Navan Lifts Fiscal 2027 Revenue Outlook to $933 Million
The travel platform posted $233 million of second-quarter revenue and raised full-year non-GAAP operating income to $82 million to $86 million.
Navan, Inc. (NAVN), the global AI-powered business travel and expense platform, raised its fiscal 2027 outlook after a second quarter in which year-over-year revenue growth cooled to 35% from 40% in the prior quarter.
The company now expects full-year revenue of $927 million to $933 million, or 32% growth at the midpoint, and non-GAAP income from operations of $82 million to $86 million, with a 9% operating margin at the midpoint. That followed an earlier lift of fiscal 2027 revenue growth to 30% from 24%.
Total revenue was $233 million. Usage revenue was $211 million, up 35% from a year earlier, and subscription revenue was $21 million, up 39%. Gross booking volume grew 45% year-over-year to $3.0 billion, after 50% growth in the first quarter. Payment volume grew 34% to $1.3 billion, faster than the 29% pace in the prior quarter.
New signed GBV in the sales-led growth business reached a record $4.0 billion on a trailing-twelve-month basis, up 60% year-over-year. Co-founder and CEO Ariel Cohen said the company believes the results reflect durable demand for face-to-face connection and the combined strength of its technology, go-to-market model, and customer experience.
GAAP gross profit was $172 million, or a 74% gross margin, matching the prior quarter’s 74%. Non-GAAP gross profit was $175 million, or 75%, also unchanged from the first quarter.
Non-GAAP income from operations was $17 million, or a 7% operating margin, down from $24 million and 11% in the first quarter. GAAP loss from operations widened to $26 million, or an 11% operating margin, from an $18 million loss and an 8% margin. Non-GAAP net income was $14 million, compared with $22 million in the prior quarter. GAAP net loss was $29 million.
Cash generation strengthened against a year earlier. Free cash flow was $21.5 million, versus a $4.1 million free cash outflow in the year-ago quarter. Net cash provided by operating activities was $25.2 million, versus $0.2 million a year earlier. Cash, cash equivalents and restricted cash ended the period at $748.5 million.
More than 50% of AI calls ran on Navan’s proprietary models, up from 30% reported on the first-quarter earnings call. Ava, its AI support agent, handled about 60% of customer interactions in the quarter. Navan launched a Model Context Protocol for travel and expense, added a direct hotel connection with Hilton and new NDC links, and partnered with OpenTable on Navan Edge. It acquired Smartrips, a Brazilian travel management company, and announced the acquisition of BoomPop, an AI-native meetings and events platform.
For the third quarter of fiscal 2027, ending October 31, 2026, Navan expects revenue of $253 million to $255 million, or 30% year-over-year growth at the midpoint, and non-GAAP income from operations of $35.5 million to $36.5 million, or a 14% operating margin at the midpoint.
Chief Financial Officer Aurélien Nolf said the company is again raising its full-year outlook as it enters the second half in a position of growing strength, and that it is leading travel into the agentic era by combining proprietary AI with human expertise.