Why Navan Stock Just Crashed

By Rich Smith – Dec 16, 2025 at 11:16AM ESTKey PointsRecent AI IPO Navan reported strong sales growth but another loss last night.Free cash flow for the year is running negative.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: NAVNNavanMarket Cap$3.6BToday's Changeangle-down(-15.96%) $2.33Current Price$12.30Price as of December 16, 2025 at 12:25 PM ETCan Navan ever turn a profit? It's too soon to say.Navan (NAVN 15.96%) stock, which uses artificial intelligence to power software for "business travel, payments, and expense management," and which has been falling basically ever since its late-October IPO, took another tumble after reporting fiscal Q3 2026 earnings last night. As of 10:50 a.m. ET this morning, the stock is down 16.8%. Image source: Getty Images. Navan Q3 earnings Navan grew its revenue 29% year-over-year in Q3, to $195 million, with "usage" revenue of $180 million, and recurring "subscription" revenue of $15 million. Gross booking volume, which can foreshadow future revenue growth, increased by 40% year-over-year, to $2.6 billion, and gross profit margin held steady at 71%. That's the good news. The bad news is that all this wasn't enough to turn Navan profitable. It lost $225 million in the quarter, more than five times its losses a year ago, and announced its CFO will be leaving the company effective Jan. 9. No permanent replacement has been named, but the company's Chief Accounting Officer, Anne Giviskos, will serve as interim CFO while the search for a permanent CFO continues.Advertisement ExpandNASDAQ: NAVNNavanToday's Change(-15.96%) $-2.33Current Price$12.30Key Data PointsMarket Cap$3.6BDay's Range$11.76 - $13.8352wk Range$11.76 - $25.00Volume4MAvg Vol2.1MGross Margin69.81% Is Navan stock a buy? Turning to guidance, Navan says Q4 revenue should range from $161 million to $163 million, which is ahead of analyst forecasts. Full-year revenue, however, of $686.5 million plus or minus, is exactly what analysts were already looking for -- so not a positive surprise. Navan did say it expects to be profitable this year, or more precisely, to report positive non-GAAP income of $21 million or $22 million. Free cash flow for the year to date, however, remains negative at about $15 million. With FCF still at least two years away from breakeven, according to analysts, it's too soon to say if Navan stock is a "buy."About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFool