Karooooo Accelerates Subscription Revenue Growth from 15% to 20%

SINGAPORE--(BUSINESS WIRE)--Karooooo Limited (“Karooooo”) reported strong results and a positive outlook in the second quarter (“Q2 2026”) ended August 31, 2025. Karooooo owns 100% of Cartrack and 74.8% of Karooooo Logistics, (collectively, “the group”).

Our subscription revenue growth increased from 15% in FY25 Q2, to 20% in this quarter. We believe that our strong unit economics coupled with a clean balance sheet positions us favourably to continue to scale.

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Financial highlights include:

• Cartrack’s quarterly subscription revenue increased 20% to ZAR1,180 million (Q2 2025: ZAR983 million)
• Cartrack’s SaaS annualized recurring revenue (“ARR”) as at August 31, 2025, increased 20% to ZAR4,806 million (August 31, 2024: ZAR3,990 million)
• Karooooo’s quarterly Adjusted EPS increased 13% Y/Y to ZAR8.28 (Q2 2025: ZAR7.35)
• Karooooo’s subscribers increased 15% to 2.5 million (Q2 2025: 2.1 million)

Zak Calisto, CEO and Founder:

“Our subscription revenue growth increased from 15% in FY25 Q2, to 20% in this quarter. We continue to demonstrate our ability to accelerate our subscription revenue growth at scale, deliver strong earnings, drive innovation, and increase our distribution capabilities while maintaining a strong, financially disciplined, agile, innovative and owner-orientated culture. We believe that our strong unit economics coupled with a clean balance sheet positions us favourably to continue to scale.”

Karooooo’s subscription revenue increased 20% to a record ZAR1,182 million (Q2 2025: ZAR986 million) in Q2 2026, and operating profit increased 18% to ZAR356 million (Q2 2025: ZAR302 million). For the half year, Karooooo’s subscription revenue increased 19% to ZAR2,323 million (HY 2025: ZAR1,950 million).

Cartrack’s subscription revenue increased 20% to a record ZAR1,180 million in Q2 2026 (Q2 2025: ZAR983 million), and operating profit increased 17% to ZAR344 million (Q2 2025: ZAR293 million). For the half year, Cartrack’s subscription revenue increased 19% to ZAR2,317 million (HY 2025: ZAR1,943 million). Subscription revenue equated to 98% of total revenue.

Karooooo Logistics’s revenue increased 38% to ZAR139 million in Q2 2026 (Q2 2025: ZAR101 million), driven by an increase in e-commerce orders.

Karooooo’s adjusted earnings per share increased 13% to ZAR8.28 in Q2 2026 (Q2 2025: ZAR7.35) after considerable upfront investment in distribution.

After paying a cash dividend of USD38.6 million to shareholders, Karooooo reported a net cash and cash equivalents balance of ZAR393 million as at August 31, 2025.

Our proven and consistently profitable business model, underpinned by a strong balance sheet and healthy cash position, provides us multiple levers for expansion. We expect our continuous investment in AI products, platform and customer experience to generate robust results in the future.

For the full earnings, visit: www.karooooo.com