Okta Inc (NASDAQ:OKTA) reported second-quarter financial results after the market close on Tuesday. Here’s a look at the key details from the report.
Q2 Highlights: Okta reported second-quarter revenue of $728 million, beating analyst estimates of $712.01 million, according to Benzinga Pro. The cloud-native cybersecurity company reported second-quarter adjusted earnings of 91 cents per share, beating analyst estimates of 84 cents per share.
Total revenue was up 13% on a year-over-year basis as subscription revenue increased 12%. Remaining performance obligations totaled $4.15 billion at quarter's end, up 18% year-over-year.
Net cash provided by operations was $167 million, up from $86 million in the prior year’s quarter. Okta generated free cash flow of $162 million in the second quarter, up from $78 million year-over-year.
The company ended the quarter with approximately $2.86 billion in cash, cash equivalents and short-term investments.
“Okta’s unified identity platform is winning customers ranging from the world’s largest global organizations to massive government agencies,” said Todd McKinnon, co-founder and CEO 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.”
What’s Next: Okta expects third-quarter revenue of $728 million to $730 million versus estimates of $723.55 million. The company anticipates third-quarter adjusted earnings of 74 to 75 cents per share versus estimates of 75 cents per share.
Okta also raised its full-year guidance. The company now expects fiscal 2026 revenue to be in the range of $2.875 billion to $2.885 billion, up from prior guidance of $2.85 billion to $2.86 billion. The company now expects full-year adjusted earnings of $3.33 to $3.38 per share, up from prior guidance of $3.23 to $3.28 per share. Analysts are forecasting full-year revenue of $2.864 billion and full-year earnings of $3.28 per share, per Benzinga Pro.
Okta executives will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.
OKTA Price Action: Okta shares were up 4.18% in after-hours Tuesday, trading at $95.39 at the time of publication, according to Benzinga Pro.
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