Company: NAVN
Filing Date: 2025-06-20
Form Type: DRS
Source: 0001628279-25-000383
Chunk: 145

Company: Navan, Inc.
Filing Date: 2025-06-20
Form: DRS
Chunk 145
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 end of each reporting period. We exclude these non-cash gains and losses because they are unrelated to our core operating performance.

• Restructuring and facility exit costs. To better align our strategic priorities with our investments, we implemented workforce reductions during the year ended January 31, 2024. In connection with these reductions, we incurred employee-related expenses including severance and other termination benefits. We also incurred facility exit costs and accelerated depreciation associated with the early termination of an office lease. We exclude these costs as they are not representative of our core operations.

• Reversal of tax contingency. During the year ended January 31, 2024, we released a tax contingency reserve which resulted in the recognition of other income and a reduction of general and administrative expense. We exclude this non-cash gain because it is unrelated to our core operating performance.

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• Non-GAAP provision for income taxes. We have adjusted the provision for income taxes to reflect the income tax effects of the non-GAAP adjustments to pre-tax income (loss). Due to the full valuation allowance against U.S. federal and state deferred taxes, the primary non-GAAP adjustment relates to the income tax effects of stock-based compensation expense.

#### Non-GAAP Gross Profit and Non-GAAP Gross Margin
We define non-GAAP gross profit as GAAP gross profit, excluding stock-based compensation-related charges, amortization of intangible assets, and restructuring and facility exit costs. We define non-GAAP gross margin as non-GAAP gross profit divided by revenue.

The following table reflects the reconciliation of GAAP gross profit to non-GAAP gross profit and GAAP gross margin to non-GAAP gross margin for the periods presented:

|                                          | (dollars in thousands) | Year Ended January 31, |    2025 |   |     |   |    2024 |   |
|:-----------------------------------------|:-----------------------|:-----------------------|--------:|:--|:----|:--|--------:|:--|
| GAAP gross profit                        |                        | $                      | 367,022 |   |     | $ | 239,634 |   |
| GAAP gross margin                        |                        |                        |      68 | % |     |   |      60 | % |
| Stock-based compensation-related charges |                        |                        |   4,577 |   |     |   |   4,751 |   |
| Amortization of intangible assets        |