Company: NAVN
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001628280-25-044812
Chunk: 152

Company: Navan, Inc.
Filing Date: 2025-10-10
Form: S-1/A
Chunk 152
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 31, 
                   2025 |     |     2024 |     |   Change |     | % Change |
|:---------------------------------------------------------------------|-----------------------:|:----|---------:|:----|---------:|:----|:---------|
|                                                                      |  -dollars in thousands |     |          |     |          |     |          |
| Cost of revenue................................................      |               $169,815 |     | $162,622 |     |   $7,193 |     | 4%       |
| Gross profit........................................................ |               $367,022 |     | $239,634 |     | $127,388 |     | 53%      |
| Gross margin.....................................................    |                    68% |     |      60% |     |          |     |          |

Cost of revenue for the year ended January 31, 2025 increased by $7.2 million, or 4%, primarily due to an increase in salaries and related benefits of $4.6 million, an increase in merchant fees of $2.9 million, and an increase in cloud hosting, support, processing and ticketing fees of $2.8 million, offset by a $2.9 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 margin is primarily due to an increase in revenue on a relatively fixed cost base supported by our delivery of AI-powered customer support.

107

Operating Expenses Research and Development Expense

|                                                      | Year Ended January 31, 
                   2025 |     |     2024 |     | Change    |     | % Change |
|:-----------------------------------------------------|-----------------------:|:----|---------:|:----|:----------|:----|:---------|
|                                                      |  -dollars in thousands |     |          |     |           |     |          |
| 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