diff --git a/src/operator/api/v1alpha3/clientintents_types.go b/src/operator/api/v1alpha3/clientintents_types.go
index 75c644f87..c4e626a47 100644
--- a/src/operator/api/v1alpha3/clientintents_types.go
+++ b/src/operator/api/v1alpha3/clientintents_types.go
@@ -572,13 +572,13 @@ func clientIntentsStatusToCloudFormat(clientIntents ClientIntents, intent Intent
 
 	status.IstioStatus.ServiceAccountName = toPtrOrNil(serviceAccountName)
 	isSharedValue, ok := clientIntents.Annotations[OtterizeSharedServiceAccountAnnotation]
-	if !ok {
-		return nil, false, errors.Errorf("missing annotation shared service account for client intents %s", clientIntents.Name)
-	}
-
-	isShared, err := strconv.ParseBool(isSharedValue)
-	if err != nil {
-		return nil, false, errors.Errorf("failed to parse shared service account annotation for client intents %s", clientIntents.Name)
+	isShared := false
+	if ok {
+		parsedIsShared, err := strconv.ParseBool(isSharedValue)
+		if err != nil {
+			return nil, false, errors.Errorf("failed to parse shared service account annotation for client intents %s", clientIntents.Name)
+		}
+		isShared = parsedIsShared
 	}
 	status.IstioStatus.IsServiceAccountShared = lo.ToPtr(isShared)
 
diff --git a/src/operator/api/v1beta1/clientintents_types.go b/src/operator/api/v1beta1/clientintents_types.go
index 2697af5ff..28e38640e 100644
--- a/src/operator/api/v1beta1/clientintents_types.go
+++ b/src/operator/api/v1beta1/clientintents_types.go
@@ -574,13 +574,13 @@ func clientIntentsStatusToCloudFormat(clientIntents ClientIntents, intent Intent
 
 	status.IstioStatus.ServiceAccountName = toPtrOrNil(serviceAccountName)
 	isSharedValue, ok := clientIntents.Annotations[OtterizeSharedServiceAccountAnnotation]
-	if !ok {
-		return nil, false, errors.Errorf("missing annotation shared service account for client intents %s", clientIntents.Name)
-	}
-
-	isShared, err := strconv.ParseBool(isSharedValue)
-	if err != nil {
-		return nil, false, errors.Errorf("failed to parse shared service account annotation for client intents %s", clientIntents.Name)
+	isShared := false
+	if ok {
+		parsedIsShared, err := strconv.ParseBool(isSharedValue)
+		if err != nil {
+			return nil, false, errors.Errorf("failed to parse shared service account annotation for client intents %s", clientIntents.Name)
+		}
+		isShared = parsedIsShared
 	}
 	status.IstioStatus.IsServiceAccountShared = lo.ToPtr(isShared)
 
diff --git a/src/operator/api/v2alpha1/clientintents_types.go b/src/operator/api/v2alpha1/clientintents_types.go
index 0794ebf89..a5a37fa65 100644
--- a/src/operator/api/v2alpha1/clientintents_types.go
+++ b/src/operator/api/v2alpha1/clientintents_types.go
@@ -740,13 +740,13 @@ func clientIntentsStatusToCloudFormat(clientIntents ClientIntents, intent Target
 
 	status.IstioStatus.ServiceAccountName = toPtrOrNil(serviceAccountName)
 	isSharedValue, ok := clientIntents.Annotations[OtterizeSharedServiceAccountAnnotation]
-	if !ok {
-		return nil, false, errors.Errorf("missing annotation shared service account for client intents %s", clientIntents.Name)
-	}
-
-	isShared, err := strconv.ParseBool(isSharedValue)
-	if err != nil {
-		return nil, false, errors.Errorf("failed to parse shared service account annotation for client intents %s", clientIntents.Name)
+	isShared := false
+	if ok {
+		parsedIsShared, err := strconv.ParseBool(isSharedValue)
+		if err != nil {
+			return nil, false, errors.Errorf("failed to parse shared service account annotation for client intents %s", clientIntents.Name)
+		}
+		isShared = parsedIsShared
 	}
 	status.IstioStatus.IsServiceAccountShared = lo.ToPtr(isShared)
 
diff --git a/src/operator/api/v2beta1/clientintents_types.go b/src/operator/api/v2beta1/clientintents_types.go
index 6a6846e5c..73f808bff 100644
--- a/src/operator/api/v2beta1/clientintents_types.go
+++ b/src/operator/api/v2beta1/clientintents_types.go
@@ -743,13 +743,13 @@ func clientIntentsStatusToCloudFormat(clientIntents ClientIntents, intent Target
 
 	status.IstioStatus.ServiceAccountName = toPtrOrNil(serviceAccountName)
 	isSharedValue, ok := clientIntents.Annotations[OtterizeSharedServiceAccountAnnotation]
-	if !ok {
-		return nil, false, errors.Errorf("missing annotation shared service account for client intents %s", clientIntents.Name)
-	}
-
-	isShared, err := strconv.ParseBool(isSharedValue)
-	if err != nil {
-		return nil, false, errors.Errorf("failed to parse shared service account annotation for client intents %s", clientIntents.Name)
+	isShared := false
+	if ok {
+		parsedIsShared, err := strconv.ParseBool(isSharedValue)
+		if err != nil {
+			return nil, false, errors.Errorf("failed to parse shared service account annotation for client intents %s", clientIntents.Name)
+		}
+		isShared = parsedIsShared
 	}
 	status.IstioStatus.IsServiceAccountShared = lo.ToPtr(isShared)
 
diff --git a/src/operator/controllers/intents_reconcilers/cloud_reconciler_test.go b/src/operator/controllers/intents_reconcilers/cloud_reconciler_test.go
index c9e7508d4..89c05bd38 100644
--- a/src/operator/controllers/intents_reconcilers/cloud_reconciler_test.go
+++ b/src/operator/controllers/intents_reconcilers/cloud_reconciler_test.go
@@ -476,7 +476,29 @@ func (s *CloudReconcilerTestSuite) TestIntentStatusFormattingError_MissingShared
 		},
 	}
 
-	s.expectReconcilerError(clientIntents)
+	expectedIntent := graphqlclient.IntentInput{
+		ClientName:      lo.ToPtr(clientName),
+		ServerName:      lo.ToPtr(server),
+		Namespace:       lo.ToPtr(testNamespace),
+		ServerNamespace: lo.ToPtr(testNamespace),
+		Type:            lo.ToPtr(graphqlclient.IntentTypeHttp),
+		Resources: []*graphqlclient.HTTPConfigInput{
+			{
+				Path:    lo.ToPtr("/login"),
+				Methods: []*graphqlclient.HTTPMethod{lo.ToPtr(graphqlclient.HTTPMethodGet), lo.ToPtr(graphqlclient.HTTPMethodPost)},
+			},
+		},
+		Status: &graphqlclient.IntentStatusInput{
+			IstioStatus: &graphqlclient.IstioStatusInput{
+				ServiceAccountName:     lo.ToPtr(serviceAccountName),
+				IsServiceAccountShared: lo.ToPtr(false),
+				IsClientMissingSidecar: lo.ToPtr(false),
+				IsServerMissingSidecar: lo.ToPtr(false),
+			},
+		},
+	}
+
+	s.assertReportedIntents(clientIntents, []graphqlclient.IntentInput{expectedIntent})
 }
 
 func (s *CloudReconcilerTestSuite) TestIntentStatusFormattingError_MissingSidecar() {