Summary
Navan closed fiscal 2026 with a sharp acceleration in revenue and its first full year of positive operating cash flow. Fourth quarter revenue was $177.9 million, up 34.8% from the prior-year quarter. Full-year revenue reached $702.3 million, up 30.8%. Gross profit for the quarter was $125.8 million, up 40.9%, and gross margin was 70.7%, up 3.1 percentage points. For the full year, gross profit was $500.5 million, up 36.4%, and gross margin was 71.3%, up 2.9 percentage points. The top line benefited from strong travel demand and enterprise onboarding. Gross Booking Volume grew 42% year over year to $2.3 billion in the quarter, while Payment Volume grew 19% to $1.0 billion. For the full year, GBV rose 38% to $9.1 billion and Payment Volume rose 13% to $4.1 billion.
Profitability remains the main tension. GAAP operating loss widened to $89.5 million in the quarter, and operating margin was -50.3%, down 25.4 percentage points. For the full year, GAAP operating loss was $196.9 million, with operating margin of -28.0%, down 8.0 percentage points. GAAP net loss was $72.8 million in the quarter and $398.0 million for the full year. Full-year diluted EPS was -$4.07, down $0.07. The gap between GAAP and non-GAAP results is wide. Non-GAAP income from operations was $1 million in the quarter, with a 0% non-GAAP operating margin, compared with a non-GAAP loss from operations of $14 million in the prior-year quarter. For the full year, non-GAAP income from operations was $37 million, a 5% non-GAAP operating margin. Non-GAAP gross profit was $128 million, a 72% non-GAAP gross margin, and full-year non-GAAP gross profit was $511 million, a 73% non-GAAP gross margin. Non-GAAP net income was $5 million in the quarter, while full-year non-GAAP net loss was $0.3 million. Cash generation improved. GAAP operating cash flow was $35.0 million in the quarter, up 491.4%, and $33.7 million for the full year, up 166.8%. Free cash flow, a non-GAAP measure, was $29.7 million in the quarter and $14.8 million for the full year. Capital expenditures were $0.33 million in the quarter, up 49.1%, and $0.92 million for the full year, down 7.7%. Deferred revenue, current portion, was $45.2 million, up 32.5%.
Guidance points to slower growth but better non-GAAP profitability. For the first quarter of fiscal 2027, Navan expects total revenue growth of 30% year-over-year at the midpoint. It also expects non-GAAP income from operations of $4.5 million to $5.5 million and a non-GAAP operating margin of 2% at the midpoint. For the full fiscal year 2027, the company guides to total revenue growth of 24% at the midpoint, and non-GAAP income from operations of $58 million to $62 million, with a non-GAAP operating margin of 7% at the midpoint. A reconciliation of non-GAAP guidance to GAAP is not available on a forward-looking basis without unreasonable effort.
Operationally, Navan launched Navan Edge, an AI travel assistant, and a new AI Expense Agent. It announced plans to move Reed & Mackay customers onto the Navan platform and retire the R&M brand for new sales. The company appointed Aurélien Nolf as CFO and added Shai Weiss to its board. Enterprise momentum continued with wins such as Yahoo, Simon-Kucher, and Darktrace. Risks include uncertainty around the R&M customer transition, customer retention, competition, reliance on AI, macroeconomic and travel demand swings, and continued operating losses. Management expects to keep investing in growth, and it notes that operating cash flows may fluctuate between positive and negative amounts at least through the fiscal year ending January 31, 2027. Seasonality also matters, as revenue has historically been strongest in the third fiscal quarter. The company ended the year with a strong balance sheet after its October 2025 IPO, and it has borrowing capacity under its Warehouse Credit Facility and ABL Facility.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2026 | Q3 FY2026 | QoQ | Q4 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $177.9M | $194.9M | -8.7% | — | — |
| Gross profit | $125.8M | $137.9M | -8.8% | — | — |
| Gross margin | 70.7% | 70.7% | -0.0 pp | — | — |
| Research & development | $35.3M | $51.2M | -31.1% | — | — |
| Sales & marketing | $117.3M | $94.9M | +23.6% | — | — |
| General & administrative | $62.7M | $70.9M | -11.7% | — | — |
| Total operating expenses | $215.3M | $217.1M | -0.8% | — | — |
| Operating income (loss) | -$89.5M | -$79.2M | -12.9% | — | — |
| Operating margin | -50.3% | -40.6% | -9.6 pp | — | — |
| Net income (loss) | -$72.8M | -$225.4M | +67.7% | — | — |
| Net margin | -40.9% | -115.6% | +74.7 pp | — | — |
| Diluted EPS | -$0.74 | -$4.58 | +$3.84 | — | — |
Risks
Navan has a history of operating losses and may not achieve or sustain profitability. GAAP net loss widened to $398.0 million for FY2026 from $181.1 million for FY2025, and GAAP operating loss widened to $196.9 million for FY2026 from $107.6 million for FY2025, with an accumulated deficit of $2.0 billion as of January 31, 2026.
The company announced in January 2026 that it will retire the R&M brand and transition R&M service model customers to the Navan platform. It has historically experienced higher churn from R&M customers than from Navan platform customers, and uncertainty exists about retention during the transition; the company also recognized $36.2 million of accelerated amortization and restructuring costs related to the transition.
Navan's growth and margins depend on Navan Cognition, Navan Edge, and AI-powered virtual agents such as Ava. Competitors may incorporate AI more successfully or achieve higher market acceptance, and AI models may produce flawed, incomplete, or inaccurate outputs, including hallucinations, which could harm reputation, require more expensive live-agent support, and pressure gross margins.
Revenue is significantly dependent on Travel Management offerings and global travel activity. Macroeconomic uncertainty, tariffs, geopolitical conflict, health concerns, remote and hybrid work, and reduced T&E budgets can decrease business travel demand and usage of the platform, which would negatively affect growth and results.
Continued macroeconomic uncertainty, including fluctuating interest rates, inflation, tariffs, political unrest, geopolitical conflict, banking instability, and potential recession, has resulted and is expected to continue to result in reductions and fluctuations in demand for travel and T&E management offerings. The usage-based revenue model for certain offerings makes forecasting difficult.
Future growth depends on attracting new customers and expanding existing customer adoption beyond Travel Management. The company faces competition from traditional offline travel services and digital-native AI-powered offerings, and its success in the unmanaged travel market depends on adoption of Navan Edge and its newer product-led growth strategy, where it has limited experience.
Travel Management offerings depend on maintaining and expanding relationships with airlines, hotels, car rental companies, rail carriers, GDS providers, and other suppliers. Suppliers may change commission rates, implement direct distribution channels, adopt NDC, or terminate relationships, which could reduce revenue and margins.
Sales and marketing expense increased 57% for FY2026 compared to FY2025, and the company plans to continue investing in sales and marketing. If it fails to recruit and retain high-performing personnel, execute its sales-led and product-led growth strategies, or achieve sufficient return on marketing spend, customer acquisition and growth could be harmed.
A putative securities class action was filed on February 23, 2026 against the company, its directors, and certain current and former executive officers, alleging violations of the Securities Act related to statements about sales and marketing expenses in the IPO offering documents. Motions for lead plaintiff are due April 24, 2026, and the litigation could result in substantial costs and management distraction.
As of January 31, 2026, there were 48.6 million shares of Class A common stock issuable upon exercise of outstanding stock options or subject to vesting of RSU awards, and approximately 37.8 million shares reserved for future issuance under the 2025 Plan. As of March 30, 2026, holders of 115,302,421 shares have registration rights, which could result in substantial dilution and resale pressure.
The company expects to continue incurring operating losses and says 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, and corporate card funding creates working capital fluctuations that may require draws on the Warehouse Credit Facility.
Revenue from customers outside the United States was $266.4 million, or 38% of revenue, for FY2026, and the company plans continued international expansion. This subjects it to regulatory, tax, data privacy, currency, and compliance risks, including FCPA and UK Bribery Act, and may require significant management attention and expense.
Customer support and margins are highly dependent on AI-powered virtual agents. If virtual agents fail to address user needs, make errors, or require escalation to live agents, support costs may increase and gross margins may be negatively impacted.
Navan has completed several acquisitions, including R&M, Comtravo, Resia, and Tripeur, and may pursue more. Integration difficulties, diversion of management, inadequate controls, cybersecurity vulnerabilities at acquired businesses, and impairment charges could adversely affect results.
The dual-class structure concentrates voting power with co-founders Ariel Cohen and Ilan Twig, who together hold all Class B shares and approximately 27% and 48% of voting power, respectively. This limits other stockholders' ability to influence important transactions, including a change in control.
Revenue is seasonal and historically strongest in the third fiscal quarter due to business travel trends. Travel demand fluctuations and the mix of hotel and air bookings can cause results to vary significantly from period to period.
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 Q4 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 1, 2026.