NAVAN PROMISED 'RAPID GROWTH' BUT HID $95M EXPENSE SURGE FROM IPO INVESTORS: SUEWALLST, LLP

Promise vs. Reality: The Navan Performance Gap That Allegedly Cost IPO Investors $15.80 Per Share

NEW YORK, March 26, 2026 /PRNewswire/ -- Navan told IPO investors its business had "experienced rapid growth." Forty-five days later, the Company revealed it had spent 39% more on sales and marketing just to keep that growth narrative alive. Shares that debuted at $25 traded as low as $9.20, a loss of up to $15.80 per share.

Find out if you can recover your IPO investment losses or contact Joseph E. Levi, Esq. at [email protected] or (888) Suewallst.

The lead plaintiff deadline is April 24, 2026. The class includes all persons who purchased Navan, Inc. (Nasdaq: NAVN) common stock pursuant or traceable to the Company's October 31, 2025 IPO.

The Promise

Navan's Offering Documents painted a picture of efficient, organic expansion:

• Revenue "grew 33% year-over-year" from $402 million to $537 million
• Gross Booking Volume "grew 32% year-over-year" from $5.0 billion to $6.6 billion
• Usage yield held steady at "approximately 7%" across all reported periods
• The Company was "focused on continuing to expand wallet share across existing customer relationships"

Investors paid $25 per share for a business they believed was scaling efficiently.

The Reality

On December 15, 2025, Navan's 10-Q filing revealed the quarter ending October 31, 2025, the very same day as the IPO, required nearly $95 million in sales and marketing spending, up from $68.5 million the prior quarter. That same day, the CEO disclosed the CFO's imminent departure. Shares fell almost 12% the next trading session and continued declining to as low as $9.20.

The action contends Navan already possessed information at the time of the Offering showing revenue was decelerating and that a massive spending increase was necessary to maintain reported growth rates. None of this was shared with IPO purchasers.

Promise vs. Actual: By the Numbers

• IPO price: $25.00 per share | Post-disclosure low: $9.20 per share
• Sales and marketing (Q ending July 31, 2025): $68.5 million | Sales and marketing (Q ending October 31, 2025): ~$95 million
• Implied spending trajectory in Offering Documents: stable, scaling growth | Actual trajectory: 39% expense acceleration in a single quarter
• Offering Documents framing: "rapid growth" | Undisclosed reality: growth required unsustainable cost increases

What the Lawsuit Alleges About the Gap

The complaint charges that SEC Regulation S-K Item 303 required disclosure of events or uncertainties reasonably likely to cause reported financial information not to be indicative of future results. Plaintiffs assert that Navan's spending acceleration and revenue deceleration were precisely such events, and the Offering Documents' omission of these facts rendered statements about growth misleading.

"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. When an IPO prospectus highlights 'rapid growth' while concealing that sustaining it required a 39% spending increase that very quarter, investors are denied the information they need to make informed decisions." -- Joseph E. Levi, Esq.

Speak with an attorney about recovering your Navan IPO losses or call (888) SueWallSt.

LEAD PLAINTIFF DEADLINE: April 24, 2026

Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.

CONTACT:

SueWallSt

Joseph E. Levi, Esq.

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New York, NY 10004

[email protected]

Tel: (888) SueWallSt

Fax: (212) 363-7171

SOURCE SueWallSt.com