Navan (NAVN 7.69%) stock, which uses artificial intelligence to power software for "business travel, payments, and expense management," and which has been falling basically ever since its late-October IPO, took another tumble after reporting fiscal Q3 2026 earnings last night.
As of 10:50 a.m. ET this morning, the stock is down 16.8%.
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Navan Q3 earnings
Navan grew its revenue 29% year-over-year in Q3, to $195 million, with "usage" revenue of $180 million, and recurring "subscription" revenue of $15 million. Gross booking volume, which can foreshadow future revenue growth, increased by 40% year-over-year, to $2.6 billion, and gross profit margin held steady at 71%.
That's the good news. The bad news is that all this wasn't enough to turn Navan profitable. It lost $225 million in the quarter, more than five times its losses a year ago, and announced its CFO will be leaving the company effective Jan. 9.
No permanent replacement has been named, but the company's Chief Accounting Officer, Anne Giviskos, will serve as interim CFO while the search for a permanent CFO continues.
NASDAQ: NAVN
Key Data Points
Is Navan stock a buy?
Turning to guidance, Navan says Q4 revenue should range from $161 million to $163 million, which is ahead of analyst forecasts. Full-year revenue, however, of $686.5 million plus or minus, is exactly what analysts were already looking for -- so not a positive surprise.
Navan did say it expects to be profitable this year, or more precisely, to report positive non-GAAP income of $21 million or $22 million. Free cash flow for the year to date, however, remains negative at about $15 million.
With FCF still at least two years away from breakeven, according to analysts, it's too soon to say if Navan stock is a "buy."
