Navan (NASDAQ: NAVN) shares dropped 15.26% in after-hours trading to $21.94, despite the travel technology company reporting strong second-quarter fiscal year 2027 results and raising its full-year outlook.

The stock had closed regular session trading down 2.82% at $25.89. The sharp decline followed the announcement of widened GAAP operating losses, even as non-GAAP metrics improved significantly.

Financial Performance

Navan reported total revenue of $233 million, a 35% increase year-over-year from $171.952 million. Gross Booking Volume (GBV) grew at an even faster pace of 45% to $3.0 billion.

Non-GAAP income from operations more than doubled to $17 million (7% margin) from $8 million (5% margin) in Q2 FY26. Adjusted earnings per share came in at $0.05, exceeding the consensus estimate of $0.04 by 25 percent.

However, GAAP loss from operations widened to $(26) million from $(12) million a year ago, with GAAP operating margin worsening to (11)% from (7)%. GAAP net loss was $(29) million, narrower than the $(39) million loss recorded in the prior year period.

What the Numbers Show

The divergence between GAAP and non-GAAP results highlights significant accounting adjustments impacting reported profitability. While non-GAAP income from operations expanded to $17 million, the GAAP operating loss widened to $(26) million. This $43 million gap suggests substantial non-cash charges or stock-based compensation costs are being added back to derive the non-GAAP figure, creating a stark contrast between operational cash-flow generation potential and statutory accounting losses.

Business Momentum

New Signed GBV in the Sales-Led Growth (SLG) business hit a record $4.0 billion on a trailing-twelve-month basis, up 60% YoY. Management attributed this to strength from new customers, ramping cohorts, and expansion within the installed base.

Key strategic developments during the quarter included:

• Enterprise Wins: Partnerships with global leaders including Cummins, Enbridge, Evotec, Ingersoll Rand, Insight Enterprises, and Viessmann Generations Group.
• AI Integration: Over 50% of AI calls now run on Navan’s proprietary models, up from 30% in Q1. The AI support agent, Ava, handled approximately 60% of customer interactions.
• Acquisitions: Navan acquired Smartrips, a leading Brazilian travel management company, to deepen its Latin American footprint, and BoomPop, an AI-native platform for meetings and events. The BoomPop acquisition is expected to have no material impact on previously issued guidance.
• Connectivity: Launched industry-first direct connections with Hilton and ITA Airways, and upgraded links with Singapore Airlines.

Outlook

For the third quarter of fiscal year 2027, Navan expects total revenue in the range of $253–$255 million, representing 30% YoY growth at the midpoint. Non-GAAP income from operations is projected at $35.5–$36.5 million (14% margin).

For the full fiscal year 2027, the company increased its total revenue guidance to $927–$933 million (32% YoY growth at midpoint) and raised non-GAAP income from operations to $82–$86 million (9% margin at midpoint).

Cash flow generation remained positive, with free cash flow reaching $21.5 million in the quarter, supported by disciplined cost management and growing operating cash flows of $25.2 million.

Navan (NASDAQ: NAVN) has acquired BoomPop, an artificial intelligence-powered platform for meetings and events. The transaction integrates the Inc. 5000-listed company into Navan’s global business travel and expense ecosystem.

The acquisition builds on a partnership announced earlier this year between the two firms. Navan stated the move is intended to expand its presence in meetings and events, where the majority of corporate spend occurs outside of managed channels.

Strategic Integration

BoomPop, founded in 2023, leverages AI to manage events end-to-end, including venue sourcing, contracts, and payments. The platform has supported events for approximately 250,000 people at major clients such as Accenture, Amazon, Google, Salesforce, and Shopify.

BoomPop estimates it has helped customers reduce costs by approximately 30% on average for bookings ranging from small gatherings to large conferences.

Michael Sindicich, President of Navan, said the integration aims to provide transparency and value in meetings similar to Navan’s travel programs. Healey Cypher, BoomPop Co-Founder and CEO, noted that joining forces allows companies to have one partner for all work functions.

Financial Impact

Navan expects the transaction to have no material impact on its previously issued guidance. The company will draw on experience integrating previous acquisitions, including Reed & Mackay, Comtravo, Tripeur, and Smartrips.

Financial terms of the deal were not disclosed.