Okta, a leading independent identity management platform, announced its financial results for the second quarter of fiscal year 2026, ending July 31, 2025. The company showcased robust growth in revenue, subscription backlog, and cash flow, reinforcing its position as a trusted partner for secure identity solutions across diverse organizations.
Total revenue reached $728 million, up 13% year-over-year.
Subscription revenue grew 12% to $711 million.
RPO increased 18% to $4.152 billion; cRPO up 13% to $2.265 billion.
Non-GAAP operating income rose to $202 million, a 28% margin.
Free cash flow hit $162 million, or 22% of total revenue.
Strong adoption in public sector and Auth0 drives growth.
Okta reported total revenue of $728 million for Q2 FY26, marking a 13% increase from the previous year. Subscription revenue, a key driver, grew 12% to $711 million, reflecting strong demand for Okta’s identity management solutions. The company’s unified platform continues to attract a wide range of customers, from global enterprises to government agencies, solidifying its market leadership.
The remaining performance obligations (RPO) grew 18% year-over-year to $4.152 billion, indicating strong future revenue potential. Current RPO (cRPO), representing subscription revenue expected within the next 12 months, rose 13% to $2.265 billion. These metrics highlight Okta’s ability to secure long-term customer commitments in the identity management space.
Okta achieved a GAAP operating income of $41 million, a significant improvement from a $19 million operating loss in Q2 FY25. Non-GAAP operating income reached $202 million, yielding a 28% margin, compared to $148 million and a 23% margin last year. The company also generated $167 million in operating cash flow and $162 million in free cash flow, representing 23% and 22% of total revenue, respectively, showcasing strong financial health.
“Okta’s unified identity platform is winning customers ranging from the world’s largest global organizations to massive government agencies,” said Todd McKinnon, Chief Executive Officer and co-founder of Okta. “Our solid Q2 results are highlighted by continued strength in new product adoption, the public sector, Auth0, and cash flow. In the age of AI, Okta’s independence and neutrality will continue to give organizations the freedom to innovate securely and on their own terms.”
For Q3 FY26, Okta projects total revenue of $728 million to $730 million, a 9-10% growth rate, with non-GAAP operating income of $160 million to $162 million. For the full year, the company anticipates revenue of $2.875 billion to $2.885 billion, a 10-11% increase, with a non-GAAP operating margin of 25-26% and a free cash flow margin of approximately 28%. These projections reflect Okta’s prudent approach to growth amid its go-to-market specialization.
Okta’s Q2 FY26 results demonstrate its ability to deliver consistent growth and profitability while meeting the evolving needs of organizations in the identity management space. With strong adoption in key sectors and a focus on AI-driven innovation, Okta remains well-positioned to drive secure digital transformation for its customers.
Okta, Inc. is The World’s Identity Company™. We secure identity, so everyone is free to safely use any technology. Our customer and workforce solutions empower businesses and developers to use the power of identity to drive security, efficiencies, and success — all while protecting their users, employees, and partners.
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