Navan (NAVN) Q2 2027 earnings summary

Executive summary

• Q2 FY27 revenue grew 35% year-over-year to $233 million, with GBV up 45% to $3.0 billion and strong customer satisfaction (CSAT 96%, NPS 44).

• Non-GAAP operating margin improved to 7%, with non-GAAP income from operations at $17 million; GAAP net loss narrowed to $29 million.

• Raised full-year FY27 revenue guidance to $927–$933 million (32% growth at midpoint) and non-GAAP operating income to $82–$86 million.

• Expanded enterprise customer base, now serving 50 S&P 500 companies, and completed acquisitions of BoomPop and Smartrips to enhance meetings/events and Latin America presence.

• AI-driven support (Ava) handled 60% of customer interactions, with over 50% of AI model calls on proprietary models.

Financial highlights

• Usage revenue was $211 million (+35% YoY); subscription revenue was $21 million (+39% YoY); payment volume reached $1.3 billion (+34% YoY).

• GAAP gross profit was $172 million (74% margin); non-GAAP gross profit was $175 million (75% margin); non-GAAP operating margin was 7%.

• Free cash flow for the trailing twelve months was $28.3 million, up from $(32.8) million a year ago; Q2 free cash flow was $21.5 million.

• Ended Q2 with $820 million in cash and equivalents and $125 million in debt; stockholders’ equity at $1.32 billion.

• Weighted-average shares outstanding: 256.4 million.

Outlook and guidance

• Q3 FY27 revenue expected at $253–$255 million (+30% YoY at midpoint); non-GAAP operating income $35.5–$36.5 million (14% margin midpoint).

• Full-year FY27 revenue guidance raised to $927–$933 million (+32% YoY midpoint); non-GAAP operating income $82–$86 million (9% margin midpoint).

• Management expects continued investment in sales, marketing, and R&D to drive growth and platform adoption.

• Existing liquidity, including cash, investments, and credit facilities, is expected to be sufficient for at least the next 12 months.