Navan, Inc. IPO - What You Need to Know

Hey there! If you’re thinking about investing in Navan’s IPO but feel overwhelmed by financial jargon, don’t worry. Let’s break down what you actually need to know, like we’re chatting over coffee.

1. What does Navan actually do?

Navan (formerly called "TripActions") is like a corporate travel and expense superhero. Imagine if Expedia and QuickBooks had a baby designed for businesses. Companies use Navan to book flights/hotels for employees, track spending, and automatically handle annoying paperwork (like receipts and reimbursements). It’s all-in-one software to save time and money.

They’re not just a U.S. player—41% of their revenue comes from outside America. They’ve built a global platform with travel suppliers worldwide, multi-currency payments, and local support teams. Think of it like Netflix for business travel: same service, but tailored to different countries.

Navan uses its own smart AI system called Navan Cognition to personalize travel experiences, help companies enforce spending rules, and give suppliers (like hotels) direct access to customers. It’s like having a travel agent, accountant, and tech guru rolled into one app.

2. How do they make money? (And are they growing?)

• Subscription fees: Companies pay monthly/yearly for access to the software.
• Booking fees: They take a small cut when businesses book travel through their platform.
• Payment volume: The more companies spend using Navan cards, the more fees Navan earns.
• Growth? Big time! In 2023, they reportedly hit $1 billion in revenue (up 40%+ from 2022).
• Global reach: 41% of their 2025 revenue came from outside the U.S. (39% in the first half of 2025). Big clients like Zoom and Lyft use them, and they’re expanding fast in Europe, Asia, and beyond.

Navan estimates the total market opportunity in their industry is $185 billion worldwide, including corporate travel, expense tracking, and payments.

But here’s the catch: Navan spends a lot to keep the lights on. In one recent period, their “cost of revenue” (money spent to deliver their services) was $536.8 million—about $1 spent for every $2 earned. They’ll need to streamline costs to turn a profit.

3. What will they do with IPO money?

They’ll use the cash to:

• Repay debt: Part of a loan called the “Vista Facility” (the company didn’t specify the exact amount).
• Grow the business: Expand globally, develop AI tools, and attract new customers.
• General funds: Cover day-to-day costs.

Important note: Most shares sold in the IPO are from existing investors cashing out. Navan itself only gets money from newly created shares (0.7 million out of 45.3 million total). Employees will also automatically sell some shares during the IPO to cover taxes.

4. Big risks to keep in mind

• Competition: American Express, SAP, and others are chasing the same market.
• Corporate travel isn’t bulletproof: If companies cut travel budgets (like in a recession), Navan suffers.
• Still not profitable: Heavy spending on growth could backfire if the economy slows.
• Founders control decisions: The CEO and CTO hold special shares giving them 30x voting power per share.
• Revenue tied to travel: 92% of their 2023 revenue came from travel bookings. Another pandemic or global crisis could crush demand.
• Transparency gaps: As an "emerging growth company," Navan shares less financial info than larger public companies. For example, they only provide 2 years of audited finances (vs. 3 for most) and skip some accounting checks.

5. How do they stack up against competitors?

• Concur (SAP): Older expense software. Navan’s tech is newer and more user-friendly.
• Egencia (Expedia): Focuses on travel, but lacks Navan’s expense tools.
• Brex/Ramp: Handle expenses but don’t offer travel booking.

Navan’s edge: Combines travel, expenses, payments, and AI in one platform. Their “try before you buy” model lets companies start for free, which helps attract smaller businesses.

6. Who’s in charge?

• Ariel Cohen (CEO): Co-founded Navan in 2015. Sold his last travel startup to rival Concur.
• Ilan Twig (CTO): The other co-founder, with significant voting power.
• Leadership team: Includes veterans from Google, Airbnb, and American Express.

7. Stock details

• Stock symbol: “NAVN” on Nasdaq (pending final approval).
• Price range: To be announced (check Navan’s latest SEC filing for updates).

Final Thought

IPOs can be exciting, but they’re risky—prices often swing wildly at first. Navan’s growth is impressive, but keep these in mind:

1. They’re not yet profitable.
2. Founders have outsized control.
3. The company shared limited financial details.

If you’re intrigued, wait for the dust to settle post-IPO and read their full prospectus on the SEC’s website. And remember: Never invest money you can’t afford to lose!

P.S. This isn’t financial advice. Talk to a financial advisor if you’re unsure! 😊

Heads up: Navan provided less detail in their IPO filing than many companies do. This lack of transparency is something to consider before investing.