Press Release: Karooooo Growing at 25% in Constant Currency

Dow Jones10-20
SINGAPORE--(BUSINESS WIRE)--October 19, 2026--

Karooooo Limited $(KARO)$ ("Karooooo") reported strong results for the second quarter ("Q2 2027") ended August 31, 2026. Karooooo owns 100% of Cartrack and 91.5% of Karooooo Logistics, (collectively, "the group").

Financial highlights include: 

   --  Q2 Karooooo Revenue increased 25% in constant currency 
 
   --  Q2 Cartrack Subscription Revenue increased 20% Y/Y to ZAR1,415 million 
      and 23% growth in constant currency 
 
   --  Q2 ARR increased 19% Y/Y to ZAR5,708 million and 30% Y/Y in USD 
      equivalent to USD354 million 
 
   --  Karooooo delivered record quarterly operating profit of ZAR422 million 
      with 19% growth Y/Y despite the FX headwinds 
 
   --  Karooooo EPS increased 18% Y/Y to ZAR9.28 
 
   --  Karooooo Adjusted EPS increased 12% Y/Y to ZAR9.28 
 
   --  Cartrack Subscriber growth increased 18%, reaching 2.9 million 
      subscribers (Q2 2026: 2.5 million)

"We are pleased to report another quarter of acceleration. Cartrack's constant currency subscription revenue growth increased to 23% in Q2, compared to 21% in Q1, with constant currency growth acceleration across all regions. During the quarter, we continued to balance new customer acquisition while building our cross-sell capabilities. Cartrack's constant currency subscription revenue growth of 23% in Q2 is in the upper band of the FY 2027 outlook of 18% to 24%.

"Despite the strengthening ZAR, which continues to impact contributions from most of the countries in which we operate when reporting in ZAR, Cartrack's subscription revenue and ARR increased 20% and 19%, respectively. In constant currency, ARR increased 22% and presented in USD, ARR increased 30%, reaching USD354 million.

"As we enter the second half of FY 2027, we remain focused on building on the strong momentum established in the first half of the year and on driving the adoption of AI throughout the organization," said Zak Calisto, Group CEO.

Cartrack subscribers increased 18% to 2,899,210 (HY 2026: 2,456,989). Cartrack delivered 94,516 net subscriber additions during the quarter, a record for the second quarter.

Cartrack's annualized recurring revenue ("ARR") increased 19% to ZAR5,708 million (Q2 2026: ZAR4,806 million).

Karooooo Logistics's revenue increased 36% to ZAR189 million (Q2 2026: ZAR139 million) driven by the demand for Q-commerce or "Quick-commerce" orders, a type of e-Commerce focused on ultra-fast delivery.

Full results: www.karooooo.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20261019330047/en/ 

 
    CONTACT:

ir@karooooo.com

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