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Karooooo (KARO)
NASDAQ:KARO
Earnings Data
Report Date
May 20, 2026Before Open (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
0.55Last Year’s EPS
0.59Same Quarter Last Year
Strong Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong and accelerating SaaS momentum: ARR and subscription revenue growth, record net subscriber additions, high retention, robust unit economics (73% gross margin; LTV:CAC >9x), and improved guidance. These positives outweigh the primarily tactical and manageable negatives — a planned 47% increase in sales & marketing expense, currency translation headwinds, ARPU dilution risk from lower-ARPU regional expansion, and hiring/execution demands. Management framed the investments as strategic and temporary, while balance sheet strength and cash generation provide flexibility.Company Guidance
Accelerating ARR Growth to Near USD 300M
ARR increased 22% year-over-year to ZAR 5,106 million and 28% in U.S. dollar terms to USD 298 million, bringing the company to the verge of USD 300 million in ARR.
Strong Subscription Revenue and Total Revenue Growth
Total revenue rose 22% to ZAR 1,410 million and subscription revenue grew 20% to ZAR 1,239 million, with subscription revenue comprising 97% of Cartrack revenue.
Record Subscriber Momentum
Total subscribers increased 16% to approximately 2.6 million with record net subscriber additions of 111,478 in Q3; South Africa subscribers reached ~1.9 million (up 16%).
Improving Unit Economics and Margins
Subscription gross margin was 73%, LTV to CAC remained above 9x, commercial customer ARR retention stayed high at 95%, and Cartrack operating profit margin was healthy at ~28%.
Strong Regional Performance
South Africa subscription revenue accelerated to 21% growth (ARPU in South Africa up 7% to ZAR 162), Europe subscription revenue increased 24% (19% constant currency), and Southeast Asia & Middle East subscribers rose 20% (region subscription revenue +14%).
Karooooo Logistics Scaling Profitably
Karooooo Logistics revenue grew 24% to ZAR 135 million with a 7% operating profit margin, contributing to overall growth and enterprise customer engagement.
Cash Generation and Balance Sheet Strength
Net cash and cash equivalents were ZAR 531 million; year-to-date adjusted free cash flow increased 37% to ZAR 597 million and Q3 adjusted free cash flow increased 28% to ZAR 239 million.
Upward Guidance and Rule-of-60 Profile
FY26 Cartrack subscription revenue outlook was raised to ZAR 4,785–4,900 million (implying 18–21% growth) and the company reported a Rule of 60 performance (20% subscription growth + 45% adjusted EBITDA margin).
KARO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
KARO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 20, 2026 | $44.76 | $43.34 | -3.17% |
Oct 14, 2025 | $56.40 | $47.14 | -16.42% |
Jul 22, 2025 | $49.24 | $47.36 | -3.82% |
May 14, 2025 | $43.73 | $48.94 | +11.91% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Karooooo (KARO) report earnings?
Karooooo (KARO) is schdueled to report earning on May 20, 2026, Before Open (Confirmed).
What is Karooooo (KARO) earnings time?
Karooooo (KARO) earnings time is at May 20, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is KARO EPS forecast?
KARO EPS forecast for the fiscal quarter 2026 (Q4) is 0.55.