Navan, Inc.: Strong execution drives beat and guide raise; Reiterate Buy

Research evidence excerpt

Navan, Inc.: Strong execution drives beat and guide raise; Reiterate Buy

iQprofile SM Navan, Inc.

iQmethod SM – Bus Performance* Company Sector

(US$ Millions) 2025A 2026A 2027E 2028E 2029E Internet/e-Commerce

Return on Capital Employed -12.4% -17.1% -6.3% -2.6% -0.8%

Return on Equity NM -3,758.0% -9.6% -4.3% -1.4%

Operating Margin -20.1% -28.0% -11.9% -5.6% -2.8% Company Description Free Cash Flow (51) 33 53 112 186

Navan is a global business travel and expense management

provider offering a unified, AI‑driven platform for travel

iQmethod SM – Quality of Earnings* bookings, payments, and expense management. Its

(US$ Millions) 2025A 2026A 2027E 2028E 2029E mobile‑first, highly automated model enables faster

Cash Realization Ratio NM NM NM NM NM bookings for customers, along with lower service costs, and

Asset Replacement Ratio 0x 0.1x 0.2x 0.2x 0.2x improved visibility for corporate finance and travel teams.

Tax Rate NM NM NM NM NM

Net Debt-to-Equity Ratio 89.3% -38.5% -44.6% -63.7% -83.8%

Interest Cover -1.4x -3.8x -6.1x -3.2x -1.9x Investment Rationale

Navan is an AI‑driven business travel, expense, and

Income Statement Data (Jan) payments platform delivering industry‑leading revenue

(US$ Millions) 2025A 2026A 2027E 2028E 2029E growth and early operating leverage. Its high automation

Sales 537 702 912 1,139 1,401 levels, strong enterprise wins, and expanding multi‑product

% Change 33.5% 30.8% 29.9% 24.9% 23.0% adoption are driving share gains from legacy TMCs while

Gross Profit 367 500 668 851 1,058 improving unit economics. We see a clear path to sustained

% Change 53.2% 36.4% 33.6% 27.4% 24.2% strong growth, margin expansion, and free‑cash‑flow

EBITDA 0 62 105 157 233

growth. % Change 99.9% NM 70.2% 49.9% 48.2%

Net Interest & Other Income (64) (199) (17) (20) (20)