Karooooo Delivers Accelerating Subscription Revenue Growth and Strong Cash Flow in FY 2026

SINGAPORE--(BUSINESS WIRE)--Karooooo Limited (“Karooooo”) reported record results for the fourth quarter (“Q4 2026”) and year ended February 28, 2026 (“FY 2026”). Karooooo owns 100% of Cartrack and 81% of Karooooo Logistics, (collectively, “the group”).

FY 2026 was another year of strong execution. Despite the stronger ZAR, Cartrack accelerated subscription revenue growth to 19%, up from 15% in the prior year.

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Financial highlights include:

• Q4 Cartrack South Africa Subscription Revenue growth accelerated to 22% Y/Y
• Q4 Cartrack SaaS ARR increased 18% Y/Y reaching ZAR5,179 million and 38% in USD equivalent
• FY 2026 Adjusted EPS increased 3% Y/Y to ZAR32.55 and 20% to USD2.05 in USD equivalent
• FY 2026 Adjusted Free Cash Flow increased 90% Y/Y to ZAR809 million
• Declared a USD1.50 dividend per share payable in July 2026, an increase of 20% Y/Y

“FY 2026 was another year of strong execution. Despite the stronger ZAR, Cartrack accelerated subscription revenue growth to 19%, up from 15% in the prior year. Our ARR increased 18% to ZAR5,179 million and 38% to USD325 million. Importantly, Cartrack subscription revenue growth in South Africa accelerated meaningfully, and we ended the year with South Africa ARR growing at 23%,” said Zak Calisto, Group CEO of Karooooo.

“During the year, we continued to invest in our distribution network to support accelerated growth and are seeing good early-stage results. Our continued development and product initiatives further strengthened our differentiated value proposition with an enhanced platform, further AI-powered video capabilities and we commercially launched Cartrack-Tag. In FY 2027, we aim to accelerate subscription revenue growth once again while delivering strong EPS growth. Despite providing a contracting gross profit margin outlook for FY 2027, our mid-point outlook for EPS growth in FY 2027 is 21% when compared to our FY 2026 EPS excluding the secondary offering costs. We envisage a slow-down in hiring in FY 2027 while we drive sales force efficiency and AI adoption.¹ We enter FY 2027 with operating strength and remain confident in our ability to drive durable, profitable growth across our geographies. We continue to see that our strong owner-oriented culture, vertically-integrated business model, continued innovation, and financial discipline drive our successful customer-centric execution.”

¹ Refer to our 6K filed on May 13, 2026, for our FY 2027 Outlook.

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