Karooooo CEO Zak Calisto
Image: Simphiwe Mbokazi/ANA
Karooooo said its Cartrack subscribers increased by 18% to 2,8 million for the three months ended May 31, according to a first-quarter update on Thursday.
Net Cartrack subscriber additions accelerated by 70%, reaching a record of 142,472 from 84,013 in the first quarter of 2025.
Karooooo's subscription revenue accelerated by 19%, reaching R1,35 billion. Cartrack's annualised recurring revenue (ARR) growth accelerated to 19%, reaching R5,43bn.
"The 2027 financial year is off to a strong start, with record net subscriber additions and healthy retention driving 21% Cartrack constant currency subscription revenue growth. We believe we are on track to accelerate subscription revenue growth as we realise the benefits of our recent investments in sales capacity,” said CEO and founder Zak Calisto in a statement.
Karooooo Logistics's B2B delivery-as-a-service (DaaS) revenue accelerated to 46%, reaching R177 million.
Karooooo's operating profit increased by 16% to a record R410m. Cartrack's operating profit also increased by 16% to a record R395m. Cartrack's operating profit margin was 28% versus 30% at the same time a year before. Karooooo Logistics's operating profit increased by 50% to R15m.
Karooooo's adjusted earnings per share increased by 11% to R9,53.
Calisto said there had been “strong, accelerated growth, underpinned by Cartrack constant currency subscription revenue growth of 21% and a record 142,472 net subscriber additions in the quarter.”
He noted that despite a strengthening rand, which negatively impacts contributions from most of the countries in which Karooooo operates, subscription revenue and ARR (annual recurring revenue) each accelerated by 19%.
In constant currency, ARR rose by 22%, and in US dollars, ARR was 32% higher at $335m.
“Our product innovation continues to deliver the intended outcomes. This year, our focus remains to accelerate growth by growing sales and marketing at a moderate pace while optimising the strong investment we made in sales capacity during the 2026 financial year,” said Calisto.
“We remain optimistic about the opportunities across our regions and believe we are well positioned to build on the momentum established in the first quarter,” he said.
He said they operate in an expanding and largely underpenetrated market, fueled by robust and sustained customer demand. This demand is driven by a heightened focus on digitalisation, the need to improve operational efficiency and reduce costs, and increasing attention to safety in physical operations.
"Our easy-to-use operational intelligence platform empowers our customers to improve operational efficiencies, reduce risk, and enhance the safety of their physical operations,” said Calisto.
“We are on track to accelerate subscription revenue growth in 2027 as we realise the benefits of our recent investments in sales capacity,” he said.
He said their ongoing investments in AI innovation, platform capabilities, and customer experience had positioned them to drive durable long-term growth, and he said they remain confidence their track record of success, specifically the ability to generate healthy cash flows, was sustainable.
Karooooo reported a net cash and cash equivalents balance of R755m at May 31, 2026. There had been a healthy increase of 21% in cash generated from operations before working capital changes of R690m, driven by strong subscription revenue growth and operating profit.
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