Summary
Navan reported first quarter fiscal 2027 revenue of $220.23 million, up 39.9% from the prior-year quarter. Gross profit reached $163.06 million, up 45.9%, and gross margin expanded to 74.0%, up 3.0 percentage points. Non-GAAP gross profit was $165 million, with a non-GAAP gross margin of 75%. The company still posted an operating loss of $18.11 million, which widened 13.9% from the prior-year quarter. Net loss narrowed 66.5% to $20.51 million. Diluted EPS was negative $0.08, up 94.0% from the prior-year quarter. Operating margin was negative 8.2%, up 1.9 percentage points. On a non-GAAP basis, income from operations was $24 million, non-GAAP operating margin was 11%, and non-GAAP net income was $22 million. Operating cash flow was negative $6.80 million, down 249.4% from the prior-year quarter. Capital expenditures were $0.10 million, up 16.7%. Free cash flow was negative $11.55 million. Deferred revenue, current portion, stood at $43.14 million.
Operational momentum was strong. Gross booking volume grew 50% year over year to a record $3.1 billion. Payment volume rose 29% to $1.3 billion. Usage-based revenue grew 41% and subscription revenue grew 26%. Navan launched Navan Anywhere, which embeds the platform into tools employees already use, including Gemini Enterprise. It also introduced Travel Admin Companion, Expense Admin Companion, Book with AI, and an AI-powered Audit Engine. The company added enterprise customers such as Allegiant, Criteo, Schindler, and Simplot. It hosted its inaugural Navigate customer conference with more than 400 travel, finance, and procurement leaders. Navan also announced a New Distribution Capability agreement with Scandinavian Airlines, becoming the first travel management company to access SAS NDC content via a direct connection.
Guidance points to continued growth. For the second quarter of fiscal year 2027, Navan expects year-over-year revenue growth of 28% at the midpoint. Non-GAAP income from operations is guided to $13.5 million to $14.5 million, with a non-GAAP operating margin of 6% at the midpoint. For the full fiscal year 2027, the company raised its outlook to 30% year-over-year revenue growth at the midpoint, up from 24% previously. Full-year non-GAAP income from operations is expected to be $76 million to $80 million, with a non-GAAP operating margin of 9% at the midpoint. A reconciliation of non-GAAP guidance to GAAP is not available on a forward-looking basis without unreasonable effort.
Risks remain. Navan has a limited operating history and faces competition from existing and new entrants. The company must manage and sustain growth, attract new customers, and renew and expand relationships with current customers. It depends on third parties, including travel suppliers and payment partners. Its use of AI in current and future products carries execution risk. Cybersecurity incidents and business interruptions could affect platform availability. Macroeconomic conditions, including a potential recession, inflation, interest rate volatility, and geopolitical uncertainty, could reduce travel demand. The transition of Reed & Mackay customers to the Navan platform introduces uncertainty around customer retention. Navan also notes seasonality, with revenue historically strongest in the third fiscal quarter. The company expects to continue incurring operating losses, and operating cash flows may fluctuate between positive and negative amounts at least through the fiscal year ending January 31, 2027. It may require additional capital to execute strategic initiatives. Working capital can fluctuate because Navan funds corporate card transactions before receiving payments from customers, and peak travel periods can require draws on the Warehouse Credit Facility. As of April 30, 2026, Navan had borrowing capacity of $250.0 million under the Warehouse Credit Facility and $100.0 million under the ABL Facility. Outstanding borrowings were $118.2 million and $6.0 million, respectively.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2027 | Q4 FY2026 | QoQ | Q1 FY2026 | YoY |
|---|---|---|---|---|---|
| Revenue | $220.2M | $177.9M | +23.8% | — | — |
| Gross profit | $163.1M | $125.8M | +29.6% | — | — |
| Gross margin | 74.0% | 70.7% | +3.3 pp | — | — |
| Research & development | $39.4M | $35.3M | +11.7% | — | — |
| Sales & marketing | $91.9M | $117.3M | -21.7% | — | — |
| General & administrative | $49.9M | $62.7M | -20.4% | — | — |
| Total operating expenses | $181.2M | $215.3M | -15.8% | — | — |
| Operating income (loss) | -$18.1M | -$89.5M | +79.8% | — | — |
| Operating margin | -8.2% | -50.3% | +42.1 pp | — | — |
| Net income (loss) | -$20.5M | -$72.8M | +71.8% | — | — |
| Net margin | -9.3% | -40.9% | +31.6 pp | — | — |
| Diluted EPS | -$0.08 | -$0.74 | +$0.66 | — | — |
Risks
Continued macroeconomic uncertainty, including tariffs, inflation, interest rates, and recession risk, has reduced and may continue to reduce demand for travel and T&E management offerings. Navan's usage-based revenue model for Travel Management makes forecasting difficult, and revenue rose 39.9% in FY2027 Q1 versus the prior-year quarter but may not continue at that rate.
Revenue is significantly dependent on Travel Management offerings and global travel activity. Disruptions from geopolitical conflict, health concerns, airline cancellations, or reduced business travel could lower bookings and increase support costs, harming margins and results.
Navan Cognition and AI virtual agents are central to scaling customer support and margins, but AI outputs may be flawed or hallucinate, and competitors may deploy AI more successfully. Failure to maintain AI leadership could harm gross margins, reputation, and competitiveness.
The planned transition of R&M service model customers to the Navan platform creates retention uncertainty, and Navan has historically experienced higher churn from R&M customers. Restructuring costs of $1.3 million were recognized in sales and marketing in FY2027 Q1 related to workforce reductions for this transition.
The corporate card offering exposes Navan to the entire credit risk and liability to issuing banks, plus fraud and funding arrangement risk. Underperformance of card receivables could increase financing costs, modify or terminate funding arrangements, or impair access to funding.
Travel Management depends on supplier relationships and commission rates. Suppliers may change commission rates, pursue direct distribution, or adopt NDC in ways that reduce inventory, revenue, or margins.
A putative securities class action filed February 23, 2026 alleges Navan violated the Securities Act by making false and misleading statements about sales and marketing expenses in its IPO offering documents. This could result in substantial costs and divert management attention.
Growth depends on expanding sales and marketing and executing the sales-led and newer product-led growth strategies. Sales and marketing expense increased 49% to $91.9 million in FY2027 Q1 while revenue rose 39.9%, and failure to generate returns could harm growth.
A significant portion of revenue is outside the U.S., at 34% of revenue in FY2027 Q1, exposing Navan to regulatory, tax, data privacy, currency, and geopolitical risks. International expansion may require significant resources and may not succeed.
Navan incurred $1.4 million of severance and executive transition costs in FY2027 Q1 related to the departure of its Chief Financial Officer. Loss of key personnel or inability to recruit and retain talent could disrupt operations and strategy execution.
Reliance on third-party cloud, payment processors, and customer care centers creates exposure to security incidents and outages. The CrowdStrike July 2024 outage disrupted airline operations and shows how third-party failures could impair travel services and customer trust.
Operating cash flow was negative $6.80 million in FY2027 Q1, down 249.4% from positive $4.55 million in the prior-year quarter, and Navan expects operating cash flows may fluctuate between positive and negative amounts through FY2027. It may require additional capital to execute strategic initiatives.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Gross Margin
Non-GAAP Operating Margin
Payment Volume
Summary, forecast, risks and KPIs are extracted from Navan, Inc.'s SEC filings for Q1 FY2027 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.