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NAVN
Earnings call · Jul 2026 (Q2 FY27)

Navan Q2 FY27 earnings call NAVN

Sep 9, 2026 Source

Executive summary

Navan Q2 FY27 — Strong GBV Growth, AI-Driven Efficiency, and Strategic M&A

Navan delivered a strong Q2 FY27, marked by robust growth in gross booking volume and revenue, driven by broad-based platform usage and effective sales execution. The company's end-to-end AI platform, including Ava and Navan Edge, is enhancing efficiency and customer experience, contributing to significant gross margin expansion. Strategic acquisitions like BoomPop further extend Navan's offerings into new categories like meetings and events, reinforcing its position as a comprehensive travel and expense management solution.

Highlights

5

  • Total GBV grew by 45% year-over-year to more than $3 billion in Q2 FY27.

  • Revenue increased by 35% year-over-year to $233 million in Q2 FY27.

  • Non-GAAP operating margin expanded to 7% in Q2 FY27, up from 5% a year ago.

  • New signed GBV for sales-led growth (SLG) was $4 billion in the last 12 months, up 60% compared to Q2 last year.

  • Ava, Navan's AI customer support agent, handled approximately 60% of customer interactions in Q2 FY27.

Guidance & targets

CategoryTargetConfidence
Q3 FY27 Revenue
$253M-$255M
high materiality
High
Q3 FY27 Non-GAAP Operating Income
$35.5M-$36.5M
high materiality
High
Full-year FY27 Revenue
$927M-$933M
high materiality
High
Full-year FY27 Non-GAAP Operating Income
$82M-$86M
high materiality
High
Full-year FY27 Revenue Growth
32%
high materiality
High

NAVN operating KPIs by quarter

NAVN operating KPIs stated on its earnings calls, by fiscal quarter
KPI Apr 2026 Q1 FY27This call Jul 2026 Q2 FY27Change vs prior quarter
Gross bookings
$3.1B In Q1, gross bookings reached $3.1 billion, which was up 50% year-over-year, and revenue was $220 million, up 40% year-over-year. Source transcript
$3B+ Revenue was $233 million, up 35% year-over-year, and GBV reached just over $3 billion, up 45% year-over-year. Source transcript
—
Net Promoter Score (NPS)
45 This is why our NPS is at 45. Source transcript
44 Again, customer satisfaction remained high with CSAT of 96 and NPAs to 44. Source transcript
-2.2%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

New signed GBV for SLG $4B last 12 months

up 60% compared to Q2 last year

Leading indicator of future revenue growth; ramp-up timing varies by customer (2-month implementation, 5-month ramp-up).

Deals & partnerships

BoomPop Acquisition to expand capabilities in meetings and events, integrating conversational AI for event planning.

BoomPop is a partner that innovated in the manual meetings and events space, making it AI-driven. The acquisition allows Navan to manage more of customer spend and become more strategic within enterprises.

SmartTrip Acquisition to increase global footprint and access local inventory.

SmartTrip provides access to local inventory, licenses, and a great team, strategically expanding Navan's global presence.

Hilton Direct Connect relationship for hotel bookings.

Allows for more flexibility, accurate retailing, better upselling of ancillaries, and faster service for Hilton bookings, including automatic application of unused credits.

What to watch in Q3 FY27

Gross margin expansion from Ava's resolution rate

next quarter
Current 75% (Non-GAAP gross margin), 60% (Ava interaction handling)
Target Continued expansion, higher Ava resolution rate

Why it matters

Continued gross margin expansion is key to operating leverage and profitability, driven by AI efficiency.

The team has a lot of ambition here to keep driving that mix at even higher point specifically as we use more and more of our own models... And so as we keep making progress here, we're going to keep Ava handling more and more of our support function and margins are going to keep expanding.

Q&A highlights

Given the significant increase in RFP activity, how are win rates progressing, and what is the typical timeline from closing a deal to revenue realization?

Win rates, average selling prices (ASPs), and productivity per sales representative are all increasing. The process typically involves a 6-9 month sales cycle for enterprise RFPs, followed by a 2-month implementation period and a 5-month ramp-up to full customer adoption.

“we actually see win rates increasing. We see ASPs or average pricing is also increasing, and we see the productivity per rep also increasing. So with those 3 things happening, that then translates to faster growth.”

asked by Christopher Quintero · answered by Michael Sindicich

2 min read 6 chapters

Detailed narrative

Platform Usage & Growth

Navan reported strong platform usage in Q2 FY27, with total Gross Booking Volume (GBV) exceeding $3 billion, marking a 45% year-over-year increase. Revenue grew 35% year-over-year to $233 million, surpassing expectations. Customer satisfaction remained high with a CSAT score of 96 and an NPS of 44, indicating broad adoption and positive user experience across all use cases and geographies.

Sales Execution & Market Share Gains

The company demonstrated strong sales execution across both sales-led growth (SLG) and product-led growth (PLG motions. New signed GBV for SLG reached $4 billion over the last 12 months, a 60% increase year-over-year. Product-led growth revenue more than doubled year-over-year. Navan now serves 50 companies in the S&P 500, up from 45 last quarter, and has seen RFP volume triple in the first half of the year compared to last year, indicating increasing market interest and share capture.

AI Platform Leadership & Efficiency

AI is a core component of Navan's strategy, with Navan Cognition orchestrating specialized AI agents, human experts, and data. Ava, the AI customer support agent, handled approximately 60% of customer interactions in Q2, demonstrating its capability to manage complex tasks like rebooking trips and processing refunds. The company is increasing its control over technology, with 50% of Ava's AI models now Navan-owned, up from 30% in Q1, aiming for greater accuracy, faster response times, and lower costs, which is expected to drive structural gross margin expansion and operating leverage.

Strategic M&A and Platform Expansion

Navan continues to expand its platform through strategic acquisitions, most notably BoomPop, which enhances its capabilities in the large and traditionally unmanaged meetings and events category. This acquisition allows Navan to integrate conversational AI for event planning, making it more valuable to existing customers and broadening its addressable market. The company also mentioned SmartTrip as a strategic acquisition to expand its global footprint and access local inventory.

Financial Performance & Outlook

Navan exceeded expectations for both revenue and non-GAAP operating income in Q2 FY27. Non-GAAP gross margin reached 75%, and non-GAAP operating margin was 7%. Free cash flow was $28 million on a trailing 1-month basis, a significant improvement from a burn of $33 million a year ago. The company ended the quarter with $820 million in cash and short-term investments and $125 million of debt. Due to sustained momentum, Navan raised its full-year FY27 revenue guidance to $927 million-$933 million and non-GAAP operating income guidance to $82 million-$86 million.

Direct Connections & Content Strategy

Navan's strategy focuses on providing the best and most comprehensive content to travelers, connecting directly to suppliers like Hilton and utilizing NDC connections for airlines. This approach allows for more accurate retailing, better merchandising, and efficient service delivery, including automatic application of unused credits. The goal is to offer a superior booking experience that integrates all relevant information, ultimately increasing booking likelihood on the Navan platform.

AI-generated summary of the company's earnings call. Not investment advice.