879%. That is how much Navan’s capital spending increased over the six months ended July 31, to $1.0 million. It sounds like a large investment cycle until you notice the base: capex was just $105,000 in the comparable period.
The more consequential oddity is elsewhere. Revenue rose 5.7% to $232.8 million, while operating cash flow swung from negative $6.8 million to positive $18.4 million. Navan also ended the period with $653.0 million of cash. The income statement did not join the celebration: operating margin fell to -11.0% from -8.2%, and net loss widened to $29.1 million from $20.5 million.
That leaves a clean but unresolved tension. Navan is converting more of its sales into cash, but the business is also spending more to produce those sales. The six-month gross margin barely moved, reaching 74.1% from 74.0%, so the pressure showed up below gross profit.
Management attributes the revenue increase to more usage-based revenue, higher gross booking value and payment volume, a larger customer base, deeper engagement, and greater adoption of its Expense Management offering.
"The increase in revenue is primarily due to (i) an increase in usage-based revenue driven by an increase in GBV and payment volume as we increased our customer base and expanded engagement with our platform and offerings by existing customers, and (ii) an increase in subscription revenue primarily driven by increased adoption of our Expense Management offering by new and existing customers on our platform."
Navan, 10-Q, September 10, 2026
The filing attributes the increase primarily to volume and customer adoption. The latest period’s margin pressure coincided with increases in the cost base.
Sales and marketing expense rose 51%. Navan said salaries and related benefits accounted for $32.7 million of the increase, including $13.3 million of stock-based compensation recognized after and as a result of the IPO.
"Sales and marketing expense for the six months ended July 31, 2026 increased by $66.1 million, or 51%, primarily due to an increase in salaries and related benefits of $32.7 million, of which $13.3 million related to stock-based compensation expense recognized after and as a result of the completion of our IPO."
Navan, 10-Q, September 10, 2026
That stock compensation is a non-cash accounting expense, but the share count still rose 2.4%, to 256.4 million diluted shares. The filing therefore presents two different costs of the IPO-era expansion: one hits reported earnings, and the other shows up in ownership dilution.
Cost of revenue also rose 27%, primarily because of higher salaries and benefits tied to headcount. Navan said gross profit and gross margin benefited from revenue growth on a relatively fixed cost base supported by AI-powered customer support, but that operating leverage did not carry through the full income statement.
The cash improvement is not simply a profit story. Navan said operating cash flow benefited from a lower net loss adjusted for non-cash items, partly offset by cash used for working capital. Accounts receivable fell 6.2% to $212.5 million, giving the cash conversion a second disclosed support in this period.
The stock closed at $20.27 on September 10, down 21.8% that day, despite a 110.7% gain over six months. The latest annual results show the longer backdrop, with revenue reaching $702.3 million in the year ended January 31, 2026, while operating margin was -28.0%.
The next report leaves one factual question on the table: whether positive operating cash flow continues as sales and marketing costs, diluted shares, and working capital move again. Can Navan keep converting growth into cash while its operating loss widens?
Source: Navan’s Form 10-Q filed September 10, 2026.