Okta (NASDAQ: OKTA) grows revenue 11% and repurchases $241M stock

Rhea-AI Filing Summary

Okta reported solid quarterly growth and profitability for the three months ended April 30, 2026. Total revenue rose to $765 million from $688 million, driven by subscription revenue of $750 million, as more users and additional solutions were sold to new and existing customers.

Net income increased to $74 million, a 10% margin, helped by operating income of $56 million. Operating cash flow was $277 million, and cash, cash equivalents and short-term investments totaled $2,589 million, supporting a $350 million convertible note maturing in June 2026 and ongoing investment.

Okta is also returning capital to shareholders, repurchasing about 3.0 million Class A shares for $241 million, with $680 million remaining under its $1 billion authorization. Key SaaS metrics stayed healthy, with a Dollar-Based Net Retention Rate of 107%, remaining performance obligations of $4,719 million, and 5,180 customers above $100,000 in annual contract value.

Key Figures

Revenue: $765 million Net income: $74 million Operating cash flow: $277 million +5 more

8 metrics

Revenue $765 million Three months ended April 30, 2026

Net income $74 million Three months ended April 30, 2026

Operating cash flow $277 million Three months ended April 30, 2026

Cash, cash equivalents and short-term investments $2,589 million As of April 30, 2026

Share repurchases $241 million Class A repurchases in quarter; 3,026,820 shares

Remaining performance obligations $4,719 million As of April 30, 2026

Dollar-Based Net Retention Rate 107% Trailing 12 months ended April 30, 2026

Convertible notes principal $350 million 2026 Notes outstanding, maturing June 15, 2026

Key Terms

Dollar-Based Net Retention Rate, Remaining performance obligations, market-based RSUs, Share Repurchase Program, +2 more

6 terms

Dollar-Based Net Retention Rate financial

"our 107% Dollar-Based Net Retention Rate as of April 30, 2026"

Dollar-based net retention rate measures how much recurring revenue a company keeps and grows from its existing customers over a set period, after accounting for upgrades, downgrades, and churn. Think of it like checking whether a group of current customers are spending more, the same, or less this year compared with last year; investors use it as a thermometer for revenue health and the business’s ability to expand sales without finding new customers.

Remaining performance obligations financial

"Total remaining non-cancelable performance obligations under subscription contracts with customers were $4,719 million"

Remaining performance obligations are the work a company still needs to complete for its customers, like finishing a service or delivering a product. It’s important because it shows how much future income the company has coming in from current agreements, giving a clearer picture of its ongoing business.

market-based RSUs financial

"In March 2026, the Company granted market-based RSUs to certain members of management"

Share Repurchase Program financial

"the board authorized a stock repurchase program (the “Share Repurchase Program”) of up to $1 billion"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

convertible senior notes financial

"The 2026 convertible senior notes (“2026 Notes”) are recorded at face value less unamortized debt issuance costs"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

One Big Beautiful Bill Act financial

"The favorable tax impact of the One Big Beautiful Bill Act (the “Act”)"

A "one big beautiful bill act" is a single, large piece of legislation that bundles many policy changes and measures into one package instead of passing them separately. For investors, it matters because such omnibus bills can swiftly change tax rules, spending levels, industry regulations or subsidies all at once—like a single shopping cart that suddenly adds many items to a household budget—creating broad, rapid shifts in company costs, revenues and market expectations.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_____________________________________ 

FORM 10-Q

_____________________________________ 

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 30, 2026

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-38044

_____________________________________ 

Okta, Inc.

(Exact Name of Registrant as Specified in its Charter)

_____________________________________ 

Delaware

100 First Street, Suite 600

26-4175727

(State or Other Jurisdiction of Incorporation or Organization)

San Francisco

(I.R.S. Employer Identification Number)

California

94105

(Address of Principal Executive Offices)

Registrant’s telephone number, including area code: (888) 722-7871

___________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A common stock, par value $0.0001 per share

OKTA

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files) Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐ No  ☒

As of May 26, 2026, the number of shares of registrant’s Class A common stock outstanding was 166,119,894 and the number of shares of the registrant’s Class B common stock outstanding was 7,687,471.

Okta, Inc.

Table of Contents

						Page No.
PART I. FINANCIAL INFORMATION
Item 1.			Financial Statements (unaudited)			4
			Condensed Consolidated Balance Sheets as of April 30, 2026 and January 31, 2026			4
			Condensed Consolidated Statements of Operations for the Three Months Ended April 30, 2026 and 2025			5
			Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended April 30, 2026 and 2025			6
			Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended April 30, 2026 and 2025			7
			Condensed Consolidated Statements of Cash Flows for the Three Months Ended April 30, 2026 and 2025			8
			Notes to Condensed Consolidated Financial Statements			9
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			16
Item 3.			Quantitative and Qualitative Disclosures about Market Risk			28
Item 4.			Controls and Procedures			29
PART II. OTHER INFORMATION
Item 1.			Legal Proceedings			30
Item 1A.			Risk Factors			30
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			30
Item 5.			Other Information			30
Item 6.			Exhibits			30
			Signatures			32

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and similar expressions are intended to identify these forward-looking statements. These statements include, but are not limited to, statements about: our future financial performance, including our revenue, costs of revenue, gross profits, margins and operating expenses; trends in our key business metrics; the impact of general economic, business and market conditions, including economic downturns or recessions, market volatility, geopolitical events, inflation and interest rates and foreign currency fluctuations; our ability to retain and sell additional solutions to existing customers; our growth strategy and ability to compete; our ability to keep pace with technological change and evolving industry standards; our ability to adequately fund research and development, and introduce new solutions, enhance existing solutions and address new use cases; the sufficiency of our cash and cash equivalents, investments and cash provided by sales of our solutions to meet our liquidity needs; our ability to effectively sustain or manage our revenue growth and profitability; our ability to partner with third-party software vendors and system integrators; our ability to expand our international business operations and product sales; our ability to successfully identify, integrate and/or realize the benefits of strategic acquisitions or investments; our ability to successfully expand our existing marketing and sales capabilities, including further specializing our go-to-market organization; our ability to expand our product sales by promoting our brand and engaging channel partners; potential impacts of cybersecurity incidents to our reputation, customer relations and financial results; our ability to detect, minimize or prevent security breaches to our internal systems and our platforms; our ability to maintain the security and service performance of our and our third-party service providers’ systems or data or our customers’ data; the ability of our solutions to effectively integrate with third-party systems and technologies; our ability to maintain and protect our proprietary rights and intellectual property; our ability to comply with modified or new laws, regulations and industry standards; our ability to release the valuation allowance of our deferred tax assets in the United States; the attraction and retention of qualified employees and key personnel; the impact of recent accounting pronouncements on our financial statements; and our ability to successfully defend litigation or other claims brought against us. These forward-looking statements are made as of the date they were first issued and are based on current expectations and assumptions that are subject to a number of risks and uncertainties, which could cause our actual results to differ materially from those anticipated or implied by any forward-looking statements. Factors that could cause or contribute to such differences include, but not limited to, those discussed in “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K, as well as other documents that may be filed by us from time to time with the U.S. Securities and Exchange Commission (the “SEC”). We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

PART I

Item 1. Financial Statements

OKTA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in millions, shares in thousands, except per share data)

			April 30, 2026						January 31, 2026
			(unaudited)
Assets
Current assets:
Cash and cash equivalents			$	762					$	858
Short-term investments			1,827						1,695
Accounts receivable, net			386						687
Deferred commissions			170						171
Prepaid expenses and other current assets			161						233
Total current assets			3,306						3,644
Property and equipment, net			35						38
Operating lease right-of-use assets			59						65
Deferred commissions, noncurrent			324						332
Intangible assets, net			78						91
Goodwill			5,487						5,487
Other assets			58						53
Total assets			$	9,347					$	9,710
Liabilities and stockholders' equity
Current liabilities:
Accounts payable			$	14					$	12
Accrued expenses and other current liabilities			99						104
Accrued compensation			120						213
Convertible senior notes, net			350						350
Deferred revenue			1,729						1,875
Total current liabilities			2,312						2,554
Operating lease liabilities, noncurrent			61						72
Deferred revenue, noncurrent			23						30
Other liabilities, noncurrent			52						55
Total liabilities			2,448						2,711
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, par value $0.0001 per share; 100,000 shares authorized; no shares issued and outstanding as of April 30, 2026 and January 31, 2026			—						—
Class A common stock, par value $0.0001 per share; 1,000,000 shares authorized; 167,660 and 169,670 shares issued and outstanding as of April 30, 2026 and January 31, 2026, respectively			—						—
Class B common stock, par value $0.0001 per share; 120,000 shares authorized; 7,687 shares issued and outstanding as of April 30, 2026 and January 31, 2026			—						—
Additional paid-in capital			9,383						9,553
Accumulated other comprehensive income			9						13
Accumulated deficit			(2,493)						(2,567)
Total stockholders’ equity			6,899						6,999
Total liabilities and stockholders' equity			$	9,347					$	9,710

See Notes to Condensed Consolidated Financial Statements.

4

OKTA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(dollars in millions, shares in thousands, except per share data)

(unaudited)

			Three Months Ended April 30,
			2026						2025
Revenue:
Subscription			$	750					$	673
Professional services and other			15						15
Total revenue			765						688
Cost of revenue:
Subscription			150						136
Professional services and other			20						19
Total cost of revenue			170						155
Gross profit			595						533
Operating expenses:
Research and development			163						154
Sales and marketing			278						237
General and administrative			98						103
Total operating expenses			539						494
Operating income			56						39
Interest expense			(1)						(1)
Interest income and other, net			23						30
Interest and other, net			22						29
Income before provision for income taxes			78						68
Provision for income taxes			4						6
Net income			$	74					$	62
Net income per share, basic			$	0.42					$	0.36
Net income per share, diluted			$	0.42					$	0.35
Weighted-average shares used to compute net income per share, basic			176,129						174,172
Weighted-average shares used to compute net income per share, diluted			177,699						181,754

See Notes to Condensed Consolidated Financial Statements.

5

OKTA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(unaudited)

			Three Months Ended April 30,
			2026						2025
Net income			$	74					$	62
Other comprehensive income (loss):
Net change in unrealized gains or losses on available-for-sale securities			(2)						2
Foreign currency translation adjustments			(2)						15
Other comprehensive income (loss)			(4)						17
Comprehensive income			$	70					$	79

See Notes to Condensed Consolidated Financial Statements.

6

OKTA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(dollars in millions, shares in thousands)

(unaudited)

			Three Months Ended April 30, 2026
			Class A Common Stock												Class B Common Stock												Additional Paid-in Capital						Accumulated Other Comprehensive Income (Loss)						Accumulated Deficit						Total Stockholders’ Equity
			Shares						Amount						Shares						Amount
Balances as of January 31, 2026			169,670						—						7,687						—						$	9,553					$	13					$	(2,567)					$	6,999
Issuance of common stock, net			1,017						—						—						—						3						—						—						3
Taxes withheld related to net share settlement of equity awards			—						—						—						—						(50)						—						—						(50)
Common stock repurchased			(3,027)						—						—						—						(242)						—						—						(242)
Stock-based compensation			—						—						—						—						119						—						—						119
Other comprehensive loss			—						—						—						—						—						(4)						—						(4)
Net income			—						—						—						—						—						—						74						74
Balances as of April 30, 2026			167,660						—						7,687						—						$	9,383					$	9					$	(2,493)					$	6,899

			Three Months Ended April 30, 2025
			Class A Common Stock												Class B Common Stock												Additional Paid-in Capital						Accumulated Other Comprehensive Income (Loss)						Accumulated Deficit						Total Stockholders’ Equity
			Shares						Amount						Shares						Amount
Balances as of January 31, 2025			165,650						—						7,809						—						$	9,219					$	(12)					$	(2,802)					$	6,405
Issuance of common stock, net			1,446						—						166						—						9						—						—						9
Taxes withheld related to net share settlement of equity awards			—						—						—						—						(54)						—						—						(54)
Conversion of Class B common stock to Class A common stock			65						—						(65)						—						—						—						—						—
Stock-based compensation			—						—						—						—						128						—						—						128
Other comprehensive income			—						—						—						—						—						17						—						17
Net income			—						—						—						—						—						—						62						62
Balances as of April 30, 2025			167,161						—						7,910						—						$	9,302					$	5					$	(2,740)					$	6,567

See Notes to Condensed Consolidated Financial Statements.

7

OKTA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)

			Three Months Ended April 30,
			2026						2025
Cash flows from operating activities:
Net income			$	74					$	62
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation			117						128
Depreciation and amortization			25						24
Amortization of deferred commissions			45						36
Deferred income taxes			(1)						2
Other, net			3						1
Changes in operating assets and liabilities:
Accounts receivable			300						274
Deferred commissions			(37)						(32)
Prepaid expenses and other assets			4						(16)
Operating lease right-of-use assets			5						4
Accounts payable			2						(2)
Accrued compensation			(94)						(93)
Accrued expenses and other liabilities			(5)						(6)
Operating lease liabilities			(8)						(7)
Deferred revenue			(153)						(134)
Net cash provided by operating activities			277						241
Cash flows from investing activities:
Capitalized software			(5)						(2)
Purchases of property and equipment			(1)						(1)
Purchases of securities available-for-sale and other			(660)						(521)
Proceeds from maturities and redemption of securities available-for-sale			505						406
Proceeds from sales of securities available-for-sale and other			83						1
Payments for business acquisitions, net of cash acquired			—						(3)
Net cash used in investing activities			(78)						(120)
Cash flows from financing activities:
Taxes paid related to net share settlement of equity awards			(48)						(54)
Repurchases of common stock			(248)						—
Proceeds from stock option exercises			3						9
Net cash used in financing activities			(293)						(45)
Effects of changes in foreign currency exchange rates on cash, cash equivalents and restricted cash			(2)						9
Net increase (decrease) in cash, cash equivalents and restricted cash			(96)						85
Cash, cash equivalents and restricted cash at beginning of period			864						415
Cash, cash equivalents and restricted cash at end of period			$	768					$	500
Supplementary cash flow disclosure:
Cash paid during the period for:
Operating leases			$	10					$	9
Non-cash activities:
Operating lease right-of-use assets exchanged for lease liabilities			—						2
Reconciliation of cash, cash equivalents and restricted cash within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above:
Cash and cash equivalents			$	762					$	494
Restricted cash, current included in prepaid expenses and other current assets			1						—
Restricted cash, noncurrent included in other assets			5						6
Total cash, cash equivalents and restricted cash			$	768					$	500

See Notes to Condensed Consolidated Financial Statements.

8

OKTA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. Overview and Basis of Presentation

Description of Business

Okta, Inc. (the “Company”) is the leading independent identity provider. The Company’s Okta Platform and Auth0 Platform enable customers to securely connect the right people to the right technologies and services at the right time. For IT and security leaders, the Okta Platform governs the seamless and secure access by human users and non-human identities (“NHIs”) to the applications they need to do their most important work. Developers leverage the Okta Platform and Auth0 Platform to securely and efficiently embed identity for both human users and, increasingly, artificial intelligence (“AI”) agents into the software they build, allowing them to innovate and focus on their core mission. The Company is headquartered in San Francisco, California.

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements, which include the accounts of the Company and its wholly owned subsidiaries, have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim periods. Accordingly, they do not include all of the financial information and footnotes required by GAAP for complete financial statements. All intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated balance sheet as of January 31, 2026, included herein, was derived from the audited financial statements as of that date. In the opinion of the Company’s management, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair statement of the results of operations for the interim periods presented but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ending January 31, 2027 or any future period.

The Company’s fiscal year ends on January 31. References to fiscal 2027, for example, refer to the fiscal year ending January 31, 2027.

The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 5, 2026.

Segments

The Company conducts business globally and is managed, operated and organized by major functional departments that operate on a consolidated basis. As a result, the Company operates as one reportable segment. The Company employs a Software-as-a-Service (“SaaS”) business model and generates revenue primarily by selling multi-year subscriptions to its cloud-based offerings.

The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM utilizes consolidated GAAP and non-GAAP measures of profit and loss to evaluate the Company’s overall performance and inform resource allocation to support strategic priorities and capital allocation needs. The profit and loss measure most consistent with GAAP used by the CODM is consolidated net income.

The CODM is regularly provided with budgeted expense information and consolidated expense data. Accordingly, significant segment expenses are inherently reflected in the condensed consolidated financial statements and related notes.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with GAAP requires estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates are based on historical experience and on other assumptions that management believes are reasonable under the circumstances. Actual results could vary from those estimates. The Company’s most significant estimates include the valuation of deferred income tax assets,

9

OKTA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

uncertain tax positions, assets and liabilities acquired in business combinations and loss contingencies related to litigation.

2. Accounting Standards and Significant Accounting Policies

Significant Accounting Policies

For a summary of the Company’s significant accounting policies refer to “Note 2. Summary of Significant Accounting Policies” of its Annual Report on Form 10-K for the fiscal year ended January 31, 2026.

Recent Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued guidance requiring the disclosure, in the notes to financial statements, of specified disaggregated income statement expense information. This guidance is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this guidance.

In September 2025, the FASB issued guidance to modernize the accounting for internal-use software costs to current development practices, clarifying when to begin capitalizing costs, and enhancing disclosure requirements. This guidance is effective for annual periods beginning after December 15, 2027, and interim reporting periods within those annual periods, with early adoption permitted. Entities can adopt the new standard using a prospective, modified, or retrospective transition approach. The Company is currently evaluating the impact of adopting this guidance, including the timing of adoption (early or standard) and the selection of an appropriate transition method.

3. Cash Equivalents and Investments

Cash Equivalents and Short-term Investments

In estimating fair value, the Company uses a three-tier fair value hierarchy as follows:

•Level 1 — Valuations based on observable inputs that reflect quoted prices for identical assets or liabilities in active markets.

•Level 2 — Valuations based on other inputs that are directly or indirectly observable in the marketplace.

•Level 3 — Valuations based on unobservable inputs that are supported by little or no market activity.

The following tables present the estimated fair value of cash equivalents and short-term investments:

			As of April 30, 2026						As of January 31, 2026
			(dollars in millions)
Cash equivalents:
Money market funds (Level 1)			$	505					$	654
Certificates of deposit (Level 2)			19						—
U.S. government securities (Level 2)			—						16
Corporate debt securities (Level 2)			10						—
Total cash equivalents			534						670
Short-term investments (Available-for-sale):
U.S. government securities (Level 2)			1,626						1,459
Corporate debt securities (Level 2)			155						180
Certificates of deposit (Level 2)			46						56
Total short-term investments			1,827						1,695
Total			$	2,361					$	2,365

10

OKTA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

The following table presents the contractual maturities of the Company’s short-term investments:

			As of April 30, 2026
			Estimated Fair Value
			(dollars in millions)
Due within one year			$	1,517
Due between one to five years			310
Total			$	1,827

Interest receivable of $22 million and $24 million is included in Prepaid expenses and other current assets on the condensed consolidated balance sheets as of April 30, 2026 and January 31, 2026, respectively.

There were no material differences between the estimated fair value and amortized cost of cash equivalents and short-term investments as of April 30, 2026 and January 31, 2026.

For available-for-sale debt securities that have unrealized losses, there were no material credit or non-credit- related impairments for short-term investments as of April 30, 2026 and January 31, 2026.

Strategic Investments

Strategic investments primarily include equity investments in privately held companies, which do not have a readily determinable fair value. Strategic investments are classified as Level 3 in the fair value hierarchy as nonrecurring fair value measurements may include observable and unobservable inputs. As of April 30, 2026 and January 31, 2026, the balance of strategic investments was $39 million and $33 million, respectively.

4. Deferred Commissions

Sales commissions capitalized as contract costs totaled $37 million and $32 million for the three months ended April 30, 2026 and 2025, respectively. Amortization of contract costs totaled $45 million and $36 million for the three months ended April 30, 2026 and 2025, respectively.

5. Deferred Revenue and Performance Obligations

Deferred Revenue

Deferred revenue, which is a contract liability, consists primarily of payments received and accounts receivable recorded in advance of revenue recognition under the Company’s contracts with customers and is recognized as the revenue recognition criteria are met.

Subscription revenue recognized during the three months ended April 30, 2026 and 2025 that was included in the deferred revenue balances at the beginning of the respective periods was $696 million and $627 million, respectively.

Transaction Price Allocated to the Remaining Performance Obligations

Transaction price allocated to the remaining performance obligations (“RPO”) represents all future, non-cancelable contracted revenue that has not yet been recognized, inclusive of deferred revenue that has been invoiced and non-cancelable amounts that will be invoiced and recognized as revenue in future periods.

Total remaining non-cancelable performance obligations under subscription contracts with customers were $4,719 million as of April 30, 2026. Of this amount, the Company expects to recognize revenue of $2,499 million, or 53%, over the next 12 months, with the balance to be recognized as revenue thereafter.

6. Convertible Senior Notes, Net

Convertible Senior Notes

The 2026 convertible senior notes (“2026 Notes”) are recorded at face value less unamortized debt issuance costs. As of April 30, 2026, the 2026 Notes are classified as current liabilities due to their upcoming maturity on June 15, 2026.

11

OKTA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Fair Value Measurements

As of April 30, 2026, the estimated fair value of the 2026 Notes, which are not recorded at fair value on the condensed consolidated balance sheets, was $348 million.

The estimated fair value of the 2026 Notes, which are Level 2 financial instruments, was determined based on the quoted bid prices of the 2026 Notes in an over-the-counter market on the last available trading day of the reporting period.

7. Commitments and Contingencies

Legal Matters

From time to time in the normal course of business, the Company may be subject to various legal matters such as threatened or pending claims or proceedings. There were no such material matters as of April 30, 2026.

Warranties and Indemnification

To date, the Company has not incurred significant costs and has not accrued any material liabilities in the accompanying condensed consolidated financial statements as a result of its warranty and indemnification obligations.

8. Employee Incentive Plans and Stockholders’ Equity

The Company’s equity incentive plans provide for granting stock options, restricted stock units (“RSUs”) and restricted stock awards (“RSAs”) to employees, consultants, officers and directors and RSUs with market-based vesting conditions to certain executives. In addition, the Company offers an Employee Stock Purchase Plan (“ESPP”) to eligible employees.

Stock-based compensation expense was recorded in the following cost and expense categories in the Company’s condensed consolidated statements of operations:

			Three Months Ended April 30,
			2026						2025
			(dollars in millions)
Cost of revenue
Subscription			$	16					$	17
Professional services and other			2						3
Research and development			41						47
Sales and marketing			29						32
General and administrative			29						29
Total			$	117					$	128

The following table presents total unrecognized stock-based compensation expense related to outstanding equity awards as of April 30, 2026:

Unrecognized Stock-based Compensation Expense (in millions)

Weighted-average remaining period (in years)

Unvested RSUs

$

763

2.3 years

Unvested RSAs

14

2.0 years

Unvested market-based RSUs

87

1.6 years

ESPP

10

0.6 years

Total

$

874

12

OKTA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

Market-based Restricted Stock Units

In March 2026, the Company granted market-based RSUs to certain members of management. The target number of market-based RSUs granted was 396,603. One-third of these market-based RSUs vest over each of a one-, two- and three-year performance period, each starting on February 1, 2026. The number of shares that can be earned ranges from 0% to 200% of the target number of shares based on the relative performance of the per share price of the Company’s common stock as compared to the Nasdaq Composite Index over the respective performance periods and subject to continuous employment through the vesting dates. The $133.81 average grant date fair value per target market-based RSU was determined using a Monte Carlo simulation approach. Compensation expense for awards with market conditions is recognized over the service period using the accelerated attribution method and is not reversed if the market condition is not met.

Share Repurchase Program

In January 2026, the Company’s board of directors (the “board”) authorized a stock repurchase program (the “Share Repurchase Program”) of up to $1 billion of the Company’s outstanding shares of Class A common stock. The Company may repurchase shares of its Class A common stock from time to time through open market purchases, in privately negotiated transactions, or by other means. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18. The Company may also, from time to time, enter into Rule 10b5-1 trading plans to facilitate repurchases of shares. The timing and the amount of stock repurchases under the Share Repurchase Program will be determined by the Company’s management, based on its evaluation of factors including business and market conditions, corporate and regulatory requirements, and other considerations. The Share Repurchase Program does not obligate the Company to repurchase any specific number of shares and may be modified, suspended, or terminated at any time.

During the three months ended April 30, 2026, the Company repurchased and immediately retired 3,026,820 shares of its Class A common stock for an aggregate amount, including commissions, of $241 million under the Share Repurchase Program. As of April 30, 2026, $680 million of the originally authorized amount under the Share Repurchase Program remained available for future repurchases.

9. Income Taxes

For the three months ended April 30, 2026, the Company recorded a provision for income taxes of $4 million on pretax income of $78 million. The effective tax rate for the three months ended April 30, 2026 was 4.6%. The effective tax rate differs from the statutory rate primarily as a result of a full valuation allowance against the U.S. deferred tax assets, the favorable tax impact of the One Big Beautiful Bill Act (the “Act”), the tax effect of foreign operations, and U.S. federal and state taxes.

The Act was enacted on July 4, 2025. The Act, among other provisions, maintains the U.S. federal 21% corporate tax rate, makes permanent the immediate expensing of domestic research and development expenditures, allows for 100% bonus depreciation for qualified assets, and modifies the U.S. taxation of profits derived from foreign operations.

For the three months ended April 30, 2025, the Company recorded a provision for income taxes of $6 million on pretax income of $68 million. The effective tax rate for the three months ended April 30, 2025 was 8.5%. The effective tax rate differs from the statutory rate primarily as a result of a full valuation allowance against the U.S. deferred tax assets, the tax effect of foreign operations, and U.S. federal and state taxes.

13

OKTA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

10. Net Income Per Share

The following tables present the calculation of basic and diluted net income per share. Net income is reported in millions and rounded from amounts in thousands; as a result, net income per share may not recalculate exactly due to rounding.

			Three Months Ended April 30,
			2026												2025
			Class A						Class B												Class A						Class B
			(dollars in millions, shares in thousands, except per share data)
Basic net income per share:
Numerator:
Net income, basic			$	71					$	3											$	59					$	3
Denominator:
Weighted-average shares outstanding, basic			168,442						7,687												166,332						7,840
Net income per share, basic			$	0.42					$	0.42											$	0.36					$	0.36
Diluted net income per share:
Numerator:
Net income			$	71					$	3											$	59					$	3
Interest and other1			—						—												1						—
Reallocation of net income as a result of assumed conversion of Class B to Class A common shares			3						—												3						—
Net income, diluted			$	74					$	3											$	63					$	3
Denominator:
Number of shares used in basic calculation			168,442						7,687												166,332						7,840
Weighted-average effect of diluted securities related to:
Employee share-based awards			743						200												2,625						787
Convertible senior notes			627						—												4,170						—
Assumed conversion of Class B to Class A common shares			7,887						—												8,627						—
Number of shares used in diluted calculation			177,699						7,887												181,754						8,627
Net income per share, diluted			$	0.42					$	0.42											$	0.35					$	0.35
1 Under the if-converted method, net income is adjusted to reflect the assumption that the convertible senior notes were converted at the beginning of the period.

Potentially dilutive securities excluded because they would be anti-dilutive were as follows:

			Three Months Ended April 30,
			2026						2025
			(shares in thousands)
Employee share-based awards			5,692						4,443
Convertible senior notes			—						—
Total			5,692						4,443

The Company entered into capped call transactions in connection with the issuance of the convertible senior notes. The effect of the capped calls was also excluded from the calculation of diluted net income per share as the effect of the capped calls would have been anti-dilutive.

14

OKTA, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(unaudited)

11. Business Combinations

On September 4, 2025, the Company acquired all of the outstanding equity of Axiom Security Ltd (“Axiom”), a privately held company specializing in privileged access management solutions. The acquisition of Axiom is expected to broaden the Company’s privileged access management capabilities. The acquisition date fair value of purchase consideration of $54 million was paid in cash. The Axiom acquisition was accounted for as a business combination.

The Company recorded $16 million for developed technology intangible assets with an estimated useful life of 3 years and preliminarily recorded $40 million of goodwill, which is primarily attributed to the assembled workforce as well as the integration of Axiom’s technology and the Company’s technology. None of the goodwill is expected to be deductible for U.S. federal income tax purposes. The Company may continue to adjust the preliminary purchase price allocation after obtaining more information primarily relating to income-based taxes and residual goodwill through the measurement period, no more than one year from the date of acquisition.

This acquisition did not have a material impact on the Company’s condensed consolidated financial statements; therefore, historical and pro forma disclosures have not been presented.

15

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K. Amounts reported in millions are rounded based on the amounts in thousands. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. In addition, percentages presented may not add to their respective totals or recalculate due to rounding. In addition to historical financial information, the following discussion contains forward-looking statements that are based upon current plans, expectations and beliefs that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under the section titled “Risk Factors” under Part II, Item 1A of this Quarterly Report on Form 10-Q and Part I, Item 1A of our Annual Report on Form 10-K. Our fiscal year ends January 31. References to fiscal 2027, for example, refer to the fiscal year ending January 31, 2027.

Overview

We are the leading independent identity provider. Our Okta Platform and Auth0 Platform enable our customers to securely connect the right people to the right technologies and services at the right time. Every day, thousands of organizations and millions of people use our platforms to securely access a wide range of cloud, mobile, web and 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 non-human identities (“NHIs”) to the applications they need to do their most important work. We are expanding these capabilities to include AI agents with the introduction of new product offerings currently in development and early access. Developers leverage our Okta Platform and Auth0 Platform to securely and efficiently embed identity for both human users and, increasingly, AI agents into the software they build, allowing them to innovate and focus on their core mission.

Our customers consist of leading global organizations ranging from the largest enterprises to small- and medium-sized businesses, universities, nonprofits and government agencies. We partner with a broad range of application, IT infrastructure and security vendors through our Okta Integration Network. As of April 30, 2026, we had over 7,000 integrations with these cloud, mobile and web applications and IT infrastructure and security vendors.

We employ a SaaS business model and generate revenue primarily by selling multi-year subscriptions to our cloud-based offerings. We focus on attracting and retaining our customers by building on and increasing the value we provide to them over time. This commitment to our customers’ success helps drive increased customer investment in the number of users of our Okta Platform and Auth0 Platform and adoption of our additional product offerings. We sell our product offerings directly through our field and inside sales teams, as well as indirectly through our network of channel partners, including cloud marketplaces, resellers, system integrators and other distribution partners. Our subscription fees include the use of our service and our technical support and management of our platforms. We base subscription fees primarily on the solutions used and the number of users on our platforms. We typically invoice customers in advance in annual installments for subscriptions to our platforms.

Our revenue is relatively predictable as a result of our subscription-based business model, which constituted 98% of total revenue for the three months ended April 30, 2026. Future growth may be impacted by longer sales cycles, which we have experienced, which in turn, could result in delays in deals closing, creating near-term headwinds for cash flow, RPO and current RPO growth as well as potential future impacts on revenue growth and other key metrics on a trailing basis.

Impact of Cybersecurity Incidents

In the past we have experienced cybersecurity incidents, such as the January 2022 incident involving one of our third-party service providers and the October 2023 incident where a threat actor gained unauthorized access to and stole information from our third-party customer support system, that harmed our reputation and customer relations and adversely impacted our financial results. While we expect the impact of these security incidents to adversely affect our future financial performance, we cannot predict the extent of such impact with certainty. Due to

16

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

the nature of our business, the announcement of any security incidents, even if not significant, could have these impacts.

Impact of Current Economic Conditions

Worldwide economic and political uncertainties and negative trends, including financial and credit market fluctuations, tariffs and increasing trade protectionism, changes in government spending levels, uncertainty in the banking sector, changing interest rates, inflation and other impacts from the macroeconomic environment have, and could continue to, adversely affect our business operations or financial results. As we continue to monitor the direct and indirect impacts of these circumstances, the broader implications of these macroeconomic and political events on our business, results of operations and overall financial position remain uncertain. See the section titled “Risk Factors” included under Part II, Item 1A below for further discussion of the possible impact of these factors and other risks on our business.

Components of Results of Operations

Revenue

Subscription Revenue.    Subscription revenue primarily consists of fees for access to and usage of our cloud-based platforms and related support. Subscription revenue is driven primarily by the number of customers, the number of users per customer and the solutions used. We typically invoice customers in advance in annual installments for subscriptions to our platforms.

Professional Services and Other.    Professional services revenue includes fees from assisting customers in implementing and optimizing the use of our solutions. These services include application configuration, system integration and training services.

We generally invoice customers as the work is performed for time-and-materials arrangements, and up front for fixed fee arrangements. Professional services revenue is recognized as the services are performed.

Overhead Allocation and Employee Compensation Costs

We allocate shared costs, such as facilities costs (including rent, utilities and depreciation on assets shared by all departments), certain information technology costs, security costs and recruiting costs to all departments based on headcount. As such, allocated shared costs are reflected in each of the cost of revenue and operating expense categories. Employee compensation costs reflected in each of the cost of revenue and operating expense categories include salaries, bonuses, compensation related taxes, benefits and stock-based compensation. Additionally included in the sales and marketing expense category are sales commissions and related taxes.

Cost of Revenue and Gross Margin

Cost of Subscription.    Cost of subscription primarily consists of expenses related to hosting our services and providing support. These expenses include employee-related costs associated with our cloud-based infrastructure, our product security organization and our customer support organization, third-party hosting fees, software and maintenance costs, outside services associated with the delivery of our subscription services, amortization expense associated with capitalized internal-use software and acquired developed technology and allocated overhead.

We intend to continue to invest additional resources in our platform infrastructure, our platforms’ support organizations and security posture. We will continue to invest in technology innovation and we anticipate that costs qualifying for capitalization of internal-use software costs and related amortization may fluctuate over time. We expect our investment in technology to expand the capability of our platforms, enabling us to improve our gross margin over time. The level and timing of investment in these areas could affect our cost of subscription revenue in the future.

Cost of Professional Services and Other.    Cost of professional services and other consists primarily of employee-related costs for our professional services delivery team, travel-related costs, allocated overhead and costs of outside services associated with supplementing our professional services delivery team. The cost of providing professional services has historically been higher than the associated revenue we generate.

17

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Gross Margin.    Gross margin is gross profit expressed as a percentage of total revenue. Our gross margin may fluctuate from period to period as a result of the timing and amount of investments to expand our hosting capacity and our continued efforts to build platform support and professional services teams.

Operating Expenses

Research and Development.    Research and development expenses consist primarily of employee compensation costs and allocated overhead. We believe that continued investment in our platforms is important for our growth.

Sales and Marketing.    Sales and marketing expenses consist primarily of employee compensation costs, costs of general marketing and promotional activities, travel-related expenses, amortization expense associated with acquired customer relationships and trade names and allocated overhead. Commissions earned by our sales force that are considered incremental and recoverable costs of obtaining a contract with a customer are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be generally five years.

General and Administrative.    General and administrative expenses consist primarily of employee compensation costs for finance, accounting, legal, information technology and human resources personnel. In addition, general and administrative expenses include acquisition and integration-related costs, non-personnel costs, such as legal, accounting and other professional fees, charitable contributions, allocated overhead and all other supporting corporate expenses.

Interest and Other, Net

Interest and other, net consists of interest income, which primarily includes income from our investment holdings, gains and losses from our strategic investments, and interest expense which consists of amortization of debt issuance costs and contractual interest expense for our convertible senior notes.

Provision for Income Taxes

Our provision for income taxes consists of federal and state income taxes in the United States and income taxes in certain foreign jurisdictions where we operate. We evaluate and update our estimated annual effective income tax rate on a quarterly basis based on current and forecasted operating results and enacted tax laws. The timing and mix of actual results compared to forecasted results may impact the timing of recognition of our provision for income taxes.

18

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Results of Operations

The following table sets forth our results of operations for the periods presented:

			Three Months Ended April 30,
			2026						2025
			(dollars in millions)
Revenue:
Subscription			$	750					$	673
Professional services and other			15						15
Total revenue			765						688
Cost of revenue:
Subscription(1)			150						136
Professional services and other(1)			20						19
Total cost of revenue			170						155
Gross profit			595						533
Operating expenses:
Research and development(1)			163						154
Sales and marketing(1)			278						237
General and administrative(1)			98						103
Total operating expenses			539						494
Operating income			56						39
Interest expense			(1)						(1)
Interest income and other, net			23						30
Interest and other, net			22						29
Income before provision for income taxes			78						68
Provision for income taxes			4						6
Net income			$	74					$	62

(1)     Includes stock-based compensation expense as follows:

			Three Months Ended April 30,
			2026						2025
			(dollars in millions)
Cost of subscription revenue			$	16					$	17
Cost of professional services and other revenue			2						3
Research and development			41						47
Sales and marketing			29						32
General and administrative			29						29
Total stock-based compensation expense			$	117					$	128

19

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

The following table sets forth our results of operations for the periods presented as a percentage of our total revenue:

			Three Months Ended April 30,
			2026						2025
Revenue
Subscription			98		%				98		%
Professional services and other			2						2
Total revenue			100						100
Cost of revenue
Subscription			20						20
Professional services and other			2						3
Total cost of revenue			22						23
Gross profit			78						77
Operating expenses
Research and development			22						22
Sales and marketing			36						34
General and administrative			13						15
Total operating expenses			71						71
Operating income			7						6
Interest expense			—						—
Interest income and other, net			3						4
Interest and other, net			3						4
Income before provision for income taxes			10						10
Provision for income taxes			—						1
Net income			10		%				9		%

20

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Comparison of the Three Months Ended April 30, 2026 and 2025

Revenue

			Three Months Ended April 30,
			2026						2025						$ Change						% Change
			(dollars in millions)
Revenue:
Subscription			$	750					$	673					$	77					11		%
Professional services and other			15						15						—						1
Total revenue			$	765					$	688					$	77					11		%
Percentage of revenue:
Subscription			98		%				98		%
Professional services and other			2						2
Total			100		%				100		%

Three months ended

For the three months ended April 30, 2026, the increase in subscription revenue was primarily due to an increase in users and sales of additional solutions to existing customers and the addition of new customers. The increase in revenue was attributable to increased revenue from existing customers as reflected in our 107% Dollar-Based Net Retention Rate as of April 30, 2026 and an increase in the number of customers as detailed in our Key Business Metrics.

For the three months ended April 30, 2026, professional services and other revenue remained flat. We expect professional services and other revenue to decline as we shift more engagements to our partner ecosystem.

Cost of Revenue, Gross Profit and Gross Margin

			Three Months Ended April 30,
			2026						2025						$ Change						% Change
			(dollars in millions)
Cost of revenue:
Subscription			$	150					$	136					$	14					9		%
Professional services and other			20						19						1						6
Total cost of revenue			$	170					$	155					$	15					9		%
Gross profit			$	595					$	533					$	62					12		%
Gross margin:
Subscription			80		%				80		%
Professional services and other			(33)						(27)
Total gross margin			78		%				77		%

Three months ended

For the three months ended April 30, 2026, cost of subscription revenue increased primarily due to an increase in hosting fees of $8 million and labor costs of $3 million.

Our gross margin for subscription revenue remained flat.

For the three months ended April 30, 2026, cost of professional services and other revenue increased due to an increase in labor costs.

21

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Our gross margin for professional services and other revenue decreased to (33)% for the three months ended April 30, 2026 compared to (27)% for the three months ended April 30, 2025 due to an increase in labor costs.

Operating Expenses

Research and Development Expenses

			Three Months Ended April 30,
			2026						2025						$ Change						% Change
			(dollars in millions)
Research and development			$	163					$	154					$	9					6		%
Percentage of revenue			22		%				22		%

Three months ended

For the three months ended April 30, 2026, research and development expenses increased due to an increase in labor costs of $11 million and hosting fees of $3 million, offset by a decrease in stock-based compensation expense of $6 million.

Sales and Marketing Expenses

			Three Months Ended April 30,
			2026						2025						$ Change						% Change
			(dollars in millions)
Sales and marketing			$	278					$	237					$	41					18		%
Percentage of revenue			36		%				34		%

Three months ended

For the three months ended April 30, 2026, sales and marketing expenses increased primarily due to increases in labor costs of $30 million, marketing costs of $6 million and travel costs of $3 million, offset by a decrease in stock-based compensation expense of $3 million. We expect our sales and marketing expenses will continue to be our largest operating expense category for the foreseeable future.

General and Administrative Expenses

			Three Months Ended April 30,
			2026						2025						$ Change						% Change
			(dollars in millions)
General and administrative			$	98					$	103					$	(5)					(5)		%
Percentage of revenue			13		%				15		%

Three months ended

For the three months ended April 30, 2026, general and administrative expenses remained relatively flat. The decrease in general and administrative as a percentage of total revenue was primarily driven by improved spend efficiency. We expect general and administrative expenses as a percentage of total revenue to decrease as our total revenue grows.

22

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Interest and Other, Net

			Three Months Ended April 30,
			2026						2025						$ Change						% Change
			(dollars in millions)
Interest expense			$	(1)					$	(1)					$	—					(55)		%
Interest income and other, net			23						30						(7)						(26)
Interest and other, net			$	22					$	29					$	(7)					(25)		%

Three months ended

For the three months ended April 30, 2026, interest and other, net decreased primarily due to lower interest income from our short-term investment holdings. We expect interest income to decrease in fiscal 2027 as we deploy investable cash to fund our Share Repurchase Program and settle our 2026 Convertible Senior Notes obligation.

Provision for Income Taxes

			Three Months Ended April 30,
			2026						2025						$ Change						% Change
			(dollars in millions)
Provision for income taxes			$	4					$	6					$	(2)					(38)		%

Three months ended

For the three months ended April 30, 2026, our provision for income taxes decreased by $2 million. This change was primarily driven by favorable tax impacts resulting from the enactment of the One Big Beautiful Bill Act (“the Act”) on July 4, 2025. The Act, among other provisions, maintains the U.S. federal 21% corporate tax rate, makes permanent the immediate expensing of domestic research and development expenditures, allows for 100% bonus depreciation for qualified assets, and modifies the U.S. taxation of profits derived from foreign operations.

We periodically evaluate the realizability of our deferred tax assets based on all available evidence, both positive and negative. The realization of the net deferred tax assets is dependent on our ability to generate sufficient future taxable income during the periods prior to the expiration of tax attributes to fully utilize these assets. Given our current and anticipated future earnings, we may release a significant portion of our valuation allowance in the foreseeable future if there is sufficient positive evidence that outweighs the negative evidence. The release of the valuation allowance would result in the recognition of certain deferred tax assets and a corresponding decrease to income tax expense for the period the release is recorded. However, the exact timing and amount of any potential valuation allowance release remains uncertain and is subject to change on the basis of the level of profitability that we are able to actually achieve. As of April 30, 2026, we continue to maintain a full valuation allowance on our deferred tax assets in the United States.

23

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Key Business Metrics

We review a number of operating and financial metrics, including the following key metrics, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions.

			As of April 30,
			2026						2025
			(dollars in millions)
Customers with annual contract value (“ACV”) above $100,000			5,180						4,870
Dollar-based net retention rate for the trailing 12 months ended			107		%				106		%
Current remaining performance obligations			$	2,499					$	2,227
Remaining performance obligations			$	4,719					$	4,084

Number of Customers with Annual Contract Value Above $100,000

The number of customers who have greater than $100,000 in annual contract value (“ACV”) with us was 5,180 and 4,870 as of April 30, 2026 and 2025, respectively. We expect this trend to continue as larger enterprises recognize the value of our platforms and replace their legacy identity access management infrastructure. We define a customer as a separate and distinct buying entity, such as a company, an educational or government institution, or a distinct business unit of a large company that has an active contract with us or one of our partners to access our platforms. For purposes of determining our customer count, we do not include customers that use our platforms under self-service arrangements only.

Dollar-Based Net Retention Rate

Part of our ability to generate revenue is dependent upon our ability to maintain our relationships with our customers and to increase their utilization of our platforms. We believe we can achieve these goals by focusing on delivering value and functionality that enables us to both retain our existing customers and expand the number of users and solutions used within an existing customer. One way that we assess our performance in this area is by measuring our Dollar-Based Net Retention Rate. Our Dollar-Based Net Retention Rate measures our ability to increase revenue across our existing customer base through expansion of users and solutions associated with a customer as offset by churn and contraction in the number of users and/or solutions associated with a customer.

Our Dollar-Based Net Retention Rate is based upon our ACV, which is calculated based on the terms of that customer’s contract and represents the total contracted annual subscription amount as of that period end. We calculate our Dollar-Based Net Retention Rate as of a period end by starting with the ACV from all customers as of twelve months prior to such period end (“Prior Period ACV”). We then calculate the ACV from these same customers as of the current period end (“Current Period ACV”). Current Period ACV includes any upsells and is net of contraction or churn over the trailing twelve months but excludes ACV from new customers in the current period. We then divide the Current Period ACV by the Prior Period ACV to arrive at our Dollar-Based Net Retention Rate. Our Dollar-Based Net Retention Rate is inclusive of ACV from self-service customers.

Our Dollar-Based Net Retention Rate is primarily attributable to our healthy gross retention, an expansion of users and upselling additional solutions within our existing customers. Larger enterprises often implement a limited initial deployment of our platforms before increasing their deployment on a broader scale.

Remaining Performance Obligations (“RPO”)

RPO represent all future, non-cancelable, contracted revenue under our subscription contracts with customers that has not yet been recognized, inclusive of deferred revenue that has been invoiced and non-cancelable amounts that will be invoiced and recognized as revenue in future periods. Current RPO represents the portion of RPO expected to be recognized during the next 12 months. RPO fluctuates due to a number of factors, including the timing, duration and dollar amount of customer contracts and fluctuations in foreign currency exchange rates.

24

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Liquidity and Capital Resources

As of April 30, 2026, our principal sources of liquidity were cash, cash equivalents and short-term investments totaling $2,589 million, which were held for working capital and general corporate purposes, including potential future acquisition activity. Our cash equivalents and investments consisted primarily of U.S. government securities, money market funds, corporate debt securities and certificates of deposit.

Recent macroeconomic events, including changes in interest rates, global inflation and bank failures, have led to further economic uncertainty in the global economy. To mitigate risk, our cash and cash equivalents are distributed across large financial institutions. In addition, we have policy restrictions in place on the types of securities that can be purchased as part of our available-for-sale securities portfolio. These restrictions take credit quality, liquidity and diversification into consideration among other criteria. We continue to monitor the impacts of this situation; however, there can be no assurances that conditions in the banking sector and in global financial markets will not worsen and/or adversely affect us.

In January 2026, our board authorized a stock repurchase program of up to $1 billion of our outstanding shares of Class A common stock. We have repurchased and may continue to repurchase shares of our Class A common stock from time to time through open market purchases, in privately negotiated transactions, or by other means. Open market repurchases may be structured to occur in accordance with the requirements of Rule 10b-18. We may also, from time to time, enter into Rule 10b5-1 trading plans to facilitate repurchases of shares. The timing and the amount of stock repurchases under the Share Repurchase Program will be based on our evaluation of factors including business and market conditions, corporate and regulatory requirements, and other considerations. The Share Repurchase Program does not obligate us to repurchase any specific number of shares and may be modified, suspended, or terminated at any time. During the three months ended April 30, 2026, we repurchased and immediately retired 3,026,820 shares of our Class A common stock for an aggregate amount, including commissions, of $241 million under the Share Repurchase Program. As of April 30, 2026, $680 million of the originally authorized amount under the Share Repurchase Program remained available for future repurchases.

We satisfy employee tax withholding obligations due upon the vesting of share-based awards through net share settlement using available cash. This practice reduces our equity dilution rate and impacts liquidity as our cash requirements for these obligations are primarily driven by the market price of our Class A common stock at the time of vesting. During the three months ended April 30, 2026 and April 30, 2025, cash paid to satisfy these employee tax withholding obligations was $48 million and $54 million, respectively.

In June 2020, we completed our private offering of the 2026 Notes due on June 15, 2026 and received aggregate gross proceeds of $1,150 million. The interest rate on the 2026 Notes is fixed at 0.375% per year and is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2020. In connection with the 2026 Notes, we used a portion of the proceeds to enter into capped call transactions (“2026 Capped Calls”) with respect to our Class A common stock. As of April 30, 2026, the outstanding principal balance of the 2026 Notes of $350 million is classified as a current liability due to their upcoming maturity on June 15, 2026 and we have elected to settle the principal amount of the 2026 Notes in cash.

We believe our existing cash and cash equivalents, our investments and cash provided by sales of our solutions will be sufficient to meet our short-term and long-term projected working capital and capital expenditure needs for the foreseeable future. Our future capital requirements will depend on many factors, including our subscription growth rate, subscription renewal activity, billing frequency, the timing and extent of spending to support development efforts, the expansion of sales and marketing activities, the expansion of our international operations, the introduction of new and enhanced product offerings, and the continuing market adoption of our platforms. We continue to assess our capital structure and evaluate the merits of deploying available cash. We may in the future enter into arrangements to acquire or invest in complementary businesses, services and technologies, including intellectual property rights; additionally, we have repurchased, and may in the future, repurchase shares of our Class A common stock from time to time under our Share Repurchase Program. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in new technologies, this could reduce our ability to compete successfully and harm our results of operations.

25

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

A significant majority of our customers pay in advance for annual subscriptions. Therefore, a substantial source of our cash is from our deferred revenue, which is included on our condensed consolidated balance sheet as a liability. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is recognized as revenue in accordance with our revenue recognition policy. As of April 30, 2026, we had deferred revenue of $1,752 million, of which $1,729 million was recorded as a current liability and is expected to be recorded as revenue in the next 12 months, provided all other revenue recognition criteria have been met.

Cash Flows

The following table summarizes our cash flows for the periods indicated:

			Three Months Ended April 30,
			2026						2025
			(dollars in millions)
Net cash provided by operating activities			$	277					$	241
Net cash used in investing activities			(78)						(120)
Net cash used in financing activities			(293)						(45)
Effects of changes in foreign currency exchange rates on cash, cash equivalents and restricted cash			(2)						9
Net increase (decrease) in cash, cash equivalents and restricted cash			$	(96)					$	85

Operating Activities

Our largest source of operating cash is cash collections from our customers for subscription and professional services. Our primary uses of cash from operating activities are for employee-related expenditures, marketing expenses and third-party hosting costs.

During the three months ended April 30, 2026, cash provided by operating activities was $277 million, an increase of $36 million compared to the three months ended April 30, 2025. The increase was primarily attributable to an increase in cash received from customers and improved spend efficiency.

Investing Activities

During the three months ended April 30, 2026, cash used in investing activities was $78 million compared to cash used in investing activities of $120 million during the three months ended April 30, 2025. The change was primarily driven by higher proceeds from sales, maturities and redemption of available-for-sale securities partially offset by higher purchases of securities available-for-sale.

Financing Activities

During the three months ended April 30, 2026, cash used in financing activities was $293 million, an increase of $248 million compared to the three months ended April 30, 2025. The increase was primarily attributable to an increase in common stock repurchases. The cash outlay for common stock repurchases and taxes paid on net share settlement of equity awards are generally predicated on the closing price of our stock on the respective transaction dates.

Material Cash Requirements

There were no significant changes outside the ordinary course of business to our material cash requirements disclosed in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026.

Indemnification Agreements

In the ordinary course of business, we enter into agreements of varying scope and terms pursuant to which we agree to indemnify customers, vendors, lessors, business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, services to be provided by us or from intellectual property infringement claims made by third parties. In addition, we have entered into

26

OKTA, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

indemnification agreements with our directors and certain officers and employees that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No material demands have been made upon us to provide indemnification under such agreements and there are no claims that we are aware of that could have a material effect on our condensed consolidated balance sheets, condensed consolidated statements of operations, condensed consolidated statements of comprehensive income, or condensed consolidated statements of cash flows.

Critical Accounting Estimates

There have been no significant changes to our critical accounting estimates for the three months ended April 30, 2026 from those discussed in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026.

27

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Foreign Currency Exchange Risk

The functional currencies of our foreign subsidiaries are the respective local currencies. Most of our sales are denominated in U.S. dollars, and therefore our revenue is not currently subject to significant foreign currency risk. Our operating expenses are denominated in the currencies of the countries in which our operations are located, which are primarily in the United States, Canada, United Kingdom, and Australia. Our condensed consolidated results of operations and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates and may be adversely affected in the future due to changes in foreign exchange rates. To date, we have not entered into any hedging arrangements with respect to foreign currency risk or other derivative financial instruments. During the three months ended April 30, 2026 and 2025, a hypothetical 10% change in foreign currency exchange rates applicable to our business would not have had a material impact on our condensed consolidated financial statements.

Interest Rate Risk

We had cash, cash equivalents and short-term investments totaling $2,589 million as of April 30, 2026, of which $2,361 million was invested in U.S. government securities, money market funds, corporate debt securities and certificates of deposit. Our cash and cash equivalents are held for working capital and general corporate purposes, including potential future acquisition activity. Our short-term investments are made for capital preservation purposes. We do not enter into investments for trading or speculative purposes.

Our cash equivalents and our investment portfolio are subject to market risk due to changes in interest rates. Fixed rate securities may have their market value adversely affected due to a rise in interest rates. Due in part to these factors, our future investment income may fall short of our expectations due to changes in interest rates or we may suffer losses in principal if we are forced to sell securities that decline in market value due to changes in interest rates. However, because we classify our short-term investments as “available-for-sale,” no gains are recognized due to changes in interest rates. As losses due to changes in interest rates are generally not considered to be credit-related changes, no losses in such securities are recognized due to changes in interest rates unless we intend to sell, it is more likely than not that we will be required to sell, we sell prior to maturity, or we otherwise determine that all or a portion of the decline in fair value is due to credit-related factors.

As of April 30, 2026, a hypothetical 10% relative change in interest rates would not have had a material impact on the value of our cash equivalents or investment portfolio. Fluctuations in the value of our cash equivalents and investment portfolio caused by a change in interest rates (gains or losses on the carrying value) are recorded in other comprehensive income, and are realized only if we sell the underlying securities prior to maturity.

Convertible Senior Notes

In June 2020, we issued the 2026 Notes due June 15, 2026 with a principal amount of $1,150 million. Concurrently with the issuance of the 2026 Notes, we entered into separate capped call transactions. The 2026 Capped Calls were completed to reduce the potential dilution from the conversion of the 2026 Notes. As of April 30, 2026, the outstanding principal balance of the 2026 Notes of $350 million is classified as a current liability due to their upcoming maturity on June 15, 2026.

The 2026 Notes have a fixed annual interest rate of 0.375%; accordingly, we do not have economic interest rate exposure on the 2026 Notes. However, the fair value of the 2026 Notes is exposed to interest rate risk. Generally, the fair market value of the 2026 Notes will increase as interest rates fall and decrease as interest rates rise. In addition, the fair value of the 2026 Notes fluctuates when the market price of our common stock fluctuates. The fair value was determined based on the quoted bid price of the 2026 Notes in an over-the-counter market on the last available trading day of the reporting period. See Note 6 to our condensed consolidated financial statements “Convertible Senior Notes, Net” for additional information. Changes in the interest rate environment upon maturity of this fixed rate debt could have an effect on our future cash flows and earnings, depending on whether the debt is replaced with other fixed rate debt, variable rate debt or equity.

28

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our principal executive officer and principal financial officer have concluded that, as of such date, our disclosure controls and procedures were effective at a reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

Inherent Limitations on Effectiveness of Controls

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls or our internal control over financial reporting will prevent all errors and all fraud. A control system, no matter how well-conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of a simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the controls. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

29

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

The information set forth under “Legal Matters” in Note 7 to our condensed consolidated financial statements, “Commitments and Contingencies” is incorporated by reference herein.

Item 1A. Risk Factors

Our business, results of operations, financial condition, reputation, growth prospects and stock price can be materially and adversely affected by a number of risks and uncertainties, whether currently known or unknown, including those described under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 5, 2026 (the “2026 Form 10-K”). There have been no material changes to the Company’s risk factors since the 2026 Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

Share repurchases of our Class A common stock for the three months ended April 30, 2026 were as follows:

Period						Total Number of Shares Purchased (in thousands)						Average Price Paid Per Share(1)						Total Number of Shares Purchased as Part of Publicly Announced Program (in thousands)						Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program(2) (in millions)
February 1 - 28						480						$	85.00					480						$	880
March 1 - 31						1,908						78.10						1,908						731
April 1 - 30						639						79.85						639						680
First Quarter 2027						3,027						$	79.56					3,027						$	680

(1) Includes related commissions.

(2) On January 5, 2026, our board authorized a program to repurchase up to $1 billion of our common stock.

Item 5. Other Information

Rule 10b5-1 Trading Arrangements

During the three months ended April 30, 2026, the following director and executive officers adopted Rule 10b5-1 trading arrangements intended to satisfy the affirmative defense of Rule 10b5-1(c) of the Exchange Act (the “10b5-1 Plan”):

•On April 8, 2026, Todd McKinnon, Chairperson and Chief Executive Officer, adopted a 10b5-1 Plan that provides for the sale of up to 97,083 shares of our Class A common stock, plus an indeterminable number of shares to be acquired upon the future vesting of RSUs. The 10b5-1 Plan allows for sales from July 8, 2026 until all shares are sold or March 31, 2027, whichever occurs first.

•On April 8, 2026, Brett Tighe, Chief Financial Officer, adopted a 10b5-1 Plan that provides for the sale of up to 80,000 shares of our Class A common stock held by Mr. Tighe in his individual capacity and as trustee for the Loomis Tighe Family Living Trust. The 10b5-1 Plan allows for sales from September 2, 2026 until all shares are sold or October 27, 2026, whichever occurs first.

Item 6. Exhibits

We have filed the exhibits listed on the accompanying Exhibit Index, which is incorporated herein by reference.

30

EXHIBIT INDEX

Exhibit Number

Exhibit Description

Incorporated by Reference from Form

3.1

Amended and Restated Certificate of Incorporation.

Exhibit 3.2 to Form S-1 filed on March 13, 2017

3.2

Amended and Restated Bylaws, as adopted on June 20, 2024.

Exhibit 3.1 to Form 8-K filed on June 24, 2024

10.1#

Okta Fiscal Year 2027 Sales Incentive Terms and Conditions.

Filed herewith

10.2#

Transition and Separation Agreement, dated April 21, 2026, between Larissa Schwartz and Okta, Inc.

Filed herewith

31.1

Certification of the Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Filed herewith

31.2

Certification of the Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Filed herewith

32.1*

Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Furnished herewith

101.INS

XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

Filed herewith

101.SCH

Inline XBRL Taxonomy Extension Schema Document

Filed herewith

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

Filed herewith

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

Filed herewith

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

Filed herewith

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

Filed herewith

104

Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.)

Filed herewith

_______________________________________

# Indicates management contract or compensatory plan, contract or agreement.

* The certifications furnished in Exhibit 32.1 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.

31

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

						Okta, Inc.
May 28, 2026						/s/			Brett Tighe
									Brett Tighe
									Chief Financial Officer

32

FAQ

How did Okta (OKTA) perform financially in the quarter ended April 30, 2026?

Okta generated $765 million in revenue, up from $688 million a year earlier, with net income of $74 million. Subscription sales drove the increase, while operating income reached $56 million, reflecting disciplined expense control alongside continued growth.

What were Okta (OKTA)’s key SaaS metrics this quarter?

Okta reported a Dollar-Based Net Retention Rate of 107%, indicating expansion within existing customers. Remaining performance obligations were $4,719 million, with $2,499 million expected as revenue in the next 12 months, supporting visibility into future subscription growth.

How strong is Okta (OKTA)’s balance sheet and liquidity position?

Okta ended the quarter with $2,589 million in cash, cash equivalents and short-term investments. Total assets were $9,347 million against total liabilities of $2,448 million, leaving stockholders’ equity at $6,899 million, providing flexibility for debt repayment and investment.

What share repurchases did Okta (OKTA) complete in the quarter?

Okta repurchased and retired about 3.0 million Class A shares for $241 million at an average price of roughly $79.56 per share. After these transactions, $680 million remained available under the company’s $1 billion share repurchase authorization.

What is the status of Okta (OKTA)’s 2026 convertible senior notes?

Okta has $350 million of 2026 convertible senior notes outstanding, classified as current due to their June 15, 2026 maturity. The company stated it has elected to settle the principal amount of these notes in cash, supported by its current liquidity.

How many large customers does Okta (OKTA) have above $100,000 ACV?

Okta reported 5,180 customers with annual contract value above $100,000, up from 4,870 a year earlier. This growth in larger customers reflects broader adoption of its identity platforms across enterprises and supports recurring subscription revenue expansion.

How did Okta’s (OKTA) cash flow from operations change year over year?

Net cash provided by operating activities reached $277 million, compared with $241 million in the prior-year quarter. The increase primarily reflected higher cash collections from customers and improved spend efficiency while maintaining investment in research, sales and platform infrastructure.