Good day, and welcome to the Navan, Inc. Q4 fiscal 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. You will then hear an automated message advising your hand is raised. To withdraw your question, press 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Ryan Burkart, Vice President of Investor Relations. Please go ahead.

Thank you, operator. Good afternoon, everyone, and welcome to Navan, Inc.'s fourth quarter fiscal 2026 earnings conference call. With me on the call today are Ariel Cohen, our Chief Executive Officer and Co-Founder; Aurelien Nulf, our Chief Financial Officer; and Michael Sindosich, our President. Before we begin, during the course of today's call, we may make forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including the risks and uncertainties described in our earnings press release, our quarterly report on Form 10-Q filed with the SEC on 12/15/2025, and our other filings with the SEC. In addition, on today's call, we will refer to non-GAAP income and loss from operations, non-GAAP operating margin, non-GAAP gross margin, and free cash flow, which are non-GAAP financial measures that provide useful information for investors. Reconciliations of these non-GAAP financial measures to their corresponding GAAP financial measures, to the extent reasonably available, can be found in our earnings press release. With that, it is my pleasure to turn the call over to Navan, Inc.'s CEO and Co-Founder, Ariel Cohen.

Hi, thanks everyone for joining. I hope that you had the time to read our prepared remarks. And I have one thing to say, we are doing it. We just closed a very good Q4 and a year with incredible results. Our NPS in Q4 is at 47. This is an all-time high. Our CSAT is at 96 and maintained very high, and this is a proof point for meeting our mission: to make travel easy for every traveler by being the best travel agency on the planet. The 35% Q4 year-over-year revenue growth and the non-GAAP operating profit in the quarter are demonstrating the leadership position that we are at. We are executing very well on both our motion and our PLG motion. So if you think about it, in Q4, we signed net new GBV that is over 50% more compared to Q4 in the previous year. This is a huge growth rate. We are displacing legacy players because we offer great user experience, real savings, and proven AI value to date. This also brings us very close to the rule of 40 for the first time in our history. And the icing on the cake, we actually turned free cash flow positive for the first time in our history, and a year ahead of our plan. Now I want to take a step back and talk about AI because as an AI leader in the travel space, I am getting a lot of questions. What does it mean for travel, for the space? So I want to really take the moment and explain. So first of all, we, Navan, Inc., are a travel agency. It means that we care about every step of the travel experience, from the moment that you are planning your trip, while you…

Awesome. Thank you. Thank you so much. Ariel, it is such a great privilege for me to join Navan, Inc., the Navan, Inc. team. Such a great moment. Such a great momentum in the business. As you know, I saw the power of our platform firsthand when I was a customer myself. And I know it is not just a layer on top of an old tech. It is clearly a clean-sheet redesign that addresses a huge market of $185,000,000,000. Looking at the numbers, Q4 revenue was $178,000,000, up 35% year over year, while our GBV reached $2,300,000,000, up 42% year over year, a growth acceleration driven by an incredible go-to-market momentum and faster than expected enterprise onboarding and ramps. Addressing the GAAP figures, this was mainly driven by a strategic one-time move. You will notice our GAAP operating margin was negative 50% in Q4. We decided to retire the Reed & Mackay brand for new sales, resulting in a $36,200,000 non-cash amortization charge. As Ariel just mentioned, this is a very intentional move that will ultimately deliver the power of the Navan, Inc. platform to the Reed & Mackay customers. Our non-GAAP operating margin was breakeven, a remarkable 1,100 basis points improvement over last year. We are driving leverage across the board, with our non-GAAP operating expenses being down as a percentage of revenue, even as we invest in more product innovation and our incredible go-to-market strategy. We ended the year with a very strong balance sheet: $741,000,000 in cash and short-term investments against just $125,000,000 in debt, mainly related to our expense business. We expect this great momentum to continue in fiscal 2027. And from a guidance perspective for the full year 2027, we expect revenue between $866,000,000 and $874,000,000, or 24% growth at the midpoint, and a non-GAAP operating profit between $58,000,000 and $62,000,000, a 7% margin at the midpoint. For Q1 fiscal 2027 specifically, we expect revenue between $204,000,000 and $206,000,000, which represents 30% growth as we head into a seasonally strong spring, with non-GAAP operating profit expected to be in the range of $4,500,000 to $5,500,000. Navan, Inc. is proving that we can grow fast when we are becoming a disciplined and engine, have an incredible mission, the right product, and the right team to execute. And with that, we will open it up for questions.

Thank you. As a reminder, to ask a question, please press. To withdraw your question, please press 11 again. Due to time restraints, we ask that you please limit yourself to one question and one follow-up. And our first question will come from the line of Steven Enders with Citi. Your line is open.

Okay, great. Thanks for taking the questions here. I guess just to start, I want to get a better understanding for the bookings momentum that you are seeing in the business. I think you called out 50% growth in bookings there. Just how do you view the sustainability of that growth and what you are seeing in the sales pipeline? And I guess as we think about that 50% number, I mean, I guess, it kind of implies an acceleration versus the 42% GBV growth we saw this quarter. So just how should we think about the potential for overall GBV growth to excel further from here?

Great. Hi, Steve. I am going to tag in with Michael on this one, but I am going to start with highlighting the 42% GBV growth we saw in the fourth quarter, right? So incredible momentum. And Michael is going to speak to why we are seeing this momentum with our customers so far. But, clearly, this acceleration of our booking growth is very, very exciting. What I just want to really clarify here is the 50% I mentioned is the new signed GBV. So the new signed GBV is something we are looking at internally. It is a data point we are looking at internally; it is the total annual travel spend that we exchange from new customers that we just signed during the quarter. So it is what we know is going to fuel our revenue going forward, and we are seeing great momentum there. So we believe we are going to keep seeing very strong booking growth going forward.

Yeah, and maybe I will give a little bit of color on what we are seeing. First of all, I do not know how many people on the call here have been in sales before. But what I can say is it feels so damn good to be able to walk into any room at any size of customer around the globe and believe in our bones that we can support their travelers better than anyone else on the planet. And so we take that energy into these customers, and we really explain what we deliver. And when we think about what matters to our buyers, first of all, we deliver 15% median savings off of your current travel budget compared to whatever you are currently using. That is huge. Travel budgets are big, and at a time now, people are really focused on being able to save money. Next, if we can tell you that through AI and through our products, we can book in seven minutes or less on average, compared to forty-five minutes. Think about how many travelers are booking day in, day out. They are really employees that need to go win customers or drive the business forward. And we are saving a ton of time. More than 70% of our expenses are automated. We just launched the Expense AI agent where you can just drop in your receipt and it will automatically code your expenses. And then, you know, we have a saying internally: when it rains, Navan, Inc. shines. We just had massive storms. There are wars going on. And your employees or customers' employees are typically waiting on hold or sending emails to get a hold of their travel agent, when 50% of our support is completely automated with Ava. And then you…

Okay. That is great to hear. I guess just to follow up, you mentioned some of the uncertainty out there, conflict, war out there. Just maybe what impact has that had on what you are seeing from bookings activity or from the impact that is having on the business? And I guess on the other side of that, just how are you incorporating that ongoing conflict into the outlook here?

Yeah. It is a great question. So far, we have seen very minimal impact. We have a very, very low volume exposed to the Middle East. In fact, low single-digit volume exposed to the Middle East. So we are not seeing any significant impact at this point. It is very hard for me to sit here today and say that I can predict everything that is going to happen in the world. But what I can tell you is during our Q4, we saw actually a lot of disruption to travel. When you think about the winter storms on the East Coast, we had this war in the Middle East, TSA also has been disrupted recently. And that is exactly what Michael just mentioned. That is when our platform really stands out as being the right tool for people to use. But what I would say from a guidance perspective, our forecast today assumes what is a typical amount of disruption we are expecting to see in the world. Nothing more, nothing less. Disruption is part of the business. That is something we know and manage very, very well. Yeah, that is the color I can provide.

Okay. Perfect. Appreciate you taking the questions.

You bet. Thank you.

One moment for our next question. That will come from the line of Samad Samana with Jefferies. Your line is open.

Hi, good evening. Thanks for taking my questions. Great to see the strong close to the fiscal year and the strong outlook for fiscal 2027. Just a couple of things. Maybe first, on the Reed & Mackay transition, can you help us maybe think through what the benefit of that will be going forward beyond the branding component? Should we expect maybe better unit economics there? Should we think about that it makes it easier to sell so that you are not describing it separately? Just help us think about both the financial impact and then the selling impact there. And then I have one follow-up question.

Yeah. Hi, Samad. So first of all, we actually always, always, always in Navan, Inc. work it back from our customer. So the main reason for accelerating the integration of Reed & Mackay into the Navan, Inc. platform is that that is what our customers want. We have endless discussions with customers that are telling us on one side, I do want to have the ability to sometimes talk with an agent and a really, really, really good travel agent, especially if I am stuck, especially if it is an extremely complex trip. Sometimes I just want to offload the entire thinking to somebody else. I am actually willing to pay for it. So that is on one side. On the other side, I see a lot of things in your platform that I cannot get with a travel agent. For example, the level of access to content that we have: different types of airlines, low-cost carriers that even VIPs want to use when they are in Europe, the ability to change stuff instantly, to book stuff immediately. These are things that we are hearing from our VIP customers, the C-level, the executive assistants that they want to see. So basically, bringing a solution that marries the two together, we see it as a huge upside. We see it as an upside for the sales organization, for our sales organization to upsell Reed & Mackay for all of our 12,000 customers. So definitely an upside. And there is another upside here: the economics of our AI platform—gross margin, unit economics—are completely different than the economics of the Reed & Mackay platform. The Reed & Mackay platform, think about it as very, very similar to any kind of travel management company that you are familiar with, while in the Navan, Inc. platform, it is really an AI-driven platform. So there are mainly two benefits here. On the top line, we will see more people using our VIP offering. And then from a unit economics perspective, it is definitely a higher gross margin business.

And maybe some financial color that I can add here. You can see in the prepared remarks that we just published that the Reed & Mackay business is roughly 20% of our total revenue for FY 2026, and they had a growth rate that was significantly lower than the core Navan, Inc. platform. In fact, the core Navan, Inc. platform grew in the high forties from a GBV perspective and just above 40% from a revenue perspective. So there is clearly a very, very different dynamic there. And what I would say, to wrap on this topic, is the net revenue retention rate for Navan, Inc. overall in 2026 was 107%. So it was slightly lower than 110% we have seen in the past, and it was fully driven by the Reed & Mackay dynamics, because the core Navan, Inc. platform’s net revenue retention was 110%, very stable there, and if you add the ramp of our new customers, it was even above 120%. So we are seeing very strong retention in our core business, but it was a little bit offset by this dynamic within the Reed & Mackay business. It is the reason why we are very excited about migrating those customers to the Navan, Inc. platform.

Really helpful. And then maybe just as a follow-up, if I unpack the fiscal 2027 guidance, very good growth. Just can you help us get some context around how you are thinking about GBV growth versus usage yield, especially given the context of the usage yield in the fourth quarter was much better than investors were expecting? Thanks again for taking my questions.

Yeah. Absolutely. So we guided to 24% revenue growth. We are seeing a lot of acceleration in the business right now, and the platform is growing very, very nicely with a great momentum Michael just described with our customers. But it is very, very early days in the year, and so we have a prudent approach to our guidance with those 24%. I am expecting bookings to grow slightly faster than revenue. So that means we may see a 30-basis-point year-over-year change in 2027 versus what we saw in 2026. And that will be mainly driven by the Reed & Mackay dynamic that we just described, but also a mix across the different channels and across the different customers. We now have a very diversified base of customers and they all have different characteristics. The enterprise business has a slightly lower yield than a smaller company for many different reasons we discussed. But we have a lot of opportunities to also optimize this yield percentage with our payment business, with meetings and events. And so, I am very excited to see the momentum from a bookings perspective and this great guidance we are able to share on the revenue side as well.

Thank you. One moment for our next question. And that will come from the line of Gabriela Borges with Goldman Sachs. Your line is open.

Hi, this is Noah on for Gabriela. Thanks for taking the question. Given the expense control, cash expense control that you guys have managed to show, we were wondering if that impacts at all your strategy for payments. You noted in the prepared remarks that financing that you have for that side of the business, that is a moat that you have versus some of the nascent companies. So we were just wondering are you more willing to move into that space in terms of the terms you offer and things like that? Thank you.

Yeah. We are growing the payments business. In fact, we were up 19% year over year in Q4. So there is meaningful growth here. What I would add to that is that coming out of our IPO, we have a very, very clean balance sheet. We have a very strong balance sheet with $741,000,000 of cash, cash equivalents, and short-term investments, and small debt, and that is going to help us over time grow this business as we are upselling customers. This is a huge opportunity for us, and frankly, I think we are only scratching the surface of what we can do with this business. So you should expect us to keep being very aggressive from the SaaS perspective there, and really lead to more upsells in the marketplace.

Great. Thanks. Thank you.

One moment for our next question. And that will come from the line of Sitikantha Panigrahi with Mizuho. Your line is open.

Great. Thanks for taking my question. I want to go back to the fiscal 2027 guidance to understand the factors you have embedded into it. We see a lot of different factors. You know, airlines, mainly Delta, talked about strong corporate travel momentum for this year, and then we see some kind of offset with the war. And also, internally, you are seeing a lot of strong momentum. I am just wondering what are the puts and takes you have embedded into your guidance?

Yeah. That is a great question. As we have said, we are seeing great momentum in the business. Again, 42% GBV growth in Q4, very strong momentum. We have not seen any impact from any geopolitical tensions right now in our business. In fact, we believe historically, business travel has been pretty resilient. It is a category where you see people traveling; they need social interactions with their customers, with their coworkers. So people are really craving those in-person interactions, and so we keep seeing corporate business travel to be a very strong category. In fact, the GBTA index right now is showing growth in mid- to high-single digits year over year, way faster than the TSA checks, which are more in the low single-digit range of growth. So we think corporate travel will be very strong. But on top of that, we are getting share. Our bookings are growing fast; they are accelerating. And so no matter what happens in the industry, we are getting share. And so we are seeing a lot of momentum—more customers joining our platform, onboarding faster than ever. And so we believe that the combination of a very strong industry, very strong dynamics, and the momentum we have in our business right now is going to help us grow the business very significantly in 2027.

I want to add something to this. You should think about the two storms that we had in January, which really created huge interruptions in the eastern part of the U.S. Business travelers obviously cannot travel when the airport is closed. There is no question about that. But they will travel the week after. And if you support them well during the storm and really help them to reschedule the trip, this trip is going to happen. This is why you actually do not see any impact on our business when these things are happening. This is how much business travel is way more stable than any other type of travel. And to add to what Aurelien was talking about, the SLG channel, we just gave you a number of 50% growth year over year in one quarter. This feeds our system for the next years to come. So that is one thing. PLG—this is people coming to us from Instagram, from TikTok, and starting to be a customer—is going extremely fast. And we have just released a very important release that is based on our agentic platform, which is Navan Edge, which we have huge expectations for. And although it is early, we see really good signs there. So we are actually very, very confident about our forecast. And we are very aware of the various interruptions that are out there.

And we are prudent, right? As I said, it is very early days. We know we just grew our revenue in Q4 by more than 30%. We guided to a 30% growth in Q1, 24% for the year. But we are prudent; very early days.

Yeah. That is great. And I was going to ask this Navan Edge question. And specifically on the demand side that you are seeing right now, are you seeing travelers from your unmanaged market that are signing up now independently, or is this primarily from your existing Navan, Inc. corporate customers, where they are extending that usage to their employees for unmanaged travel? What kind of trends are you seeing on the Navan Edge side?

Yeah. It is actually an amazing question. So first of all, Navan Edge targets non-Navan, Inc. users and customers. So that is the targeting there, and everybody that is using the platform right now are non-Navan, Inc. customers and users. So that is basically a completely new market for us. And we are only targeting that market, and we see better signs than what we thought we were going to see. But again, very early days, but very, very, very promising. So that is one side. On the other side, because we are running on an agentic platform—and what does it mean, agentic platform? You have capabilities. This is our connect to everything that happens. And then all of the knowledge. Some of the knowledge is in our actual code. Some of our knowledge is in a travel agent’s head, and the ability to capture these skills and marry them together with capabilities and deliver it as an agent. We are an agentic platform. That is what we have been building here in the last three years. So once you see an agent—an AI agent—that is doing something extremely well in the Navan Edge platform, let us take booking a restaurant for you, we are actually taking this agent and providing it in the main Navan, Inc. platform. So our customers are actually benefiting from the development of agents in the Navan Edge and in the Navan main platform. So both are benefiting from it. The platforms are feeding each other with different AI agents, and different human agents, by the way, in both platforms. But the target from a go-to-market perspective and the users on the Navan Edge platform are only non-Navan, Inc. customers from the unmanaged segments.

Thank you. One moment for our next question. And that will come from the line of Scott Berg with Needham. Your line is open.

Hi, everyone. Really nice quarter here. I guess, two questions for me. I guess in the shareholder letter that was written there, the prescripted remarks, you talked about adding restaurant bookings to the platform. That is obviously new to the Navan, Inc. platform. How should we think about the economics, maybe the inventory that is available there? And any implications in terms of your guidance from that new offering this year?

Yeah. So the way that we are thinking about Navan, Inc., and think about it also where everything is going. People really care about meeting face to face, about being there. But they also care about their experiences. So it is no longer just a transaction: I need to book a trip. When I am planning the trip, I want to feel that you know who I am, you know how I am thinking about this trip, what kind of hotel I want to be at, the type of airline that I like, who I am loyal to. My loyalty is a really, really big component in travel. But then I am arriving, and I am taking my Lyft, my Uber, my black car, and I am getting to the hotel. And now it is night, and I can have a business dinner. I can meet with a coworker. We see this as part of the trip. In fact, in Navan, Inc., we see every aspect of being there as part of the entire journey. Part of this is obvious: you book stuff. Part of this, we really care to match what you want and what you need with our platform, and then how you pay for it. So this is the payment business. This is the expense management business, and so on. So basically from every direction. So getting into restaurants was a very obvious move for us, and this is actually when AI is important. We can build an endless amount of things. Travel is endless. You can think about it as Amazon.

It is just endless. You can sell flights, you can sell cars, you can sell hotels, but there are red flags, so experiences while you are on the go—it just ends it. And because AI is so powerful, we are actually accelerating our roadmap across the board. So you are going to see us releasing more and more offerings—basically AI agents—to our customers across the board; restaurants is one of them.

And I would add, since you asked about the economics, Navan Edge is not a significant contributor to our 24% year-over-year revenue guidance. It is early days. It is a new category that we want to redefine here. We have a completely new product. We are very, very excited. We are ahead of our expectations from an acquisition perspective and a conversion perspective, but it is still early days. Although it is the biggest part of our addressable market—$56,000,000,000 is the size of the addressable market, what we call the unmanaged market—so very, very exciting.

Understood. Thank you. Very helpful. And then from a follow-up perspective, the new premium offering that is going to replace Reed & Mackay there, what is different about that, whether it is experience or maybe some of the products offered there? Help us understand if there are really any differences or if it is going to be something similar.

Yeah. We first of all call it now Navan Pro. So that is part of the change of the brand, and it is part of the Navan, Inc. platform. And it is really, as I talked about at the beginning, this focus on orchestration of when we deploy AI—when we are actually having a really good, highly personalized discussion with you with an AI agent—and when we are deploying a real agent. And all of us, I am sure, have experienced them both in their life. And you have this thing that there is a point that you are starting to yell at the voice representative. And that is not the experience that we have created here. The experience here is so amazing. It is so seamless. The seats are there, the satisfaction is almost the same as a human being, and in a lot of cases, people will prefer it because it is faster and never makes mistakes. So this is an AI platform and the benefit from that. But when you marry it with really the best, most experienced VIP agents that you can think of, and you marry the two together, you are getting a really, really good experience when you plan your trip, when you are at the airport, when you are coming back, and that is really what we are doing here. I have mentioned AI earlier. I can do today way more things with our engineering department, with our product department, with our designers. And that is why you will see us accelerating delivery of stuff to our customers in the years to come. That is what you are going to see from Navan, Inc.

Thank you. One moment for our next question. And that will come from the line of Jed Kelly with Oppenheimer. Your line is open.

When we listen to the airlines on recent conferences and everything, they are really leading with how corporate travel is leading the results and driving a lot of their growth. Is there something they are doing with direct investment with NDC and leaning into corporate travel and then that is benefiting? And can you just explain how you are benefiting from some of the growth we are seeing with the benefit of corporate travel for the airlines?

Yeah. 100%. First of all, Navan, Inc. is the leader in that, which means that we connect to airlines, sometimes, actually a lot of the cases, directly through the NDC protocol. We are also using GDSs. We will sometimes connect to airlines with GDSs. As I said earlier, we took the decision eleven years ago to connect to everything, and it is about trust. It is about the trust with our travelers, with our customers, to tell them that 100%, if it is out there, you are going to see it in the platform. What NDC gives you is the ability to merchandise, to take it farther, to buy stuff together. I do not know how many of you have stepped in an airplane and suddenly you do not have the Wi-Fi, and you need to kind of in a very slow way buy Wi-Fi for the flight. So that is an example of something that you can attach if you are going through NDC. You can attach it at the time that you are buying the ticket, when you are selecting the seat, and so on. And it is just one example of merchandising, of assuring the right price at that moment, the right class, etcetera. So the experience that NDC is giving to our customers is extremely good. It is part of what I was talking about earlier, Navan Cloud. And when you are marrying that ability to connect to the airline directly with the knowledge of what to book for you—that is basically the skills of the agent—you are creating a really, really good experience for the traveler, but also for the company, because you are assuring the right price. Therefore, you are making sure that nobody is overspending on the travel expense.

Great. That is helpful. And then just as a follow-up, we recently saw OpenAI pull back from within their app, and Walmart cited that they were not seeing great results. Are there any parallels to what we saw with OpenAI and just the complexity of all the underlying travel technology and just how hard it is to complete travel transactions, even if you think in just a normal LLM AI experience? Thanks.

100%. The reason that I took the time at the beginning of this discussion to explain our platform—the first complexity when you are a travel agency is not just to connect to stuff. Obviously, we are connected to everything. And, by the way, there is no travel agency on this planet that took the time, the effort, the money to connect to everything globally. I am talking in China, in India, obviously in Europe, in the U.S., everywhere in the world. So that is the first thing. But connectivity is just one thing. It is about knowing the airline rules about everything that you do. There are various internal classes. What happens when you cancel a trip? How exactly you are going to get the credit back? How you are going to apply it later? It is actually very complex per airline, per hotel, per any type of inventory that is out there. And what I have just described, this is I would say a third of what our platform does. Then there is all of the knowledge. The knowledge means that when you want to book this flight, I know exactly what type of airline class I will book for you. What type of room—there are endless amounts. You think a hotel that has 100 rooms, there are 100 rooms. The amount of permutations there is endless, which means that there are a lot of skills that you need to marry with that. And we have said it time and again, we are basically creating a seamless orchestration between people—real live agents that sometimes are working in the back, sometimes are talking with you—with AI agents. The reason is travel is so complex, and business travel is even more, but payment is extremely complex. So the complexity level here requires a combination of AI—and we think that we are one of the leaders in this space—when it comes to travel with the agreements that I have talked about earlier, the airlines’ agreements, the licenses that you need to get, the amount of money that you need to raise in order to provide credit in the credit card business, and so on. So the level of complexity here is huge. And I have been saying it in the past: everybody can create nice demos. To actually doing it—the only one that is doing it in the AI world is Navan, Inc.

One moment for our next question. And that will come from the line of Keith Weiss with Morgan Stanley. Your line is open.

Sitting in for Christopher Quintero. Congratulations on a really solid quarter. Maybe two questions, if I may, bringing Aurelien Nulf into the conversation, it is always very interesting to hear from a CFO when they first join the company. I think CFOs look at companies very similar to how we and investors do. And particularly at this point in time when there is so much uncertainty and so much investor concern around software companies broadly, including Navan, Inc. So maybe what was it that got you comfortable and got you excited about joining Navan, Inc. as CFO at this point in time? And maybe that will help us get more comfortable with the durability of this story.

Yeah. That is a great question. First of all, I would say I do not see ourselves as a software company, so maybe that helps answering that question a little bit. When Ariel and I discussed me taking the role, we really discussed how we can transform an industry. We are a travel agency, and we are doing it very, very well because we are leveraging very cutting-edge technology, which is obviously something that got me excited. But really, the mission—people are mission-driven here. And when you walk in the door, like day one, I met a lot of people that are very passionate about our travelers and how they can make their traveling experience seamless and frictionless. So that is super important to me—joining a company of people that are so excited about what they are doing and their mission is obviously super important. The size of the addressable market is huge—$185,000,000,000—huge opportunity. I think we are only scratching the surface today, although we are getting share and we see so much momentum in the business, it was very clear to me that given the quality of the sales team, the quality of product, the quality of our marketing, and the passion of the team, we had something very, very special here that we can take pretty far. So I would say those are the different things that I have been really looking at. And then on top of that, a clear vision of how we are going to drive profitability, generate free cash flow, etcetera, is also top of mind for us as a company, and I think it is something that got me very, very excited.

Got it. And maybe a follow-up on that. Earlier in the commentary, you guys talked about approaching rule of 40, not quite there yet. As we are modeling out the company over the next couple of years, should we be thinking about that as a north star in terms of how we should be looking at where Navan, Inc. is going to be heading?

I would not say it is a north star. I think it is a good benchmark that people have been using across many different industries. Honestly, I do not see that as a limiting factor. We have a lot of ambition. And when we see, again, the momentum in this business and how differentiated our platform is versus what our competition is offering, I do not see that as a ceiling, to be very clear. We have guided to strong growth for next year. As I said, we are prudent and it is very early in the year. We also guided to margin expansion, which is pretty awesome given the level of growth we have seen in the business. We are extending our margin. And on top of that, we turned free cash flow positive one year earlier than we initially anticipated. So I think the rule of 40 is interesting and is a good benchmark. But clearly, that is not a ceiling for us.

And one moment for our next question. That will come from the line of Patrick Walravens with Citizens. Your line is open.

Oh, great. Thank you, and congratulations on all the success. Ariel, I have three trips I need to book after this call, so I hope I can do them all in seven minutes on Navan, Inc. My question is about the RFPs. Michael, you were talking about, I forget exactly what you said, but I think you said hundreds of percent. So I was wondering if you could just give us more details about what you are seeing in the RFPs, where you are seeing them from, how that is different from maybe a year ago, and whether being public is helping drive those inbound inquiries.

Yeah. Great question. And by the way, you will definitely book your trips in less than seven minutes. So let me know if you cannot. But really, thank you so much for being a customer. It really means a lot. When I think about RFPs—so who runs an RFP? It is typically a larger company. So our commercial segment and our lower mid-market segment, oftentimes we can make a switch without going out to an RFP, but the larger and more global the company, they will typically run an RFP to do that. So to answer your question directly, where do we see the acceleration of the RFPs? It is upmarket. That does not mean it is not an indication of the increased demand downmarket as well. As Ariel mentioned, the PLG segment is growing extremely fast. And 50% growth in new GBV from our SLG market includes commercial, mid-market, and enterprise. So we see it across all segments. And RFPs come from larger customers.

Cool. And does being public—are you noticing that make a difference?

Yeah. Yes. Sorry, I was just going to answer that. Thanks. We do. There are a lot of smaller travel agencies or expense management platforms or payments platforms that are not public today. And that level of transparency is something that we see as an advantage because it means that we are durable. It means that we are not hiding anything. When we were private before, we would have to talk about questions about revealing our finances and things like that. And today, we are at a state where we can say, hey, just go listen to the last earnings call or look at our press release. So I think it is giving a lot of confidence, one, on our numbers, but then, two, on the durability of us. When we engage in an enterprise deal, typically, they might have been on their incumbent for twenty years. And when we are pitching someone, we want to be their incumbent for the next twenty years and beyond. And if you think about a couple hundred thousand employees, travel and expense, it is not just a feature that you launch to some subset of the employees. It is a full rip and replace globally for all employees. And so while we do the implementations extremely fast, it is something that requires change management; someone does not want to switch in two years, if that makes sense.

Yeah. Great. Thank you very much.

Thank you. One moment for our next question. And that will come from the line of Andrew DeGasperi with BNP. Your line is open.

Hey, this is Ari Friedman sitting in for Andrew. I just had one question. In terms of investments, we are noticing a meaningful uptick in hiring in your salesforce. What is the typical ramp for a sales rep before they are fully productive? And do you guys know how much more productive approximately a fully ramped rep is? Thanks.

Yeah. It is a good question. So we are hiring across our different go-to-market channels. So the ramp time is usually pretty correlated to the segment that the rep is starting at. We have a lot of SDRs, which are the ones that are pipeline generation. They are doing a lot of cold calls and emails for the sales reps. They get promoted into the commercial segment. And if someone is internally being promoted, we see that ramp time a little bit faster because they know the company, they know the system, the value props, etcetera. So that is a pretty fast ramp. And then if we were to hire from the outside someone like an enterprise rep, you start thinking about those deal cycles, which can be relatively long. So a big enterprise company—maybe it is a six-month sales cycle. And then with the whole RFP, and then it is an implementation and a launch a little bit later. So it can extend from, let us call it a year until really ramped in all the knowledge, to a couple of weeks down-market for us. So that is how we think about it, and we are growing across all the different segments.

One moment for our next question. And that will come from the line of Blair Abernethy with Rosenblatt Securities. Your line is open.

Just wanted to ask you, as we are entering 2027, how are you thinking about the expense management subscription business and driving further penetration into your base, and how you are looking at driving new customer adoption going forward.

Yeah. First of all, we are actually thinking about it as an end-to-end solution. So customers that are using our expense management business as well as the payments business basically see better results in terms of an ability to understand what is their total travel and expense budget, how much they are spending, are they spending it correctly, can they save money there, etcetera. Also their employees—and if you think about who is traveling, the employees that are traveling are usually the most important employees in the organization. This is your enterprise sales team. This is your corporate team. This is your entire C-level. So saving their time is critical. When you use our payments and expense business, you swipe a card and that is it. Nobody else needs to do anything. On top of this, nobody needs to sit in the finance team and reconcile. And from a saving money perspective, you get immediately the feedback—was that in policy or not, was this expense exaggerated or not, and so on. It is actually really part of our offering and really what supports our end-to-end solution. We have mentioned in the past that we had some constraints in this business because of our payments business. And the IPO actually unleashed this constraint, and you can see that we returned to growing in these two businesses: the payments business and the expense business. And remember that in all of our businesses, there is some lag between sales and what you are actually seeing. So we are extremely bullish on the expense business. We are extremely bullish on the payments business. But we really see it as an end-to-end solution for our customers. And we just think that they will benefit more if they are using the entire suite.

That is great. Thank you.

One moment for our next question. And that will come from the line of Dan Jester with BMO Capital Markets. Your line is open.

Great. Thanks for taking my question. And maybe just a follow-up on that last one. Are you seeing at time of initial sale, are you seeing customers take more offerings as you release innovation in the expense management space, as you release innovation around meetings and events? Are you seeing customers take those at the beginning, or are these still things that we should expect will be cross-sold over time?

I will take the beginning of it, and then Michael, who is in the field all day long, will continue. The first thing that I would say—and I kind of alluded to this earlier—once we move to be an agentic platform, it actually allows us to develop faster. So that is really, really important. But the second thing, we can reuse. I will give you an example of a feature that we recently released on the expense management side. There is an expense agent there that if you did not use our credit card, you just did it manually with your own credit card, you have a manual expense. You can actually take 20, 30, 100 receipts, put them in an upload to the system, which takes less than, I do not know, ten seconds. We automatically analyze the entire thing. We reconcile each for you. We reconcile it for the finances. It looks like magic. I do not think that anybody in the expense management world is doing something that is even close to that level of technology. But that was developed in the expense management team. And we think that that kind of capability, this agent, is actually relevant all over our platform. In fact, we even think that it is relevant in Navan Edge. So you will see this functionality coming across the board. I can say the exact same thing about our focus on meetings and events. Meetings and events was an off-platform service, and you saw that we recently announced our BoomPop integration to actually allow meetings to be on-platform. So what you will see from us from a technology and product perspective is that the offering is becoming stronger and stronger by coming together. And I will let Michael maybe provide more color, but the reasons that we are doing it are driven by the requests and what we are seeing in the field.

Yeah. And to answer your question, are we selling more products at the time of the first sale for the customer? The answer is yes. So we approach our sales in a couple of ways. One is, we have a sales rep that goes and finds a new customer, and we understand what products they need and want us to supply to them. That might be just travel. That might be travel and payments. It might be travel, payments, expense, meetings and events, VIP, all the suites that we have. And then they go and they launch and they have a great experience. We also have an upsell team. And so that upsell team is working very, very closely with the account management, who are constantly talking to the customers every single day, week, or month, or even during quarterly business reviews with the account. And then we bring those solutions to those as well. So we do see us attaching more products at point of sale, but we also see a lot of success in upselling the various solutions that we have for the customer.

Great. Thank you very much.

One moment for our next question. And that will come from the line of Mark Schappel with Loop Capital. Your line is open.

Hi. Thank you for taking my question. Ariel, could you discuss the legacy displacement opportunity, which appears to have accelerated this quarter, and maybe where you are seeing the strongest traction?

Yeah. Definitely. I think generally, we see this growth accelerating on all channels. So this means when we displace—that is what we call the managed segment—but also in our PLG channel, when we are new, when it is the first time that this customer is managing travel. I think the best person to describe exactly how we see it in the field is Michael. So Michael, maybe you can take it.

Yeah, if I caught the question correctly, you are saying the acceleration in the legacy space—is that correct? So, I kind of described it earlier. We walk into a room almost confused why the customer has not come to Navan, Inc. yet. And usually, the customer starts to see that once we are talking to them. If we are going to save you 15%, we are going to have you book in less than seven minutes versus forty-five. We are going to deliver this NPS and the CSAT and all the things that we have talked about before. Usually, it is about making sure that we prove that we have reached a scale to support that customer and that we are global enough to do that. And we have done a lot of work to continue to expand upmarket and globally using acquisitions that we have made around the world, and we have built partnerships to be able to support these customers. And so what do we see on the other side that is driving customers to us? There was a big acquisition with CWT, which is a big player in the space. There used to be three big travel agencies: Amex, BCD, and CWT. So CWT was acquired. And then you saw Egencia, which is more of the online booking platform that was built out of France, was also acquired. And then, I am sure you can read headlines, but there are other companies that are having some turmoil. And so we think that has created quite a lot of tailwinds for us. People are saying, oh, let me go check out this new Navan, Inc. platform. By the way, my CEO and everyone on my board is telling me to start using AI in my platform, and I want parity in my company, and I want to start transforming my finance operations to be more efficient. And so if we can prove the savings and the time, we can prove that we are global and we can support customers, and we can give them five references to go talk to that are similar to them—that they have made the transition to Navan, Inc. and they will never look back. It is a really compelling story. And I think that is why we are winning specifically in the legacy managed space.

Thank you.

Thank you. And today’s final question will come from the line of John Roberts with Feet Partners. Your line is open.

Hi, guys. Thank you for taking my question. Just to start, I wanted to ask a quick one. What was net revenue retention for you guys exiting or just for the fiscal year 2026? I did not see that in the presentation. And then just regarding product attach, can you maybe stack rank which of these three additional products are most commonly being attached? And then maybe how long on average is it taking for customers to get to this level? Just any commentary here would be super helpful. Thank you.

Sure. Hey, John. This is Aurelien. So on net revenue retention, I just mentioned on the call earlier that it was 107% for 2026. So we are seeing very stable revenue retention on the Navan, Inc. platform side—stable at 110%—which is even above 120% when we include the ramp of the new customers joining the platform. But it was 107% for 2026, and that slight contraction is mainly due to the Reed & Mackay dynamics that we discussed on the call. Maybe Ariel or Michael, do you want to take the second part of the question?

Yeah, sure. So I can take it. I think the question was around attach and then stack ranking.

So the product that we have first and foremost and is attached everywhere is our travel. So our transient travel product, which is the employees traveling for the company. Then the next product is we see a big attach into what we call leisure. So a lot of people are booking personal travel on our platform. It is a separate experience. It does not show up in the admin dashboard. You cannot use the company card. But what you can use is the rewards that we give the traveler. So we actually pay the traveler rewards when they save the company money, which is part of how we get to that 15% savings. And so if I am going on a work trip to New York and I want to stay for the weekend, I can actually book that leisure trip in the Navan, Inc. platform, which we see good attach there. The next we build into is actually our travel payment. So this is getting into our payments product. I can put a Navan, Inc. corporate card, log into the platform. It is actually not one card, but we create a unique credit card number—16 digits—for every new booking, and it perfectly reconciles your travel bookings and those expenses for your admins, and a traveler will never have to do an expense report for a flight or a hotel or a rail that was booked in our platform. So we see a lot of adoption there. That then naturally leads into our expense platform. You can then buy our expense platform, and now we own the entire context whether someone is traveling or not. We actually see more than 70% of employee expenses are in some way, shape, or form tied to a trip. I am either booking that trip, or I am on the trip and I am at a restaurant or a taxi or however you spend the money. So we expand into that product. Then there is also the VIP product, which Ariel talked about as part of our Navan Pro offering with Reed & Mackay. So that is a product that we would upsell or sell at the point of sale to the C-suite or people who need VIP level of support. And then the last product that I can think of at least right now is our meetings and events. So as we gain that customer, we manage their corporate travel. A lot of times, they might have an exec off-site or an FKO or a customer conference, and they will leverage our meetings and events services. So off the top of my head, I am pretty sure that is the exact order of the penetration and the percent of adoption that we have of the various products.

Thank you all. This concludes today’s program. You may now disconnect. Goodbye.