Okta, Inc. (OKTA): Business Model Canvas [Dec-2025 Updated]

You're digging into the engine room of one of the biggest names in identity security, and honestly, the numbers from fiscal year 2025 tell you everything you need to know about where they are heading. With total revenue hitting $2.610 billion, driven by a near-perfect 98% from subscriptions, this isn't a speculative play; it's a recurring revenue machine built on a massive ecosystem of over 7,000 integrations. If you want to see exactly how they spend big-like that $965 million on Sales & Marketing-to secure that future, check out the full Business Model Canvas breakdown below.

Okta, Inc. (OKTA) - Canvas Business Model: Key Partnerships

You're looking at how Okta, Inc. scales its identity platform across the globe; honestly, it's all about the network effect built through strategic alliances.

Okta, Inc. maintains a vast ecosystem of over 2,800 partners for identity-first security as of late 2025. This network is crucial, especially as the company reported total revenue of $742 million for the third quarter ended October 31, 2025.

The Key Partnerships block is segmented across infrastructure, deployment, and technology integration:

• Cloud providers like AWS and Google for platform hosting.
• Global System Integrators (e.g., Accenture) for large-scale deployments.
• Technology partners like Palo Alto Networks for unified security frameworks.
• Channel partners and resellers to expand market reach and distribution.
• A vast ecosystem of over 2,800 partners for identity-first security.

The reliance on the channel is significant; in fact, more than 60% of Okta, Inc.'s business goes through partners, with that percentage being even higher in the EMEA region.

Cloud providers form the foundational layer. For instance, the partnership with Amazon Web Services (AWS), recognized as Global Partner of the Year in 2025, has driven around $175 million in annual contract value, with that figure growing at 130% a year (based on August 2024 data). Google also received the Global Technology Partner of the Year award in 2025, underscoring the importance of hyperscaler alignment.

For getting the platform deployed at the largest enterprises, Global System Integrators are key. Accenture, for example, was named Global System Integrator of the Year for 2025. These engagements help drive the subscription revenue, which constituted approximately 98% of Okta, Inc.'s total revenue for the nine months ended October 31, 2025.

Technology partnerships focus on deepening the security posture. The collaboration with Palo Alto Networks, the 2025 Technology Partner Innovator of the Year, now supports nearly 2,000 joint customers with unified security architectures.

Here's a quick look at some partner-related metrics and recognitions:

The focus on embedding partners into the fabric of the go-to-market motion is clear, with management noting that channel contribution is up, and many large deals are transacted through these partners in recent months.

Okta, Inc. (OKTA) - Canvas Business Model: Key Activities

You're looking at the core engine driving Okta, Inc.'s value proposition right now. The key activities are where the rubber meets the road, turning R&D into market advantage and keeping the platform rock solid.

Relentless product innovation, especially in AI-driven identity security

Okta, Inc. is heavily focused on weaving AI into its security fabric. This isn't just talk; they announced new capabilities across the Okta Platform and Auth0 Platform on September 25, 2025, specifically to help organizations build secure, standards-first AI agents. The CEO suggested this AI agent opportunity could exceed Okta, Inc.'s core total addressable market over the next five years. To support this, R&D spending for the fiscal year ended January 31, 2025, was $642 million, which represented 25% of total revenues for that year, a more efficient spend compared to 29% in fiscal 2024. For the twelve months ending July 31, 2025, Research and Development expenses were $629 million. The company is also delivering on security posture, with 'Identity Threat Protection with Okta AI' being audit-ready for Okta for Government High as of June 20, 2025.

Here are some financial markers showing the results of this focus:

The operational results are showing up, too. For the third quarter reported late 2025, GAAP net income was $43 million, a significant jump from $16 million in the same quarter the prior year.

Maintaining and expanding the Okta Integration Network (OIN) (7,000+ integrations)

A core activity is keeping the Okta Integration Network (OIN) vast and current. As of January 31, 2025, Okta, Inc. reported over 7,000 integrations across its Workforce Identity Cloud platform. This network is a major component of the value proposition, simplifying connectivity for customers. The market for the software supporting this network is also showing growth potential; it is projected to reach USD 1.2 billion by 2031, growing at a Compound Annual Growth Rate (CAGR) of 12.5% starting from 2025.

The scale of the integration ecosystem is critical:

• Integrations available on the Workforce Identity Cloud platform: 7,000+.
• Okta Integration Network Software Market size projected for 2024: USD 450 million.
• Okta, Inc. customer count as of January 31, 2025: More than 19,650.

Go-to-market specialization to target specific enterprise and developer segments

Around the end of fiscal 2025 (Q4, which ended January 31, 2025), Okta, Inc. made a significant shift to specialize its sales organization. They focused engagement on two primary buyer personas: the enterprise buyer (CIOs and CISOs) for the Okta platform, and the developer buyer for the Auth0 platform. This specialization was a direct response to product innovation accelerating faster than the sales organization could effectively sell all products to all people. This strategic move appears to be gaining traction, as evidenced by customer metrics.

Here's how customer value is tracking post-specialization:

The subscription backlog, a key indicator of future revenue, was over $4 billion, with about $2.3 billion expected to be recognized in the 12 months following the Q3 report in late 2025.

Securing the platform and responding to evolving cyber threats

Platform security and operational stability are non-negotiable key activities. Okta, Inc. is focused on driving high cash flow margins, which funds the necessary security investments. For the full fiscal year 2025, net cash provided by operations reached $750 million, which was 29% of total revenue. Free cash flow for the same period was $730 million, representing 28% of total revenue. The company maintained a strong liquidity position, holding $2.523 billion in cash, cash equivalents, and short-term investments as of January 31, 2025. Even more recently, in the second quarter of fiscal 2026, net cash provided by operations was $167 million, or 23% of that quarter's revenue.

The efficiency in the core business supports this security focus:

• Subscription services gross margin reached 80%.
• Q2 Fiscal 2026 GAAP net income was $67 million.
• Q2 Fiscal 2025 GAAP net income was $29 million.

They are building security into the platform from the ground up. Finance: draft 13-week cash view by Friday.

Okta, Inc. (OKTA) - Canvas Business Model: Key Resources

You're looking at the core assets Okta, Inc. (OKTA) relies on to run its business, the things that make it hard for competitors to catch up. These aren't just line items on a balance sheet; they are the engine of the whole operation.

The foundation is definitely the core, cloud-native Okta Identity Cloud and Auth0 platforms. These platforms serve an installed base of over 20,000 customers as of the third quarter of fiscal year 2026. The focus is clearly shifting, with recent innovation including the launch of Auth0 for AI agents. They are actively securing this new frontier, reporting high customer interest in securing AI agents, with over 100 customers engaged in that area during Q3 FY2026.

Financially, the strength of these platforms is evident in the recurring revenue. For the full fiscal year 2025 (ended January 31, 2025), total revenue hit $2.610 billion, with subscription sales making up 98% of that, totaling $2.556 billion. By the third quarter of fiscal year 2026 (ended October 31, 2025), subscription revenue alone was $724 million. The financial discipline is also showing up in profitability metrics; for Q3 FY2026, the non-GAAP operating income margin reached 24%, translating to $178 million. Cash flow is robust too, with free cash flow margin at 28.4% in that same quarter.

The network effect built around the application integration network is a massive resource. As outlined, the 7,000+ pre-built application integrations in the Okta Integration Network (OIN) act as a key competitive moat, giving workforce customers seamless access to the technology they need. This network is constantly being refined, with updates in 2025 focusing on new submission pathways like the Integrator Free Plan.

You can't run this without the right people, either. Okta, Inc. (OKTA) relies on highly skilled engineering and sales teams focused on enterprise security. We see evidence of this focus in their operational execution; for instance, in Q3 FY2026, the company reported expanded sales capacity and improved productivity in go-to-market teams. Furthermore, the company settled the remaining principal amount of its 2025 Notes for $510 million in cash during Q3 FY2026.

Here's a quick look at some key financial figures supporting the platform's scale:

The extensive intellectual property (IP) in Identity and Access Management (IAM) underpins all of this, allowing for features like Separation of Duties for identity governance and policy-based access restrictions, which help prevent privilege creep.

• Core Platforms: Okta Identity Cloud and Auth0
• Customer Base: Over 20,000 customers
• AI Security Engagement: Over 100 customers engaged on securing AI agents
• Application Integrations: 7,000+ pre-built integrations in OIN
• FY2025 Subscription Revenue: $2.556 billion

Finance: review the Q4 FY2026 revenue guidance against the Q3 actuals by next Tuesday.

Okta, Inc. (OKTA) - Canvas Business Model: Value Propositions

You're looking at the core value Okta, Inc. (OKTA) delivers right now, late in 2025. It's all about making identity the central security fabric, which is critical when you see that 80% of all data breaches stem from attacks on Identity.

Unified identity for both workforce and customer applications.

This is the platform play, blending Okta Workforce Identity with Okta Customer Identity. The financial results show this strategy is driving growth; for the third quarter ended October 31, 2025, total revenue hit $742 million, with subscription revenue making up $724 million of that, showing the stickiness of the core offering. The long-term commitment is clear in the backlog, where Remaining Performance Obligations (RPO) stood at $4.292 billion, up 17% year-over-year. You're getting one system to manage both your employees and your end-users.

Secure Identity: a neutral, extensible platform that secures any technology.

Neutrality means you aren't locked in, and extensibility means it connects to everything. Okta, Inc. (OKTA) supports this with an ecosystem boasting over 7,000 integrations with cloud, mobile, and web applications. The focus on security is evident in market trends; security tools now account for 40% of the fastest-growing applications in the 2025 Businesses at Work report. This platform approach is translating to better operational efficiency for you, too. For the full fiscal year 2025, Non-GAAP Operating Income reached $587 million, representing a margin of 22% of total revenue.

Reduced total cost of ownership (TCO) through vendor consolidation.

When you consolidate point products onto the Okta, Inc. (OKTA) platform, the math should work out. The company's improved profitability suggests this efficiency is real. For instance, in the third quarter of fiscal 2026, the Non-GAAP operating margin hit 24% on $742 million in revenue. You can see the discipline in the operating cash flow, which was $218 million for that quarter, a healthy 29% of total revenue. Fewer vendors mean less overhead, and the financial discipline shows they are managing their own costs, too.

Advanced security products like Privileged Access and Identity Governance.

It's not just basic sign-on anymore. The traction in these advanced areas is a key value driver. CEO Todd McKinnon highlighted growing momentum for offerings like Okta Identity Governance in Q3 2026. Furthermore, the company is actively monetizing the next frontier of identity security:

• Okta is engaged with over 100 current customers on AI security products.
• These engagements represent over $200 million in existing Annual Recurring Revenue (ARR).
• The company achieved a GAAP Net Income of $43 million in Q3 2026, up from $16 million a year prior.

Developer-focused tools via Auth0 for building secure customer experiences.

Auth0 is the engine for customer-facing identity, and it's a significant business unit on its own. The President of Auth0 at Okta, Inc. (OKTA) manages a business generating approximately $1 billion in ARR. This platform is crucial for securing customer interactions, especially given the threat landscape; in 2024, an average of 46% of all registration attempts across the Auth0 platform were identified as signup attacks. The new Auth0 for AI Agents is designed to help developers secure these emerging use cases effortlessly across B2B, B2C, and internal ecosystems.

Here are the key financial snapshots from the most recent reporting periods:

Finance: draft 13-week cash view by Friday.

Okta, Inc. (OKTA) - Canvas Business Model: Customer Relationships

You're looking at how Okta, Inc. manages the relationship with its vast and varied customer base, which, as of January 31, 2025, stood at over 19,650 total customers across nearly every industry. The approach isn't one-size-fits-all; it's segmented to match the complexity and value of the customer.

Dedicated account management and enterprise sales for large customers.

The focus on large enterprise clients is clear when you look at the Annual Contract Value (ACV) cohorts. These are the relationships that get the dedicated, high-touch sales and account management teams. The base of customers with ACV above $100,000 grew to 4,800 as of January 31, 2025, up from 4,485 the prior year. This group represents over 80% of the total ACV. For the very top tier, the cohort with ACV exceeding $1 million reached 470 customers by the end of fiscal 2025, contributing over $1 billion in total ACV. By the third quarter of fiscal 2026 (ending October 31, 2025), this high-value segment expanded further, with customers exceeding $100,000 in ACV hitting 5,030.

Self-service and community support for developers and smaller businesses.

For developers and smaller businesses, the relationship scales differently. The go-to-market strategy specialized to focus on the developer buyer persona, primarily served through the Auth0 platform. This suggests a reliance on lower-touch, digital engagement models. Okta, Inc. has a Digital Acceleration team that reveals how they built and scaled digital success plans to drive customer engagement at scale, using digital touchpoints to serve customers from SMB via self-service. This model helps manage a huge customer base efficiently.

Professional services (e.g., Secure Identity Assessment) for complex deployments.

When deployments get complex, professional services step in, though the company has been intentionally shifting focus away from this area toward scalable subscription revenue. Professional services and other revenues were $54 million for the full fiscal year 2025. This marked a decrease from $58 million in fiscal 2024. This slight but steady decline tracks with Okta, Inc.'s stated focus on more scalable, self-service solutions, meaning high-touch services are becoming a smaller part of the overall revenue mix, which was 98% subscription revenue in fiscal 2025.

High-touch engagement for upsells of new products like Identity Governance.

Upselling new, higher-value products into the existing base is a key relationship driver, especially for enterprise customers. Okta Identity Governance (OIG) is a prime example of this land-and-expand motion. As of the end of fiscal 2025, OIG ended the year with over 1,300 customers. Furthermore, these OIG customers generated more than $100 million in Annual Contract Revenue (ACR) for the full fiscal year 2025. This indicates a successful, high-touch engagement strategy to drive adoption of adjacent, high-margin Identity Governance and Administration (IGA) products within the established customer base.

The dollar-based net retention rate for the trailing 12 months ending July 31, 2025, was 106%.

• The overall average contract term length is approximately 2.5 years.
• Current Remaining Performance Obligations (cRPO), which is backlog expected in the next 12 months, grew 15% to $2.248 billion as of January 31, 2025.
• Total Remaining Performance Obligations (RPO) grew 25% year-over-year to $4.215 billion as of January 31, 2025.

Finance: draft 13-week cash view by Friday.

Okta, Inc. (OKTA) - Canvas Business Model: Channels

You're looking at how Okta, Inc. gets its identity solutions into the hands of customers and developers as of late 2025. The strategy clearly splits between high-touch enterprise sales and broad, self-service adoption, with partners acting as a major force multiplier.

The investment in the direct sales force is reflected in the operating expenses. For the fiscal year ended January 31, 2025, Okta, Inc. reported sales and marketing expenses of US$965 million. This spend represented 37% of total revenue for that fiscal year, a notable efficiency improvement from the 46% seen in fiscal year 2024. This indicates a more specialized, perhaps more productive, direct sales force structure supporting the enterprise segment.

The channel ecosystem is a significant component of Okta, Inc.'s reach. As of September 2025, the partner ecosystem was comprised of 2,800 global system integrators, MSPs, technology partners, and cloud and solutions providers. This network is crucial for localized expertise and reaching segments like the mid-market, especially in regions like EMEA.

The cloud marketplaces are a proven, high-velocity channel for procurement, particularly within the largest hyperscalers. Okta, Inc. has reported surpassing USD $1 billion in sales through the AWS Marketplace. This milestone was achieved following the introduction of services to the AWS Marketplace in December 2020.

For the developer-focused Auth0 platform, self-service adoption through online platforms and developer portals remains key. While specific developer sign-up numbers aren't available, adoption metrics for related automation tools show traction. Data from the 2025 Businesses at Work Report indicated that Okta Workflows adoption saw a 34% year-over-year increase in both Japan and France, with Israel showing 26% growth. Furthermore, new AI security offerings, including those leveraging Auth0 for AI Agents, have engaged over 100 current customers, generating more than $200 million in annual recurring revenue (ARR) as of the third quarter of fiscal year 2026.

Here's a quick look at the scale of the different channel components based on the latest available figures:

The company is clearly pushing its specialized direct sales force alongside the channel to drive adoption of its expanded portfolio, including Okta Identity Governance and AI security solutions.

The reliance on partners for deal execution is also evident in historical data, where partners were involved in POCs and technical wins for what was previously cited as about 50% of all partner-contributed revenue. The overall revenue for the fiscal year ending January 31, 2025, was $2.610 billion, with subscription revenue making up approximately 98% of that total.

You should track the Sales and Marketing spend as a percentage of revenue going forward; a sustained level near 37% suggests disciplined scaling of the direct sales motion relative to the overall revenue growth of 15.33% seen in FY2025.

• The direct sales force is increasingly specialized by product, supporting upsells in areas like Okta Identity Governance.
• The global network of channel partners is actively driving large deals, often involving system integrators.
• Cloud marketplaces serve as a critical procurement path, evidenced by the $1 billion milestone with AWS.
• Online platforms and developer portals are the primary entry point for Auth0, with strong workflow adoption growth in key international markets.

Finance: draft 13-week cash view by Friday.

Okta, Inc. (OKTA) - Canvas Business Model: Customer Segments

You're looking at how Okta, Inc. segments its buyers to drive that identity security revenue. It's not one-size-fits-all; they clearly focus on the big spenders while still nurturing the developer community that powers much of their customer identity business. The strategy shows a clear push upmarket, which is definitely reflected in the contract values.

For Large Enterprises, this is where the big Annual Contract Value (ACV) dollars are. Okta, Inc. reported having 5,030 customers with an ACV exceeding $100,000 as of October 31, 2025. This cohort is the engine for their top-line growth, representing a significant portion of the total ACV base. To give you a sense of scale, the Customer Identity ACV-which includes Auth0-accounted for 41% of the total ACV, while Workforce Identity was 59%, with each segment individually surpassing $1 billion in ACV for the full fiscal year 2025.

The Developers segment is primarily served through the Auth0 platform, which is critical for embedding identity into applications. The President of Auth0 at Okta, Inc. oversees a business unit generating approximately $1 billion in Annual Recurring Revenue (ARR). This segment faces intense security challenges; for instance, in 2024, an average of 46% of all registration attempts across the Auth0 platform were flagged as signup attacks. Okta, Inc. is now actively targeting this group with specialized offerings like Auth0 for AI agents.

The Public Sector and Government organizations represent a key area for security tool adoption. Data from Okta, Inc.'s 2025 Businesses at Work Report indicated that government organizations specifically boosted their adoption of security applications by 12% year-over-year in the period leading up to that report. You see this translate into wins, like a U.S. government customer purchasing a unified platform to replace a nonfunctional lifecycle management system.

The Mid-Market and Small-to-Medium Businesses (SMBs) make up the bulk of the total customer count, though they contribute less to the overall ACV compared to the top tier. At the end of the fourth quarter of fiscal 2025, Okta, Inc. reported a total customer base of 19,650. Subtracting the 5,030 large enterprise customers leaves a substantial base of smaller and mid-sized organizations that are crucial for volume and future expansion opportunities.

Here's a quick look at the key customer metrics we have for this period:

You should note that the focus on the top tier is intentional; those large enterprise deals drive the majority of the revenue mix. Still, the developer segment, via Auth0, is a major revenue stream in its own right, and the public sector shows strong engagement with security tooling.

Finance: draft 13-week cash view by Friday.

Okta, Inc. (OKTA) - Canvas Business Model: Cost Structure

You're looking at the core expenditures Okta, Inc. made to run and grow its identity platform for the fiscal year ended January 31, 2025. These numbers show where the money went to support their subscription-heavy model.

The largest single bucket of operating expense was dedicated to reaching new customers and supporting existing ones. Sales & Marketing expenses totaled $965 million in FY2025. To put that in perspective, that was 37% of the total revenue for the year, showing a move toward efficiency compared to the prior year's 46%.

Innovation doesn't come cheap, and Okta, Inc. continued to invest heavily in its technology stack. Research & Development (R&D) investment for FY2025 was $642 million. This investment was slightly less than the prior year, but it represented a more efficient spend relative to revenue, coming in at 25% of revenue in 2025 versus 29% in 2024.

The direct cost of delivering the service, the Cost of Revenue, was $618 million for the full fiscal year 2025. This cost is dominated by the subscription side of the business, which is the core of Okta, Inc.'s recurring revenue engine.

Here is a breakdown of the major components of the Cost of Revenue for FY2025:

The platform's global reach requires significant underlying technology investment. A key part of the Cost of Revenue, which is not explicitly broken out in the figures above, involves the cloud infrastructure and hosting costs necessary to run the identity platform for its global customer base. These third-party hosting costs are a primary use of cash from operating activities.

When you look at the total operating expenses for the period, you see the scale of the cost base Okta, Inc. managed:

• Sales and marketing expenses: $965 million.
• Research and development expenses: $642 million.
• General and administrative expenses: $448 million.
• Total Operating Expenses (GAAP): $2,066 million.

Finance: draft 13-week cash view by Friday.

Okta, Inc. (OKTA) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Okta, Inc.'s financial structure as of late 2025. The model is overwhelmingly built on predictable, recurring income, which is exactly what investors want to see in a Software-as-a-Service (SaaS) business.

For the full fiscal year 2025, Okta, Inc. reported total revenue of $2.610 billion. This figure represents a 15% increase year-over-year. The vast majority of this top line is sticky, subscription-based revenue.

Subscription revenue was $2.556 billion for fiscal year 2025, which means it accounted for approximately 98% of the total revenue. This dominance confirms the strength of the recurring revenue model. The remaining portion comes from professional services and other non-subscription activities.

Professional services revenue was reported at $54 million in FY2025. This segment saw a slight decline from prior years, which often signals a successful shift toward more scalable, self-service adoption of the core platform.

The recurring revenue is cleanly segmented across the two primary product pillars, Workforce Identity and Customer Identity, which includes the Auth0 platform. These two segments drive the Annual Contract Value (ACV) growth, and both have achieved significant scale.

The growth rates show that the Customer Identity segment, bolstered by Auth0, is expanding faster, though both are substantial revenue drivers. The company has also been expanding its offerings into adjacent, high-value areas.

This recurring revenue base is further supported by expansion within the existing customer base, which is where upsell revenue comes into play. The strategy includes driving adoption of newer, higher-tier products to increase the value of each customer relationship. These upsell opportunities are concentrated in areas like Identity Governance and Privileged Access solutions, which expand the total addressable market Okta, Inc. can capture from its current users.

Here's a quick look at the key components driving that recurring revenue:

• Recurring revenue from Workforce Identity securing employee access.
• Recurring revenue from Customer Identity (Auth0) securing external user access.
• Upsell revenue from new product adoption, such as Identity Governance.
• Upsell revenue from adoption of Privileged Access management tools.

The dollar-based net retention rate for the trailing 12-month period was 107%, showing that even with some pressure, existing customers are still expanding their spend slightly year-over-year. Finance: draft 13-week cash view by Friday.