Company: NAVN
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001628280-25-044812
Chunk: 369

Company: Navan, Inc.
Filing Date: 2025-10-10
Form: S-1/A
Chunk 369
---
 to Consolidated Financial Statements

The components of income tax expense are as follows (in thousands):

|                                                                                                                            | Year Ended January 31, 
                   2025 |     |   2024 |
|:---------------------------------------------------------------------------------------------------------------------------|-----------------------:|:----|-------:|
| Current:                                                                                                                   |                        |     |        |
| Federal.................................................................................................................   |                 $(259) |     | $(135) |
| State..................................................................................................................... |                    128 |     |     36 |
| Foreign.................................................................................................................   |                  9,700 |     |  8,751 |
| Total current tax expense......................................................................................            |                  9,569 |     |  8,652 |
| Deferred:                                                                                                                  |                        |     |        |
| Federal.................................................................................................................   |                      — |     |      — |
| State..................................................................................................................... |                      2 |     |    -52 |
| Foreign.................................................................................................................   |                     -1 |     | -3,172 |
| Total deferred tax expense (benefit)....................................................................                   |                      1 |     | -3,224 |
| Total income tax expense......................................................................................             |                 $9,570 |     | $5,428 |

Historically, it has been the practice and intention of the Company to indefinitely reinvest the earnings of its non-U.S. subsidiaries. During the fiscal year ended January 31, 202 4, the Company altered its capital allocation strategy and determined that certain non-US earnings, which can be distributed tax efficiently, are no longer permanently reinvested where earned. As of January 31, 2025 and 2024, the Company recognized a deferred tax liability of $0.3 million and $0.2 million, respectively, for additional taxes that would be incurred upon repatriation of the earnings that are no longer permanently reinvested. The income tax expense differs from the amount computed by applying the federal statutory income tax rate to income before taxes as follows (in thousands):

|                                                                                                                                | Year Ended January 31, 
                   2025 |     |       2024 |
|:-------------------------------------------------------------------------------------------------------------------------------|-----------------------:|:----|-----------:|
| Loss before income tax expense..........................................................................                       |             $(171,508) |     | $(326,124) |
| Expected tax benefit at federal rate of 21%........................................................                            |                -36,017 |     |    -