Navan — Second Quarter Fiscal Year 2027 Earnings Summary

Financial Performance

• Total revenue reached $233 million, a 35% year-over-year increase.
• Usage revenue was $211 million (up 35% YoY); subscription revenue was $21 million (up 39% YoY).
• Gross Booking Volume (GBV) grew 45% year-over-year to $3.0 billion; Payment Volume grew 34% year-over-year to $1.3 billion.
• GAAP gross profit was $172 million (74% margin), compared to $125 million (73% margin) in Q2 FY2026.
• Non-GAAP gross profit was $175 million (75% margin), compared to $126 million (73% margin) in Q2 FY2026.
• GAAP loss from operations was $(26) million (11% margin), compared to a loss of $(12) million (7% margin) in Q2 FY2026.
• Non-GAAP income from operations was $17 million (7% margin), compared to $8 million (5% margin) in Q2 FY2026.
• GAAP net loss was $(29) million, compared to a loss of $(39) million in Q2 FY2026.
• Non-GAAP net income was $14 million, compared to a non-GAAP net loss of $(8) million in Q2 FY2026.
• Net cash provided by operating activities was $25.2 million for the quarter, compared to $0.2 million in Q2 FY2026.
• Free cash flow was $21.5 million for the quarter, compared to a negative $4.1 million in Q2 FY2026.
• Cash and cash equivalents stood at $653.0 million as of July 31, 2026.
• Deferred revenue was $45.7 million (current) and $0 (non-current) as of July 31, 2026.
• Total debt included an ABL facility of $6.0 million and a warehouse credit facility of $118.2 million.

Guidance and Future Outlook

• Raised full-year fiscal 2027 outlook.
• Q3 FY2027 revenue guidance is $253–$255 million, representing 30% YoY growth at the midpoint.
• Q3 FY2027 non-GAAP income from operations guidance is $35.5–$36.5 million, with a non-GAAP operating margin of 14% at the midpoint.
• Full-year FY2027 revenue guidance is $927–$933 million, representing 32% YoY growth at the midpoint.
• Full-year FY2027 non-GAAP income from operations guidance is $82–$86 million, with a non-GAAP operating margin of 9% at the midpoint.

Business Segments and Product Lines

• New Signed GBV in the Sales-Led Growth (SLG) business reached a record $4.0 billion over the trailing twelve months, up 60% year-over-year.
• Over 50% of AI calls now run on Navan's proprietary models, up from 30% in Q1.
• Ava, Navan's AI support agent, handled approximately 60% of customer interactions in Q2.
• Launched the Model Context Protocol (MCP) for Travel & Expense to enable natural-language queries for spend and policy data.
• Established an industry-first direct hotel-TMC connection with Hilton.
• Launched new direct NDC connections with ITA Airways, upgraded connections with Singapore Airlines, and added integrations with Caledonian Sleeper and Virtuo.
• Unveiled a partnership with OpenTable to integrate restaurant discovery and booking into Navan Edge's AI travel assistant.
• Acquired Smartrips, a Brazilian travel management company, to expand in Latin America.
• Acquired BoomPop, an AI-native platform for meetings and events.

Market and Competitive Landscape

• Navan continues to gain enterprise traction with new partnerships including Cummins, Enbridge, Evotec, Ingersoll Rand, Insight Enterprises, and Viessmann Generations Group.
• Management states the company is leading travel into the "agentic era" by combining proprietary AI with human expertise.
• The company highlights durable demand for face-to-face connections and a differentiated customer experience.

Risks and Challenges

• Forward-looking statements note risks including limited operating history, market growth rates, and the ability to sustain growth.
• Risks include competition from existing and new market entrants, ability to attract/renew customers, and reliance on third-party relationships.
• Specific risks involve the successful utilization of AI, cybersecurity incidents, platform disruptions, and global macroeconomic conditions (inflation, interest rates, geopolitical uncertainty).

Management Commentary and Tone

• CEO Ariel Cohen described Q2 as a quarter of "exceptional execution" with results exceeding expectations and new business momentum at the highest level in company history.
• CFO Aurélien Nolf highlighted "sustained growth while driving meaningful operating leverage" and noted that record signed demand provides visibility into future growth.
• Management expressed confidence in leveraging proprietary AI to scale the platform more efficiently, strengthening the foundation for durable growth and cash flow generation.

Other Key Points

• Navan announced the acquisition of BoomPop in a separate press release to power in-person connections and provide a single destination for travel, expense, payments, meetings, and events.
• The company will host an earnings conference call on September 9, 2026, at 2:00 p.m. PT.
• Non-GAAP financial measures are used internally to analyze operating performance and provide transparency regarding key metrics used by senior management.
• A reconciliation of non-GAAP guidance measures to GAAP measures is not available on a forward-looking basis due to the uncertainty of future expenses.