Karooooo Ltd. (KARO)
NASDAQ:KARO
Want to see KARO full AI Analyst Report?
Earnings Data
Report Date
Jul 16, 2026Before Open (Confirmed)
Period Ending
2027 (Q1)Consensus EPS Forecast
0.52Last Year’s EPS
0.51Same Quarter Last Year
Strong Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong, accelerating top-line SaaS metrics (ARR, subscription revenue, subscriber growth), exceptional free cash flow generation (+90%) and continued high retention and unit economics (LTV:CAC >9x, 95% retention), while acknowledging near-term margin pressure from a large device provision, elevated sales & marketing investments, FX translation effects and rising component costs. Management positioned the investments as deliberate and aimed at durable future growth and forecasted resumed subscription revenue acceleration and EPS growth in FY'27 despite a modest margin contraction in guidance.Company Guidance
ARR Growth
Annual Recurring Revenue (ARR) increased 18% to ZAR 5,179 million and 38% in U.S. dollars to USD 325 million, reflecting accelerating subscription momentum despite FX headwinds.
Subscription Revenue Acceleration (Cartrack)
Cartrack subscription revenue grew 19% year-over-year to approximately ZAR 4.8 billion (39% growth on a U.S. dollar basis), up from 15% growth in FY'25.
Subscriber Scale & Net Adds
Total subscribers reached ~2.7 million, up 16% year-over-year, with record Q4 net additions of ~94,000 (Q4 net adds up ~19% YoY) and strong Asia momentum (Asia subscribers up 23%, Asia net additions +41% for the year).
Free Cash Flow & Capital Returns
Adjusted free cash flow increased 90% to ZAR 809 million in FY'26. The company declared a record dividend of USD 1.50 per share, a 20% increase, demonstrating strong cash generation and shareholder returns.
Unit Economics & Retention
Commercial customer ARR retention remained high at 95% and LTV:CAC stayed above 9x. Subscription revenue comprised 98% of Cartrack revenue and Q4 subscription gross margin was 71%—indicating durable unit economics.
Profitability & Operating Margins
Cartrack operating profit margin was healthy at ~28% for FY'26. Consolidated operating profit increased (reported increases of ~8% in parts of the presentation) and adjusted EPS (FY'26) was ZAR 32.55 (USD 2.05, +20% in USD).
Karooooo Logistics Growth
Karooooo Logistics revenue reached ZAR 540 million for the year, up 29% (50% in USD), and Q4 revenue was ZAR 145 million, up 32%, with a Q4 operating profit margin of 9%—showing strong scaling in the delivery-as-a-service business.
Geographic Momentum & Product Adoption
South Africa ARR growth accelerated to 23% exiting the year; South Africa subscription revenue grew 20% to ZAR 3,468 million. Investment in video/AI features and distribution expansion drove broader adoption and product cross-sell (e.g., video and Cartrack Tag).
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 |
|---|---|---|---|
May 13, 2026 | $47.47 | $44.59 | -6.07% |
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% |
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 Ltd. (KARO) report earnings?
Karooooo Ltd. (KARO) is schdueled to report earning on Jul 16, 2026, Before Open (Confirmed).
What is Karooooo Ltd. (KARO) earnings time?
Karooooo Ltd. (KARO) earnings time is at Jul 16, 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 2027 (Q1) is 0.52.