1. Financial Health Check
- Revenue: $2.61B
- Net Income: $28.00M
- Net Margin: 1.07%
- Revenue Growth (3yr CAGR): N/A (Need historical data)
- ROE (Return on Equity): N/A (Missing Equity)
- ROIC (Return on Invested Capital): [ROIC (Return on Invested Capital)]
- Debt/Equity: N/A (Missing Liabilities)
- Free Cash Flow Yield: [Free Cash Flow Yield]
- Free Cash Flow Trend: [Free Cash Flow Trend]
2. Financial Trends
3. Historical Data
| Year | Revenue | Net Income | Gross Profit | Op. Cash Flow |
|---|---|---|---|---|
| 2025 | 2.61B | 28.00M | 1.99B | 750.00M |
| 2024 | 2.26B | -355.00M | 1.68B | 512.00M |
| 2023 | 1.86B | -815.00M | 1.31B | 86.00M |
| 2022 | 1.30B | -848.00M | 904.00M | 104.00M |
| 2021 | 835.00M | -266.00M | 617.00M | 128.00M |
4. Competitive Advantage (Moat)
- Type of Moat: [Switching Costs]
- Strength: [Wide]
- Description: Customers that adopt more Okta products have the highest retention rates, implying high switching costs. The increasing complexity of identity security and the integration of various products into a unified platform create a sticky solution that is difficult to replace.
5. Management Quality
- CEO: [Todd McKinnon]
- Capital Allocation: Reinvesting in product innovation, prioritizing partner ecosystem, and go-to-market specialization to reignite growth. Optimizing cost structure through headcount reduction to reallocate dollars and resources toward priorities to drive growth. No specific mention of buybacks or dividends.
- Tone: [Optimistic]
- Key Quotes:
- "We're excited about the momentum we've built going into FY 2026 and are taking the right steps to advance our position as the leader in the identity market."
- "More and more customers are looking to consolidate their disparate and ineffective identity solutions, and Okta is there to meet them with the most comprehensive identity security platform in the market today."
6. Growth Prospects
- Total Addressable Market (TAM): [Size and Growth Rate]
- Market Share: [Current share and potential to gain]
- New Products/Services: [Pipeline]
7. Scuttlebutt & Soft Data
- Customer Reviews: [Trends in customer satisfaction]
- Employee Feedback: [Glassdoor ratings, turnover]
- Channel Checks: [Insights from suppliers or distributors]
8. Valuation
- P/E Ratio: [Current vs. Historical vs. Peers]
- EV/EBITDA: [Current vs. Historical vs. Peers]
- DCF Fair Value: [Estimate]
9. Risks
- [Risk 1: Headcount reduction impact on business]
- [Risk 2: Prudent approach to forward guidance due to go-to-market specialization]
- [Risk 3: Seat-based headwinds continuing to impact growth]
10. Checklist
- Do I understand the business model?
- Is the balance sheet healthy?
- Is management aligned with shareholders?
- Is the valuation reasonable?
- Is there a clear catalyst?