The earnings call highlighted significant growth in ARR, subscription revenue, and customer retention, alongside strategic expansion in Southeast Asia. However, there are challenges in meeting ARPU growth targets and managing upfront costs. Overall, the positive growth metrics outweigh the challenges.

Company Guidance

During Karooooo's Q1 FY 2026 earnings call, the company reported strong financial performance driven by its SaaS platform, Cartrack, and its logistics segment, Karooooo Logistics. Cartrack's subscription revenue grew by 19% in ZAR terms and 24% in USD, with an operating profit margin of 30%. The company achieved an 18% increase in annual recurring revenue (ARR) to ZAR 4.57 million, or 24% to USD 254 million. Subscription revenue accounted for 98% of total revenue, while the commercial customer ARR retention rate was 95%. The subscriber base grew by 17% to approximately 2.4 million, with notable growth in Southeast Asia and Europe. Karooooo Logistics also reported robust growth, with delivery-as-a-service revenue increasing by 20% in ZAR and 26% in USD. The company maintained a healthy subscription gross margin of 74% and an LTV to CAC ratio above 9x. Earnings per share rose by 19% to ZAR 8.55, and the company ended the quarter with net cash and cash equivalents of ZAR 1.103 million. As part of its strategic priorities, Karooooo is expanding its sales capacity, particularly in Asia, with plans to increase its sales headcount by 70% by February 2026. The company remains committed to profitable growth, capitalizing on the vast total addressable market (TAM) and the growing demand for its AI video solutions.

Strong ARR Growth

Q1 FY '26 annual recurring revenue (ARR) increased 18% to ZAR 4.57 million, with a 24% increase on a U.S. dollar basis to USD 254 million.

Subscription Revenue Surge

Cartrack subscription revenue rose by 19% to ZAR 1.1 billion, equivalent to a 24% increase in U.S. dollar terms.

Impressive Operating Profit Margin

Cartrack maintained a strong operating profit margin of 30% despite increased investments in sales capacity and infrastructure.

High Customer Retention

Commercial customer ARR retention rate remained at 95%, supporting the company's strong financial profile.

Karooooo Logistics Revenue Growth

Karooooo Logistics' Delivery-as-a-Service revenue reached ZAR 121 million, a 20% increase, with a 26% increase in U.S. dollars.

Robust Subscriber Growth

Total subscribers increased by 17% to approximately 2.4 million, with notable growth in Southeast Asia (22%) and Europe (20%).

Strong Cash Position

The company ended the quarter with net cash and cash equivalents of ZAR 1.103 million.

Continued Expansion in Southeast Asia

Southeast Asia subscription revenue growth accelerated to 30%, supported by plans to increase sales headcount by 70% by February 2026.

Karooooo (KARO) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

KARO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 09, 2025	2026 (Q2)	0.45 / -	0.423	―	―	―
Jul 22, 2025	2026 (Q1)	0.44 / 0.49	0.412	19.25% (+0.08)
May 14, 2025	2025 (Q4)	0.40 / 0.55	0.392	39.21% (+0.15)
Jan 14, 2025	2025 (Q3)	0.39 / 0.44	0.365	21.14% (+0.08)
Oct 15, 2024	2025 (Q2)	0.39 / 0.42	0.323	31.02% (+0.10)
Jul 18, 2024	2025 (Q1)	0.37 / 0.41	0.293	40.86% (+0.12)
May 15, 2024	2024 (Q4)	0.36 / 0.39	0.27	44.89% (+0.12)
Jan 23, 2024	2024 (Q3)	0.34 / 0.36	0.27	34.89% (+0.09)
Oct 12, 2023	2024 (Q2)	0.32 / 0.32	0.284	13.79% (+0.04)
Jul 20, 2023	2024 (Q1)	0.31 / 0.29	0.285	2.62% (<+0.01)

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
Jul 22, 2025	$49.24	$47.36	-3.82%
May 14, 2025	$43.73	$48.94	+11.91%
Jan 14, 2025	$46.25	$43.48	-5.99%
Oct 15, 2024	$44.31	$37.40	-15.59%

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 Oct 09, 2025, Before Open (Confirmed).

What is Karooooo (KARO) earnings time?

Karooooo (KARO) earnings time is at Oct 09, 2025, 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 (Q2) is 0.45.

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