Navan, Inc. (NASDAQ: NAVN) released its financial results for the second quarter of fiscal year 2027, which ended July 31, 2026. The company reported a 35% year-over-year increase in total revenue to $233 million. Within this total, usage revenue grew 35% to $211 million, and subscription revenue increased 39% to $21 million. The company also reported a Gross Booking Volume (GBV) of $3.0 billion, representing a 45% increase from the prior year.
On a non-GAAP basis, the company reported gross profit of $175 million with a gross margin of 75%. Non-GAAP income from operations was $17 million, compared to $8 million in the prior year, while non-GAAP operating margin improved to 7% from 5%.
Navan highlighted continued momentum in its enterprise business, noting that new signed GBV in its SLG (Sales-led Growth) business reached a record $4.0 billion over the trailing twelve months, up 60% year-over-year. The company also noted that over 50% of AI calls now run on its proprietary models, up from 30% in the first quarter.
In terms of business developments, Navan announced the acquisition of Smartrips, a Brazilian travel management company, and BoomPop, an AI-native platform for meetings and events. The company also unveiled a partnership with OpenTable and launched a Model Context Protocol (MCP) for Travel & Expense.
Navan updated its financial outlook for fiscal year 2027. For the third quarter ending October 31, 2026, the company expects total revenue between $253 million and $255 million, representing year-over-year growth of 30% at the midpoint. For the full fiscal year ending January 31, 2027, the company increased its total revenue outlook to a range of $927 million to $933 million, representing 32% year-over-year growth at the midpoint. The company reaffirmed its non-GAAP operating margin outlook of 9% for the full year.
