense (4.00M)
Other Income/Expense102.00M
Pretax Income255.00M
Income Tax (20.00M)
Net Income235.00M
Net Income
235.00M

Profitability Analysis

Gross Margin

77.4%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

5.2%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

8.1%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

7.8%

Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

77.36%
Gross Profit Margin
1%
3Y+10.0%
5Y+5.0%
10Y+19.0%
5.24%
Operating Profit Margin
-285%
3Y-112.0%
5Y-121.0%
10Y-111.0%
8.05%
Net Profit Margin
650%
3Y-118.0%
5Y-125.0%
10Y-117.0%
3.36%
Return on Equity
668%
3Y-123.0%
5Y-109.0%
10Y-99.0%
2.42%
Return on Assets
716%
3Y-128.0%
5Y-130.0%
10Y-104.0%
1.88%
Return on Invested Capital
-410%
3Y-118.0%
5Y-125.0%
10Y-100.0%
OKTA

Okta, Inc. Cash Conversion Engine

OKTA ยท NASDAQ
Net Income235.00M
Depreciation & Amortization96.00M
Stock-Based Compensation544.00K
Change in Working Capital-143.00M
Others713.00M
Capital Expenditures-9.00M
Free Cash Flow905.00M

Cash Flow Quality Analysis

FCF Conversion Rate

385.1%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

1.0%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+24.0%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$143.00M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

okta

Okta, Inc. Funding & Solvency Profile

OKTA ยท NASDAQ
Cash & Cash Equivalents762.00K
Net Receivables386.00K
Inventory0.00
Other Current Assets331.00K
Total Current Assets3 M
Property, Plant & Equipment94.00K
Goodwill & Intangible Assets5.57M
Long-Term Investments0.00
Other Non-Current Assets382.00K
Total Non-Current Assets476 K
Total Assets
9.35M

Financial Health Analysis

Current Ratio

1.43x

Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.

Debt-to-Equity Ratio

0.35x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

994 K

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

35% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Conservative with tight liquidity: Low debt is positive, but current ratio warrants attention. Consider whether the company is efficiently deploying its equity capital.

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Okta, Inc. Street Expectations Map

OKTA ยท NASDAQ

Wall Street analysts project that OKTA stock may decline over the coming 12 months. The consensus 1-year price target stands at 108.35, with estimates ranging from a low of 60.00 to a high of 134.00.

Lowest Target
60.00
-51.87%
Consensus Target
108.35
-13.08%
Highest Target
134.00
7.50%

The consensus 1-year price target stands at 108.35, with estimates ranging from a low of 60.00 to a high of 134.00.

Analyst Consensus Analysis

Upside Potential

-13.1%

Downside risk. Current price above analyst targets indicates potential overvaluation. Exercise caution and review catalysts.

Analyst Agreement

68.3% spread

High uncertainty. Very wide target spread indicates significant disagreement among analystsโ€”major valuation uncertainty or transformation underway.

Risk-Reward Profile

0.14x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Low

High uncertainty: Wide dispersion indicates analysts struggle to agree on valuationโ€”proceed with caution and independent analysis.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

okta

Okta, Inc. Insider Positioning

OKTA ยท NASDAQ

During the last 12 months, insiders have purchased $80K and sold $12.07M worth of OKTA shares, resulting in $11.99M of net selling activity.

3 Months

Bought

1.1K

79.71K

Sold

35.3K

2.81M

Net Activity

-2.7M

-$2.73M

3-6 Months

Bought

0

0.00

Sold

27.0K

2.46M

Net Activity

-2.5M

-$2.46M

6-9 Months

Bought

0

0.00

Sold

21.4K

2.00M

Net Activity

-2.0M

-$2.00M

9-12 Months

Bought

0

0.00

Sold

50.0K

4.80M

Net Activity

-4.8M

-$4.80M

Top Buyers

1
SD

Schellhase David

Director

1.1K sharesโ€ข1 transactions

$80K

Top Sellers

1
TB

Tighe Brett

Officer: Chief Financial Officer

30.0K sharesโ€ข3 transactions

$2.85M

2
KER

Kelleher Eric Robert

Officer: See Remarks

33.5K sharesโ€ข7 transactions

$2.84M

3
MT

Mckinnon Todd

Director, Officer: Chief Executive Officer

26.9K sharesโ€ข3 transactions

$2.54M

4
AJJ

Addison Jonathan James

Officer: Chief Revenue Officer

19.5K sharesโ€ข5 transactions

$1.77M

5
SL

Schwartz Larissa

Officer: See Remarks

19.8K sharesโ€ข11 transactions

$1.72M

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $11.99M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.01:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$2.73M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

No Dividend Yield Data

OKTA has not reported any dividend yield values in the available annual periods.

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okta Dividend History

OKTA
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%