Navan (NAVN) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue grew 40% year-over-year to $220M, with gross bookings/GBV up 50% to $3.1B and payment volume up 29% year-over-year.

• Non-GAAP operating margin reached 11% (up 900 basis points YoY), with non-GAAP operating profit at $24M and GAAP net loss narrowing to $20.5M.

• Strong enterprise and PLG momentum, major new customer wins, and expanded partnerships, including Visa and Google Cloud's Gemini Enterprise.

• AI-driven automation, including Ava and new AI-powered features, enhanced customer experience and operational efficiency, handling 56% of customer interactions.

• Customer satisfaction remained high, with CSAT at 96–97% and NPS at 45.

Financial highlights

• Usage revenue grew 41% to $202M; subscription revenue rose 26% to $18M year-over-year.

• Non-GAAP gross profit was $165M (75% margin, up 3 pts YoY); GAAP gross profit was $163M (74% margin, up from 71%).

• Free cash flow for trailing twelve months turned positive at $2.7M, but Q1 free cash flow was ($11.6)M.

• Ended Q1 with $681M in cash and short-term investments; debt totaled $124M.

Outlook and guidance

• FY27 revenue guidance raised to $907M–$913M (30% YoY growth at midpoint); non-GAAP operating profit expected at $76M–$80M (9% margin midpoint).

• Q2 FY27 revenue guidance: $219M–$221M (28% YoY growth); non-GAAP operating profit: $13.5M–$14.5M.

• Guidance reflects strong Q1 performance, resilient demand, and high confidence in continued growth.