stockrowWhat it does
Okta sells cloud-based software that helps organizations manage digital identities and control access to applications, data and infrastructure. Its customers use the software for employees, contractors and partners, as well as for their own customers and other users. Okta was founded in 2010 and is headquartered in San Francisco.
The Okta Platform helps IT and security teams decide who or what can access an organization’s resources. It supports tasks such as signing in, verifying identities, assigning access and removing access when a person leaves. It also manages non-human identities, such as devices and applications that need to authenticate themselves. Customers can use it across cloud, on-premises and hybrid environments.
The Auth0 Platform is aimed at developers building applications. It provides tools for adding login, authentication and other identity features to customer- and citizen-facing software. Developers can customize how users sign in and how applications decide what those users are allowed to do.
Okta is also extending its platforms to address AI agents. Okta for AI Agents, available in early access, is designed to give customers visibility and governance over those agents. Auth0 for AI Agents provides tools for developers building applications that use them. Okta sees a potential long-term opportunity in managing access for non-human identities and AI agents, although adoption is at an early stage.
How it makes money
Okta operates as one reportable segment and earns most of its revenue from subscriptions to its cloud platforms. Subscription fees cover access to the service, technical support and platform management. The company primarily bases fees on the solutions a customer uses and the number of users on its platforms. Contracts are often multi-year, with customers typically invoiced in advance in annual installments.
FY2026 revenue was $2,919 million. No quarterly revenue total is available here.
Subscription revenue was $2.9 billion in FY2026, representing 97.8% of revenue. Professional services and other revenue was $64.0 million. Professional services include helping customers configure applications, integrate systems, implement solutions and train users. Okta generally bills time-and-materials work as it is performed and fixed-fee work up front; it recognizes professional services revenue as the services are performed.
The company sells directly through field and inside sales teams and indirectly through partners. Developers can also sign up for free trials, free plans or paid developer plans for Auth0, with the possibility of moving to paid enterprise plans. Okta seeks to increase revenue after the initial sale by adding users and selling more products, including by expanding a customer from workforce identity to customer identity or in the other direction.
Subscription revenue is generally recognized over the service period. A decline in sales in a given period may therefore not immediately appear in that period’s results. Okta also notes that customers reducing their workforce can reduce the number of identities it manages and potentially reduce revenue.
| Product or service | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Subscription | $2.9 billion | 97.8% | 11.7% |
| Professional services and other | $64.0 million | 2.19% | 18.5% |
Customers and how it sells
As of January 31, 2026, Okta had more than 20,000 customers, including 5,100 with annual contract value greater than $100,000. Its customers span nearly all industries and range from small organizations to large enterprises, universities, nonprofits and government agencies. Some customers use the platforms to manage millions of their own customers’ identities.
Okta sells to different groups within an organization. Its Okta sellers focus on IT and security buyers, including those purchasing workforce identity products and Okta Customer Identity. Auth0 sellers focus on developers who need customer identity customization and flexible development models.
Direct sales teams are supported by sales engineers, cloud architects, security staff and professional services. Indirect channels include cloud marketplaces, resellers, system integrators and other distribution partners. The company also works with technology partners on co-selling and integrations.
In FY2026, the United States generated $2.3 billion of revenue, or 79.5% of the total. International revenue was $598.0 million, or 20.5%. Okta plans to expand internationally as organizations outside the United States adopt cloud computing and AI agents.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| United States | $2.3 billion | 79.5% | 12.6% |
| International | $598.0 million | 20.5% | 9.12% |
Suppliers and costs
Okta delivers its platforms as cloud services. Its subscription costs include third-party hosting fees, software and maintenance, outside services, and employee costs for infrastructure, product security and customer support. They also include amortization of capitalized internal-use software and acquired technology, as well as allocated overhead.
Professional services costs consist primarily of employee costs for the delivery team, travel, overhead and outside services used to supplement that team. The cost of providing these services has historically been higher than the associated revenue.
Shared facilities, information technology, security and recruiting costs are allocated across departments based on headcount. Employee costs include salaries, bonuses, benefits, compensation-related taxes and stock-based compensation; sales and marketing expenses also include commissions and related taxes.
Okta intends to keep investing in platform infrastructure, support and security. The timing and amount of investments in hosting capacity, support and professional services teams can affect gross margin.
- Revenue$2.9B
- Cost of revenue−$661.0M
- Research and development−$639.0M
- Selling, general and administrative−$1.5B
- Other operating costs−$4.0M
- Operating income$149.0M
Competitive position
Okta’s principal competitor is Microsoft. It also competes with providers of authentication, identity governance, multi-factor authentication, infrastructure as a service, and customer identity and access management. Customers can alternatively build their own identity solutions, including with open-source technology. Okta’s products can coexist with competitors’ products within the same customer base.
Competition involves product capabilities, independence, total cost of ownership, ease of use, scalability, global reach and the number of pre-built integrations. Okta expects competition to intensify as established and emerging companies enter its markets, customer needs change and new technologies appear. Some competitors have greater financial, technical, sales, distribution or support resources.
The Okta Integration Network had over 7,000 integrations as of January 31, 2026. Customers can also build integrations for their own cloud and on-premises applications. The Auth0 Marketplace connects application teams with service providers and builders that address integration needs.
Our reading: The integration network and developer ecosystem are meaningful sources of differentiation because they connect Okta to many applications and customer workflows, but their value also depends on third parties continuing to build complementary integrations. Our reading: Platform neutrality can support customer choice across technologies, although Microsoft’s position and competitors’ resources limit the protection that independence alone provides.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Microsoft | Identity solutions | High |
Growth opportunities
Okta’s growth strategy includes selling more products and supporting more users within existing accounts. It also wants customers using the Okta Platform to adopt Auth0, and vice versa. The company sees a potential opportunity to help existing customers manage non-human identities and AI agents.
For large customers, Okta plans to use a land-and-expand sales model: begin with a deployment and increase its scope over time. It is focusing on customer size and industries including highly regulated sectors. Customers with annual contract value above $100,000 numbered 5,100 as of January 31, 2026, compared with 4,800 as of January 31, 2025.
The company plans to expand its international business and use system integrators, managed service providers, technology partners and other distributors to reach customers. It also intends to add integrations and grow its developer ecosystem so more applications can use its identity capabilities.
New products and use cases are another part of the strategy. Okta has developed products for AI agents and a Cross App Access extension to an emerging interoperability standard. It is also investing in research and development and may evaluate acquisitions or investments in adjacent technologies. Okta believes AI agents could create a long-term identity-management opportunity, but adoption remains in its early stages.
- $1.3BFY2022
- $1.9BFY2023
- $2.3BFY2024
- $2.6BFY2025
- $2.9BFY2026
- $3.2BFY2027 guidance
Structural risks
- Security incidents and interruptions: Breaches, technical difficulties or interruptions can affect delivery and use of Okta’s services and prompt negative customer reactions. Past incidents harmed its reputation and customer relationships and adversely affected financial results; Okta expects those incidents to affect future financial performance, though the extent is uncertain.
- Demand and customer spending: Adverse economic and industry conditions, or reductions in workforce and customer identity spending, can reduce demand. Customers that cut their workforces may also reduce the number of identities Okta manages and potentially its revenue.
- Competition: Okta expects competition to intensify as customer requirements change and new technologies enter the market. Some competitors have greater resources and may acquire or repurpose offerings to provide identity management on a subscription basis.
- Third-party ecosystem and infrastructure: Okta depends on third-party developers and technology providers to create complementary applications and integrations. Infrastructure performance problems could delay platform deployments, while difficulties involving service providers or partners can affect operations.
- Revenue timing and governance: Subscription revenue is generally recognized over the service period, so weaker sales may take time to appear in results. Class B shares carry ten votes per share, compared with one for Class A, and can give their holders effective control over matters requiring stockholder approval.
Bottom line
Our reading
Okta is a subscription-led identity software business whose expansion depends on retaining customers and adding users or products within their accounts. Its integrations and developer tools give it ways to fit into varied technology environments, while reliance on partners, competition from Microsoft and the consequences of security incidents remain central exposures. AI-agent identity is a potential extension of the business, but adoption is still early.