Okta, Inc.

Identity-security SaaS leader — profitable with very strong free cash flow.

Strengths

• Profitable with strong FCF — operating margin 5%, net margin 8%, FCF $875M (83rd), FCF margin 30%

Risks

• Decelerating growth — +12%
• Breach/reputation risk — per 10-K
• Competition — per 10-K

Notable findings

• High convictionHigh conviction — notable institutional holders, insider buying, and a strong balance sheet
• Customer concentration~98% of revenue from one customer/distributor — Our revenue is relatively predictable as a result of our subscription-based business model, which constituted approximately 98% of total revenue for fiscal 2026
• Fund exitedNotable fund(s) exited this quarter: VANGUARD GROUP INC
• Exec changeRecent 8-K item 5.02 8-K ↗
• Chronic dilutionShare count +9%/yr over 4y (dilution, book value/share -15%)
• Strong balance sheetStrong balance sheet — $858M cash & investments
• Insider buyingInsider buying — 2 open-market buy(s) by 1 insider(s) (~$267,408, last 6mo) Form 4 ↗
• Insider sellingInsider selling — 43 open-market sale(s) by 7 insider(s) (cluster of 7 insiders, ~$19M, last 6mo) Form 4 ↗
• Notable holderHeld by 5 notable fund(s): FMR LLC, STATE STREET CORP, CITADEL ADVISORS LLC +2 more (as of 2026-03-31)
• AccumulatingInstitutional holders rose 12→13 QoQ (2025-12-31→2026-03-31)