0001628280-26-042552
SEC filingRevenue up 40% YoY to $220M driven by 50% GBV growth, gross margin expanded to 74%.
Revenue for the three months ended April 30, 2026 increased 40% to $220.2 million from $157.5 million in the prior year period. The growth was primarily driven by a 50% increase in gross booking volume (GBV) and a 29% increase in payment volume, reflecting expansion of the customer base and deeper engagement from existing customers. Usage-based revenue grew 41% to $202.1 million, while subscription revenue grew 26% to $18.1 million.
Gross profit increased 46% to $163.1 million, with gross margin expanding from 71% to 74%. The improvement was attributed to revenue growth on a relatively fixed cost base, enabled by AI-powered customer support efficiencies. Cost of revenue increased 25% to $57.2 million, largely due to higher personnel costs and cloud hosting fees.
Operating expenses rose 42% to $181.2 million, driven by increased headcount and stock-based compensation. Research and development expenses grew 25% to $39.4 million, sales and marketing expenses increased 49% to $91.9 million, and general and administrative expenses rose 45% to $49.9 million. The increase in sales and marketing included $1.3 million in restructuring costs related to the transition of R&M customers to the Navan platform. G&A included $1.4 million in severance and executive transition costs.
Net loss improved significantly to $(20.5) million from $(61.3) million, benefiting from lower interest expense and the absence of losses on debt extinguishment and fair value adjustments. Non-GAAP net income was $21.6 million, compared to a non-GAAP net loss of $(7.1) million in the prior year.
While Navan does not report formal operating segments, the MD&A discloses two revenue categories: usage-based and subscription. Usage-based revenue, which includes travel booking fees and supplier/payment partner commissions, accounted for 92% of total revenue and grew 41% YoY. Subscription revenue, derived from the Expense Management offering, grew 26% YoY and represented 8% of revenue. The company continues to drive adoption of its full platform, with customers typically starting with Travel and later adopting Corporate Payments, Expense Management, and other offerings.
Management expects to continue investing in sales and marketing to grow the customer base and in AI capabilities such as Navan Cognition to drive efficiency. Seasonality is expected to persist, with revenue historically strongest in the third fiscal quarter. The R&M brand transition may result in incremental restructuring costs. No specific quantitative guidance was provided, but the company expects operating losses and fluctuating cash flows at least through fiscal year ending January 31, 2027. The company believes existing cash, cash equivalents, and available borrowings under its warehouse and ABL facilities are sufficient for at least the next 12 months.
As of April 30, 2026, Navan held $518.4M in cash and cash equivalents, $121.7M in current restricted cash, and $5.0M in non-current restricted cash, totaling $645.0M. Short-term investments (marketable debt securities) were $162.2M. Total liquidity (cash, restricted cash, and short-term investments) reached $807.2M. Total debt stood at $124.5M, comprising a $118.2M warehouse credit facility, a $6.0M ABL facility, and $0.3M other notes payable. The company had no borrowings or repayments on the warehouse facility during the quarter. Stockholders' equity was $1,236.6M, up from $1,208.1M at year-end, driven by stock-based compensation and option exercises partially offset by net loss and other comprehensive loss.
As of April 30, 2026, Navan had non-cancelable purchase commitments of $37.7M, primarily for cloud hosting arrangements and software subscriptions. Of this, $18.8M is due within one year and $18.8M in one to three years. The company is also subject to a securities class action lawsuit filed in February 2026, but no estimate of loss has been accrued. Additionally, the company has a contingent liability of $4.8M related to Dutch government grants that may be repayable, classified as $0.6M current and $4.3M non-current.
Navan did not announce any share repurchase programs or dividends. Capital expenditures totaled $4.8M for the quarter, consisting of $4.6M in capitalized software development costs and $0.1M in property and equipment, representing 2.2% of revenue. The company made net investment purchases of $5.6M (gross purchases $59.1M less maturities $53.5M). No debt was issued or retired during the period aside from scheduled payments.
The company operates as a single reportable segment. Revenue by geographic region (based on billing country) shows the United States contributed 66% ($144.7M), United Kingdom 17% ($37.7M), and Rest of World 17% ($37.9M). No individual country in Rest of World exceeded 10% of total revenue. The company does not disclose segment operating income.