Despite volatile quarterly swings, Q2 2026 marked a significant pivot to positive free cash flow of $28.9M (12.4% FCF margin), driven by a favorable working capital release rather than core operating profitability, as evidenced by an operating cash flow of $25.2M.
Navan, Inc. (NAVN) cash flow statement — 3-year operating, investing & financing cash flows
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 |
|---|
| Cash from Operations | 47.27M | 33.67M | -50.41M | -166.36M |
| Operating CF Margin % | - | 4.79% | -9.39% | -41.36% |
| Operating CF Growth % | 10951.45% | 166.8% | 69.7% | - |
| Net Income | -347.77M | -398.03M | -181.08M | -331.55M |
| Depreciation & Amortization | 59.66M | 60.25M | 24.89M | 26.86M |
| Stock-Based Compensation | 183.49M | 182.09M | 77.38M | 75.85M |
| Deferred Taxes | -12.06M | -11.31M | 1K | -3.22M |
| Other Non-Cash Items | 193.88M | 208.14M | 123.16M | 162.98M |
| Working Capital Changes | -29.93M | -7.47M | -17.37M | -21.43M |
| Change in Receivables | -28.09M | -26.03M | -24.61M | -21.15M |
| Change in Inventory | 0 | 0 | 0 | 0 |
| Change in Payables | -4.71M | 3.08M | 17.09M | -9.63M |
| Cash from Investing | -216.08M | -203.03M | 44.87M | -108.78M |
| Capital Expenditures | -11.82M | -917K | -16.3M | -17.3M |
| CapEx % of Revenue | 1.43% | 0.13% | 3.04% | 4.3% |
| Acquisitions | 3M | 0 | -3.88M | -7.03M |
| Investments | - | - | - | - |
| Other Investing | -196.57M | -45.83M | 65.05M | -84.45M |
| Cash from Financing | 601.55M | 519.92M | 52.55M | 212.62M |
| Debt Issued (Net) | -190.97M | -334.03M | 48.92M | 205.69M |
| Equity Issued (Net) | 785.05M | 737.3M | 4.54M | 9.06M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 |
| Other Financing | 7.47M | 116.64M | -903K | -2.13M |
| Net Change in Cash | 432.23M | 357.48M | 43.45M | 262.38M |
| Free Cash Flow | 40.38M | 14.76M | -51.4M | -166.92M |
| FCF Margin % | 4.89% | 2.1% | -9.57% | -41.5% |
| FCF Growth % | 228.96% | 128.72% | 69.21% | - |
| FCF per Share | 0.16 | 0.15 | -0.21 | -0.67 |
| FCF Conversion (FCF/Net Income) | -0.12x | -0.08x | 0.28x | 0.50x |
| Interest Paid | 13.61M | 25.57M | 29.55M | 18.63M |
| Taxes Paid | 10.88M | 17.19M | 0 | 0 |
Quick answers to the most common questions about buying NAVN stock.
Navan, Inc. (NAVN) generated $33.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Navan, Inc. (NAVN) generated $14.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Navan, Inc. (NAVN) spent $0.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Reliance on non-cash charges for liquidity
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Non-Cash Charges
The persistent negative OCF/NI ratio, such as -0.86 in 2026Q2, indicates that reported net losses are deeply non-cash, primarily driven by significant stock-based compensation which is added back to derive operating cash flow.
Navan's operating cash flow is consistently positive relative to its net income, a direct result of large, non-cash SBC charges. The -0.86 OCF/NI ratio in the latest quarter is misleading; it shows operating cash flow ($25.2M) was positive despite a $29.1M net loss, confirming that the loss is an accounting figure, not a cash drain. However, this relies on the non-cash SBC add-back, meaning the core operational cash generation is still immature and insufficient to cover its own net losses without this adjustment.
FCF Emergence Masked by Volatility
After years of negative free cash flow, 2026Q2 produced a 12.4% FCF margin, a significant swing driven by a favorable working capital release rather than a fundamental shift in operating profitability.
The company's FCF trajectory is highly erratic, swinging from -9.8% in 2024Q4 to +12.4% in 2026Q2. This volatility is not from sustainable operational leverage but from large working capital swings; the $1.8M working capital contribution in 2026Q2 was a stark reversal from the -$33.6M drag in 2026Q1. Investors should monitor whether this FCF positivity can be achieved without relying on such volatile working capital adjustments, as the underlying operating cash flow remains thin and sensitive to the timing of collections and payments.
Volatile Working Capital Creates Earnings Noise
Working capital is a primary source of cash flow volatility, with a massive -$33.6M drag in 2026Q1 followed by a $1.8M tailwind in 2026Q2, obscuring the underlying operational cash trend.
The swing in working capital changes from -$33.6M to +$1.8M quarter-over-quarter indicates significant lumpiness in Navan's cash conversion cycle. This volatility suggests either aggressive customer collection efforts or strained payables management in prior periods. Such large swings make it difficult to assess the true cash-generating power of the core business, as they can temporarily inflate or deflate reported operating cash flow, masking the underlying trajectory.
The SBC Liquidity Illusion
The cash flow statement obscures the true cost of capital by adding back nearly $136M in SBC over the last two reported quarters, a non-cash expense that directly dilutes shareholders without consuming cash.
A critical nuance is that while SBC is added back to calculate operating cash flow, it represents a real economic cost to shareholders through dilution. In 2025Q3 and 2026Q1, SBC totaled $136.5M, which significantly boosted the cash flow figures. This creates an illusion of stronger operational cash generation than what is being funded by the core business. The reliance on this non-cash add-back to present positive operating cash flows in loss-making quarters warrants careful scrutiny of the company's ability to generate cash from actual operations without this adjustment.