Navan Shares Jump 23% After Beat as Lawsuit Alleges $95M Expense Concealment
Navan posted adjusted Q4 EPS of $0.02 and revenue of $177.9M, surpassing consensus estimates by $0.14 and $15.91M respectively, driving shares up 23% after hours. Separately, a class action lawsuit alleges Navan concealed a 39% jump in sales and marketing expenses to $95M at IPO, claiming investors incurred losses up to $15.80 per share.
1. Strong Q4 Results
Navan delivered adjusted EPS of $0.02 for the quarter, reversing a consensus loss estimate of $0.12, and generated revenue of $177.91M, up 35% year-over-year, which drove a 23% after-hours share price surge.
2. Full Year Performance and Outlook
Navan’s fiscal 2026 revenue increased 31% year-over-year, and the company issued guidance for continued 2027 growth based on expanding gross booking volume and wallet share initiatives.
3. IPO Expense Lawsuit
A class action lawsuit filed on March 26 contends that Navan omitted disclosure of a 39% surge in Q4 sales and marketing spending—rising to $95M—which allegedly misled IPO investors who saw share prices fall from $25 to as low as $9.20, representing losses up to $15.80 per share.