Navan beats Q2 expectations as AI momentum and cash flow accelerate

The quarter cleared the market’s operating bar. Revenue reached $232.8 million, ahead of the published consensus of roughly $224.9 million, while non-GAAP diluted EPS was $0.05 versus an expected ~$0.04. The beat was not just accounting noise: revenue grew 35% year over year, total GBV rose 45% to more than $3 billion, and non-GAAP operating income more than doubled to $17.3 million. 〔0〕

Demand indicators strengthened beyond the headline revenue beat. Signed GBV in the sales-led business reached a record $4 billion and grew 60% year over year on a trailing-twelve-month basis, giving the market more evidence that the growth is being supported by new bookings rather than only existing-customer expansion.

Cash generation materially improved, although GAAP profitability remains unresolved. Navan produced $21.5 million of free cash flow and $25.2 million of operating cash flow, versus negative free cash flow and nearly breakeven operating cash flow a year earlier. But GAAP operating loss widened to $25.6 million from $12.3 million, and stock-based compensation rose to $43.3 million in the quarter—larger than the reported non-GAAP operating profit. That makes the adjusted profitability milestone meaningful, but not yet equivalent to durable GAAP earnings.

The outlook signal adds to the beat. Management said it was raising full-year fiscal 2027 guidance again, while also highlighting record signed demand, greater use of proprietary AI models, and an expansion of the platform through new distribution links and acquisitions. 〔1〕 Because the filing does not provide the revised guidance figures, the size of the increase cannot be independently measured here; still, the combination of above-consensus results, positive free cash flow, and a higher outlook makes this a clear beat rather than merely an in-line quarter.