Please be advised that today's conference is being recorded. I would now like to turn the call over to your speaker for today, Erin, VP of Investor Relations. Please go ahead. Thanks, Lisa. Good afternoon, everyone, and welcome to Navan's second quarter fiscal 2027 earnings conference call. With me on the call today are Ariel Cohen, our Chief Executive Officer and Co-founder, Aurélien Nolf, our CFO, and Michael Sindicich, our President. As a reminder, we publish detailed prepared remarks on our IR website. During the course of today's call, we may make forward-looking statements with the meaning of federal securities laws. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including the risks and uncertainties described in our earnings press release, our annual report on Form 10-K with the SEC on April 2, 2026, and our other filings within the SEC. In addition, on today's call, we refer to non-GAAP growth margin, non-GAAP operating margin, non-GAAP income and loss from operations, free cash flow, which are non-GAAP financial measures that provide useful information for investors. Reconciliations of these non-GAAP financial measures to their corresponding GAAP financial measures, to the extent reasonably available, can be found on our earnings press release. With that, it's my pleasure to turn the call over to Navan's CEO and Co-founder, Ariel Cohen. Thank you, Erin, and thank you everyone for joining us. I hope you had the chance to review our prepared remarks. In this quarter, you can have only one conclusion about us. We are winning. You can see it with the following. The current usage of the platform and its growth, our new sales and growth of our end-to-end AI platform from business travel, payments and expense, VIP travel, and now meeting and events, and our AI platform leadership. We are simply executing across the board while gaining momentum. Let's talk about the current usage of the platform. This quarter, total GBV, this is travel bookings on the platform, grew by 45% year-over-year to more than $3 billion. We exceeded our expectations for both revenue and non-GAAP operating income, and we are raising our full-year FY 2025 outlook again. Customer satisfaction remains high, with CSAT of 96 and NPS of 44. Our platform is gaining usage across the board on every use case, in every geo. Let's talk about sales and new customers and us taking share. We are seeing strong sales execution across SLG. SLG is our sales-led growth, which is basically enterprise sales, and PLG, which is our product-led growth, which is our sales cycle. Our enterprise sales motion delivered another strong quarter, with SLG having their strongest sales quarter ever. New signed GBV for SLG was $4 billion in the last 12 months, and that was up 60% compared to Q2 last year. Product-led growth revenue more than doubled year-over-year again, and comes as an addition to our new sales in SLG. Payment volumes reached $1.3 billion and grew 34%, and subscription revenue was $21 million, with a growth of 39%. To be clear, our growth is not coming from one isolated part of the company. The entire system is working together. Sales, product, deployments, operations, customer success, and our global travel and fintech infrastructure. At the same time, our own execution is creating more opportunity. The volume of RFPs to Navan has tripled in the first half of the year compared to the first half of last year. We now serve 50 companies in the S&P 500, up from 45 last quarter. We are winning larger and more complex enterprise customers across the globe. The most important thing is that our investment in our sales and marketing is becoming more and more efficient with the help of AI in this huge market. AI obviously is an important part of our strategy, so let me cover that. As I've explained in our last call, before we even get to AI, it is important to understand the foundation we have built. Navan is connected to virtually every airline, hotel, rail provider, and ground transportation solution that our global customer need. Business travel and fintech connectivity are extremely complex, and we have spent the last 11 years bringing that complexity together on a single real-time global platform. This is not just about booking a trip, it's about managing the entire journey. Finding the right inventory, booking it, paying for it through a physical or a virtual Navan card, supporting the traveler, changing their itinerary where needed, and ensuring the proper credit, refund, reconciliation are handled automatically. To do that at a global scale, you need supplier relationship and negotiated rates, banking partnerships and credit lines, local entities and licenses, compliance with local law and taxes, payments infrastructure, and operational expertise in markets around the world. We have built all of this into Navan's real-time infrastructure. That foundation is extremely difficult to replicate, and it is what we believe allow us to turn our AI platform to a scalable solution, supporting big enterprises across the globe. We are not treating AI as this feature layered onto traditional travel product. We are rebuilding the travel and expense experience around intelligence, orchestration, and action. Navan Cognition is the intelligence layer that orchestrates specialized AI agents, human experts, data, live inventory, policy, payments, and fulfillment. The important distinction is that Navan does not just provide an answer. It can understand intent, take action, complete a transaction, manage the trip, reconcile the expense, and bring in a human expert with the full content when judgment is required. Ava is our AI customer support agent who is already demonstrating the value of this architecture. In Q2, Ava handled approximately 60% of customer interaction, and our customers love it. To be clear, Ava is not doing simple things like resetting your password. She is rebooking your trip when you are stranded in an airport, changing your hotel when you are not happy, taking care of your refunds, and many more complex business travel support tasks. The perfect orchestration between human and AI agents improve the traveler and our corporate customers' experience by supporting them more accurately and faster. Since servicing business travel and payments requires massive travel agency and operation support, it is very hard to scale fast. By utilizing our AI platform, we are able to support Navan usage growth without jeopardizing the quality of our service. This is one of the reasons that we are so confident to raise our guidance for the second time this year to 32% year-over-year. We are also taking increasing control of our technology stack. Approximately 50% of our Ava AI model calls now run on Navan-owned models, up from 30% in Q1. These models are purpose-built for travel and expense and trained on our own data. Over time, we believe that should give us greater accuracy, faster response time, and lower cost. AI is not just a product investment. We believe it is also an opportunity for a structural gross margins expansion and greater operating leverage. By bringing Navan capabilities directly where travel intent begins, Navan MCP extends our Navan Anywhere strategy. It provides conversational access to data across travel, expense, booking, and policy in ChatGPT, Claude, Copilot, and separately, we are adding agent capabilities in key collaboration tools like Gemini and Slack. Navan Edge is our flagship AI product. Edge is a full travel assistant who deeply understands you like a real person. It not only plans your trip, but also books everything from flights, hotels, restaurants, and events, and make the changes when needed. Simply, it is the best travel agent in the world. To summarize our AI platform, travel and fintech infrastructure are the key. Ava, Navan Anywhere, and Edge are creating the application layer value, and using our own model give us unique value proposition based on our own data. These three components allow us to grow our revenue faster with better economics while creating massive value for our customers. The last thing that I wanted to talk about is M&A and the expansion of our platform. As we have explained in the past, business travel has endless needs, and our goal is to bring every need into our AI platform. Travel is still an entry point, but is increasingly connected to payments, expense, meeting and events, VIP travel, and leisure. Each of these additional products allows us to manage more of the customers' spend, replace more fragmented workflows, and become more strategic inside the enterprise. That is flywheel we are building. Better inventory and connectivity drive better experiences, better experiences drive adoption, and broader adoption creates more opportunities across the platform. This is why we build new products and make acquisitions, and why I am so excited about our acquisition of BoomPop. This expands our capabilities in meeting and events, an enormous category that remains largely unmanaged and messy. Together with BoomPop, we expect these opportunities to make Navan more valuable to our existing customers and expand the universe of customers we can serve. BoomPop is already a partner. Our joint AI platforms allows us to plan events using conversational AI in an efficient way that was never seen before. I am super excited to welcome the BoomPop team to the Navan family. Stepping back, this quarter gives us an evidence across every layer of our business. We are growing in a resilient market. We are winning larger customers and taking share. SLG, PLG are scaling. Customers love the product. AI is improving the experience, increasing efficiency, and creating a margin advantage, and we are raising our full year outlook because our execution is strong, our visibility is improving, and the opportunity ahead is large. I want to close this by thanking the Navan team, our customers, and investors. The team is firing on all cylinders, and we are having a great time while winning. We are still in the early innings of a large opportunity, and we are building the best travel agency on the planet for the agentic era, and we are only just getting started. With that, I will turn it over to Aurélien. Many thanks, Ariel. It is great to be here, and thanks all for joining us today. What continues to impress me is how consistently the team is executing across the business, and Q2 was another strong example of that. Ariel just covered the broad momentum, so let me focus on the financial takeaways, which is growth and operating leverage are advancing together. Revenue was $233 million, up 35% year-over-year, and GBV reached just over $3 billion, up 45% year-over-year. Once again, we exceeded our expectations for both revenue and non-GAAP operating income. This outperformance was driven primarily by strong volume demand and bookings on the platform, with healthy expansion from existing customers, continued growth from ramping customers, and faster contribution from new launches. We also benefited from a higher premium cabin mix. Our visibility into future growth continues to improve. Over the last 12 months, we signed $4 billion of new GBV in our SLG business, a leading indicator of future revenue growth. While ramp-up timing varies by customer, meaning it does not translate to a specific growth rate for GBV in any specific period of time, we believe this metric reinforces our expanding footprint in the sector, driven by our accelerating go-to-market momentum. We are also seeing continued leverage in the platform. Non-GAAP growth margin was 75%, and non-GAAP operating margin was 7%, up from 5% a year ago. Revenue continued to grow faster than our cost base, even as we invested in AI infrastructure and product innovation. The primary driver of that is Ava higher resolution rate, which is further supported by the increasing use of our own models that are helping us scale more efficiently, and we expect further leverage over time. Free cash flow was $28 million on a trailing 12-month basis, compared with a burn of $33 million a year ago. We ended the quarter with $820 million in cash and short-term investments and approximately $125 million of debt. That gives us substantial flexibility to invest in the business and pursue strategic opportunities, but we will continue to deploy capital with discipline. Now turning to the outlook. For Q3, we expect revenue of $253 million- $255 million, representing 30% growth at the midpoint, and non-GAAP operating income of $35.5 million- $36.5 million, representing 14% margin. For the full year, and considering the sustained momentum in the business and healthy demand for business travel, we are again raising revenue guidance now to $927 million- $933 million, or 32% growth at the midpoint. We are also raising non-GAAP operating income guidance to $82 million- $86 million, or a 9% margin. Stepping back, we believe Q2 reinforces this financial story. Strong and broad-based growth, continued operating leverage, and disciplined investment. We are entering the second half with very strong momentum, very good visibility, and a very strong balance sheet. We will remain focused on converting that opportunity into durable growth and cash generation over time. I am very, very thankful for all the great and hard work happening across the company. As Ariel mentioned, we are having a great time here furthering our mission of building the best travel agency on the planet. With that, operator, we are ready for questions. Thank you. As a reminder, if you would like to ask a question, please press star 1 on your telephone. You will then hear the automated message advising your hand is raised. We also ask that you limit yourself to one question and one follow-up, as well as wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. The first question of the day will be coming from the line of Chris Quintero of Morgan Stanley. Please go ahead. Hey, Ariel. Hey, Aurélien. Thank you for taking the questions, and congrats on a great quarter here. Maybe first, you all have been seeing a lot of momentum with that RFP activity up 200% year-over-year for the past few months and quarters. Curious, on the win rate side, how that is progressing and how that is translating in terms of timing to revenue and closing those deals. Yeah, great question. This is Michael Sindicich here. Good to hear from you again. I think in general, first of all, we are absolutely pumped, and I am so proud of the go-to-market team and everyone at Navan who is building the products and services that we are delivering. To your point, there is a lot of tailwinds that we are seeing. It is RFP volume increasing, it is industry stuff, it is the products that we deliver that drive 15% savings on average, and you can book within seven minutes, and everyone is super hyper-focused on employee efficiency, especially from the people that are generating revenues for their company, which happen to be a lot of travelers. I think with all of these tailwinds, all of the increases in the RFPs, which just gives us more at-bats, I think it is really just simply signaling to us that we are watching disruption happen in front of our eyes. We get a lot more at-bats, and we get a lot more opportunities, to your point. What we have talked about in the past is we actually see win rates increasing. We see ASPs, our average pricing, also increasing, and we see the productivity per rep also increasing. With those three things happening, that then translates to faster growth, which we show with bookings and revenue volume. For the first time, we are super happy to report on the new sales, which was $4 billion of travel volume coming from the SLG team. What that means is we then sell a deal, and then we have talked about this before, where it takes about two months on average to implement the customer. What happens then is we connect to the HR system, your SSO, the expense solution, payments, and then we set up the policy, and we launch to the company. Once we launch to the company, then it is about a five-month on average ramp until the account gets to full ramp and full adoption. That could mean deploying country by country. It could be big bang launches. On average, it is about a two-month implementation and a five-month ramp-up of the customer. That kind of gives you an hint and an idea of kind of what it takes to close the deal all the way to ramp. If you think about it, the companies that are doing RFPs are generally enterprise-type companies, so larger. Those deal cycles can be a little bit longer as well. We get an RFP, it might be 6-9 months before we have a signed contract and then go and begin the implementation. Got it. Very helpful, Michael. Then maybe as a follow-up, really great to see the subscription and payments revenue acceleration here. So maybe could you unpack some of the key drivers there? I know you all have been focused on getting your sales team out and selling more of the payments and expense management solution, but just curious, some of the details there. Yeah, totally. It's consistent, again, with what we talked about a couple of quarters ago, but we were in an environment where we are relatively capital constrained. What that meant is we weren't as focused on selling the payments volume, which often actually comes with the expense ACD product as well. What we've done throughout the IPO is we've restructured our capital structure, we have brought on warehouses, we have the capacity, and now the sales team is going out there and really selling our payments and expense product, which you can see just how fast that acceleration has occurred just in a few quarters. We're really excited to get these products out there because customers absolutely love it, and ultimately what it does is it drives automated expense management, and the finance teams don't have to spend a lot of time reconciling their travel bookings. I don't know, Aurélien, if you have anything to add. Yeah, I'm super excited to see the acceleration here, right, in terms of, because the growth of the payment volume is coming across the board. We have more new customers signing up for payment and expense. We are seeing more upsells, and then we are seeing the existing base adopting our solution even more. That's why you're seeing this growth in terms of payment volume and acceleration to 34%, versus 29% last quarter. We're very excited about this product, as Michael mentioned. Excellent. Thank you both. Thank you. Thank you. One moment for the next question, please. Our next question is coming from the line of Patrick Walravens of Citizens. Please go ahead. Oh, great. Thank you, and congratulations, you guys, on all the momentum. Ariel, why do you like the meeting off-site space? Who is your competition there who you're going to disrupt, and how will everyone on this call, we all go to so many conferences, and we all host so many conferences. How is our experience going to be different once you get BoomPop integrated? Yeah. Amazing question. Thank you, Pat. Here's the thing. I always thought about Navan as we first land a customer and a business traveler, right? We tell them there is a new way to think about travel. It is way more automated. AI is part of it. It's easy to book. In the Navan platform, it takes seven minutes to book. When you want to change something, it's super fast. So really surrounding you, the traveler, around this goodness. But we also know that business travel has many more needs. We've talked about payments and expense. In the past, we talked about VIP, how can we take the VIP experience and bringing it and make it an AI experience. Meeting and events is a big part. It's actually 30% of the TAM of this market. It's a big TAM of the need, of the need of the company, of the need of the traveler. When we looked into this years ago, when we came to the market, we saw that it is so antiquated. You are basically having an RFP per event. You are sending an EA to source some hotels and restaurants and other things. It's really old school. It takes a lot of time. It's extremely not transparent. You are signing with somebody a deal. They go and negotiate with three hotels for you, and then they tell you, "This is the hotel that you're going to use." Takes a lot of time, antiquated, the opposite of what Navan is all about. So we thought if we can bring that experience to become online, to become conversational, "Hey, I want to have an event for my sales team. I'm thinking about Vegas or New York, and this is my budget, and this is what I need," and I'm talking with you or with the platform. Then the platform is actually automatically going and talking with the various providers. We are creating this match. It will make the experience completely different. People will like it. Then we, as Navan, we're going to create more value to our customers. We are basically becoming more and more their one-stop shop for every need around business travel. So that's why we are excited about it. BoomPop specifically, we know these guys for quite some time. They are the guys. They really innovated in this space. They proved that you can take something that is extremely manual and make it AI. Which by the way, 2 years ago, when I first met them, I actually didn't believe them. I went very deep and understand that it's really AI and not some story as a lot of people are telling. It's just amazing. We partnered with them. We are seeing happy customers together. We decided to make them part of Navan. Maybe I'll add to your point about how Oh, yes. I was going to add how prevalent it is. People are saying that it's roughly 30% of all business travel volume is actually coming from meetings and events, so the opportunity is obviously huge. Thank you both. Thank you. One moment for the next question. Our next question is coming from the line of Samad Samana of Jefferies. Please go ahead. Hi, good evening, and thanks for taking my questions. I have one question, then I have one follow-up. Great to see the large logos, notable ones like Ingersoll Rand and Cummins. They all stood out. Just help us understand how the enterprise segment bookings looked in the quarter and maybe how the pipeline looks heading into the back half. Then I have one follow-up for Aurélien. Yeah. I'll answer the first question about the pipeline. The RFP thing that Aurélien mentioned is a leading indicator, right? Generally, larger companies are more prone to launch a request for proposal. So, obviously, there's quite a lot of people that are interested in looking at Navan, and I think the choices are relatively limited. It's essentially antiquated version, or it's the modern AI-based travel and expense platform, which is Navan. So, that gives you an idea of the pipeline. When it comes to the specific bookings and enterprise or anything like that, we actually don't separate the two, or we haven't announced the difference between them. But in general, I'll let Aurélien talk about how bookings are trending. Yeah. Very healthy demand across the board, inclusive of the enterprise segment, obviously. We see companies keep leaning into business travel to generate revenue, right? When you think about the reason why people in the first place are using our platform, it's because they need to meet a prospect, they need to meet customers, they need their teams to get together. And we keep seeing more travelers traveling more and the average booking going up. So, we see very healthy level of demand across the board. Great. Aurélien, just maybe a follow-up on travel price inflation. Can you help us understand how much of a tailwind that was in F2Q, and what type of assumptions are you making about that specifically for the rest of the year and the guidance? Are you assuming trends levels that we've seen in the first half of the year? Are you expecting more moderate travel price inflation? Just help us think about the F2Q impact and what's embedded in guidance. Thank you again for taking my questions. Yeah, absolutely. Great question. You may remember, when we discussed about Q1, we obviously mentioned that we saw in the back half of the first quarter, some more inflation than at the beginning of the quarter, obviously due to the disruptions that are happening in the world. Our assumption for the Q2 guidance was that, the exit level is what we would see throughout the second quarter, and that's exactly what happened. From that standpoint, I think steady inflation is what we've seen, throughout Q2, and this is also what we are assuming for the rest of the year. It's obviously very hard to sit here today and predict inflation, but based on everything we are hearing, all the commentaries across the industry, what we are seeing today, we believe it's a reasonable assumption. That's how we are thinking about our guidance. What I would add to that is, obviously, we are not providing a bookings guidance. We are guiding to a revenue number. As a reminder, most of the inflation is impacting flights as opposed to hotels. The way we monetize flights versus hotels is such as the impact of inflation on revenue is way less than the impact on bookings. I just wanted to also reiterate that. Thank you. One moment for the next question, please. Our next question is coming from the line of Noah Naparstek of Goldman Sachs. Your line is open. Hey, everyone. Thanks for taking the question. Maybe one more on BoomPop. I think you cited in the deck a 30% savings rate, which just seems very impressive relative to the 15% you talk about for the rest of the business, which is already great. Just wondering where that comes from. Yeah. I won't know all the specifics of each type of savings there, but I can talk generally about it. What BoomPop does is, first of all, as Aurélien mentioned, it's fully AI conversational-based, and what they'll do is you can explain what you want to do, and then they will actually go out and source various hotels. They will source catering. They'll source photographers. If you want to buy swag, they'll create a website for you. They'll manage your attendees. It's a very robust program that puts together in one solution, this spaghetti type of operation of doing an event. Then what happens is BoomPop has really deep relationships with suppliers, and what they do is they can bring them volume, and you can get better rates than what you would see just on the normal hotel's website. Again, not knowing exactly each specific of how it adds up, but the bulk of the savings is going to come from the discounts, from the list pricing if you were to go and do it yourself and just sign up with a hotel and book those rooms, because they're able to pass on the negotiated rates that they can get to the customer. Does that make sense? It does. I guess if you think about your algorithm and the way you capture value through pricing, would you expect meetings and events to continue to be a higher-yielding segment for you, and this amplifies that, or would you think of it long-term as in line with the rest of the business? It's Aurélien here. We are usually not breaking down yield by line of business or the different components of the business. But what I can tell you is it's roughly steady and very consistent with what we are seeing. But what's really more important than that is combining the two companies gives us a huge opportunity. We have a great portfolio of customers that are all organizing meeting and events, and most of them doing that offline. And combining forces with the BoomPop team and their cutting-edge technology gives us the ability to upsell and really attach meeting and events, this business, to more and more of our customers. When I think about the value we are providing here, it's, as I already mentioned, going deeper in our relationship with our customers, through that new business of meeting and events, which we were already doing as a company, but we are now bringing it online with BoomPop. Great, thanks. Thank you. Thank you. One moment please for the next question. Our next question is coming from the line of Steve Enders of Citi. Please go ahead. Okay, great. Thanks for taking the questions. I guess to start, I want to ask about the Direct Connect relationship with Hilton, on the hoteling side. I guess it would be great to get your perspective on what this new relationship means and maybe how it augments the hoteling side of the business and industry moving forward. Yeah. In general, the way that we approach our platform is to try to drive the best and the most content out there. That means connecting to multiple GDSs, like traditional agencies. It means building and being at the forefront of all the NDC connections that we can do with the airlines. It means adding low-cost carriers like your Ryanairs, EasyJets, and your Southwests. The idea is basically, we want travelers to be able to access all the best content, all the best rates, and the best inventory that is suitable for them. One thing that we launched is the Engine partnership as well, which is huge for us to add more content and more availability and better types of bookings for different industries. But on top of that, to your point, one of the things that we did is launched a direct connection to Hilton. What we are doing by connecting directly to suppliers is it allows them for more flexibility, more accurate retailing, better upselling of ancillaries that are relevant to travelers. It allows us to service these types of bookings really quickly, apply unused credits automatically, and just manage, cancel, change these types of bookings. So for us, it is not a play about driving a different yield or a different revenue from these types of things. It is about giving the right content, the best content, the best pricing to our travelers on the platform. Okay, perfect. That is great to hear. Then maybe to follow up just on the margin dynamics, in the quarter, I guess anything on the revenue, I think upside was pretty strong, but I guess trying to understand that did not really flow through to the bottom line. So, trying to understand the moving pieces in that and maybe how you are thinking about those incremental investments and what you are assuming in the guide for the rest of the year as well. Yeah, of course. Maybe I can unpack that a little bit. First of all, as you mentioned, very strong revenue beat, and driven by a lot of bookings, great sustained momentum and demand. So, yeah, great beat on revenue. Our gross profit was more than 75% for the first time in the company history. So, we keep seeing a lot of tailwinds here coming from the rate of resolution that Ava is handling at 60% of our Q2, and that makes us way more effective, from a cost perspective, on top of obviously providing a better service for travelers. But obviously, very, very good from a gross margin perspective. Then, because we have been so successful, in our go-to-market initiatives, and with more than $4 billion new signed GBV for SLG, we are just paying more commissions, right? Again, very, very happy about the payback here and what we are seeing. We have a very, very strong and efficient go-to-market team. That led us to also beat our bottom line expectations as well. Okay, perfect. Thanks for taking the questions. You bet. Thank you. One moment please for the next question. Next question is coming from Jed Kelly of Oppenheimer & Co.. Please go ahead. Great. Thanks for taking my question. Looking at the pace of your gross margin expansion in 2Q, sort of moderated a bit from what we were seeing the last couple of quarters. Is there anything in there to call out or is it just tougher comps? Yeah. We expanded gross margin, 200 basis points year-over-year in Q2. As a reminder, we expanded gross margin by 1,000 basis points over the last couple of years. So, we keep making a lot of progress there. We are launching more customers, and be very, very thoughtful about deploying human agents orchestrated with our AI agents. We're very pleased. I'm very excited to see the rate of resolution from Ava going to 60%. The team has a lot of ambition here to keep driving that mix to an even higher point, specifically as we use more and more of our own models that are more accurate, give better results, and faster results. As we keep making progress here, we're going to keep Ava handling more and more of our support function, and margins are going to keep expanding. But I am very excited about the pace of the expansion, because the secret sauce of Navan, and the reason why our customers love us is, we are not optimizing for gross margin, we are optimizing for NPS and CSAT. As a result of that, we are seeing a gross margin expansion. But first and foremost, the reason why we are successful is because we are the best travel agency on the planet. That is what comes across when you look at our satisfaction scores. Great. Then just as a follow-up, congrats again on the NDC with Hilton. Can you discuss other conversations you are having with chains on sort of direct connections? I know you just mentioned it is not about yield management, but would not this improve your yield by relying less on indirect supplier agreements? Thanks. Yeah, that is a really good question. I think when we think about what we call internally content, it is all about all of these advantages that I was talking about when it comes to AI. Because there are so many ways to connect to suppliers, to airlines, hotels, and others. You can use a lot of aggregators, but that means that you are not always assuring the right price for the customer. But also from a merchandising perspective, you do not have the right information. So it could be the pictures of the room, it could be the size of the description. Same goes, by the way, to airlines. So when you go to the Navan platform, no matter if we show it in the UI or in a conversation in a platform like Navan Edge, it is all about really knowing what is out there, what you the user want, and create the match between that. So if any of the people on this call have used Navan Edge, obviously it is a new product. You can see that I can actually tell Navan Edge what kind of hotel, what kind of room I will want to have in my next stay in New York. It will tell me, because you like the bar and you like the gym, we suggest that you will be in this hotel. But I did not even ask about the gym or the bar. Or I did not look for the logo of the gym and the bar. So Navan Edge really knows me. That's really important. But it is thirsty for content. It really needs all of this information, like you think about merchandising. By connecting directly to suppliers, by going to aggregators, by taking all of this data, which is, by the way, Navan data now, we can actually create an amazing experience. Which, by the way, creates more revenue because you are more likely to book in the Navan platform. You are less likely to go and look for it outside because we are just giving you the better information. So this is really what lays behind the NDC strategy. Although sometimes benefits of yield to us, or benefits of pricing to the customer, the answer is yes, but that's not what drives this strategy. What drives this strategy is data, and the data that we are presenting to our customers. Thank you. Thank you. One moment, please. Our next question is coming from the line of Jared Levine of TD Cowen. Please go ahead. Thank you. To start out, I was hoping you could give an update in terms of your sales headcount investments. I guess, where is capacity growth at currently at this point in the year, and where are you targeting for the rest of the year? Yeah. This is Aurélien. You are seeing our marketing and sales investment, which is mostly sales investment, growing at roughly the same pace Q and Q. I would not expect any significant changes this year from that standpoint. What will fluctuate every quarter is always the amount of commissions we are paying to our sales team, depending on how successful they have been. As you have seen, they have been very successful recently. Michael has been discussing about the great pipe for the rest of the year. We will be very pleased to keep investing in our marketing and sales engine for the balance of the year. Then, beyond that, if we step back from our P&L, the opportunity is massive, right? When the management team has conversations about where do we want to invest, where is the opportunity, it is very clear to us that the size of the corporate travel market is so significant, and we are such at the beginning of the penetration of that market. We are very proud of serving 50 companies out of the S&P 500, but that means many of them are up for grabs. That is the opportunity, and that is why we will keep investing in our marketing and sales engine going forward. Got it. Then my follow-up, can you dig into between Smartrips and BoomPop, those two acquisitions, the impact that that had to your FY27 guidance update? I guess some online resources are suggesting that BoomPop could be north of a $100 million revenue run rate, which could be pretty significant in terms of that contribution. So any kind of incremental color in terms of the impact of the guidance update would be helpful. Yeah. So, absolutely not those level of revenue impact. So for FY27, Smartrips is top and bottom line, very immaterial. So if it is in your model, you are doing it wrong. So it is small, very strategic, and we are very excited about it because of the access this is giving us to a lot of local inventory, IATA licenses and a great team, but immaterial impact to our financial statements in the short term. Then from a BoomPop perspective, very low single-digit impact to revenue in FY27, so far away from the number you just quoted, and a mid-single-digit impact to the non-GAAP operating income as we are integrating the team. We expect that business to become accretive in FY28, though. But FY27, the summary is immaterial impact to top and bottom line. Got it. Thank you. Yeah, of course. Thank you. One moment, please, for the next question. Next question is coming from the line of Blair Abernethy of Rosenblatt Securities. Please go ahead. Thanks, and great quarter, guys. Just two questions, I guess. One, any update on the transitions going on with the Reed & Mackay customer base onto your platform, just sort of how that's progressed this quarter? And then secondly, just in terms of new customer adoption of the Navan MCP and Navan Edge, maybe just any other color around what you're seeing there in terms of the profile of customers that are utilizing these new capabilities? Sure. First of all, regarding Reed & Mackay, we really need to understand that there are two aspects there. One is really us providing VIP service on platform for most of the Navan customers. There, it is actually fully integrated, and people are super happy. As you know, we are always measuring CSAT and NPS. The Reed & Mackay customers, which are fairly traditional, used to mainly talk with agents, calling, selling, emails. We have this idea, which I have talked about in the past, to bring them on platform. Then it is a program that will take several years, and right now we are very happy with what we see. We see more and more customers of that nature actually going to this platform, and by that, really enjoying this orchestration that I am talking about, AI agents, and actually VIP agents in this case, together providing them service. The reason that we know that they are happy when they are doing this transition, their NPS and CSAT tends to be really high. That is what we see, and that is why we are continuing with this program. This is really how I am looking at this program and asking myself, is that successful or not? Are we seeing satisfaction by these very, I would say, traditional customers that want this type of service? That is that part. Regarding the question of Edge, first of all, I would say maybe the bottom line here, Edge is the fastest-growing product that we have ever launched in Navan. That is really, really important. It actually tells us that this idea that people will want to have a conversation, basically with AI, and booking their entire trip, but also having restaurants, events as part of the trip, doing all of these things automatically, while we know them very, very well, that idea resonates with a new type of customer for Navan. This is not a corporate customer that we signed with. This is actually an individual who is a business traveler that is coming to our platform and is starting to book a trip. What I am looking at is, first of all, are we growing? As I said, we are growing really fast. Second, I am asking myself is NPS is high? CSAT is high. NPS there is actually very high, significantly higher than what we see in the Navan platform. Then I am asking myself, do I see repeating usage? Remember, this is not a company that a CFO told them, "You have to use Navan." This is an individual that decided to come to our platform and book. Do I see that individual coming again for their next trip and their next trip? The number there is actually amazing. It is way more than what I was expecting, and it is actually the trend is going up. All of the numbers trend is very, very positive. We are very happy with what we see there, and I am actually very optimistic, as this starts to get scale, to start to see impact next year on our numbers. Okay, great. Thank you. Thank you. One moment, please. The next question is coming from the line of Siti Panigrahi of Mizuho. Please go ahead. Thank you. Thanks for taking my question. Most of my questions are asked. Just wanted to ask on the competitive landscape, there are some kind of consolidation we saw in that legacy vendors. I am wondering how is the pipeline and win rate trending, and how you are trying to capture that market? Yeah, in general, we see the consolidation as a big tailwind for us. I think, hopefully, customers are seeing that we are causing quite a lot of disruption because we are completely changing the way that it means to manage corporate travel in the world of technology and AI. Because of that, a leading indicator is what Ariel talked about earlier, where RFP volume has tripled since H1 of last year versus H1 of this year. Usually those RFPs are coming from more enterprise customers, and you can assume the enterprise customers are coming from more of the legacy travel management companies that are doing some of the consolidation. Hopefully, that gives you a clear view of what we are experiencing internally. Great. Thank you. Thank you. One moment please for the next question. Next question is coming from the line of Nafeesa Gupta of Bank of America Securities. Please go ahead. Hi, thanks for taking my question. Little broad-based question here. As you win larger global enterprises, would love to understand how the long-term economics compare with some of the mid-size smaller customers you have had historically across product attach to- Sorry. Sorry, Nafeesa, you are cutting. Can you say that again? Can you hear me now? Oh, yeah, it's better. Thank you. All right. I'll just repeat. I was asking on your larger global enterprise wins, and how do the long-term economics compare with some of the smaller customers you've had previously across metrics like product attach, retention yield, implementation costs, and maybe expanding potential in general, how should we think about long-term trends? Yeah. First of all, before I compare the different cohorts or segments, just want to reiterate that it's been very steady, right? We are not seeing any shift when we look at segment by segment, not seeing any shifts from pricing or yield or the way we work with different companies. What we've been discussing in the past is, generally speaking, enterprise customers have a very different profile than mid-market or smaller entities. At the end of the day, the growth margins look very similar, but the way we construct those growth margin is a little bit different. So, enterprise customers frequently have direct negotiation rate with airlines or hotel chains, and so on those bookings that we facilitate on our platform, we charge more trip fees as opposed to getting some commission from our suppliers. The opposite would be true when you go down in the market. Every customer is made different. One of the reasons why we love all of them and all those segments, and with their different characteristics is they also come with different tailwinds that they provide to the platform. Enterprise customers are coming with very significant volumes. They are very sticky customers, and they offer a lot of opportunities for us to upsell, and attach more of the expense and payment, now the M&A business as well, and provide a lot of opportunity for our sales team to just go and upsell and grow the relationship with them. Again, different characteristics, overall similar growth margins, but being constructed in a different way. Thank you. Thank you. One moment, please. Next question will be coming from the line of Scott Berg of Needham & Company. Please go ahead. Hi, this is Ian Black down for Scott Berg. Congratulations on the acquisition of BoomPop. What is the opportunity for more tuck-in deals like this? Are there any areas where you think you could benefit from M&A? Yeah, obviously, I do not have any specific target or acquisition in mind today that I want to talk about. But we are always looking for opportunities to expand like we just did to a new product that helps us upsell and attach more product to our existing relationship. That is what you saw with BoomPop. Smartrips was clearly us trying to increase, expand our footprint globally, so we could see more of that in the future. But I want to say the bar for M&A is very high, right? We really look at companies that can bring things that we do not have internally or that we think will take a long time for us to build by ourselves. But it is not a goal. It is just a tool for us to accelerate our vision. Thank you. Thank you. I will now like to turn the call back over to management. Please go ahead. Great. Thank you all. Just as last quarter, we have been asking our individual investors to submit some questions on our platform. I think, Erin, you want to share the top up-voted questions with us. Yeah, thanks, Aurélien. I've got three. The first question, I think it's for Ariel. This is from Patrick P. He asks, the company is mostly for business use. Will there be available for individuals in the near future? Yes. First of all, the first user that is now coming to the platform, as its own decision, is actually people that are coming to Navan Edge. These are employees that are working for companies. They either don't have a managed solution in the organization that they work for, or they are not happy with that solution, and because of it, they are coming to Navan Edge. So in a way, while they are business travelers, they have a behavior of a consumer. They are deciding to book their business trip in Navan. Across the platform, while you are using us, you can also use us for your personal needs. We internally call it the leisure, which means that let's say that I'm flying to New York, but I'm also spending the weekend there, I can actually combine the usage of my business need with my personal need. There is an entire functionality there that allows you to split the cost, to really have the personal trip isolated from the company reporting, and so on. So these two aspects today in the Navan platform are very consumerist. One, it's actually I'm deciding to use Navan Edge, and the other one, I'm expanding my business trip to a personal trip, and people like to use these two products. Great. Thanks so much. The next question I think is for Aurélien. If business slows down, what are your cost-cutting strategies? Yeah. First of all, so far, so very good, right? I think we've been discussing this on this call. The demand for business travel is very, very strong right now. Obviously not something I'm focused on at the moment, because we are very excited about the volume of bookings on the platform. I think in that scenario, the process will be the exact same than we have today, which is really focused on the return of investment and being very intentional. Today, we are clearly going on the offense, because we see great payback every time we invest, be it in R&D, M&A, or marketing and sales. We see a very, very good payback, and I think if that were to be the case, the process will be, again, exactly the same. Okay. That's really helpful. Thank you. And our last question, Michael, this one's for you. This is from John Z. Navan Rewards program, how is Navan incentivized to earn rewards users have personal stays off of this? Why do they expire? Yeah, great question. Just to set some context so everyone here knows, Navan actually pays travelers when they choose more cost-effective options on behalf of their company for business travel. It's a really unique way to help drive that 15% savings that we bring to our customers. To the question, some airlines, hotel programs, et cetera, the points will expire, some of them don't. A lot of points programs generally are rather opaque, and the Navan platform is giving dollar for dollar. So when we give you a $1 reward, you can use it. Its value is worth $1 for a personal travel booking. Essentially, our travelers on our platform are able to triple dip. So when they make a booking, they can use their credit card and get credit card points. They can book suppliers that will give you those specific airlines and those hotel points. And then on top of that are the Navan Rewards that we pay for. Because of that, it's the kind of program that actually expires those rewards after 12 months. So our message is just make sure you hurry up and use them, if you've saved your company money, to go on a personal vacation. Great. Thank you. Now turning it back to the operator. Thank you all for joining us today. Thank you all for joining us today. This now concludes today's program. You may now disconnect. Goodbye