Summary
Navan's fiscal 2026 third quarter was its first report as a public company, and the top line carried the story. Revenue rose 29.0% year over year to $194.93 million in the quarter ended October 31, 2025, while gross profit rose 29.3% to $137.85 million. Over the nine months, revenue rose 29.5% to $524.35 million and gross profit rose 34.9% to $374.68 million. Gross margin was 70.7% for the quarter, up 0.2 percentage points, and 71.5% for the nine months, up 2.8 percentage points. Management credits revenue scaling on a relatively fixed cost base, supported by AI-powered customer support.
GAAP profitability went the other way. The operating loss widened to $79.24 million, and operating margin fell to negative 40.6%, down 27.8 percentage points. The net loss widened to $225.39 million, and diluted loss per share was $4.58. For the nine months, the net loss widened to $325.27 million and diluted loss per share was $6.94. Two items did most of the damage. Stock-based compensation reached $99.2 million in the quarter, and $81.8 million of that was tied to RSU vesting at the IPO. A $97.45 million loss on debt extinguishment, mostly from convertible notes that converted into 12,827,963 Class A shares, plus a $29.2 million loss on fair value adjustments, added to the swing. Non-GAAP results look very different. Non-GAAP income from operations was $25 million at a 13% margin, and non-GAAP net income was $9 million against a non-GAAP net loss of $14 million a year earlier.
Demand metrics were strong. Gross booking volume grew 40% to $2.6 billion in the quarter, and payment volume rose 12% to $1.1 billion. Over the nine months, gross booking volume reached $6.8 billion, up 36%, and payment volume was $3.1 billion, up 11%. Usage-based revenue grew 29% and subscription revenue grew 26% in the quarter, with nine-month subscription revenue up 35%. Satisfaction hit new highs, with CSAT at 97% and NPS at 45, and the upgraded Ava model deflected over 54% of all interactions in November 2025. Enterprise wins included the second largest European deal in company history, with a CAC40 company, plus Frasers Group and Axel Springer. A Forrester study cited 16% savings on travel spend, 70% less employee time on booking, 5 minutes of average booking time, and 376% ROI over three years.
Cash trends improved. Operating cash flow was negative $1.31 million for the nine months, up 96.8% from a year earlier, and capital expenditures were $0.59 million, down 23.9%. Free cash flow, a non-GAAP measure, was negative $14.97 million for the nine months. Cash and cash equivalents totaled $809.1 million on October 31, 2025, after the IPO raised net proceeds of $713.3 million from the sale of 30,000,000 Class A shares at $25.00 each. Current deferred revenue was $38.46 million, and the accumulated deficit reached $1,942.4 million. Borrowing capacity includes $250.0 million under the warehouse credit facility with $168.2 million drawn, and $100.0 million under the ABL facility with $37.0 million drawn. Management expects operating losses to continue and says operating cash flow may swing between positive and negative amounts at least through the fiscal year ending January 31, 2027.
Guidance for the fourth quarter of fiscal year 2026 calls for a non-GAAP loss from operations of $14.5 million to $15.5 million and a non-GAAP operating margin of negative 9% at the midpoint. For the full fiscal year 2026, Navan guided to non-GAAP income from operations of $21 million to $22 million and a non-GAAP operating margin of 3% at the midpoint. Management points out that the third quarter is seasonally its strongest and asks investors to judge the business on the full year. Travel disruption from the government shutdown in October and early November did not have a material impact. Risks in the filing include a limited operating history, competition, reliance on third parties, the ability to use AI successfully, cybersecurity incidents, and macro conditions such as inflation, interest rate volatility, and geopolitical uncertainty. Separately, CFO Amy Butte will depart on January 9, 2026, and Anne Giviskos, currently SVP, Strategic Finance and Chief Accounting Officer, will serve as interim CFO while the board searches for a successor.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2026 | Q2 FY2026 | QoQ | Q3 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $194.9M | — | — | — | — |
| Gross profit | $137.9M | — | — | — | — |
| Gross margin | 70.7% | — | — | — | — |
| Research & development | $51.2M | — | — | — | — |
| Sales & marketing | $94.9M | — | — | — | — |
| General & administrative | $70.9M | — | — | — | — |
| Total operating expenses | $217.1M | — | — | — | — |
| Operating income (loss) | -$79.2M | — | — | — | — |
| Operating margin | -40.6% | — | — | — | — |
| Net income (loss) | -$225.4M | — | — | — | — |
| Net margin | -115.6% | — | — | — | — |
| Diluted EPS | -$4.58 | — | — | — | — |
| Net retention rate | 110.0% | — | — | — | — |
Risks
Continued macroeconomic uncertainty, tariffs, inflation, and remote work trends are expected to reduce or delay T&E spending and business travel demand. Revenue remains significantly dependent on Travel Management offerings, and any decline in global travel or customer T&E budgets would harm results.
Growth strategy depends on Navan Cognition and AI-powered virtual agents; competitors may adopt AI more successfully, and flawed or incomplete AI outputs could force more expensive live-agent support, harming gross margins. The MD&A emphasizes continued AI investment as a key factor.
The company must attract new customers and expand adoption of Corporate Payments, Expense Management, Meetings and Events, VIP, and Bleisure; sales cycles vary with customer size, and the newer product-led growth motion has limited operating history. Failure to expand adoption would pressure revenue growth.
Travel Management revenue depends on maintaining favorable relationships with airlines, hotels, and GDS suppliers; suppliers may change commission rates, pursue direct distribution, or reduce inventory. Commission reductions or supplier terminations could reduce revenue and margins.
The company has a history of net losses, including a net loss of $225.4 million in FY2026 Q3, widened from $41.9 million in FY2025 Q3. MD&A states it expects to continue incurring operating losses through fiscal 2027 and may require additional capital.
The corporate card offering exposes the company to credit risk and fraud, with liability to issuing banks if customers fail to pay. Funding relies on warehouse and purchase arrangements, and underperformance of card receivables could raise financing costs or impair funding access.
A significant portion of revenue is international: $72.4 million, or 37% of revenue, for the three months ended October 31, 2025, and $200.5 million, or 38%, for the nine months ended October 31, 2025. Expansion subjects the company to foreign regulatory, tax, data privacy, and currency risks.
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 Q3 FY2026 (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.