Navan, Inc.

Thank you for standing by, and welcome to Navon's third quarter fiscal year 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. I would now like to hand the call over to Vice President, Investor Relations, Ryan Burkhart, please go ahead.

Thanks, operator. Good afternoon, everyone, and welcome to Navon's third quarter fiscal 2026 earnings conference call. With me on the call today are Ariel Cohen, our chief executive officer and co-founder, and Amy Butte, our chief financial officer. 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 prospectus dated October 29, 2025, filed with the SEC on October 31, 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 all non-GAAP financial measures that provide useful information for investors. Reconciliations of these non-GAAP financial measures to their corresponding GAAP financial measure, 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 Devon's CEO and co-founder, Ariel Cohen.

Thanks, Ryan. Good afternoon and welcome to Navan's first earning call as a public company. This is a new beginning for Navan, but our mission is unchanged. To make travel easy for every frequent traveler. That has been our obsession from day one. Travel is complex. It is fragmented. It rarely works the way business travelers need it to work. We have spent more than a decade rebuilding this category from the ground up. Our IPO confirmed the market's belief in both our platform and our strategy. As a public company, we operate with even greater discipline and transparency. And we are committed to delivering substantial, high-quality growth for our shareholders. Before we get into our results, I'd like to take a moment to discuss Amy's departure. As announced, Amy will leave as Novant CFO on January 9th. Amy first joined Navan as a board member in early 2024, and a few months later joined our management team to serve as our CFO as we prepared for the next step in our evolution. Much like the role she played earlier in her career at the New York Stock Exchange, Amy helped build out our finance organization and prepare the company for the public markets. With our listing now complete and the business carrying strong momentum, it was the right time for her to move on to find her next opportunity. We wish her the best. Amy will help support a seamless leadership transition and will continue to serve as a strategic advisor to Navant while the board conducts its search for the company's next CFO. Anne Giviskos, the current SVP Strategic Finance and Chief Accounting Officer, will assume the role of an interim CFO. Now, let's talk about our business. Q3 was a strong quarter that demonstrated both the power of our platform and the operating leverage we are unlocking with AI. Revenue grew 29% year-over-year, non-GAAP operating margin reached 13%, up nearly 9 percentage points year-over-year, reflecting both AI-driven gross margin expansion and the underlying leverage in our model. Our execution momentum continues across our $185 billion addressable market. Our sales-led growth motion remains strong, especially in enterprise, where we signed the second largest European deal in our history with a CAC 40 company. We also closed deals with Fraser Group and Axel Springer and recently launched major customers, including Visa, Energy, and Fortune 500 healthcare company. Our PLG motion continues to grow rapidly in SMB, and while still a small part of our mix, the velocity and efficiency are in line with what we've expected when we've invested early here. Customer satisfaction hit a high of 97% with NPS rising to 45, far above an industry average of 5. This reflects one thing. Frequent travelers love the Navan experience. Travel and expense is critical infrastructure for modern businesses. It is how companies connect, sell, support customers, train teams, and build culture. Navant exists for the people who make this happen, the road warriors, the finance teams, and the CFOs who need visibility, control, and savings. We are the only fully integrated end-to-end platform that solves fragmentation across three stakeholders. Business travelers enjoy a tailored and seamless experience with average booking times of just seven minutes. There is no need to waste time filing expense reports after returning from a trip. Everything is handled quickly and efficiently, from booking the trip to receiving support on the road, minimizing the time spent on expense management. Customers get real-time visibility of employees' safety and spend, built-in policy compliance, and 15% median savings. Our suppliers and partners get direct access to high-value, frequent, predictable travelers. This creates a self-reinforcing flywheel. Higher adoption generates more data. More data drains our AI. Better AI improves experience, savings, and control. Stronger performance increases adoption again. This is why we win and why our lead keeps growing. And our leadership in this space is being noticed by some of the largest organizations in the world. We are winning significant deals with global enterprises driven by structural tailwinds that continue to be strong. First, the network effect. As more companies adopt our platform, experience our ease of use, and see the savings it delivers, The word gets out and we see more and more opportunities. Second is industry consolidation. There has been a lot of consolidation in the space among some of our competitors, and there is speculation of more. Consolidation is great news for us because it forces companies to re-evaluate their solution. And we do very well when companies compare our modern platform to legacy solutions. Finally, the AI native nature of our platform is a big tailwind because it puts us on everyone's list. If a company wants to leverage AI to drive greater efficiency and deliver better employee experiences, then that is essentially every company today. We must look at Navan as the AI leader in travel and expense. The Visa launch this month was a good example. It was one of our largest launches ever. Visa, a world leader in digital payments, chose us as they seek to provide an innovative experience and high service levels for the Visa's travelers globally. Fraser's Group, Axel Springer, and many others did not choose Navan for incremental improvement. They chose us because the old model no longer works for global enterprises. They want AI-driven experiences, real-time data, fewer offline bookings, smarter controls, and a platform their employees actually use. These wins reflect structural tailwind in our accelerating enterprise leadership. AI is reshaping the travel and expense category, and Navan is leading that transformation. AI has been at our core since our earliest days when we built machine learning to personalize inventory. When LLMs emerged, we immediately recognized the opportunity, but also the limitations. Travel is not answering a password reset. Travel is dynamic, personal, and high stakes. Mistakes have real consequences. Generic LLMs hallucinate, they decay over time, they cannot reason over inventory, policy, or travel logic. That is why we built Navant Cognition. Cognition is our homegrown AI agentic framework designed specifically for travel. It allows us to train and deploy unsupervised agents that handle complex travel tasks. We have proven this at scale for more than two years. AVA, our AI support agent, powered by Cognition, handles over half of all of our users' interactions. with customer satisfaction at human levels. That reliability is why our non-gap gross margin expanded from the low 60s to over 70% today and hit 74% in Q3, an all-time high. This is a transformation for both service quality and margins. Only Navant can do this today because only Navant built cognition. There are three AI advantages we have that will define our future. First is cognition itself, our agentic AI architecture. Second is data. More than 10,000 customers complete millions of bookings per year on one integrated platform, giving us a category-defining data set. Third is the Navant Cloud, our global real-time inventory network. It was built by over a decade of face-to-face negotiations, and thousands of direct supplier connections. We believe nothing in the market can match its depth or its integration with AI. These assets position us to build the AI-powered travel booking experience of the future, which we call Navan Edge. It is in development now, and we look forward to sharing more soon. This paired with the support of real human agents doing unexpected issues provides the ultimate travel solution for frequent travelers. We are an AI-first travel solution designed for frequent travelers and their companies. Over the next year, our focus will be threefold. First, driving sustained high growth across all customer segments, channels, and geographies. Second, accelerating innovation, especially around AI, meetings and events, and VIP. Third, maintaining the right balance between growth and profitability. We will deploy capital where we have conviction, such as payments, expense, and foundational AI innovation while continuing to expand efficiency across the business. Our investment in Novant Cognition and AVA three years ago is a great example of this approach. Deliberate, strategic, proprietary, and driving meaningfully better margins for our business today. Our success is directly tied to the frequent traveler's experience and the customer's strategic goals. That alignment is the core of our model. To the Novant team, thank you for your execution and discipline. To our new shareholders, Thank you for your confidence. This is just the beginning. With an integrated platform, a global travel network, and an AI core, Navan is uniquely positioned to lead the future of travel and expense. Before I hand the call over to Amy to review our financial results, I wanted to thank her for everything she has done to position Navan for success.