Navan shares rise 19% on strong Q1 results, raised outlook

Shares of Navan surged in premarket trading on Thursday, June 11, following the company's release of strong first-quarter financial results and a significant increase to its full-year guidance. The business travel and expense management platform reported substantial growth across key metrics, including a 50% year-over-year increase in gross booking volume to $3.1 billion for the quarter ended April 30.

The company's revenue for the period rose 40% to $220 million, surpassing analyst expectations. Payment volume processed through Navan-issued cards climbed 29% to $1.3 billion. On an adjusted basis, operating income increased eightfold to $24 million, with the operating margin improving to 11% from 2% a year ago. The company reported adjusted earnings of $0.09 per share, a significant turnaround from a loss in the prior-year period.

In response to these results, Navan raised its financial outlook for its 2027 fiscal year. Management now projects revenue between $907 million and $913 million, representing growth of approximately 30%, up from a prior forecast of 24% growth. The company also increased its forecast for adjusted operating income to a range of $76 million to $80 million.