Fleet management firm Karooooo's Q2 subscription revenue up 20%

Karooooo

14/10/2025 21:39

Overview

Karooooo Q2 2026 subscription revenue grows 20% yr/yr, driven by Cartrack's ARR increase

Adjusted EPS for Q2 2026 rises 13% yr/yr, reflecting strong earnings

Company maintains strong cash position with ZAR393 mln net cash after dividend payout

Outlook

Karooooo expects investment in AI products to generate robust future results

Company emphasizes strong unit economics and clean balance sheet for scaling

Result Drivers

SUBSCRIPTION REVENUE GROWTH - Cartrack's SaaS ARR growth drove a 20% increase in subscription revenue

LOGISTICS REVENUE - Karooooo Logistics's revenue rose 38% due to increased e-commerce orders

AI INVESTMENT - Continuous investment in AI products and platform expected to generate robust future results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Subscription Revenue
ZAR 1.18 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Karooooo Ltd is $60.00, about 12.5% above its October 13 closing price of $52.51

The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nBw7Nbgq3a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)