Okta, Inc. has authorized a share repurchase program that allows the company to buy back up to $1 billion of its Class A common stock, with the program taking effect immediately. The move signals management’s confidence that the shares are undervalued and that the company has sufficient liquidity to fund the program without compromising its growth initiatives.
The program will be financed from Okta’s strong balance sheet, which as of January 2, 2026 shows $2.46 billion in cash and short‑term investments against $350 million of debt. Over the last twelve months the company generated $904 million in levered free cash flow, giving it ample cash flow to support the buyback while continuing to invest in AI and identity‑security capabilities.
Okta’s board noted that the company has no debt maturities beyond the 2026 notes, and that the program is part of a broader strategy to return capital to shareholders while maintaining a robust cash position for strategic acquisitions and product development. The company’s market capitalization was $14.83 billion and its enterprise value $12.72 billion at the time of the announcement, underscoring the scale of the program relative to the firm’s overall valuation.
The announcement reflects Okta’s ongoing commitment to shareholder value and its belief that the current share price does not fully reflect the company’s long‑term growth prospects, particularly in the expanding AI‑agent security market. By executing a sizable buyback, Okta demonstrates that it can generate excess cash while still pursuing strategic investments in AI, identity security, and related acquisitions such as Axiom Security.
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