Navan (NASDAQ:NAVN) reported second-quarter revenue of $233 million, up 35% from a year earlier, as travel bookings on its platform continued to expand and the company cited growing adoption of its travel, payments and expense-management products.
Total gross booking value, or GBV, exceeded $3 billion during the quarter, rising 45% year over year. Chief Financial Officer Aurélien Nolf said the company exceeded its expectations for both revenue and non-GAAP operating income, supported by strong booking volumes, expansion among existing customers, contributions from ramping customers and new launches, and a higher mix of premium-cabin travel.
Bookings, Sales Activity and Customer Growth
Chief Executive Officer and co-founder Ariel Cohen said the company saw broad-based usage growth across its products and geographies. Navan reported a customer satisfaction score of 96 and a net promoter score of 44.
The company’s sales-led growth, or enterprise sales, organization delivered its strongest sales quarter to date, according to Cohen. Over the past 12 months, Navan signed $4 billion in new GBV through its sales-led growth business, an increase of 60% from the comparable period a year ago.
Navan said the volume of requests for proposals received in the first half of the year tripled from the first half of the prior year. It now serves 50 S&P 500 companies, compared with 45 in the preceding quarter.
President Michael Sindicich said Navan’s win rates, average selling prices and sales-representative productivity have all increased. He said enterprise deals can take six to nine months to reach a signed contract after an RFP process begins. Once signed, customers take roughly two months on average to implement and another five months to reach full ramp-up and adoption.
Product-led growth revenue more than doubled year over year, Cohen said. Payment volumes reached $1.3 billion, up 34%, while subscription revenue totaled $21 million, up 39%.
Sindicich said Navan had increased its focus on selling payments and expense products after restructuring its capital position and adding warehouse capacity. Nolf said payment-volume growth came from new customers adopting payments and expense products, upsells, and broader adoption among existing customers.
Margins and Cash Flow Improve
Navan reported a non-GAAP growth margin of 75% and a non-GAAP operating margin of 7%, compared with a 5% operating margin a year earlier. Nolf said revenue continued to grow faster than the company’s cost base despite investments in artificial intelligence infrastructure and product development.
Free cash flow was $28 million over the trailing 12 months, compared with a $33 million cash burn a year earlier. Navan ended the quarter with $820 million in cash and short-term investments and approximately $125 million in debt.
The company attributed margin progress in part to Ava, its AI customer-support agent. Cohen said Ava handled about 60% of customer interactions in the second quarter, including tasks such as itinerary changes, rebookings, hotel changes and refunds. Approximately 50% of Ava’s AI model calls now run on Navan-owned models, up from 30% in the first quarter.
Nolf said the company expanded its gross margin by 200 basis points year over year in the second quarter and by 1,000 basis points over the past several years. He said the company is focused primarily on customer satisfaction rather than optimizing solely for gross margin, while expecting further leverage as Ava handles a greater share of support activity.
For the third quarter, Navan forecast revenue of $253 million to $255 million, representing 30% growth at the midpoint, and non-GAAP operating income of $35.5 million to $36.5 million, or a 14% margin.
AI Platform and Supplier Connectivity
Management emphasized its strategy of combining AI tools with its travel and financial-technology infrastructure. Cohen said Navan Cognition serves as an intelligence layer that coordinates AI agents, human experts, data, travel inventory, company policies, payments and fulfillment.
The company is also expanding its Navan Anywhere strategy through Navan MCP, which provides conversational access to travel, expense, booking and policy data through platforms including ChatGPT, Claude and Copilot. Navan said it is separately adding agent capabilities in tools such as Gemini and Slack.
Navan Edge, its AI travel-assistant product, is the fastest-growing product the company has launched, Cohen said. The tool can plan and book flights, hotels, restaurants and events, as well as manage itinerary changes. Cohen said Edge has attracted individual business travelers directly to the platform and has shown high satisfaction and repeat usage.
Navan also discussed a direct connection with Hilton. Sindicich said direct supplier relationships are intended to improve access to content, rates, inventory, ancillary offerings and servicing capabilities, rather than primarily changing the company’s yield. Cohen said direct connections also provide the detailed supplier data needed for Navan’s AI-driven recommendations.
BoomPop Acquisition Expands Meetings and Events
Navan highlighted its acquisition of BoomPop, a meetings-and-events platform that uses conversational AI to source venues and event services. Cohen described meetings and events as a large and largely manual category, estimating it represents about 30% of the company’s addressable market for business travel-related spending.
Management said BoomPop can help customers source hotels, catering, photographers, attendee management and other event requirements in one workflow. Sindicich said BoomPop’s supplier relationships can provide customers with negotiated rates, and the company cited potential savings of roughly 30% in the meetings-and-events category.
Nolf said Smartrips, another acquisition, is immaterial to Navan’s fiscal 2027 revenue and profit outlook, though it provides local inventory, IATA licenses and a team that can support global expansion. He said BoomPop is expected to have a low-single-digit effect on fiscal 2027 revenue and a mid-single-digit effect on non-GAAP operating income as Navan integrates the business. Navan expects BoomPop to become accretive in fiscal 2028.
Management said it will continue to evaluate acquisition opportunities but maintains a high bar for deals, focusing on capabilities that would be difficult or time-consuming to build internally.
About Navan (NASDAQ:NAVN)
Navan (NASDAQ: NAVN) is a technology company that provides an integrated platform for corporate travel, expense management and business payments. The company combines online travel booking and itinerary management with expense reporting, corporate card services and payment processing to help organizations consolidate travel and T&E (travel and expense) workflows into a single system. Navan emphasizes a mobile-first user experience, automated reconciliation and policy controls to simplify administrative processes for finance and travel teams while improving the experience for travelers.
Navan’s offerings typically include online and mobile travel booking, real-time traveler support and duty-of-care features, automated expense capture and reporting, corporate card and virtual card issuance, and tools for payments and invoice management.
