Navan, the integrated business travel and expense (T&E) platform, appears to be poised for a high-stakes IPO, having recently filed its Registration Statement (S-1).
The impending public debut, even amid a U.S. government shutdown, puts a spotlight on the company. Third Bridge has done considerable work on the company over the past year and conversations with our experts suggest an impending reality check. While strong growth continues to drive the narrative, questions around profitability and a reported 30% drop in valuation from its last financing round present a complex picture for public market investors.
Navan aims to disrupt a substantial $185 billion total addressable market (TAM) by providing a user experience that mimics “consumer retail”. It differentiates in two large, but crowded and competitive markets by using modern technologies such as AI, providing intuitive user experiences and offering more support than the travel vendors themselves. Importantly, the company integrates its travel and expense solutions to help ensure that business travel policies are adhered to and credits are readily usable. This differentiation has been translating into tangible traction, with year over year growth in revenues of 32% to $613 million and gross booking volume of 34%, over the 12 months ending in July.1 Nonetheless, the company’s massive TAM indication could still be considered a reach by some analysts.
However, the path to an IPO may not be without considerable headwinds. Navan contends with considerable competition across both core segments of its business. Facing established enterprise software companies such as SAP and Oracle in T&E, while battling modern fintech disruptors such as Brex and Ramp in the corporate card and expense space that have been featured on the CNBC Disruptor 50 list in recent years (like Navan).2
Moreover, despite some progress in terms of financial performance, most notably gross margins, Navan remains largely unprofitable, with continued operating and net losses. Gross margins jumped from 67% to 72% in the six months ending July 2025, with a Third Bridge expert estimating this widening could continue towards 80%. AI has been a notable factor in terms of margin expansion. Navan disclosed that its virtual agent chatbot “handled approximately 50% of user interactions” over the six months ending in July 2025.3 An expert underscored the significance of this, highlighting “That’s not just chats being addressed. It's travel being managed by AI.” in a recent interview.
This pivot to efficiency is reinforced by the appointments of the company’s current President and CFO, who took on their roles earlier in 2025 and mid-2024 respectively. Our expert insights suggest a renewed leadership focus on managing costs and expenses, with material efficiency gains achieved in R&D and G&A, and sales and marketing spend (which has likely increased due to the move up-market and reworking of its go-to-market strategy) now likely under the closest scrutiny. Experts have told Third Bridge that they see Navan’s annual revenue growth at around 30% or more over the next few years, significantly outpacing the general global travel market.
This forecast however, is tempered by valuation reports. The company's valuation, of $9.2 billion in a financing round less than three years ago, is now reportedly around $6.5 billion in conjunction with the IPO.4 Despite clear growth performance and potential, the company likely faces uncertainties and risks, including a possible global economic downturn, and factors such as considerable competition, continued company losses, and efforts to move up market.
All insights in this article are based on information shared by Third Bridge experts.
References:
1. https://www.sec.gov/Archives/edgar/data/1639723/000162828025042130/navan-sx1.htm
2. https://www.cnbc.com/2025/06/10/2025-cnbc-disruptor-50-see-the-full-list-of-companies.html
3. https://www.sec.gov/Archives/edgar/data/1639723/000162828025042130/navan-sx1.htm
4. https://www.reuters.com/business/travel-tech-firm-navan-aims-raise-up-960-million-us-ipo-2025-10-10
Transcript references:
1. Navan – Management & Model Shifts Ahead of IPO
2. Navan – AI-enabled T&E Leader, Substantial TAM & IPO Plans
3. Navan – From Business Travel Leader to Fintech Challenger
