Aureus
BGood

Okta, Inc.(OKTA)

B

Financial data as of Jan 31, 2026Declining · Technology

FCF Margin10.9%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$863.0M
Revenue$2.9B
Net Cash$436.0MCash exceeds debt
Debt / FCF1.3xManageable debt load
Current Ratio1.43Adequate short-term liquidity
YoY FCF Growth-22.9%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-0.5FCF trend declining (-22.9% YoY)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (1.3x)
→
FinalB

Analysis Summary

Strengths

  • Healthy FCF margin (10.9%)
  • Net cash position ($0.4B)
  • Very low debt relative to cash flow (1.3x)

Concerns

  • Significant YoY FCF decline (-22.9%)
Cash conversion ratio unavailable or not meaningfulSBC-adjusted FCF used — $0.5B stock-based compensation (63% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin10.9%
Net Margin8.1%
Operating CF Margin30.3%
CapEx Ratio0.7%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$436.0MCash exceeds debt
Debt / FCF1.3xManageable debt load
Current Ratio1.43Adequate liquidity
Debt / Equity0.06Low leverage

Quarterly FCF Trend

-22.9% YoYDeclining (-22.9%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameOkta, Inc.
SectorTechnology
Free Cash Flow$863.0M
Revenue$2.9B
Net Income$235.0M
Operating Cash Flow$884.0M
Capital Expenditure$21.0M
FCF Margin10.9%
Cash Conversion Rate—
Net Margin8.1%
Total Debt$422.0M
Total Cash$858.0M
Net Cash$436.0M
Current Ratio1.43
Debt / Equity0.06
Debt / FCF1.3x
YoY FCF Growth-22.9%
Positive Quarters5 of 5
Trend DirectionDeclining
Report DateJan 31, 2026
GradeB
Data SourceYahoo Finance