NAVN · Navan, Inc.

Navan reported a robust Q1 FY2027, with total revenue of $220 million, up 40% year-over-year, driven by accelerating Gross Booking Volume (GBV) growth of 50% to a record $3.1 billion. Usage revenue, which accounts for the majority of revenue, grew 41% to $202 million, while subscription revenue rose 26% to $18 million. Payment volume increased 29% to $1.3 billion, reflecting expanding adoption of Navan's corporate payments. Gross margins expanded both on a GAAP and Non-GAAP basis, reaching 74% and 75% respectively, compared to 71% and 72% in the prior year, driven by operational leverage. The company achieved a meaningful improvement in profitability: GAAP loss from operations narrowed slightly to $18 million, but Non-GAAP income from operations surged to $24 million from $3 million, with Non-GAAP operating margin expanding to 11% from 2%. GAAP net loss decreased sharply to $20.5 million from $61.3 million, while Non-GAAP net income turned positive to $21.6 million from a loss of $7 million. Free cash flow was negative $11.6 million versus positive $0.5 million in the prior year, primarily due to higher working capital outflows. Management commentary highlighted strong enterprise momentum, with new AI-powered features (Travel Admin Companion, Expense Admin Companion, Book with AI, AI Audit Engine) and the unveiling of 'Navan Anywhere' for embedding booking capabilities into third-party tools. CEO Ariel Cohen emphasized the company's focus on defining the future of travel, while CFO Aurélien Nolf noted the confidence to raise full-year guidance. For Q2 FY2027, Navan expects revenue of $219-$221 million (28% growth at midpoint) and Non-GAAP operating income of $13.5-$14.5 million. For full-year FY2027, revenue guidance was raised to $907-$913 million (30% growth at midpoint, up from 24% previously) and Non-GAAP operating income of $76-$80 million (9% operating margin). The company did not announce any capital return initiatives. Overall, the quarter underscores Navan's accelerating growth trajectory, expanding margins, and successful enterprise-focused strategy.