Navan (NAVN) Plunges 15.02% Amid Governance Shifts and Valuation Pressures

The share price dropped to a record low today, with an intraday decline of 17.22%. Navan (NAVN) closed at a 15.02% loss, marking its weakest level since going public in October 2025. The sharp selloff follows a series of corporate governance adjustments and valuation pressures that have reshaped investor sentiment.

Navan’s stock has been impacted by structural changes tied to its IPO, including equity exchange agreements with co-founders Ariel Cohen and Ilan Twig. These agreements, finalized in late October, required the conversion of voting Class A shares to non-voting Class B shares, reducing founder influence. While such measures are standard for public companies, they signal a shift in ownership dynamics that may have dampened short-term confidence. Additionally, the firm amended its bylaws and certificate of incorporation ahead of its market debut, aligning governance with regulatory expectations but offering little immediate financial clarity.

Valuation concerns further weigh on the stock. Navan’s price-to-sales ratio of 8.2x, significantly above the 5.3x industry average, reflects a market pricing in aggressive growth assumptions. However, the company remains unprofitable, with no concrete evidence of scalable revenue momentum. Analysts warn that the premium valuation leaves the stock vulnerable to downward revisions if growth expectations are not met. The recent 1.38% year-to-date gain contrasts with broader skepticism, highlighting a fragile equilibrium between optimism and overvaluation risks.

The selloff underscores the delicate balance Navan must strike post-IPO. While governance reforms lay the groundwork for institutional trust, financial performance will ultimately determine its trajectory. Investors are now closely watching for signs of sustainable growth or signs of overvaluation correction in the coming quarters.