Karooooo stock: Q2 revenue grows 22% to ZAR 1.64 billion
Published on 10/30/2026 at 00:40 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSGrowth remains broad-based
- Cartrack subscriber growth and recurring revenue advanced in the second quarter.
- Foreign-exchange effects remained a headwind, while operating profitability reached a quarterly record.
- Management kept its full-year 2027 outlook unchanged.
Karooooo reported strong second-quarter results on October 19, 2026, for the period ended August 31. In its Form 6-K, the Singapore-headquartered company said consolidated revenue increased 22 percent year over year to ZAR 1.64 billion.
Subscription growth drives results
Subscription revenue rose 20 percent to ZAR 1.42 billion. Cartrack, Karooooo's main operating business, reported subscription revenue of ZAR 1.415 billion, while annualized recurring revenue increased 19 percent to ZAR 5.708 billion. Subscriber growth was 18 percent, bringing the total to 2,899,210.
Karooooo Logistics also contributed to the expansion. Its delivery-as-a-service revenue increased 36 percent to ZAR 189 million. The company said constant-currency subscription revenue growth was 23 percent, showing that currency movements reduced the reported growth rate.
Profitability and cash flow
Operating profit reached a quarterly record of ZAR 422 million, up 19 percent from the prior-year quarter. Earnings per share increased 18 percent to ZAR 9.28. Adjusted earnings per share, a non-IFRS measure that excludes specified offering costs, rose 12 percent to ZAR 9.28 from ZAR 8.28.
The release also highlights a more mixed cash-flow picture. Net cash generated from operating activities increased to ZAR 558 million, but free cash flow was ZAR 41 million as the group invested in equipment and working capital to support growth and manage higher memory prices. Karooooo said foreign-exchange headwinds continued to affect reported results.
Outlook stays unchanged
Management maintained its FY 2027 outlook. The guidance calls for Cartrack subscription revenue of ZAR 5.7 billion to ZAR 6.0 billion, an operating margin of 27 percent to 30 percent and Karooooo earnings per share of ZAR 38.50 to ZAR 40.00. These targets assume constant foreign-exchange rates and remain subject to the risks described by the company.
Karooooo at a glance
- Company: Karooooo Ltd.
- ISIN: SGXZ19450089
- Ticker: KARO
- Primary listing: Nasdaq
- Reporting period: Quarter ended August 31, 2026
- Revenue: ZAR 1.64 billion
- Operating profit: ZAR 422 million
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