Karooooo Revenue Rises 22% to 1,640 Million Rand as Subscriptions Expand

Key Facts

Karooooo reported a 22% year-on-year increase in group revenue to 1,640 million rand in the second quarter of fiscal 2027, driven by growth in its subscription and logistics businesses. The results cover the period ended 31 August 2026, according to the company's quarterly earnings disclosure. Reported earnings per share rose 18% to 9.28 rand as Cartrack's subscriber base expanded. The group posted record quarterly operating profit of 422 million rand during the period. Business growth was accompanied by capital expenditure to support accelerating subscriptions, which Chief Executive Zak Calisto said temporarily weighed on free cash flow.

Cartrack subscription revenue reached 1,415 million rand in the reported quarter, up 20% year on year, according to the earnings disclosure. Subscription revenue in the first quarter of the same fiscal year was 1,351 million rand. In that previous quarter, reported subscription revenue growth was 19% year on year, compared with 21% at constant exchange rates. The company cited the acquisition of "new customers" among the drivers of subscription revenue growth in the second quarter. Other drivers included sales of video products and Cartrack Tag to new and existing customers, adding sales to the existing customer base.

Cartrack's total subscriber base reached 2,899,210 at quarter-end, according to the company. Net subscriber additions during the period totalled 94,516, a record for the second quarter. Across Asia-Pacific and the Middle East combined, the subscriber base stood at 367,270 at the end of the reported period. The company's platform integrates vehicles, assets and field workers into a unified operating ecosystem, according to its business description in the earnings discussion announcement. This ecosystem also encompasses workflows, alongside the vehicles, assets and field workers that businesses manage.

In logistics, Karooooo Logistics revenue rose 36% year on year to 189 million rand. The company attributed growth in the business to demand for quick-commerce services during the reported quarter. At group level, adjusted earnings before interest, taxes, depreciation and amortisation rose 18% to 675 million rand. This metric is classified as a non-IFRS financial measure, according to the company's disclosure. Cartrack's operating profit margin was 28%, compared with 29% in the second quarter of fiscal 2026.

Group free cash flow totalled 41 million rand during the quarter, according to the quarterly results. Free cash flow for the first half of the fiscal year totalled 100 million rand. The company presents free cash flow as a non-IFRS measure. Calisto linked the temporary impact on cash flow to "investment in capital expenditure" to support accelerating subscription growth. In the previous fiscal year, adjusted free cash flow, also a non-IFRS measure, rose 90% year on year to 809 million rand.

Basic and diluted earnings per share in the first quarter of the current fiscal year were 9.53 rand, according to the previous period's financial statements. Reported earnings per share for the second quarter were below that previous quarterly level, despite rising year on year. The company maintained its earnings per share guidance range for the current fiscal year at between 38.50 and 40.00 rand. Karooooo scheduled its second-quarter earnings webinar for 20 October 2026. The webinar is set to begin at 08:00 a.m. U.S. Eastern Time, according to the company's earnings discussion announcement.