OKTAMEDIUM SIGNALOPPORTUNITY10-K

Okta is pivoting its strategic positioning toward AI agents and non-human identities as a new growth vector while maintaining solid financial momentum.

The company's explicit focus on AI agents and non-human identities represents a strategic shift to capitalize on emerging technology trends that could expand its addressable market beyond traditional human identity management. This positioning suggests management sees AI deployment as a meaningful long-term opportunity, though execution risk remains as this market is still nascent.

Comparing 2026-03-05 vs 2025-03-05View on EDGAR →
FINANCIAL ANALYSIS

Okta delivered healthy growth across key metrics with revenue advancing 11.8% to $2.9 billion and gross profit expanding 13.4% to $2.3 billion, indicating improving operational leverage. Operating cash flow grew meaningfully to $884 million while the company reduced total liabilities by 10.6%, demonstrating strong cash generation and balance sheet improvement. The financial profile suggests a maturing business with stable growth momentum and strengthening operational efficiency.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
-27.3%
$11.0M$8.0M

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Operating Cash Flow
Cash Flow
+17.9%
$750.0M$884.0M

Operating cash flow grew 17.9% — strong conversion of earnings to cash, healthy business fundamentals.

Gross Profit
P&L
+13.4%
$2.0B$2.3B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Revenue
P&L
+11.8%
$2.6B$2.9B

Revenue growing 11.8% — solid top-line momentum, watch margins for quality of growth.

Total Liabilities
Balance Sheet
-10.6%
$3.0B$2.7B

Liabilities reduced 10.6% — deleveraging improves balance sheet strength and financial flexibility.

Accounts Receivable
Balance Sheet
+10.6%
$621.0M$687.0M

Receivables grew 10.6% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-03-05
PRIOR — 2025-03-05
ADDED
As of February 27, 2026, there were 169,200,461 shares of the Registrant s Class A Common Stock and 7,687,471 shares of the Registrant's Class B Common Stock outstanding.
Business Overview We are the leading independent identity partner.
Identity is becoming the most critical layer of an organization s security.
The acceleration of digital transformation, cloud adoption and the evolving security threat landscape continue to drive a shift in how organizations securely manage the identity of their employees, contractors and partners.
In addition to these established drivers, the emergence of artificial intelligence ( AI ) and the deployment of AI agents may, over time, create new opportunities for identity management.
We see a potential long-term opportunity for our platforms to serve as a unified, independent control plane for non-human identities ( NHIs ) and AI agents, a distinct class of identity that requires authenticated, secure access to sensitive resources at a scale and speed exceeding traditional security models designed for human users.
While adoption is in its early stages, we believe the inherent challenges of governing NHIs and agentic identities may drive increased demand for our solutions as these technologies and customer adoption continue to mature.
Our platforms help organizations effectively harness the power of cloud, mobile, web, and AI technologies by securing and governing users and connecting them with the applications and technology they need.
Every day, thousands of organizations and millions of people use our platforms to securely access a wide range of cloud, mobile, web and Software-as-a-Service ( SaaS ) applications, on-premises servers, application programming interfaces ( APIs ), IT infrastructure providers, and services from a multitude of devices.
For IT and security leaders, the Okta Platform governs the seamless and secure access by human users and NHIs to the applications they need to do their most important work.
REMOVED
As of February 27, 2025, there were 165,819,291 shares of the Registrant s Class A Common Stock and 7,783,873 shares of the Registrant's Class B Common Stock outstanding.
The acceleration of digital transformation, cloud adoption and the evolving security threat landscape are driving a shift in how organizations securely manage the identity of their employees, contractors and partners.
At the same time, consumer expectations favoring simple, secure digital experiences are driving the adoption of new consumer identity technologies.
Our platforms help organizations effectively harness the power of cloud, mobile and web technologies by securing users and connecting them with the applications and technology they use.
Every day, thousands of organizations and millions of people use our platforms to securely access a wide range of cloud, mobile, web and Software-as-a-Service ("SaaS") applications, on-premises servers, application programming interfaces ("APIs"), IT infrastructure providers, and services from a multitude of devices.
Employees and contractors sign into the Okta Platform to seamlessly and securely access the applications they need to do their most important work with more modern and secure experiences in the cloud and via mobile devices.
Developers leverage our Okta Platform and Auth0 Platform to securely and efficiently embed identity into the software they build, allowing them to innovate and focus on their core mission.
Our approach to customer identity provides organizations with the scale, interoperability, extensibility and security they need to build applications with seamless and private experiences that serve a wide variety of users, from customers to citizens.
Given the growth trends in cloud adoption and the number of applications customers use and the movement to remote and hybrid workforces, identity is becoming the most critical layer of an organization s security.
Our approach to identity allows our customers to simplify and efficiently scale their security infrastructures across internal IT systems and external customer-facing applications.
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