Is Okta, Inc. (OKTA) Halal?

NASDAQ Technology United States $13.0B
✓ HALAL
Confidence: 95/100
Okta, Inc. (OKTA) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 6.7% against the AAOIFI threshold of 30%, Okta, Inc. comfortably passes the key financial ratio tests. The company operates in the Technology sector (Software - Infrastructure), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from January 2026

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 6.7%
/ 30%
17.6%
/ 30%
4.3%
/ 30%
4.06%
/ 5%
✓ HALAL
DJIM 6.7%
/ 33%
17.6%
/ 33%
4.3%
/ 33%
4.06%
/ 5%
✓ HALAL
MSCI 10.1%
/ 33%
26.7%
/ 33%
6.6%
/ 33%
4.06%
/ 5%
✓ HALAL
S&P 6.7%
/ 33%
17.6%
/ 33%
4.3%
/ 33%
4.06%
/ 5%
✓ HALAL
FTSE 10.1%
/ 33%
26.7%
/ 33%
6.6%
/ 50%
4.06%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
55.9
Forward: 17.3
EPS
$1.31
P/B Ratio
1.9
EV/EBITDA
43.6
EV: $10.9B
Revenue
$2.9B
Growth: 11.6%
Beta
0.8
Average volatility
Current Ratio
1.4

Profitability

Gross Margin 77.4%
Operating Margin 6.6%
Net Margin 8.1%
Return on Equity (ROE) 3.5%
Return on Assets (ROA) 1.0%

Cash Flow & Balance Sheet

Operating Cash Flow$884M
Free Cash Flow$863M
Total Debt$422M
Debt-to-Equity6.4
Current Ratio1.4
Total Assets$9.7B

Price & Trading

Last Close$79.38
50-Day MA$81.71
200-Day MA$88.78
Avg Volume3.1M
Beta0.8
52-Week Range
$68.77
$127.57

About Okta, Inc. (OKTA)

CEO
Mr. Todd McKinnon
Employees
6,366
Sector
Technology
Industry
Software - Infrastructure
Country
United States
Exchange
NASDAQ
Market Cap
$13.0B
Currency
USD

Okta, Inc. operates as an identity partner in the United States and internationally. It offers Single Sign-on to secure access to cloud and on-premises applications from any device; Adaptive MFA for a risk-based layer of security for an organization's cloud, mobile, and web applications; API Access Management, which enables organizations to secure APIs as systems; Access Gateway, which extends the Okta platform to hybrid IT environments; Okta Device Access, which extends Okta platform's secure access management to the device login experience; Universal Directory for a cloud-based system of record. The company also provides Identity Threat Protection; Identity Security Posture Management for security measures and safeguards digital assets; Okta for AI Agents to discover, register, authenticate, govern, and manage AI Agents; Identity Governance and Administration products, including Lifecycle Management, Okta Workflows, Okta Identity Governance, and Cross App Access; Advanced Server Access for continuous and contextual access management to secure cloud infrastructure; and Okta Privileged Access to reduce risk with unified access and governance management. In addition, it provides Universal Login, a standards-based login infrastructure; Attack Protection Suite to minimize risks associated with identity-targeted attacks; Adaptive MFA; Passwordless, which enables users to login without a password; Machine-to-Machine Tokens for authentication and authorization with NHIs; Private Cloud, a deployment option; Organizations, which support a large number of partners or customers; Extensibility, which enables customers to build customized identity flows; Fine Grained Authorization, which manages complex authorization scenarios; and Auth0 for AI Agents to secure and scale agentic applications. The company was formerly known as Saasure, Inc. Okta, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

Purification Calculator

As a halal stock with 4.06% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Okta, Inc. (OKTA) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Okta, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Okta, Inc.'s debt ratio?

Okta, Inc.'s debt ratio is 6.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 10.1%.

Does Okta, Inc. require dividend purification?

Yes, Okta, Inc. has an impermissible income ratio of 4.06%, which means 4.06% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Okta, Inc.'s key financial metrics?

Okta, Inc. has a market capitalization of $13.0B, trailing P/E ratio of 55.9, and revenue of $2.9B. The company maintains a gross margin of 77.4% and a net margin of 8.1%. Return on equity stands at 3.5%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.