Earnings Call Intelligence Subscribe
Home › Call Sheets › OKTA › Q1'26
Call sheet · Q1'26

Okta (OKTA)

Q1'26 earnings call · held 2025-05-27 · compared with the Q4'25 call · management-credibility review
10/12
Disclosure score
2 medium, 4 low flags
Financial quality
Bottom line
The sleeper story is go-to-market specialization actually working - Auth0 record quarter following record Q4, majority of top deals from new business, pipeline strengthening while competitors weakened in April. The obvious headline is macro conservatism, but Todd admitted they didn't see it in Q1 and Brett's adding prudence based on 'feeling in the environment' - this is guidance sandbagging, not fundamental deterioration. The binding constraint is federal contract structure with one-year mandates creating annual renewal exposure just as government efficiency initiatives create uncertainty. Todd's most revealing quote: 'We didn't see April softness that other companies say' - suggests market share gains while sector struggled. My view changes if Q2 pipeline conversion disappoints or if federal delays exceed the 'near-term uncertainty' they've guided for.

The 30-second version

  • Go-to-market specialization actually working but masked by macro prudence
  • Pipeline strengthening through March/April while peers saw April weakness
  • Non-human identity opportunity exploding but monetization timeline murky

What changed this quarter

MetricQ4'25Q1'26Change
Total Revenue$618M (12% YoY Q4)$617M (12% YoY Q1)Flat sequentially, maintained 12% growth
Current RPO$2.41B (15% YoY Q4)$2.205B (13% YoY Q1)Down $205M sequentially, 200bps decel
Non-GAAP Operating Margin26% Q4Record levels (implied 25%+ Q1)Sustained record profitability
Free Cash Flow Margin32% Q425% Q1 (w/ $11M severance)Strong but down seasonally
$1M+ ACV Customers470 customers (22% YoY Q4)495 customers (20% YoY Q1)Added 25 customers, slight decel
Auth0 PerformanceRecord bookings Q4Strong Q1 following record Q4Sustained momentum post-specialization
New Product Bookings %20%+ of Q4 bookings'In the zip code as the last few'Sustained at ~20% level
Public Sector DealsStrong Q4 performance4 of top 10 deals, 2 of top 3Accelerating despite federal uncertainty
Net Revenue Retention107% Q4Traveling in this range +/-Stable but seat headwinds persist
Workflow ExecutionsNot disclosed Q4Nearly 40 billion in March400% growth over 3 years

Accountability tracked

8 new promises made5 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Read the full OKTA Q1'26 report Subscribe
About Research ↗Call SheetsCredibility IndexMissed PromisesScreens13F BooksData & InstitutionalPrivacyTermsSubscribe
This is a free preview. The full write-up and promise ledger are published to subscribers on Substack.
Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

Follow what management promises next

Get free previews of our earnings-call research: the key changes, management scores, and questions worth investigating. Subscribe for full call sheets and deeper analysis.

Subscriptions are managed by Substack. If the form does not load, subscribe directly. Or follow the RSS feed.