NAVN

Interested in Navan, Inc.? Here are five stocks we like better. Navan shares fell over 15% after Q2 earnings despite 35% revenue growth, as investors worried rising AI spending could outpace future growth. The company also acquired BoomPop, an AI-powered event-planning platform, expanding its bundled travel, expense, and meetings offering without affecting guidance. Despite the sell-off, 17 analysts give NAVN a consensus Moderate Buy rating with a $30.50 price target, suggesting about 43% upside. Navan Inc. (NASDAQ: NAVN) wouldn’t be the first company investors would think of as a target of the recent sell-off of artificial intelligence names. But that may be part of the trouble facing NAVN after the company’s Q2 earnings report for its 2027 fiscal year. That’s because in the case of Navan, a slowdown in AI growth would directly contradict the company’s current growth initiatives. The company is significantly increasing its AI spending, but investors are worried that its growth won’t keep pace. → Fabrinet, Dycom, and Qualcomm: 3 AI Fallen Angels Wall Street Just Marked Down Navan (formerly TripActions) is a corporate travel and expense management platform that bundles business travel booking, corporate cards, expense reporting, and now meetings and events into one AI-powered system. It competes against fragmented, legacy point solutions in that market, such as SAP Concur and American Express Global Business Travel (Amex GBT). NAVN is down over 15% since the earnings report. That’s despite impressive headline numbers. Quarterly revenue was up 35% year over year (YOY) to $233 million. Perhaps more significantly, the company reported its third consecutive quarter of positive earnings on a non-GAAP basis. → Rocket Lab Insiders Are Selling—But Institutions Keep Buying Both numbers exceeded analysts’ expectations. The company also raised its full-year guidance for both revenue (32% at the midpoint) and non-GAAP income (a 9% margin). That would normally be enough to push the stock higher, but that wasn’t the case. The concern is the execution of its AI strategy. Navan reported that its AI support agent, Ava, handled roughly 60% of the company’s customer interactions in Q2. Plus, over 50% of Ava calls ran on Navan’s own models, up from 30% in Q1. → The End of Big Tech Buybacks? Only One Hyperscaler Is Still Repurchasing Shares But at what cost? Navan reported a 46% increase in operating expenses, which can be attributed to the company’s AI growth. That sets up the contradiction for investors. Navan is a growing company in a resilient sector. But that growth is being fueled by AI, which creates an execution risk. That execution risk got put into even sharper focus when the company announced an acquisition that adds another variable to the equation. The same day Navan reported earnings, the company announced it had acquired BoomPop, an AI-powered platform for planning corporate meetings and events. Terms weren't disclosed. The deal wasn’t a surprise, which may explain the muted market reaction. Navan and BoomPop partnered earlier this year, and BoomPop's technology was already integrated into Navan's events offering before the acquisition made the relationship permanent. It's a pattern the company has used before, most recently with its Smartrips deal in Latin America: partner first, prove out demand, then buy and fully integrate. BoomPop brings a track record that fits Navan's consolidation pitch. The company says it has supported events for roughly 250,000 people at customers, including Accenture (NYSE: ACN), Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL), Salesforce (NYSE: CRM), and Shopify (NASDAQ: SHOP), and estimates it has cut customers' event-booking costs by about 30% on average. Management has pointed to meetings and events as a category in which most customer spend still occurs outside any managed platform. That’s the same space Navan has already targeted with travel and expense. For investors, the question is timing. Navan said the acquisition is expected to have no material impact on guidance, which helps rule out BoomPop as the source of the expense growth that spooked the market. But layering another integration onto a company already under scrutiny for rising costs explains why the post-earnings reaction ties into the AI spending debate. Will this be the kind of platform-building that pays off, or just another line item that investors have to trust management to convert into growth? The gap down after the company’s earnings report has reversed nearly all the gains NAVN made over the summer. With negative sentiment surrounding AI, investors should watch a level around $18.30 as potential support. At the same time, the relative strength indicator (RSI) has moved into oversold territory. While the RSI is not a perfect indicator, it can be a signal that bearish sentiment is overdone. The Navan analyst forecasts on MarketBeat support a bullish outlook. From the 17 analysts tracked by MarketBeat, NAVN gets a consensus Moderate Buy rating with a $30.50 price target. That’s a gain of approximately 43% from recent prices. On the other hand, short interest in NAVN, while only around 10%, has stayed higher than average in the last four quarters, which could keep some downward pressure on the stock. The article "Navan's Strong Quarter Meets an AI Spending Reality Check" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Image source: The Motley Fool. Wednesday, Sept. 9, 2026 at 5:00 p.m. ET VP of Investor Relations - Erin Rheaume Chief Executive Officer and Co-founder - Ariel Cohen CFO - Aurélien Nolf President - Michael Sindicich Operator: Please be advised that today's conference is being recorded. I would now like to turn the call over to your speaker for today, Erin, VP of Investor Relations. Please go ahead. Erin Rheaume: Thanks, Lisa. Good afternoon, everyone, and welcome to Navan's second quarter fiscal 2027 earnings conference call. With me on the call today are Ariel Cohen, our Chief Executive Officer and Co-founder, Aurélien Nolf, our CFO, and Michael Sindicich, our President. As a reminder, we publish detailed prepared remarks on our IR website. During the course of today's call, we may make forward-looking statements with the meaning of federal securities laws. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including the risks and uncertainties described in our earnings press release, our annual report on Form 10-K with the SEC on April 2, 2026, and our other filings within the SEC. In addition, on today's call, we refer to non-GAAP growth margin, non-GAAP operating margin, non-GAAP income and loss from operations, free cash flow, which are non-GAAP financial measures that provide useful information for investors. Reconciliations of these non-GAAP financial measures to their corresponding GAAP financial measures, to the extent reasonably available, can be found on our earnings press release. With that, it's my pleasure to turn the call over to Navan's CEO and Co-founder, Ariel Cohen. Ariel Cohen: Thank you, Erin, and thank you everyone for joining us. I hope you had the chance to review our prepared remarks. In this quarter, you can have only one conclusion about us. We are winning. You can see it with the following. The current usage of the platform and its growth, our new sales and growth of our end-to-end AI platform from business travel, payments and expense, VIP travel, and now meeting and events, and our AI platform leadership. We are simply executing across the board while gaining momentum. Let's talk about the current usage of the platform. This quarter, total GBV, this is travel bookings on the platform, grew by 45% year-over-year to more than $3 billion. We exceeded our expectations for both revenue and non-GAAP operating income, and we are raising our full-year FY 2025 outlook again. Customer satisfaction remains high, with CSAT of 96 and NPS of 44. Our platform is gaining usage across the board on every use case, in every geo. Let's talk about sales and new customers and us taking share. We are seeing strong sales execution across SLG. SLG is our sales-led growth, which is basically enterprise sales, and PLG, which is our product-led growth, which is our sales cycle. Our enterprise sales motion delivered another strong quarter, with SLG having their strongest sales quarter ever. New signed GBV for SLG was $4 billion in the last 12 months, and that was up 60% compared to Q2 last year. Product-led growth revenue more than doubled year-over-year again, and comes as an addition to our new sales in SLG. Payment volumes reached $1.3 billion and grew 34%, and subscription revenue was $21 million, with a growth of 39%. To be clear, our growth is not coming from one isolated part of the company. The entire system is working together. Sales, product, deployments, operations, customer success, and our global travel and fintech infrastructure. At the same time, our own execution is creating more opportunity. The volume of RFPs to Navan has tripled in the first half of the year compared to the first half of last year. We now serve 50 companies in the S&P 500, up from 45 last quarter. We are winning larger and more complex enterprise customers across the globe. The most important thing is that our investment in our sales and marketing is becoming more and more efficient with the help of AI in this huge market. AI obviously is an important part of our strategy, so let me cover that. As I've explained in our last call, before we even get to AI, it is important to understand the foundation we have built. Navan is connected to virtually every airline, hotel, rail provider, and ground transportation solution that our global customer need. Business travel and fintech connectivity are extremely complex, and we have spent the last 11 years bringing that complexity together on a single real-time global platform. This is not just about booking a trip, it's about managing the entire journey. Finding the right inventory, booking it, paying for it through a physical or a virtual Navan card, supporting the traveler, changing their itinerary where needed, and ensuring the proper credit, refund, reconciliation are handled automatically. To do that at a global scale, you need supplier relationship and negotiated rates, banking partnerships and credit lines, local entities and licenses, compliance with local law and taxes, payments infrastructure, and operational expertise in markets around the world. We have built all of this into Navan's real-time infrastructure. That foundation is extremely difficult to replicate, and it is what we believe allow us to turn our AI platform to a scalable solution, supporting big enterprises across the globe. We are not treating AI as this feature layered onto traditional travel product. We are rebuilding the travel and expense experience around intelligence, orchestration, and action. Navan Cognition is the intelligence layer that orchestrates specialized AI agents, human experts, data, live inventory, policy, payments, and fulfillment. The important distinction is that Navan does not just provide an answer. It can understand intent, take action, complete a transaction, manage the trip, reconcile the expense, and bring in a human expert with the full content when judgment is required. Ava is our AI customer support agent who is already demonstrating the value of this architecture. In Q2, Ava handled approximately 60% of customer interaction, and our customers love it. To be clear, Ava is not doing simple things like resetting your password. She is rebooking your trip when you are stranded in an airport, changing your hotel when you are not happy, taking care of your refunds, and many more complex business travel support tasks. The perfect orchestration between human and AI agents improve the traveler and our corporate customers' experience by supporting them more accurately and faster. Since servicing business travel and payments requires massive travel agency and operation support, it is very hard to scale fast. By utilizing our AI platform, we are able to support Navan usage growth without jeopardizing the quality of our service. This is one of the reasons that we are so confident to raise our guidance for the second time this year to 32% year-over-year. We are also taking increasing control of our technology stack. Approximately 50% of our Ava AI model calls now run on Navan-owned models, up from 30% in Q1. These models are purpose-built for travel and expense and trained on our own data. Over time, we believe that should give us greater accuracy, faster response time, and lower cost. AI is not just a product investment. We believe it is also an opportunity for a structural gross margins expansion and greater operating leverage. By bringing Navan capabilities directly where travel intent begins, Navan MCP extends our Navan Anywhere strategy. It provides conversational access to data across travel, expense, booking, and policy in ChatGPT, Claude, Copilot, and separately, we are adding agent capabilities in key collaboration tools like Gemini and Slack. Navan Edge is our flagship AI product. Edge is a full travel assistant who deeply understands you like a real person. It not only plans your trip, but also books everything from flights, hotels, restaurants, and events, and make the changes when needed. Simply, it is the best travel agent in the world. To summarize our AI platform, travel and fintech infrastructure are the key. Ava, Navan Anywhere, and Edge are creating the application layer value, and using our own model give us unique value proposition based on our own data. These three components allow us to grow our revenue faster with better economics while creating massive value for our customers. The last thing that I wanted to talk about is M&A and the expansion of our platform. As we have explained in the past, business travel has endless needs, and our goal is to bring every need into our AI platform. Travel is still an entry point, but is increasingly connected to payments, expense, meeting and events, VIP travel, and leisure. Each of these additional products allows us to manage more of the customers' spend, replace more fragmented workflows, and become more strategic inside the enterprise. That is flywheel we are building. Better inventory and connectivity drive better experiences, better experiences drive adoption, and broader adoption creates more opportunities across the platform. This is why we build new products and make acquisitions, and why I am so excited about our acquisition of BoomPop. This expands our capabilities in meeting and events, an enormous category that remains largely unmanaged and messy. Together with BoomPop, we expect these opportunities to make Navan more valuable to our existing customers and expand the universe of customers we can serve. BoomPop is already a partner. Our joint AI platforms allows us to plan events using conversational AI in an efficient way that was never seen before. I am super excited to welcome the BoomPop team to the Navan family. Stepping back, this quarter gives us an evidence across every layer of our business. We are growing in a resilient market. We are winning larger customers and taking share. SLG, PLG are scaling. Customers love the product. AI is improving the experience, increasing efficiency, and creating a margin advantage, and we are raising our full year outlook because our execution is strong, our visibility is improving, and the opportunity ahead is large. I want to close this by thanking the Navan team, our customers, and investors. The team is firing on all cylinders, and we are having a great time while winning. We are still in the early innings of a large opportunity, and we are building the best travel agency on the planet for the agentic era, and we are only just getting started. With that, I will turn it over to Aurélien. Aurélien Nolf: Many thanks, Ariel. It is great to be here, and thanks all for joining us today. What continues to impress me is how consistently the team is executing across the business, and Q2 was another strong example of that. Ariel just covered the broad momentum, so let me focus on the financial takeaways, which is growth and operating leverage are advancing together. Revenue was $233 million, up 35% year-over-year, and GBV reached just over $3 billion, up 45% year-over-year. Once again, we exceeded our expectations for both revenue and non-GAAP operating income. This outperformance was driven primarily by strong volume demand and bookings on the platform, with healthy expansion from existing customers, continued growth from ramping customers, and faster contribution from new launches. We also benefited from a higher premium cabin mix. Our visibility into future growth continues to improve. Over the last 12 months, we signed $4 billion of new GBV in our SLG business, a leading indicator of future revenue growth. While ramp-up timing varies by customer, meaning it does not translate to a specific growth rate for GBV in any specific period of time, we believe this metric reinforces our expanding footprint in the sector, driven by our accelerating go-to-market momentum. We are also seeing continued leverage in the platform. Non-GAAP growth margin was 75%, and non-GAAP operating margin was 7%, up from 5% a year ago. Revenue continued to grow faster than our cost base, even as we invested in AI infrastructure and product innovation. The primary driver of that is Ava higher resolution rate, which is further supported by the increasing use of our own models that are helping us scale more efficiently, and we expect further leverage over time. Free cash flow was $28 million on a trailing 12-month basis, compared with a burn of $33 million a year ago. We ended the quarter with $820 million in cash and short-term investments and approximately $125 million of debt. That gives us substantial flexibility to invest in the business and pursue strategic opportunities, but we will continue to deploy capital with discipline. Now turning to the outlook. For Q3, we expect revenue of $253 million- $255 million, representing 30% growth at the midpoint, and non-GAAP operating income of $35.5 million-$36.5 million, representing 14% margin. For the full year, and considering the sustained momentum in the business and healthy demand for business travel, we are again raising revenue guidance now to $927 million- $933 million, or 32% growth at the midpoint. We are also raising non-GAAP operating income guidance to $82 million-$86 million, or a 9% margin. Stepping back, we believe Q2 reinforces this financial story. Strong and broad-based growth, continued operating leverage, and disciplined investment. We are entering the second half with very strong momentum, very good visibility, and a very strong balance sheet. We will remain focused on converting that opportunity into durable growth and cash generation over time. I am very, very thankful for all the great and hard work happening across the company. As Ariel mentioned, we are having a great time here furthering our mission of building the best travel agency on the planet. With that, operator, we are ready for questions. Operator: Thank you. As a reminder, if you would like to ask a question, please press star 1 on your telephone. You will then hear the automated message advising your hand is raised. We also ask that you limit yourself to one question and one follow-up, as well as wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. The first question of the day will be coming from the line of Chris Quintero of Morgan Stanley. Please go ahead. Chris Quintero: Hey, Ariel. Hey, Aurélien. Thank you for taking the questions, and congrats on a great quarter here. Maybe first, you all have been seeing a lot of momentum with that RFP activity up 200% year-over-year for the past few months and quarters. Curious, on the win rate side, how that is progressing and how that is translating in terms of timing to revenue and closing those deals. Michael Sindicich: Yeah, great question. This is Michael Sindicich here. Good to hear from you again. I think in general, first of all, we are absolutely pumped, and I am so proud of the go-to-market team and everyone at Navan who is building the products and services that we are delivering. To your point, there is a lot of tailwinds that we are seeing. It is RFP volume increasing, it is industry stuff, it is the products that we deliver that drive 15% savings on average, and you can book within seven minutes, and everyone is super hyper-focused on employee efficiency, especially from the people that are generating revenues for their company, which happen to be a lot of travelers. I think with all of these tailwinds, all of the increases in the RFPs, which just gives us more at-bats, I think it is really just simply signaling to us that we are watching disruption happen in front of our eyes. We get a lot more at-bats, and we get a lot more opportunities, to your point. What we have talked about in the past is we actually see win rates increasing. We see ASPs, our average pricing, also increasing, and we see the productivity per rep also increasing. With those three things happening, that then translates to faster growth, which we show with bookings and revenue volume. For the first time, we are super happy to report on the new sales, which was $4 billion of travel volume coming from the SLG team. What that means is we then sell a deal, and then we have talked about this before, where it takes about two months on average to implement the customer. What happens then is we connect to the HR system, your SSO, the expense solution, payments, and then we set up the policy, and we launch to the company. Once we launch to the company, then it is about a five-month on average ramp until the account gets to full ramp and full adoption. That could mean deploying country by country. It could be big bang launches. On average, it is about a two-month implementation and a five-month ramp-up of the customer. That kind of gives you an hint and an idea of kind of what it takes to close the deal all the way to ramp. If you think about it, the companies that are doing RFPs are generally enterprise-type companies, so larger. Those deal cycles can be a little bit longer as well. We get an RFP, it might be 6-9 months before we have a signed contract and then go and begin the implementation. Chris Quintero: Got it. Very helpful, Michael. Then maybe as a follow-up, really great to see the subscription and payments revenue acceleration here. So maybe could you unpack some of the key drivers there? I know you all have been focused on getting your sales team out and selling more of the payments and expense management solution, but just curious, some of the details there. Michael Sindicich: Yeah, totally. It's consistent, again, with what we talked about a couple of quarters ago, but we were in an environment where we are relatively capital constrained. What that meant is we weren't as focused on selling the payments volume, which often actually comes with the expense ACD product as well. What we've done throughout the IPO is we've restructured our capital structure, we have brought on warehouses, we have the capacity, and now the sales team is going out there and really selling our payments and expense product, which you can see just how fast that acceleration has occurred just in a few quarters. We're really excited to get these products out there because customers absolutely love it, and ultimately what it does is it drives automated expense management, and the finance teams don't have to spend a lot of time reconciling their travel bookings. I don't know, Aurélien, if you have anything to add. Aurélien Nolf: Yeah, I'm super excited to see the acceleration here, right, in terms of, because the growth of the payment volume is coming across the board. We have more new customers signing up for payment and expense. We are seeing more upsells, and then we are seeing the existing base adopting our solution even more. That's why you're seeing this growth in terms of payment volume and acceleration to 34%, versus 29% last quarter. We're very excited about this product, as Michael mentioned. Chris Quintero: Excellent. Thank you both. Aurélien Nolf: Thank you. Operator: Thank you. One moment for the next question, please. Our next question is coming from the line of Patrick Walravens of Citizens. Please go ahead. Patrick Walravens: Oh, great. Thank you, and congratulations, you guys, on all the momentum. Ariel, why do you like the meeting off-site space? Who is your competition there who you're going to disrupt, and how will everyone on this call, we all go to so many conferences, and we all host so many conferences. How is our experience going to be different once you get BoomPop integrated? Ariel Cohen: Yeah. Amazing question. Thank you, Pat. Here's the thing. I always thought about Navan as we first land a customer and a business traveler, right? We tell them there is a new way to think about travel. It is way more automated. AI is part of it. It's easy to book. In the Navan platform, it takes seven minutes to book. When you want to change something, it's super fast. So really surrounding you, the traveler, around this goodness. But we also know that business travel has many more needs. We've talked about payments and expense. In the past, we talked about VIP, how can we take the VIP experience and bringing it and make it an AI experience. Meeting and events is a big part. It's actually 30% of the TAM of this market. It's a big TAM of the need, of the need of the company, of the need of the traveler. When we looked into this years ago, when we came to the market, we saw that it is so antiquated. You are basically having an RFP per event. You are sending an EA to source some hotels and restaurants and other things. It's really old school. It takes a lot of time. It's extremely not transparent. You are signing with somebody a deal. They go and negotiate with three hotels for you, and then they tell you, "This is the hotel that you're going to use." Takes a lot of time, antiquated, the opposite of what Navan is all about. So we thought if we can bring that experience to become online, to become conversational, "Hey, I want to have an event for my sales team. I'm thinking about Vegas or New York, and this is my budget, and this is what I need," and I'm talking with you or with the platform. Then the platform is actually automatically going and talking with the various providers. We are creating this match. It will make the experience completely different. People will like it. Then we, as Navan, we're going to create more value to our customers. We are basically becoming more and more their one-stop shop for every need around business travel. So that's why we are excited about it. BoomPop specifically, we know these guys for quite some time. They are the guys. They really innovated in this space. They proved that you can take something that is extremely manual and make it AI. Which by the way, 2 years ago, when I first met them, I actually didn't believe them. I went very deep and understand that it's really AI and not some story as a lot of people are telling. It's just amazing. We partnered with them. We are seeing happy customers together. We decided to make them part of Navan. Michael Sindicich: Maybe I'll add to your point about how Patrick Walravens: Oh, yes. Michael Sindicich: I was going to add how prevalent it is. People are saying that it's roughly 30% of all business travel volume is actually coming from meetings and events, so the opportunity is obviously huge. Patrick Walravens: Thank you both. Operator: Thank you. One moment for the next question. Our next question is coming from the line of Samad Samana of Jefferies. Please go ahead. Samad Samana: Hi, good evening, and thanks for taking my questions. I have one question, then I have one follow-up. Great to see the large logos, notable ones like Ingersoll Rand and Cummins. They all stood out. Just help us understand how the enterprise segment bookings looked in the quarter and maybe how the pipeline looks heading into the back half. Then I have one follow-up for Aurélien. Michael Sindicich: Yeah. I'll answer the first question about the pipeline. The RFP thing that Aurélien mentioned is a leading indicator, right? Generally, larger companies are more prone to launch a request for proposal. So, obviously, there's quite a lot of people that are interested in looking at Navan, and I think the choices are relatively limited. It's essentially antiquated version, or it's the modern AI-based travel and expense platform, which is Navan. So, that gives you an idea of the pipeline. When it comes to the specific bookings and enterprise or anything like that, we actually don't separate the two, or we haven't announced the difference between them. But in general, I'll let Aurélien talk about how bookings are trending. Aurélien Nolf: Yeah. Very healthy demand across the board, inclusive of the enterprise segment, obviously. We see companies keep leaning into business travel to generate revenue, right? When you think about the reason why people in the first place are using our platform, it's because they need to meet a prospect, they need to meet customers, they need their teams to get together. And we keep seeing more travelers traveling more and the average booking going up. So, we see very healthy level of demand across the board. Samad Samana: Great. Aurelien, just maybe a follow-up on travel price inflation. Can you help us understand how much of a tailwind that was in F2Q, and what type of assumptions are you making about that specifically for the rest of the year and the guidance? Are you assuming trends levels that we've seen in the first half of the year? Are you expecting more moderate travel price inflation? Just help us think about the F2Q impact and what's embedded in guidance. Thank you again for taking my questions. Aurélien Nolf: Yeah, absolutely. Great question. You may remember, when we discussed about Q1, we obviously mentioned that we saw in the back half of the first quarter, some more inflation than at the beginning of the quarter, obviously due to the disruptions that are happening in the world. Our assumption for the Q2 guidance was that, the exit level is what we would see throughout the second quarter, and that's exactly what happened. From that standpoint, I think steady inflation is what we've seen, throughout Q2, and this is also what we are assuming for the rest of the year. It's obviously very hard to sit here today and predict inflation, but based on everything we are hearing, all the commentaries across the industry, what we are seeing today, we believe it's a reasonable assumption. That's how we are thinking about our guidance. What I would add to that is, obviously, we are not providing a bookings guidance. We are guiding to a revenue number. As a reminder, most of the inflation is impacting flights as opposed to hotels. The way we monetize flights versus hotels is such as the impact of inflation on revenue is way less than the impact on bookings. I just wanted to also reiterate that. Operator: Thank you. One moment for the next question, please. Our next question is coming from the line of Noah Naparstek of Goldman Sachs. Your line is open. Noah Naparstek: Hey, everyone. Thanks for taking the question. Maybe one more on BoomPop. I think you cited in the deck a 30% savings rate, which just seems very impressive relative to the 15% you talk about for the rest of the business, which is already great. Just wondering where that comes from. Michael Sindicich: Yeah. I won't know all the specifics of each type of savings there, but I can talk generally about it. What BoomPop does is, first of all, as Aurélien mentioned, it's fully AI conversational-based, and what they'll do is you can explain what you want to do, and then they will actually go out and source various hotels. They will source catering. They'll source photographers. If you want to buy swag, they'll create a website for you. They'll manage your attendees. It's a very robust program that puts together in one solution, this spaghetti type of operation of doing an event. Then what happens is BoomPop has really deep relationships with suppliers, and what they do is they can bring them volume, and you can get better rates than what you would see just on the normal hotel's website. Again, not knowing exactly each specific of how it adds up, but the bulk of the savings is going to come from the discounts, from the list pricing if you were to go and do it yourself and just sign up with a hotel and book those rooms, because they're able to pass on the negotiated rates that they can get to the customer. Does that make sense? Noah Naparstek: It does. I guess if you think about your algorithm and the way you capture value through pricing, would you expect meetings and events to continue to be a higher-yielding segment for you, and this amplifies that, or would you think of it long-term as in line with the rest of the business? Aurélien Nolf: It's Aurélien here. We are usually not breaking down yield by line of business or the different components of the business. But what I can tell you is it's roughly steady and very consistent with what we are seeing. But what's really more important than that is combining the two companies gives us a huge opportunity. We have a great portfolio of customers that are all organizing meeting and events, and most of them doing that offline. And combining forces with the BoomPop team and their cutting-edge technology gives us the ability to upsell and really attach meeting and events, this business, to more and more of our customers. When I think about the value we are providing here, it's, as I already mentioned, going deeper in our relationship with our customers, through that new business of meeting and events, which we were already doing as a company, but we are now bringing it online with BoomPop. Noah Naparstek: Great, thanks. Aurélien Nolf: Thank you. Operator: Thank you. One moment please for the next question. Our next question is coming from the line of Steve Enders of Citi. Please go ahead. Steve Enders: Okay, great. Thanks for taking the questions. I guess to start, I want to ask about the Direct Connect relationship with Hilton, on the hoteling side. I guess it would be great to get your perspective on what this new relationship means and maybe how it augments the hoteling side of the business and industry moving forward. Michael Sindicich: Yeah. In general, the way that we approach our platform is to try to drive the best and the most content out there. That means connecting to multiple GDSs, like traditional agencies. It means building and being at the forefront of all the NDC connections that we can do with the airlines. It means adding low-cost carriers like your Ryanairs, EasyJets, and your Southwests. The idea is basically, we want travelers to be able to access all the best content, all the best rates, and the best inventory that is suitable for them. One thing that we launched is the Engine partnership as well, which is huge for us to add more content and more availability and better types of bookings for different industries. But on top of that, to your point, one of the things that we did is launched a direct connection to Hilton. What we are doing by connecting directly to suppliers is it allows them for more flexibility, more accurate retailing, better upselling of ancillaries that are relevant to travelers. It allows us to service these types of bookings really quickly, apply unused credits automatically, and just manage, cancel, change these types of bookings. So for us, it is not a play about driving a different yield or a different revenue from these types of things. It is about giving the right content, the best content, the best pricing to our travelers on the platform. Steve Enders: Okay, perfect. That is great to hear. Then maybe to follow up just on the margin dynamics, in the quarter, I guess anything on the revenue, I think upside was pretty strong, but I guess trying to understand that did not really flow through to the bottom line. So, trying to understand the moving pieces in that and maybe how you are thinking about those incremental investments and what you are assuming in the guide for the rest of the year as well. Aurélien Nolf: Yeah, of course. Maybe I can unpack that a little bit. First of all, as you mentioned, very strong revenue beat, and driven by a lot of bookings, great sustained momentum and demand. So, yeah, great beat on revenue. Our gross profit was more than 75% for the first time in the company history. So, we keep seeing a lot of tailwinds here coming from the rate of resolution that Ava is handling at 60% of our Q2, and that makes us way more effective, from a cost perspective, on top of obviously providing a better service for travelers. But obviously, very, very good from a gross margin perspective. Then, because we have been so successful, in our go-to-market initiatives, and with more than $4 billion new signed GBV for SLG, we are just paying more commissions, right? Again, very, very happy about the payback here and what we are seeing. We have a very, very strong and efficient go-to-market team. That led us to also beat our bottom line expectations as well. Steve Enders: Okay, perfect. Thanks for taking the questions. Aurélien Nolf: You bet. Operator: Thank you. One moment please for the next question. Next question is coming from Jed Kelly of Oppenheimer & Co.. Please go ahead. Jed Kelly: Great. Thanks for taking my question. Looking at the pace of your gross margin expansion in 2Q, sort of moderated a bit from what we were seeing the last couple of quarters. Is there anything in there to call out or is it just tougher comps? Aurélien Nolf: Yeah. We expanded gross margin, 200 basis points year-over-year in Q2. As a reminder, we expanded gross margin by 1,000 basis points over the last couple of years. So, we keep making a lot of progress there. We are launching more customers, and be very, very thoughtful about deploying human agents orchestrated with our AI agents. We're very pleased. I'm very excited to see the rate of resolution from Ava going to 60%. The team has a lot of ambition here to keep driving that mix to an even higher point, specifically as we use more and more of our own models that are more accurate, give better results, and faster results. As we keep making progress here, we're going to keep Ava handling more and more of our support function, and margins are going to keep expanding. But I am very excited about the pace of the expansion, because the secret sauce of Navan, and the reason why our customers love us is, we are not optimizing for gross margin, we are optimizing for NPS and CSAT. As a result of that, we are seeing a gross margin expansion. But first and foremost, the reason why we are successful is because we are the best travel agency on the planet. That is what comes across when you look at our satisfaction scores. Jed Kelly: Great. Then just as a follow-up, congrats again on the NDC with Hilton. Can you discuss other conversations you are having with chains on sort of direct connections? I know you just mentioned it is not about yield management, but would not this improve your yield by relying less on indirect supplier agreements? Thanks. Ariel Cohen: Yeah, that is a really good question. I think when we think about what we call internally content, it is all about all of these advantages that I was talking about when it comes to AI. Because there are so many ways to connect to suppliers, to airlines, hotels, and others. You can use a lot of aggregators, but that means that you are not always assuring the right price for the customer. But also from a merchandising perspective, you do not have the right information. So it could be the pictures of the room, it could be the size of the description. Same goes, by the way, to airlines. So when you go to the Navan platform, no matter if we show it in the UI or in a conversation in a platform like Navan Edge, it is all about really knowing what is out there, what you the user want, and create the match between that. So if any of the people on this call have used Navan Edge, obviously it is a new product. You can see that I can actually tell Navan Edge what kind of hotel, what kind of room I will want to have in my next stay in New York. It will tell me, because you like the bar and you like the gym, we suggest that you will be in this hotel. But I did not even ask about the gym or the bar. Or I did not look for the logo of the gym and the bar. So Navan Edge really knows me. That's really important. But it is thirsty for content. It really needs all of this information, like you think about merchandising. By connecting directly to suppliers, by going to aggregators, by taking all of this data, which is, by the way, Navan data now, we can actually create an amazing experience. Which, by the way, creates more revenue because you are more likely to book in the Navan platform. You are less likely to go and look for it outside because we are just giving you the better information. So this is really what lays behind the NDC strategy. Although sometimes benefits of yield to us, or benefits of pricing to the customer, the answer is yes, but that's not what drives this strategy. What drives this strategy is data, and the data that we are presenting to our customers. Jed Kelly: Thank you. Operator: Thank you. One moment, please. Our next question is coming from the line of Jared Levine of TD Cowen. Please go ahead. Jared Levine: Thank you. To start out, I was hoping you could give an update in terms of your sales headcount investments. I guess, where is capacity growth at currently at this point in the year, and where are you targeting for the rest of the year? Aurélien Nolf: Yeah. This is Aurélien. You are seeing our marketing and sales investment, which is mostly sales investment, growing at roughly the same pace Q and Q. I would not expect any significant changes this year from that standpoint. What will fluctuate every quarter is always the amount of commissions we are paying to our sales team, depending on how successful they have been. As you have seen, they have been very successful recently. Michael has been discussing about the great pipe for the rest of the year. We will be very pleased to keep investing in our marketing and sales engine for the balance of the year. Then, beyond that, if we step back from our P&L, the opportunity is massive, right? When the management team has conversations about where do we want to invest, where is the opportunity, it is very clear to us that the size of the corporate travel market is so significant, and we are such at the beginning of the penetration of that market. We are very proud of serving 50 companies out of the S&P 500, but that means many of them are up for grabs. That is the opportunity, and that is why we will keep investing in our marketing and sales engine going forward. Jared Levine: Got it. Then my follow-up, can you dig into between Smartrips and BoomPop, those two acquisitions, the impact that had to your FY27 guidance update? I guess some online resources are suggesting that BoomPop could be north of a $100 million revenue run rate, which could be pretty significant in terms of that contribution. So any kind of incremental color in terms of the impact of the guidance update would be helpful. Aurélien Nolf: Yeah. So, absolutely not those level of revenue impact. So for FY27, Smartrips is top and bottom line, very immaterial. So if it is in your model, you are doing it wrong. So it is small, very strategic, and we are very excited about it because of the access this is giving us to a lot of local inventory, IATA licenses and a great team, but immaterial impact to our financial statements in the short term. Then from a BoomPop perspective, very low single-digit impact to revenue in FY27, so far away from the number you just quoted, and a mid-single-digit impact to the non-GAAP operating income as we are integrating the team. We expect that business to become accretive in FY28, though. But FY27, the summary is immaterial impact to top and bottom line. Jared Levine: Got it. Thank you. Aurélien Nolf: Yeah, of course. Operator: Thank you. One moment, please, for the next question. Next question is coming from the line of Blair Abernethy of Rosenblatt Securities. Please go ahead. Blair Abernethy: Thanks, and great quarter, guys. Just two questions, I guess. One, any update on the transitions going on with the Reed & Mackay customer base onto your platform, just sort of how that's progressed this quarter? And then secondly, just in terms of new customer adoption of the Navan MCP and Navan Edge, maybe just any other color around what you're seeing there in terms of the profile of customers that are utilizing these new capabilities? Ariel Cohen: Sure. First of all, regarding Reed & Mackay, we really need to understand that there are two aspects there. One is really us providing VIP service on platform for most of the Navan customers. There, it is actually fully integrated, and people are super happy. As you know, we are always measuring CSAT and NPS. The Reed & Mackay customers, which are fairly traditional, used to mainly talk with agents, calling, selling, emails. We have this idea, which I have talked about in the past, to bring them on platform. Then it is a program that will take several years, and right now we are very happy with what we see. We see more and more customers of that nature actually going to this platform, and by that, really enjoying this orchestration that I am talking about, AI agents, and actually VIP agents in this case, together providing them service. The reason that we know that they are happy when they are doing this transition, their NPS and CSAT tends to be really high. That is what we see, and that is why we are continuing with this program. This is really how I am looking at this program and asking myself, is that successful or not? Are we seeing satisfaction by these very, I would say, traditional customers that want this type of service? That is that part. Regarding the question of Edge, first of all, I would say maybe the bottom line here, Edge is the fastest-growing product that we have ever launched in Navan. That is really, really important. It actually tells us that this idea that people will want to have a conversation, basically with AI, and booking their entire trip, but also having restaurants, events as part of the trip, doing all of these things automatically, while we know them very, very well, that idea resonates with a new type of customer for Navan. This is not a corporate customer that we signed with. This is actually an individual who is a business traveler that is coming to our platform and is starting to book a trip. What I am looking at is, first of all, are we growing? As I said, we are growing really fast. Second, I am asking myself is NPS is high? CSAT is high. NPS there is actually very high, significantly higher than what we see in the Navan platform. Then I am asking myself, do I see repeating usage? Remember, this is not a company that a CFO told them, "You have to use Navan." This is an individual that decided to come to our platform and book. Do I see that individual coming again for their next trip and their next trip? The number there is actually amazing. It is way more than what I was expecting, and it is actually the trend is going up. All of the numbers trend is very, very positive. We are very happy with what we see there, and I am actually very optimistic, as this starts to get scale, to start to see impact next year on our numbers. Blair Abernethy: Okay, great. Thank you. Operator: Thank you. One moment, please. The next question is coming from the line of Siti Panigrahi of Mizuho. Please go ahead. Siti Panigrahi: Thank you. Thanks for taking my question. Most of my questions are asked. Just wanted to ask on the competitive landscape, there are some kind of consolidation we saw in that legacy vendors. I am wondering how is the pipeline and win rate trending, and how you are trying to capture that market? Michael Sindicich: Yeah, in general, we see the consolidation as a big tailwind for us. I think, hopefully, customers are seeing that we are causing quite a lot of disruption because we are completely changing the way that it means to manage corporate travel in the world of technology and AI. Because of that, a leading indicator is what Ariel talked about earlier, where RFP volume has tripled since H1 of last year versus H1 of this year. Usually those RFPs are coming from more enterprise customers, and you can assume the enterprise customers are coming from more of the legacy travel management companies that are doing some of the consolidation. Hopefully, that gives you a clear view of what we are experiencing internally. Aurélien Nolf: Great. Thank you. Operator: Thank you. One moment please for the next question. Next question is coming from the line of Nafeesa Gupta of Bank of America Securities. Please go ahead. Nafeesa Gupta: Hi, thanks for taking my question. Little broad-based question here. As you win larger global enterprises, would love to understand how the long-term economics compare with some of the mid-size smaller customers you have had historically across product attach to- Aurélien Nolf: Sorry. Sorry, Nafeesa, you are cutting. Can you say that again? Nafeesa Gupta: Can you hear me now? Aurélien Nolf: Oh, yeah, it's better. Thank you. Nafeesa Gupta: All right. I'll just repeat. I was asking on your larger global enterprise wins, and how do the long-term economics compare with some of the smaller customers you've had previously across metrics like product attach, retention yield, implementation costs, and maybe expanding potential in general, how should we think about long-term trends? Aurélien Nolf: Yeah. First of all, before I compare the different cohorts or segments, just want to reiterate that it's been very steady, right? We are not seeing any shift when we look at segment by segment, not seeing any shifts from pricing or yield or the way we work with different companies. What we've been discussing in the past is, generally speaking, enterprise customers have a very different profile than mid-market or smaller entities. At the end of the day, the growth margins look very similar, but the way we construct those growth margin is a little bit different. So, enterprise customers frequently have direct negotiation rate with airlines or hotel chains, and so on those bookings that we facilitate on our platform, we charge more trip fees as opposed to getting some commission from our suppliers. The opposite would be true when you go down in the market. Every customer is made different. One of the reasons why we love all of them and all those segments, and with their different characteristics is they also come with different tailwinds that they provide to the platform. Enterprise customers are coming with very significant volumes. They are very sticky customers, and they offer a lot of opportunities for us to upsell, and attach more of the expense and payment, now the M&A business as well, and provide a lot of opportunity for our sales team to just go and upsell and grow the relationship with them. Again, different characteristics, overall similar growth margins, but being constructed in a different way. Nafeesa Gupta: Thank you. Operator: Thank you. One moment, please. Next question will be coming from the line of Scott Berg of Needham & Company. Please go ahead. Ian Black: Hi, this is Ian Black down for Scott Berg. Congratulations on the acquisition of BoomPop. What is the opportunity for more tuck-in deals like this? Are there any areas where you think you could benefit from M&A? Aurélien Nolf: Yeah, obviously, I do not have any specific target or acquisition in mind today that I want to talk about. But we are always looking for opportunities to expand like we just did to a new product that helps us upsell and attach more product to our existing relationship. That is what you saw with BoomPop. Smartrips was clearly us trying to increase, expand our footprint globally, so we could see more of that in the future. But I want to say the bar for M&A is very high, right? We really look at companies that can bring things that we do not have internally or that we think will take a long time for us to build by ourselves. But it is not a goal. It is just a tool for us to accelerate our vision. Ian Black: Thank you. Operator: Thank you. I will now like to turn the call back over to management. Please go ahead. Aurélien Nolf: Great. Thank you all. Just as last quarter, we have been asking our individual investors to submit some questions on our platform. I think, Erin, you want to share the top up-voted questions with us. Erin Rheaume: Yeah, thanks, Aurélien. I've got three. The first question, I think it's for Ariel. This is from Patrick P. He asks, the company is mostly for business use. Will there be available for individuals in the near future? Ariel Cohen: Yes. First of all, the first user that is now coming to the platform, as its own decision, is actually people that are coming to Navan Edge. These are employees that are working for companies. They either don't have a managed solution in the organization that they work for, or they are not happy with that solution, and because of it, they are coming to Navan Edge. So in a way, while they are business travelers, they have a behavior of a consumer. They are deciding to book their business trip in Navan. Across the platform, while you are using us, you can also use us for your personal needs. We internally call it the leisure, which means that let's say that I'm flying to New York, but I'm also spending the weekend there, I can actually combine the usage of my business need with my personal need. There is an entire functionality there that allows you to split the cost, to really have the personal trip isolated from the company reporting, and so on. So these two aspects today in the Navan platform are very consumerist. One, it's actually I'm deciding to use Navan Edge, and the other one, I'm expanding my business trip to a personal trip, and people like to use these two products. Erin Rheaume: Great. Thanks so much. The next question I think is for Aurélien. If business slows down, what are your cost-cutting strategies? Aurélien Nolf: Yeah. First of all, so far, so very good, right? I think we've been discussing this on this call. The demand for business travel is very, very strong right now. Obviously not something I'm focused on at the moment, because we are very excited about the volume of bookings on the platform. I think in that scenario, the process will be the exact same than we have today, which is really focused on the return of investment and being very intentional. Today, we are clearly going on the offense, because we see great payback every time we invest, be it in R&D, M&A, or marketing and sales. We see a very, very good payback, and I think if that were to be the case, the process will be, again, exactly the same. Erin Rheaume: Okay. That's really helpful. Thank you. And our last question, Michael, this one's for you. This is from John Z. Navan Rewards program, how is Navan incentivized to earn rewards users have personal stays off of this? Why do they expire? Michael Sindicich: Yeah, great question. Just to set some context so everyone here knows, Navan actually pays travelers when they choose more cost-effective options on behalf of their company for business travel. It's a really unique way to help drive that 15% savings that we bring to our customers. To the question, some airlines, hotel programs, et cetera, the points will expire, some of them don't. A lot of points programs generally are rather opaque, and the Navan platform is giving dollar for dollar. So when we give you a $1 reward, you can use it. Its value is worth $1 for a personal travel booking. Essentially, our travelers on our platform are able to triple dip. So when they make a booking, they can use their credit card and get credit card points. They can book suppliers that will give you those specific airlines and those hotel points. And then on top of that are the Navan Rewards that we pay for. Because of that, it's the kind of program that actually expires those rewards after 12 months. So our message is just make sure you hurry up and use them, if you've saved your company money, to go on a personal vacation. Aurélien Nolf: Great. Thank you. Now turning it back to the operator. Thank you all for joining us today. Operator: Thank you all for joining us today. This now concludes today's program. You may now disconnect. Erin Rheaume: Goodbye Before you buy stock in Navan, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Navan wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of September 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Navan (NAVN) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $233 million, up 35% year over year. Gross Bookings Value (GBV): Just over $3 billion, up 45% year over year. Non-GAAP Gross Margin: 75%. Non-GAAP Operating Margin: 7%, up from 5% a year ago. Non-GAAP Operating Income: Exceeded expectations for the quarter. Free Cash Flow: $28 million on a trailing one-month basis, compared with a burn of $33 million a year ago. Cash and Short-Term Investments: $820 million. Debt: Approximately $125 million. Payment Volumes: $1.3 billion, up 34%. Subscription Revenue: $21 million, up 39%. New Signed GBV (SLG): $4 billion over the last 12 months, up 60% compared to Q2 last year. Product-Led Growth (PLG) Revenue: More than doubled year over year. Customer Satisfaction (CSAT): 96. Net Promoter Score (NPS): 44. S&P 500 Customers: 50, up from 45 last quarter. Q3 Revenue Guidance: $253 million to $255 million, representing 30% growth at the midpoint. Q3 Non-GAAP Operating Income Guidance: $35.5 million to $36.5 million, representing a 14% margin. Full Year Revenue Guidance: $927 million to $933 million, or 32% growth at the midpoint. Full Year Non-GAAP Operating Income Guidance: $82 million to $86 million, or a 9% margin. Warning! GuruFocus has detected 5 Warning Sign with NAVN. Is NAVN fairly valued? Test your thesis with our free DCF calculator. Release Date: September 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total gross booking volume (GBV) grew 45% year over year to over $3 billion, exceeding expectations. Revenue increased 35% year over year to $233 million, with non-GAAP operating margin expanding to 7% from 5% a year ago. New signed GBV for sales-led growth (SLG) reached $4 billion in the last 12 months, up 60% year over year, indicating strong future revenue growth. Customer satisfaction remains high with CSAT of 96 and NPS of 44, reflecting strong product-market fit. AI platform (Navan Cognition, Ava, Navan Edge) is driving efficiency, with Ava resolving 60% of customer interactions and 50% of AI models now Navan-owned, supporting margin expansion. Gross margin expansion moderated to 200 basis points year over year in Q2, down from 1,000 basis points over the last couple of years. Revenue beat did not fully flow through to the bottom line due to higher commissions and investments in sales and marketing. BoomPop acquisition is expected to have a mid-single-digit negative impact on non-GAAP operating income in fiscal 2027, becoming accretive only in fiscal 2028. SmartTrip acquisition has immaterial financial impact in the short term, with no significant revenue contribution expected in fiscal 2027. Travel price inflation remains a headwind, with steady inflation assumed for the rest of the year, impacting bookings more than revenue. Q: Chris Quintero of Morgan Stanley asked about the momentum in RFP activity, which is up 200% year over year, and how that is progressing on the win rate side and translating into revenue.A: Michael Sindicich, President, explained that the increase in RFPs provides more opportunities. He noted that the company is seeing win rates, average pricing, and productivity per rep all increasing. He detailed the sales cycle, which involves a two-month implementation period followed by a five-month ramp-up to full adoption, with enterprise deal cycles potentially taking six to nine months to sign. Q: Patrick Walravens from Citizens JMP asked Ariel Cohen why he likes the leading off-site space, what the competition is, and how the experience will be different with BoomPop integrated.A: Ariel Cohen, CEO, stated that the meetings and events space is 30% of the total market and is currently antiquated and manual. He believes Navan can disrupt this by bringing its AI-powered, conversational platform to the space, making the experience transparent and efficient. He added that BoomPop has proven it can innovate in this area with a true AI solution. Q: Samad Samana from Jefferies asked for an update on enterprise segment bookings and the pipeline for the second half of the year.A: Michael Sindicich, President, noted that RFP volume is a leading indicator, with larger companies increasingly looking at Navan as the modern, AI-based alternative to antiquated systems. Aurelien Nolf, CFO, added that demand is very healthy across the board, including the enterprise segment, as companies continue to lean into business travel to generate revenue. Q: Samad Samana from Jefferies asked about the impact of travel price inflation in Q2 and the assumptions for the rest of the year.A: Aurelien Nolf, CFO, explained that the company assumed the exit-level inflation from Q1 would continue through Q2, which is what happened. He stated that the guidance for the rest of the year assumes steady inflation. He also noted that since most inflation impacts flights, and the company's monetization model for flights is different, the impact on revenue is less than on bookings. Q: Noah Naparst from Goldman Sachs asked about the 30% savings rate mentioned for BoomPop and where it comes from.A: Michael Sindicich, President, explained that BoomPop's AI-driven platform sources various event needs like hotels, catering, and photographers. The bulk of the savings comes from BoomPop's deep supplier relationships and its ability to pass on negotiated rates to customers, which are better than what they could get on their own. Q: Steven Enders from Citi asked about the new Direct Connect relationship with Hilton and how it augments the hoteling side of the business.A: Michael Sindicich, President, stated that the strategy is to provide the best content and rates. Connecting directly to suppliers like Hilton allows for more flexibility, better upselling of ancillaries, and quicker servicing of bookings. He clarified that this is not about driving different yield but about giving the right content and pricing to travelers. Q: Steven Enders from Citi asked about the margin dynamics in the quarter, noting that strong revenue upside didn't flow through to the bottom line.A: Aurelien Nolf, CFO, explained that the revenue beat was driven by strong bookings. He highlighted that gross profit was over 75% for the first time, aided by Ava's 60% resolution rate. He noted that the strong go-to-market success led to higher commission payments, which impacted the bottom line, but the company still beat its bottom-line expectations. Q: Jared Levine from TD Cowen asked for an update on sales headcount investments and capacity growth for the rest of the year.A: Aurelien Nolf, CFO, said that sales and marketing investment is growing at a similar pace quarter over quarter, with fluctuations due to commissions. He emphasized that the market opportunity is massive, and the company plans to keep investing in its sales engine, as it only serves 50 of the S&P 500 companies. Q: Jared Levine from TD Cowen asked about the financial impact of the SmartTrip and BoomPop acquisitions on the FY27 guidance.A: Aurelien Nolf, CFO, clarified that SmartTrip's impact is immaterial for fiscal '27. For BoomPop, he stated the impact is very low single-digit on revenue and mid-single-digit on non-GAAP operating income, far from the $100 million run rate suggested online. He expects BoomPop to become accretive in fiscal '28. Q: Blair Abernethy from Rosenblatt Securities asked for an update on the transition of Reed & Mackay customers to the platform and the adoption of new products like Navan MCP and Navan Edge.A: Ariel Cohen, CEO, said the Reed & Mackay transition is a multi-year program, and they are happy with the progress as customers enjoy the AI and human agent orchestration. He also shared that Navan Edge is the fastest-growing product ever launched, with high NPS and repeat usage, indicating strong demand from individual business travelers. Q: Nafeesa Gupta from Bank of America asked how the long-term economics of winning larger global enterprises compare with smaller customers across metrics like product attach, retention, and yield.A: Aurelien Nolf, CFO, stated that pricing and yield have been steady across segments. He explained that while gross margins are similar, their composition differs. Enterprise customers often have direct negotiated rates, leading to higher transaction fees, while smaller customers generate more commissions. He added that enterprise customers are very sticky and offer significant upsell opportunities. Q: An unidentified participant asked about the opportunity for more tuck-in deals like BoomPop and other areas where M&A could be beneficial.A: Aurelien Nolf, CFO, said the company is always looking for opportunities to expand its footprint or add new products, as seen with BoomPop and SmartTrip. He noted that the bar for M&A is high, and they look for companies that can bring something they don't have or would take too long to build internally. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance outperformance was driven by strong volume demand, healthy expansion from existing customers, and a higher premium cabin mix. Management attributes the tripling of RFP volume to a market shift where enterprises are choosing modern AI-based platforms over antiquated legacy travel management systems. The company is successfully transitioning from a travel-only provider to a comprehensive AI platform managing travel, payments, expense, and now meetings and events. Operational efficiency is being driven by 'Navan Cognition,' an intelligence layer that orchestrates AI agents and human experts to handle complex tasks like rebooking stranded travelers. Strategic positioning is reinforced by deep infrastructure connectivity to global airlines, hotels, and banking systems, which management believes is a moat that is extremely difficult to replicate. The acquisition of BoomPop is intended to digitize the 'messy' and largely unmanaged meetings and events category, which represents approximately 30% of the total addressable market. Full-year revenue guidance was raised for the second time this year to 32% growth, reflecting improved visibility and sustained demand for business travel. Management expects structural gross margin expansion as the 'Ava' AI agent handles a higher percentage of customer interactions, currently at approximately 60%. The company is shifting toward Navan-owned AI models (now 50% of calls) to achieve greater accuracy, faster response times, and lower operational costs. Future growth is expected to be fueled by the $4 billion in new signed GBV from the sales-led growth team, which typically takes two months to implement and five months to fully ramp. Guidance assumes steady travel price inflation for the remainder of the year, with management noting that revenue is less sensitive to flight inflation than total bookings. The BoomPop acquisition is expected to have a low single-digit impact on FY2027 revenue and be accretive by FY2028. The Smartrips acquisition is described as strategically important for global footprint and licensing but financially immaterial to top and bottom-line results for FY2027. Non-GAAP gross margin reached a record 75%, a 200 basis point year-over-year increase, despite increased investments in AI infrastructure. The company maintains a strong balance sheet with $820 million in cash, providing flexibility for further disciplined M&A and product innovation. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management reported that win rates, average selling prices, and productivity per representative are all increasing simultaneously. The tripling of RFP volume is viewed as a signal of industry-wide disruption favoring AI-native platforms. The Hilton partnership is focused on data and merchandising rather than yield management, allowing for better ancillary upselling and automated servicing. Direct connections provide the 'Navan Edge' AI with the granular data needed to make personalized, conversational travel recommendations. Growth was previously limited by capital constraints, but a restructured capital stack and new warehouses have allowed the sales team to aggressively sell payment solutions. Payment volume growth accelerated to 34% due to a mix of new customer sign-ups and increased adoption within the existing base. Navan Edge is the fastest-growing product in company history, showing high repeat usage among individual business travelers. Management expects the product to begin having a material impact on financial results starting next year as it scales.

Revenue Beat: Navan posted $232.79M in revenue (+35% YoY) and ~$3B in GBV (+45% YoY), topping Street’s $220.49M estimate by 5.58% as non-GAAP gross margin hit a record 75%. Guidance Raised Again: FY27 revenue guidance rose to $927M-$933M, the second increase this year. Margin Compression: EBIT margin fell 332bps QoQ to 7.41% and adjusted EPS dropped 37.5% QoQ to $0.05, even as both beat Street’s model. BoomPop Drag: The newly acquired events platform will add only a low-single-digit percentage to FY27 revenue while cutting a mid-single-digit percentage from operating income during integration, with accretion delayed until FY28. Navan (NAVN) stock dropped roughly 17% after the company posted fiscal second-quarter results on September 9, even though revenue of $232.79 million beat Street’s $220.49 million estimate and management raised full-year guidance for the second time this year. Even so, total dollar volume booked on the platform, GBV, climbed 45% year over year to just over $3 billion. None of it held the stock up. SLG (sales-led growth), the company’s enterprise arm, delivered its strongest third quarter yet, signing $4 billion in new GBV over the trailing twelve months, up 60% year over year. Alongside that bookings surge, request-for-proposal (RFP) volume tripled during the first half of 2026, and Navan now counts 50 companies in the S&P 500 as customers, up from 45 the prior quarter. Subscription revenue climbed 39% to $21 million, while payments volume reached $1.3 billion, up 34%, evidence that the post-IPO capital restructuring finally freed the sales team to push those products. But that sales surge came at a cost. Adjusted EPS fell to $0.05, down 37.5% from the prior quarter, and EBIT margin slipped 332 basis points sequentially to 7.41%, even as both figures beat Street’s model. CFO Aurelien Nolf traced the compression directly to the commission bill tied to that new business on the Q2 earnings call: “We’re just paying more commissions, right? And again, very, very happy about the payback here and what we are seeing with a very, very strong and efficient go-to-market team.” The payback showed up elsewhere: non-GAAP gross margin reached 75% for the first time in company history, up 200 basis points year over year, as Ava, Navan’s AI support agent, resolved about 60% of customer interactions with roughly half its underlying models now built in-house, up from 30% in the first quarter. Navan is also spending outside the income statement. The company’s acquisition of BoomPop, an AI-driven events-planning platform, pushes into meetings and events, a category management pegs at 30% of the corporate travel total addressable market, with only a low single-digit percentage of FY27 revenue and a mid-single-digit drag on operating income during integration. Accretion doesn’t arrive until fiscal 2028. For now, the raised guide, revenue of $927 million to $933 million and non-GAAP operating income of $82 million to $86 million for the full year, leaves Navan stock priced like a company still absorbing costs rather than one guiding lower. TIKR’s mid-case model values Navan at $52 by January 2031, implying 102% total return from the current price of $26, or 17% annualized over 4.4 years. A 102% total return over 4.4 years marks Navan stock as a high-conviction growth call, with most of that return still ahead of the stock rather than already priced in. The target is reachable because the growth engine behind it just accelerated rather than slowed: GBV grew 45% and SLG signed $4 billion in new bookings even as management raised guidance for the second time this year. The model assumes that bookings momentum keeps translating into revenue as new enterprise customers ramp over their typical five-month adoption window, the same dynamic that already lifted revenue 35% in the quarter. The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question. Pull up Navan, Inc. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down. You can build a free watchlist to track Navan, Inc. alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.

Interested in Navan, Inc.? Here are five stocks we like better. Strong second-quarter performance: Navan reported revenue of $233 million, up 35% year over year, while gross booking value rose 45% to more than $3 billion. The company raised its full-year revenue outlook to $927 million–$933 million and its non-GAAP operating income forecast to $82 million–$86 million. Improving profitability and customer growth: Non-GAAP operating margin increased to 7% from 5% a year earlier, and trailing-12-month free cash flow improved to $28 million from a $33 million burn. Enterprise sales, product-led revenue, payment volumes and S&P 500 customer count all expanded. AI and strategic expansion remain key priorities: Navan’s Ava AI agent handled about 60% of customer interactions, while Navan Edge and Navan MCP broaden AI-driven booking and expense capabilities. The BoomPop acquisition adds meetings-and-events functionality and is expected to become accretive in fiscal 2028. 3 New Year’s Resolution Stocks That Could Turn Around in 2026 Navan (NASDAQ:NAVN) reported second-quarter revenue of $233 million, up 35% from a year earlier, as travel bookings on its platform continued to expand and the company cited growing adoption of its travel, payments and expense-management products. Total gross booking value, or GBV, exceeded $3 billion during the quarter, rising 45% year over year. Chief Financial Officer Aurélien Nolf said the company exceeded its expectations for both revenue and non-GAAP operating income, supported by strong booking volumes, expansion among existing customers, contributions from ramping customers and new launches, and a higher mix of premium-cabin travel. → 3 Under-the-Radar Defense Stocks With Record Backlogs Navan raised its full-year outlook again, projecting revenue of $927 million to $933 million, representing 32% growth at the midpoint. It also lifted its non-GAAP operating income forecast to $82 million to $86 million, or a 9% margin. Chief Executive Officer and co-founder Ariel Cohen said the company saw broad-based usage growth across its products and geographies. Navan reported a customer satisfaction score of 96 and a net promoter score of 44. → Ride-Share Reckoning: Tesla Drives Into Uber's Lane The company’s sales-led growth, or enterprise sales, organization delivered its strongest sales quarter to date, according to Cohen. Over the past 12 months, Navan signed $4 billion in new GBV through its sales-led growth business, an increase of 60% from the comparable period a year ago. Navan said the volume of requests for proposals received in the first half of the year tripled from the first half of the prior year. It now serves 50 S&P 500 companies, compared with 45 in the preceding quarter. → High Gas Prices Aren't Budging—Here Are 3 Stocks That Benefit President Michael Sindicich said Navan’s win rates, average selling prices and sales-representative productivity have all increased. He said enterprise deals can take six to nine months to reach a signed contract after an RFP process begins. Once signed, customers take roughly two months on average to implement and another five months to reach full ramp-up and adoption. Product-led growth revenue more than doubled year over year, Cohen said. Payment volumes reached $1.3 billion, up 34%, while subscription revenue totaled $21 million, up 39%. Sindicich said Navan had increased its focus on selling payments and expense products after restructuring its capital position and adding warehouse capacity. Nolf said payment-volume growth came from new customers adopting payments and expense products, upsells, and broader adoption among existing customers. Navan reported a non-GAAP growth margin of 75% and a non-GAAP operating margin of 7%, compared with a 5% operating margin a year earlier. Nolf said revenue continued to grow faster than the company’s cost base despite investments in artificial intelligence infrastructure and product development. Free cash flow was $28 million over the trailing 12 months, compared with a $33 million cash burn a year earlier. Navan ended the quarter with $820 million in cash and short-term investments and approximately $125 million in debt. The company attributed margin progress in part to Ava, its AI customer-support agent. Cohen said Ava handled about 60% of customer interactions in the second quarter, including tasks such as itinerary changes, rebookings, hotel changes and refunds. Approximately 50% of Ava’s AI model calls now run on Navan-owned models, up from 30% in the first quarter. Nolf said the company expanded its gross margin by 200 basis points year over year in the second quarter and by 1,000 basis points over the past several years. He said the company is focused primarily on customer satisfaction rather than optimizing solely for gross margin, while expecting further leverage as Ava handles a greater share of support activity. For the third quarter, Navan forecast revenue of $253 million to $255 million, representing 30% growth at the midpoint, and non-GAAP operating income of $35.5 million to $36.5 million, or a 14% margin. Management emphasized its strategy of combining AI tools with its travel and financial-technology infrastructure. Cohen said Navan Cognition serves as an intelligence layer that coordinates AI agents, human experts, data, travel inventory, company policies, payments and fulfillment. The company is also expanding its Navan Anywhere strategy through Navan MCP, which provides conversational access to travel, expense, booking and policy data through platforms including ChatGPT, Claude and Copilot. Navan said it is separately adding agent capabilities in tools such as Gemini and Slack. Navan Edge, its AI travel-assistant product, is the fastest-growing product the company has launched, Cohen said. The tool can plan and book flights, hotels, restaurants and events, as well as manage itinerary changes. Cohen said Edge has attracted individual business travelers directly to the platform and has shown high satisfaction and repeat usage. Navan also discussed a direct connection with Hilton. Sindicich said direct supplier relationships are intended to improve access to content, rates, inventory, ancillary offerings and servicing capabilities, rather than primarily changing the company’s yield. Cohen said direct connections also provide the detailed supplier data needed for Navan’s AI-driven recommendations. Navan highlighted its acquisition of BoomPop, a meetings-and-events platform that uses conversational AI to source venues and event services. Cohen described meetings and events as a large and largely manual category, estimating it represents about 30% of the company’s addressable market for business travel-related spending. Management said BoomPop can help customers source hotels, catering, photographers, attendee management and other event requirements in one workflow. Sindicich said BoomPop’s supplier relationships can provide customers with negotiated rates, and the company cited potential savings of roughly 30% in the meetings-and-events category. Nolf said Smartrips, another acquisition, is immaterial to Navan’s fiscal 2027 revenue and profit outlook, though it provides local inventory, IATA licenses and a team that can support global expansion. He said BoomPop is expected to have a low-single-digit effect on fiscal 2027 revenue and a mid-single-digit effect on non-GAAP operating income as Navan integrates the business. Navan expects BoomPop to become accretive in fiscal 2028. Management said it will continue to evaluate acquisition opportunities but maintains a high bar for deals, focusing on capabilities that would be difficult or time-consuming to build internally. Navan (NASDAQ: NAVN) is a technology company that provides an integrated platform for corporate travel, expense management and business payments. The company combines online travel booking and itinerary management with expense reporting, corporate card services and payment processing to help organizations consolidate travel and T&E (travel and expense) workflows into a single system. Navan emphasizes a mobile-first user experience, automated reconciliation and policy controls to simplify administrative processes for finance and travel teams while improving the experience for travelers. Navan’s offerings typically include online and mobile travel booking, real-time traveler support and duty-of-care features, automated expense capture and reporting, corporate card and virtual card issuance, and tools for payments and invoice management. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Navan Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Revenue grew 35% and Gross Booking Volume (GBV) grew 45% Year-Over-Year New Signed GBV Reached a Record $4.0 Billion in our SLG Business Over the TTM, Up 60% Year-Over-Year Raises Fiscal Year 2027 Outlook PALO ALTO, Calif., September 09, 2026--(BUSINESS WIRE)--Navan, Inc. (NASDAQ: NAVN), the global AI-powered business travel and expense platform, today reported financial results for its second quarter ended July 31, 2026. Management Commentary "Q2 was another quarter of exceptional execution, with results exceeding expectations and new business momentum reaching the highest level in Navan’s history. We delivered strong growth with new signed GBV in our SLG business growing 60% year-over-year on a trailing-twelve-month basis to a record $4 billion. We believe our results reflect durable demand for face-to-face connection and the combined strength of our superior technology, go-to-market model, and differentiated customer experience," said Ariel Cohen, Navan co-founder and CEO. "We are again raising our full-year outlook as we enter the second half in a position of growing strength. We are leading travel into the agentic era - combining proprietary AI with human expertise across the entire journey to advance our vision to build the best travel agency on the planet." "Q2 showcased our ability to deliver sustained growth while driving meaningful operating leverage. Revenue grew 35%, non-GAAP income from operations more than doubled, and we generated positive cash flow, underscoring the strong fundamentals and discipline of our business model," said Aurélien Nolf, Navan CFO. "Total GBV grew 45% to more than $3 billion, reflecting strength from new customers, ramping cohorts, and expansion of our installed base. We believe our record signed demand provides good visibility into future growth, and we remain focused on expanding Navan’s opportunity as we leverage our proprietary AI to scale our platform more efficiently, which should strengthen our foundation for durable growth and cash flow generation." Second Quarter Fiscal Year 2027 Financial Highlights Revenue Total Revenue was $233 million, an increase of 35% year-over-year. Gross Profit GAAP gross profit reached $172 million, representing 74% gross margin, compared to $125 million, or 73% gross margin in the second quarter of fiscal year 2026. Non-GAAP gross profit was $175 million, representing 75% non-GAAP gross margin, compared to $126 million, or 73% non-GAAP gross margin in the second quarter of fiscal year 2026. Income (Loss) from Operations GAAP loss from operations was $(26) million, compared to a GAAP loss from operations of $(12) million in the second quarter of fiscal year 2026; GAAP operating margin was (11)%, compared to (7)% in the second quarter of fiscal year 2026. Non-GAAP income from operations was $17 million, compared to non-GAAP income from operations of $8 million in the second quarter of fiscal year 2026; non-GAAP operating margin was 7%, compared to 5% in the second quarter of fiscal year 2026. Net Income (Loss) GAAP net loss was $(29) million, compared to a GAAP net loss of $(39) million in the second quarter of fiscal year 2026. Non-GAAP net income was $14 million, compared to a non-GAAP net loss of $(8) million in the second quarter of fiscal year 2026. Recent Business Highlights: Continued Enterprise Momentum: Navan continues to gain traction in the enterprise market by partnering with global leaders like Cummins, Enbridge, Evotec, Ingersoll Rand, Insight Enterprises, and Viessmann Generations Group to modernize their travel and expense programs. Advanced Proprietary AI Models: Over 50% of AI calls run on Navan's own proprietary models, up from 30% reported on the Q1 earnings call. Ava, Navan's AI support agent, handled approximately 60% of customer interactions in Q2. Launched Model Context Protocol (MCP) for Travel & Expense: Connecting Navan to customers’ preferred AI tools so administrators and finance leaders can analyze spend, booking, and policy data through natural-language queries, while laying the foundation for future agentic workflows. Accelerated New Distribution Capacity (NDC) Leadership and Enhanced Global Connectivity: Delivering more value to customers through an industry-first hotel-TMC direct connection with Hilton, unlocking greater savings, richer content, and an enhanced user experience. Navan also launched a new direct NDC connection with ITA Airways, upgraded its NDC direct connection with Singapore Airlines, and added integrations with Caledonian Sleeper and Virtuo. Unveiled Navan Edge Partnership with OpenTable: Bringing hyper-personalized restaurant discovery and reservation booking into Navan Edge’s AI travel assistant, enabling travelers to manage flights, hotels, dining, and loyalty in one integrated, trip-aware experience. Acquired Smartrips, a leading Brazilian travel management company: Extending the company’s footprint deeper into Latin America, one of the largest and fastest-growing segments of the global corporate travel market. Acquired BoomPop: In a separate press release issued today, Navan announced that it has acquired BoomPop, an AI-native platform for meetings and events. The acquisition is expected to advance Navan’s strategy to power in-person connections and provide customers a single destination for travel, expense, payments, meetings and events. Financial Outlook: For the third quarter of fiscal year 2027 (ending October 31, 2026), Navan currently expects: Total revenue in the range of $253 - $255 million, representing year-over-year growth of 30% at the midpoint Non-GAAP income from operations of $35.5 - $36.5 million and non-GAAP operating margin of 14% at the midpoint For the fiscal year 2027 (ending January 31, 2027), Navan increased its total revenue and non-GAAP operating outlook and reaffirmed its non-GAAP operating margin outlook as follows: Total revenue in the range of $927 - $933 million, representing year-over-year growth of 32% at the midpoint Non-GAAP income from operations in the range of $82 - $86 million and non-GAAP operating margin of 9% at the midpoint A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Navan's results computed in accordance with GAAP. Earnings Webcast: Navan will host a conference call on Wednesday, September 9, 2026, at 2:00 p.m. Pacific Time (PT) to discuss the company’s second quarter fiscal 2027 financial results and its business outlook. To register for this conference call, please use this dial-in registration link. After registering, a confirmation email will be sent, including dial-in details and a unique code for entry. Participants who wish to register for the conference call webcast, please use this link or visit Navan's Investor Relations website at investors.navan.com. Supplemental materials, including management’s prepared remarks and a slide presentation, will be available on Navan's Investor Relations website at investors.navan.com in advance of the call. An archived webcast of this conference call will also be available on Navan's Investor Relations website. The company has used, and intends to continue to use, the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD. Non-GAAP Financial Measures: Navan has provided in this press release supplemental financial information that has not been prepared in accordance with accounting principles generally accepted in the United States (GAAP), including references to non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow. Navan uses these non-GAAP financial measures internally in analyzing its financial results and believes that the disclosure of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and because it allows for greater transparency with respect to key measures used by senior management in our financial and operational decision making. These non-GAAP financial measures, which may be different from similarly-titled measures used by other companies, are presented to enhance investors’ overall understanding of our operating performance and should not be considered substitutes for, or superior to, the financial information prepared and presented in accordance with GAAP. We include these non-GAAP financial measures because they are important measures upon which our management assesses our operating performance and the operating leverage in our business. We believe that these non-GAAP financial measures are useful to investors because they provide useful information about our financial performance, consistency and comparability with past financial performance and may assist in comparisons with other companies in our industry, some of which use similar non-GAAP financial information to supplement their GAAP results. Non-GAAP financial measures have limitations in their usefulness to investors and should not be considered in isolation or as substitutes for financial information presented under GAAP. Non-GAAP financial measures have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation of Navan’s historical non-GAAP financial measures presented in this press release to their most directly comparable GAAP measures has been provided in the financial statement tables included herein, and investors are encouraged to review the reconciliations. Non-GAAP Gross Profit and Non-GAAP Gross Margin. Navan defines non-GAAP gross profit as GAAP gross profit, excluding stock-based compensation-related charges, amortization of intangible assets, and restructuring costs. Navan defines non-GAAP gross margin as non-GAAP gross profit divided by revenue. Non-GAAP Income from Operations and Non-GAAP Operating Margin. Navan defines non-GAAP income from operations as GAAP loss from operations, excluding stock-based compensation-related charges, amortization of intangible assets, severance and executive transition costs, restructuring costs, and gain on sale of property and equipment. Navan defines non-GAAP operating margin as non-GAAP income from operations divided by revenue. Non-GAAP Net Income (Loss). Navan defines non-GAAP net income (loss) as GAAP net loss, excluding stock-based compensation-related charges, amortization of intangible assets, severance and executive transition costs, restructuring costs, amortization of debt discount and debt issuance costs, gain on sale of property and equipment, loss on fair value adjustments, SAFE debt issuance costs expensed, and loss on extinguishment of debt, and adjusted to reflect the income tax effects of the non-GAAP adjustments to GAAP loss before income tax expense. Non-GAAP Net Income (Loss) Per Share. Navan defines non-GAAP income (loss) per share attributable to common stockholders, basic, as non-GAAP net income (loss) divided by weighted-average shares outstanding used in computing GAAP net loss per share attributable to common stockholders, basic. Navan defines non-GAAP income (loss) per share attributable to common stockholders, diluted, as non-GAAP net income (loss) divided by weighted-average shares outstanding giving effect to the weighted average of all potentially dilutive common stock equivalents outstanding for the period including options to purchase common stock, restricted stock units, and employee stock purchase rights under our 2025 Employee Stock Purchase Plan. The dilutive effect of outstanding stock awards is reflected in non-GAAP diluted income per share by application of the treasury method. Free Cash Flow. Navan defines free cash flow as GAAP net cash provided by operating activities reduced by cash used for investing activities for capitalized software development costs and net capital expenditures, which include purchases of property and equipment and proceeds from the sale of property and equipment. We believe that free cash flow is a meaningful indicator of our sources of liquidity and capital requirements that provides information to management and investors in evaluating the cash flow trends of our business. Glossary of Terms: Gross Booking Volume (GBV) We define GBV as the total amount paid for valid bookings on our platform, measured on a booked basis and inclusive of total price, taxes, and fees, and adjusted for cancellations and refunds. We generate GBV through hotel, flight, car, and rail bookings, along with usage of our Meetings and Events, VIP, and Bleisure offerings by our customers. We expand GBV by growing our customer base, managing more business travel spend on our platform, and introducing new offerings to address different types of business travel. Payment Volume We define payment volume as the aggregate dollar amount of spend through Navan issued cards, settled for a given period and net of any chargebacks, cancellations, or refunds. Our payment volume grows as we increase adoption and usage of our Corporate Payments offering, where we support and issue our own cards. New Signed GBV Represents the estimated total annual travel spend available for revenue attach from newly acquired GBV once fully launched and ramped. Calculated based on a customer’s verified historical travel spend from the prior year, this forward-looking metric serves as a leading indicator of future platform volume. Sales-Led Growth (SLG) SLG represents our sales-led growth channel, in which qualified sales professionals actively identify, engage, and support prospective customers through the evaluation and purchasing process. Forward-Looking Statements: This press release and the related conference call contain express and implied "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the performance of Navan’s business and ability to lead the travel industry into the agentic era by combining proprietary AI with human expertise, Navan’s financial results, including Navan’s anticipated total revenue, non-GAAP income from operations, and non-GAAP operating margin for the fiscal quarter ending October 31, 2026 and the fiscal year ending January 31, 2027, Navan’s liquidity and capital resources, the extent to which Navan’s signed demand provides visibility into future growth, the size of Navan’s market opportunity, market trends, the company’s business strategy, including with respect to organic and inorganic growth, its plans such as the Hilton co-creation initiative and expected benefits to be derived therefrom, and its ability to scale its platform and other non-historical statements. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "plan," "project," "will," or similar expressions. Such statements are subject to risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements. These include, but are not limited to: Navan’s limited operating history; the growth rate of the markets in which Navan competes; Navan’s ability to effectively manage and sustain its growth; Navan’s ability to compete with existing competitors and new market entrants; Navan’s ability to attract new customers and to renew and expand its relationships with current customers; adverse changes in relationships with third parties on which Navan depends; Navan’s ability to utilize AI successfully in its current and future products; disruptions or other business interruptions that affect the availability of Navan’s platform, including cybersecurity incidents; and general global market, political, economic, and business conditions, including those related to global macroeconomic conditions, actual or perceived instability in the banking sector, energy and other supply chain disruptions, a potential recession, inflation, interest rate volatility, and geopolitical uncertainty, including ongoing conflicts around the world. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements contained herein are included in the "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" sections of Navan’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on April 2, 2026, as they may be updated by Navan’s subsequent filings with the SEC, including Navan’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2026. Except as required by law, Navan undertakes no obligation, and does not intend, to update these forward-looking statements. About Navan, Inc.: Navan (NASDAQ: NAVN) is the global AI-powered business travel and expense platform that makes travel easy for travelers. From finding flights and hotels, to automating expense reconciliation, with 24/7 support along the way, Navan delivers an intuitive experience travelers love and finance teams rely on. See how Navan customers benefit and learn more at navan.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260907276239/en/ Contacts Investor Relations [email protected] Media Relations [email protected]