Company: NAVN
Filing Date: 2025-06-20
Form Type: DRS
Source: 0001628279-25-000383
Chunk: 140

Company: Navan, Inc.
Filing Date: 2025-06-20
Form: DRS
Chunk 140
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9

<div align='center'>95</div>

million decrease in depreciation related to the early termination of an office lease during the year ended January 31, 2024, and a decrease in stock-based compensation of $0.1 million. The increase in gross profit and gross profit percentage is primarily due to an increase in revenue on a relatively fixed cost base supported by our delivery of AI-powered customer support.

Operating Expenses

Research and Development Expense

|                          | (dollars in thousands) | Year Ended January 31, |    2025 |     |   |    2024 |     |   |  Change |     |     | % Change |    |
|:-------------------------|:-----------------------|:-----------------------|--------:|:----|:--|--------:|:----|:--|--------:|:----|:----|:---------|:---|
| Research and development |                        | $                      | 122,386 |     | $ | 132,442 |     | $ | -10,056 |     |     | (8       | %) |

Research and development expense for the year ended January 31, 2025 decreased by $10.1 million, or 8%, primarily due to a decrease in salaries and related benefits of $13.4 million driven by a reduction in headcount, offset by an increase of $3.4 million in stock-based compensation.

Sales and Marketing Expense

|                     | (dollars in thousands) | Year Ended January 31, |    2025 |     |   |    2024 |     |   | Change |     |     | % Change |    |
|:--------------------|:-----------------------|:-----------------------|--------:|:----|:--|--------:|:----|:--|-------:|:----|:----|:---------|:---|
| Sales and marketing |                        | $                      | 218,722 |     | $ | 220,511 |     | $ | -1,789 |     |     | (1       | %) |

Sales and marketing expense for the year ended January 31, 2025 decreased by $1.8 million, or 1%, primarily due to (i) a decrease in sales commissions expense of $13.7 million, primarily driven by a change in our sales compensation plans during the year ended January 31, 2025, which resulted in an increase in the capitalization of