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The latest announcement is out from Karooooo ( (KARO) ).
On May 13, 2026, Karooooo reported record subscription revenue, operating income and adjusted earnings per share for the fourth quarter and fiscal year ended February 28, 2026, driven by robust growth at Cartrack and Karooooo Logistics. Cartrack’s subscription revenue rose 18% year on year in Q4, South Africa subscription revenue growth accelerated to 22%, SaaS annualized recurring revenue reached ZAR5.18 billion, and group adjusted free cash flow for FY 2026 jumped 90% to ZAR809 million, supporting a 20% higher dividend declared for payment in July 2026.
Despite higher costs compressing Cartrack’s operating margin to 25% in Q4 and reducing group operating profit and rand-reported EPS for the quarter, Karooooo emphasized ongoing investments in distribution, AI-powered video capabilities and new products such as Cartrack-Tag, while planning slower hiring in FY 2027 to boost sales force efficiency. Management guided to another year of accelerated Cartrack subscription revenue growth and EPS growth of about 21% at the midpoint for FY 2027, underscoring confidence in the group’s vertically integrated model and its ability to sustain profitable expansion across markets.
The most recent analyst rating on (KARO) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Karooooo stock, see the KARO Stock Forecast page.
Spark’s Take on KARO Stock
According to Spark, TipRanks’ AI Analyst, KARO is a Outperform.
KARO scores well primarily on strong underlying profitability and generally solid cash generation, supported by constructive technical momentum. The latest earnings call adds confidence via raised subscription guidance and accelerating ARR/subscriber metrics, while the main offsets are volatile free-cash-flow conversion and near-term margin/FX-related variability. Valuation is reasonable but not cheap, keeping the score below the highest tier.
To see Spark’s full report on KARO stock, click here.
More about Karooooo
Karooooo Ltd., headquartered in Singapore, is a telematics and mobility software provider that owns 100% of Cartrack and 81% of Karooooo Logistics. Through Cartrack, it offers software-as-a-service vehicle and fleet management solutions, while Karooooo Logistics focuses on business-to-business delivery-as-a-service, with a strong market presence in South Africa and other geographies.
Average Trading Volume: 64,071
Technical Sentiment Signal: Buy
Current Market Cap: $1.5B
Learn more about KARO stock on TipRanks’ Stock Analysis page.