Navan, Inc.

What they do

Navan runs a single platform for business travel booking, expense management, and corporate payments, built on its proprietary infrastructure (Navan Cloud) and AI framework (Navan Cognition). Customers typically contract annually or multi-year and pay per-trip or per-transaction fees for the Travel offering, on-demand offerings (VIP, Meetings and Events, Bleisure), and an annual subscription for Expense Management. The company also earns supplier commissions based on booking volume and fees from payment partners based on corporate card spend.

Revenue drivers

• Usage revenue (Travel and on-demand offerings) — Per-trip and per-transaction fees from customers plus supplier commissions on hotel, flight, car, and rail bookings; $211M in Q2 FY2027, up 35% year-over-year and about 91% of total quarterly revenue.
• Subscription revenue (Expense Management) — Annual subscription fees for the Expense Management offering; $21M in Q2 FY2027, up 39% year-over-year and about 9% of total quarterly revenue.
• Corporate Payments — Fees from corporate card payment processors and card issuing partners based on spend on Navan-issued cards; payment volume was $1.3B in Q2 FY2027, up 34% year-over-year.

Recent performance

For Q2 FY2027 ended July 31, 2026, total revenue was $233M, up 35% year-over-year, with usage revenue of $211M and subscription revenue of $21M. Gross booking volume grew 45% to $3.0B and payment volume grew 34% to $1.3B. GAAP gross margin was 74%; GAAP loss from operations was $(26)M and GAAP net loss was $(29)M, versus a $(39)M net loss a year earlier. Non-GAAP income from operations was $17M and non-GAAP net income was $14M. For the first six months of FY2027, GBV was $6.1B (up 48%) and payment volume was $2.6B (up 31%).

Strategy

Navan lands customers with its Travel offering and then expands into Corporate Payments, Expense Management, Meetings and Events, VIP, and Bleisure to deepen adoption and revenue per customer. It invests in both sales-led and product-led customer acquisition, and in Customer Success to grow revenue from the installed base. The company is pushing its proprietary AI, stating over 50% of AI calls run on its own models, up from 30% in Q1, and that its AI support agent Ava handled roughly 60% of customer interactions in Q2. It is also expanding supplier connectivity, including an industry-first hotel-TMC direct connection with Hilton and new or upgraded NDC connections with ITA Airways and Singapore Airlines, and launched a Model Context Protocol integration for travel expense data.

Risks

• Growth-rate sustainability — Navan states its recent rapid growth rates may not continue, and failure to manage growth could harm results as it continues to invest broadly.
• Macroeconomic and travel demand sensitivity — The company warns that macroeconomic uncertainty, including interest rates, inflation, tariffs, and geopolitical conflict, has reduced and may continue to reduce demand as companies deprioritize T&E spending.
• GAAP profitability gap — FY2026 net loss was $(398.0)M and Q2 FY2027 GAAP loss from operations was $(26)M, so non-GAAP profitability has not translated into GAAP profit.
• Supplier and payment-partner dependence — Revenue depends on maintaining commission rates and travel inventory access with airlines, hotels, GDS providers, and payment partners.

Outlook

Management raised its full-year FY2027 outlook and said Q2 results exceeded expectations, citing record new signed GBV of $4.0B in the SLG business on a trailing-twelve-month basis, up 60% year-over-year. The CFO said record signed demand provides visibility into future growth and emphasized scaling the platform with proprietary AI to support durable growth and cash flow generation. No specific revenue or earnings guidance figures were provided in the excerpted release.