Summary
Navan reported fiscal 2027 second quarter revenue of $232.79 million, up 35.4% from $171.95 million in the prior-year quarter. Year-to-date revenue was $453.02 million, up 37.5%. Gross profit reached $172.47 million, up 37.9%, and gross margin was 74.1%, up from 72.7% a year earlier. Gross booking volume grew 45% to $3.0 billion, and payment volume grew 34% to $1.3 billion. Management tied the top-line gain to new customers, ramping cohorts, and expansion within the installed base.
Profitability was mixed. The GAAP operating loss widened to $25.57 million from $12.26 million, and operating margin fell to -11.0% from -7.1%. Year-to-date operating margin was -9.6%, compared with -8.5%. The GAAP net loss narrowed to $29.12 million from $38.62 million, and diluted loss per share improved to $0.11 from $0.83. Year to date, the net loss narrowed to $49.62 million from $99.88 million, and diluted loss per share improved to $0.20 from $2.15. Non-GAAP gross profit was $175 million, a 75% margin, compared with $126 million and a 73% margin a year earlier. Non-GAAP income from operations was $17 million, a 7% margin, versus $8 million and a 5% margin. Non-GAAP net income was $14 million, compared with a non-GAAP net loss of $8 million.
Cash generation improved. Operating cash flow was $25.19 million in the quarter, up from $0.23 million a year earlier, and $18.39 million year to date, up from $4.78 million. Capital expenditures were $0.92 million in the quarter. Free cash flow was $21.5 million. Deferred revenue, current portion, stood at $45.74 million. Management said it expects operating cash flow to swing between positive and negative amounts at least through the fiscal year ending January 31, 2027, reflecting growth investments and the timing gap between customer receipts and vendor payments.
New signed GBV in the sales-led growth business reached a record $4.0 billion on a trailing-twelve-month basis, up 60% year over year. More than 50% of AI calls now run on Navan's proprietary models, up from 30% reported on the prior earnings call, and the Ava support agent handled roughly 60% of customer interactions in the quarter. The company added enterprise customers including Cummins, Enbridge, Evotec, Ingersoll Rand, Insight Enterprises, and Viessmann Generations Group. It launched a hotel-TMC direct connection with Hilton, added a direct NDC connection with ITA Airways, upgraded its Singapore Airlines connection, and partnered with OpenTable for Navan Edge. Navan also acquired Smartrips, a Brazilian travel management company, and BoomPop, an AI-native meetings and events platform.
For the third quarter of fiscal 2027, management guided to year-over-year revenue growth of 30% at the midpoint and non-GAAP income from operations of $35.5 million to $36.5 million, a 14% non-GAAP operating margin at the midpoint. For the full fiscal year 2027, the company raised its revenue outlook to 32% growth at the midpoint and lifted non-GAAP income from operations to $82 million to $86 million, a 9% non-GAAP operating margin at the midpoint. Risks include the transition of Reed & Mackay customers to the Navan platform, which management flags as a source of uncertainty for retention. Navan also points to seasonality, with revenue historically strongest in the third fiscal quarter, and to travel demand that remains exposed to macroeconomic and geopolitical conditions. The company expects to lose emerging growth company status on January 31, 2027.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2027 | Q1 FY2027 | QoQ | Q2 FY2026 | YoY |
|---|---|---|---|---|---|
| Revenue | $232.8M | $220.2M | +5.7% | — | — |
| Gross profit | $172.5M | $163.1M | +5.8% | — | — |
| Gross margin | 74.1% | 74.0% | +0.0 pp | — | — |
| Research & development | $47.2M | $39.4M | +19.8% | — | — |
| Sales & marketing | $104.6M | $91.9M | +13.8% | — | — |
| General & administrative | $48.4M | $49.9M | -2.9% | — | — |
| Total operating expenses | $200.2M | $181.2M | +10.5% | — | — |
| Operating income (loss) | -$25.6M | -$18.1M | -41.2% | — | — |
| Operating margin | -11.0% | -8.2% | -2.8 pp | — | — |
| Net income (loss) | -$29.1M | -$20.5M | -42.0% | — | — |
| Net margin | -12.5% | -9.3% | -3.2 pp | — | — |
| Diluted EPS | -$0.11 | -$0.08 | -$0.03 | — | — |
Risks
The company's growth strategy depends on continued development and market acceptance of Navan Cognition, Ava, and Navan Edge, and competitors leveraging AI or automation may achieve higher market acceptance or drive greater support-cost efficiency. Flawed or hallucinated AI outputs from its virtual agents could harm reputation, gross margins, and results of operations.
Revenue has historically been and is expected to remain significantly dependent on Travel Management offerings, leaving results exposed to declines or systemic disruptions in global travel from geopolitical conflict, tariffs, health concerns, and supplier capacity constraints. Prolonged disruptions also raise support costs and pressure margins.
The January 2026 decision to retire the R&M brand and transition R&M service model customers to the Navan platform carries retention uncertainty, and the company has historically experienced higher churn from R&M customers than from Navan platform customers. Slower than anticipated adoption of additional offerings by smaller unmanaged-travel customers could also limit expansion revenue.
Continued macroeconomic uncertainty, including fluctuating interest rates, inflation, tariffs, and recession risk, has resulted and is expected to continue to result in reduced or deprioritized spending on T&E management offerings. Because certain offerings use a usage-based revenue model, this also impairs the company's ability to forecast demand and financial performance.
The company has limited experience deploying its product-led growth strategy relative to its sales-led growth motion, and larger enterprise customers carry more complex requirements, higher upfront sales costs, and less predictable expansion timing. Failure to allocate sufficient resources to the sales-led strategy could harm new customer acquisition.
The corporate card offering exposes the company to the entire credit risk on card receivables and liability to the issuing bank, and its funding model relies on warehouse facilities and purchase arrangements. Significant underperformance of owned card receivables could raise financing costs or impair access to funding.
Travel Management success depends on maintaining supplier relationships on favorable terms, and suppliers may change commission rates, adopt direct distribution channels, or embrace standards such as NDC in ways that reduce inventory, raise prices, or lower usage-based revenue. GDS commissions are highly standardized while direct supplier agreements are more variable.
A putative securities class action complaint was filed on February 23, 2026 in the U.S. District Court for the Northern District of California alleging violations of the Securities Act through materially false and misleading statements in the IPO offering documents. This suit could result in substantial costs and divert management attention.
Revenue from customers outside the United States was $78.6 million, or 34% of revenue, for the three months ended July 31, 2026, down from $66.4 million, or 39% of revenue, for the three months ended July 31, 2025, and continued international expansion subjects the company to regulatory, tax, data privacy, and currency risks. The company currently does not hedge its foreign currency exposure.
Margins are highly dependent on AI-powered virtual agents handling complex tasks, and if those agents fail to satisfy users or require escalation to live agents, the company may need to expand more expensive phone-based support. Increased support coverage and phone-based support services may negatively impact gross margins.
Rapid growth and recent acquisitions, including Smartrips and BoomPop which closed after July 31, 2026, place significant strain on management and on administrative, operational, and financial reporting resources. Integrating acquired businesses and their systems into the controls environment may harm reporting compliance and forecasting ability.
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 Q2 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 2, 2026.